Annual Report 2011
ASAHI KASEI CORPORATION
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We, the Asahi Kasei Group, contribute to life and
living for people around the world.
History of Business Portfolio Transformation
(Sales Composition)
FY 1950
FY 1965
Fibers
Net sales
¥13.5 billion
Chemicals
Fibers
Net sales
¥112.9 billion
Homes &
Construction
Materials
FY 1980
Chemicals
Net sales
¥800.1 billion
FY 1995
Electronics
Health Care
Homes &
Construction
Materials
Net sales
¥1,210.2 billion
Fibers
Chemicals
(cid:115)Expansion into
synthetic rubber business
(cid:115)Expansion into synthetic
fiber business
Fibers
(cid:115)Start of construction
materials and housing
businesses
(cid:115)Start of petrochemical business
(cid:115)Start of medical devices business
(cid:115)Start of pharmaceutical
business
(cid:115)Start of LSI business
Chemicals
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Always transforming its business portfolio to meet the changing needs of the times, the Asahi Kasei Group has
developed into one of Japan’s leading chemical manufacturers, with a selectively diversifi ed array of businesses.
With Asahi Kasei Corp. as a holding company, businesses are advanced by nine core operating companies in
the four business sectors of Chemicals & Fibers, Homes & Construction Materials, Electronics, and Health Care.
In anticipation of emerging changes in social structures, we will offer new value from the perspectives of
“living in health and comfort” and “harmony with the natural environment,” aiming to achieve continuous growth
in accordance with our Group Slogan—Creating for Tomorrow.
Business sectors
Holding company
Asahi Kasei
Chemicals & Fibers
Homes &
Construction Materials
Core operating companies
Core operating companies
Core operating companies
Asahi Kasei Chemicals
Asahi Kasei Homes
Asahi Kasei Microdevices
Asahi Kasei Fibers
Asahi Kasei Construction Materials
Asahi Kasei E-materials
Core operating companies
Asahi Kasei Pharma
Asahi Kasei Kuraray Medical
Asahi Kasei Medical
Electronics
Health Care
FY 2010
Net sales
¥1,598.4 billion
Chemicals
46.4%
Construction
Materials
3.0%
Others
1.0%
Homes
25.6%
Health Care
7.3%
Fibers
6.8%
Electronics
9.9%
Contents
02 Consolidated Financial Highlights
04 To Our Shareholders
06 A Message from the President
11 New mid-term management initiative:
“For Tomorrow 2015”
16 At a Glance
18 Operating Segments
18 Chemicals
20 Homes
22 Health Care
24 Fibers
26 Electronics
28 Construction Materials
30 Others
31 Toward Sustainable Growth
39 Financial Section
78 Major Subsidiaries and Affi liates
80 Corporate Profi le
81 Investors Information
Asahi Kasei Annual Report 2011
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Consolidated Financial Highlights
Asahi Kasei Corporation and consolidated subsidiaries
Fiscal year beginning April 1
2010
2009
¥ billion
2008
2007
2006
US$ million*
2010
For the year
Net sales
Operating income
Net income
Comprehensive income
Free cash fl ows
At year end
Total assets
Net worth†
Interest-bearing debt
Per share
Net income
Net worth‡
Cash dividends
Key indexes
Operating margin
Payout ratio
ROA
ROE
Net worth to total assets‡
D/E ratio‡
¥ 1,598.4
122.9
60.3
45.1
69.3
¥ 1,433.6
¥ 1,553.1
¥ 1,696.8
¥ 1,623.8
$ 19,258
57.6
25.3
35.0
4.7
127.7
69.9
—
—
—
69.1
(66.9)
3.8
127.8
68.6
—
47.1
1,481
726
543
835
¥ 1,425.9
¥ 1,368.9
¥ 1,379.3
¥ 1,425.4
¥ 1,459.9
$ 17,179
663.6
253.9
633.3
264.6
666.2
211.4
645.7
216.9
603.8
315.6
¥
7,995
3,059
US$*
¥ 43.11
474.59
11.00
¥ 18.08
452.91
10.00
¥ 3.39
431.77
10.00
¥ 50.01
¥ 49.00
$
0.52
476.39
13.00
461.50
12.00
5.72
0.13
7.7%
25.5%
4.3%
9.3%
46.5%
0.38
4.0%
55.3%
1.8%
4.1%
46.3%
0.42
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
* U.S. dollar amounts in this annual report are translated from Japanese yen, for convenience only, at the rate of ¥83=US$1 as described in Note 1 of Notes to
Consolidated Financial Statements.
† Net assets less minority interest.
‡ At fi scal year end.
Net Sales
(¥ billion)
2,000
1,696.8
1,623.8
1,553.1
1,598.4
1,433.6
1,500
1,000
500
0
FY
06
07
08
09
10
2
Asahi Kasei Annual Report 2011
Operating Income, Operating Margin
Net Income, ROE
(¥ billion)
(¥ billion)
127.8
127.7
(%)
15
122.9
12
7.9
7.5
7.7
57.6
4.0
35.0
2.3
06
07
08
09
10
9
6
3
0
150
120
90
60
30
0
FY
80
60
40
20
0
FY
68.6
69.9
11.1
10.7
(%)
20
60.3
15
10
9.3
5
0
25.3
4.1
4.7
0.7
Operating income, left scale
Operating margin, right scale
Net income, left scale
ROE, right scale
06
07
08
09
10
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Strategic Management Initiatives
(¥ billion)
2,000
1,600
1,200
800
400
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Ishin2000
(FY 1999–2002)
Selectivity and focus
Disposal of negative legacies
Ishin-05
(FY 2003–2005)
Selective diversification
Creation of cash flow
Management speed
and autonomy
(FY 2006–2010)
Business portfolio realignment for
expansion and growth
Strategic investment
FY 2011–2015
(¥ billion)
150
120
90
60
30
0
FY
(30)
(60)
(90)
Operating income, left scale
Net income (loss), left scale
Net sales, right scale
Total Assets, Net Worth to Total Assets
Interest-Bearing Debt, D/E Ratio
Free Cash Flows
(¥ billion)
(¥ billion)
(¥ billion)
1,500
1,459.9
(%)
60
1,425.4
1,379.3
1,368.9
1,425.9
44.2
46.7
43.8
46.3
46.5
40
20
0
1,000
500
0
350
300
250
200
150
100
50
0
315.6
0.7
0.6
216.9
211.4
0.34
0.32
264.6
0.52
253.9
0.5
0.42
0.4
0.38
0.3
0.2
0.1
0.0
FY*
06
07
08
09
10
FY*
06
07
08
09
10
Total assets, left scale
Net worth to total assets, right scale
* At year end.
Interest-bearing debt, left scale
D/E ratio, right scale
* At year end.
80
60
40
20
0
(20)
(40)
(60)
(80)
FY
69.1
69.3
47.1
3.8
(66.9)
06
07
08
09
10
Asahi Kasei Annual Report 2011
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To Our Shareholders
The Japanese economy was recovering in the first half of fiscal 2010 as corporate performance improved
with the effect of government stimulus measures and thanks to economic recovery in emerging markets. In
the second half, however, the economy was severely affected by the rapid rise of the yen, a decline in
automotive sales due to the expiration of government subsidies for fuel-efficient vehicles, high feedstock
prices driven by political unrest in North Africa and the Middle East, and the impact of the Great East Japan
Earthquake, resulting in uncertainty regarding the economic outlook.
Consolidated results of Asahi Kasei Corp. and its consolidated subsidiaries and equity-method
affiliates (the Asahi Kasei Group) reflected substantially stronger performance buoyed by higher market
prices and increased overseas demand in the Chemicals segment as well as favorable performance in the
Homes and Electronics segments. Net sales were ¥1,598.4 billion, an increase of ¥164.8 billion (11.5%)
from a year ago. Operating income increased by ¥65.3 billion (113.3%) from a year ago to ¥122.9 billion.
Ordinary income increased by ¥61.9 billion (109.7%) to ¥118.2 billion. Net income increased by ¥35.0 billion
(138.4%) to ¥60.3 billion.
Based on these results, we paid a year-end dividend of ¥6 per share, which, combined with the
interim dividend, brought the total annual dividend to ¥11 per share.
This April, the Asahi Kasei Group launched a new medium-term strategic management initiative,
“For Tomorrow 2015,” for the five-year period from fiscal 2011 through fiscal 2015. At the same time, we
also adopted a renewal of our Group Mission and Group Vision—with “Contributing to life and living for
people around the world” as our Group Mission, and “Providing new value to society by enabling living in
health and comfort and harmony with the natural environment” as our Group Vision.
“For Tomorrow 2015” provides a clear vision for the Asahi Kasei Group, with a focus not only on
the proactive expansion of our globally competitive businesses, but also on the expansion of operations in
fields related to the environment & energy, residential living, and health care from the perspectives of living in
health and comfort and harmony with the natural environment. To further heighten corporate value, we will
pursue growth by focusing the strengths of the Group on anticipating emerging social needs through our
key strategies of “expansion of world-leading businesses” and “creation of new value for society.”
August 2011
Ichiro Itoh
Chairman
Taketsugu Fujiwara
President
4
Asahi Kasei Annual Report 2011
Ichiro Itoh, Chairman (left), Taketsugu Fujiwara, President (right)
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Asahi Kasei Annual Report 2011
5
A Message from the President
Boldly advancing our “For Tomorrow 2015”
management initiative, for the continuous
enhancement of corporate value.
Taketsugu Fujiwara, President
The Asahi Kasei Group has launched “For Tomorrow 2015,” our new
strategic management initiative for the fi ve years through fi scal 2015.
Strategies for growth are to expand world-leading businesses and to
create new value for society in environment and energy, residential
living, and health care–related fi elds.
6
Asahi Kasei Annual Report 2011
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Review of “Growth Action – 2010”
Our previous strategic initiative, “Growth Action – 2010,” for the fi ve-year period from April 2006 to
March 2011, was focused on business portfolio realignment for expansion and growth with two
key strategies of expanding global businesses and enhancing domestic businesses.
For the expansion of global businesses, we concentrated investments on businesses with
competitive superiority in global markets. In petrochemicals, we adopted decisions to build a new
acrylonitrile (AN) plant in Thailand and Korea, and a new solution-polymerized styrene-butadiene
rubber (S-SBR) plant in Singapore. In electronics materials, we built a new plant for Hipore™
lithium-ion battery (LIB) separator in Hyuga, and expanded capacity at our plant in Moriyama. In
electronics devices, we made a large expansion of our business for electronic compasses used in
smartphones and other mobile electronics, and entered the fi eld of power-management LSIs by
acquiring the semiconductor business of Toko, Inc. In medical-related products, we formed
strategic alliances in the fi eld of hemodialysis with Kawasumi Laboratories, Inc. and NxStage
Medical, Inc., and expanded our bioprocess equipment business by acquiring the business of
TechniKrom, Inc.
We also took a number of steps for the enhancement of domestic businesses. In
pharmaceuticals, we began marketing Recomodulin™ recombinant thrombomodulin and Famvir™
anti-herpes agent, and fi led an application for approval for Teribone™ for osteoporosis. In homes,
we developed a new framing system for next-generation energy conservation, and launched
several new products for urban markets. In petrochemicals, we addressed an intermediate-term
challenge related to the competitiveness of our naphtha cracker in Mizushima by establishing Nishi
Nippon Ethylene LLP together with Mitsubishi Chemical. Unifi ed management of our naphtha
crackers began in April 2011, enabling unparalleled fl exibility to adapt to changes in the operating
environment.
Key results of “Growth Action – 2010”
Expanding global businesses
Enhancing domestic businesses
Globally competitive
petrochemicals business
(cid:129) Construction of new AN and methyl
methacrylate (MMA) plants in Thailand,
capacity expansion for AN in Korea
(cid:129) Construction of new solution SBR plant in
Singapore
Electronics
(cid:129) Capacity expansion for Hipore™ LIB separator
(cid:129) Electronic compass business, power-
management semiconductors for cell
phones and smartphones (acquisition of
Toko, Inc.’s semiconductor business, etc.)
Health Care
(cid:129) Polysulfone hollow-fi ber membrane artifi cial
kidneys business (incl. tie-ups with
Kawasumi Laboratories, Inc. and NxStage
Medical, Inc.)
(cid:129) Market entry in bioprocess equipment and
advanced medical devices businesses
Reinforcing pharmaceuticals
business
(cid:129) Market launch of Recomodulin™
recombinant thrombomodulin and
Famvir™ anti-herpes agent, application for
approval to manufacture and sell
Teribone™ (teriparatide acetate) as an
osteoporosis drug
(cid:129) Strengthening homes business (three-story
houses for urban life, peripheral businesses,
etc.)
Restructuring
(cid:129) Unifi ed management of naphtha crackers in
Mizushima, Japan; closure of polyester
fi lament plant, etc.
(¥ billion)
FY 2010
results
FY 2010
original targets
Net sales
1,598.4
1,800
Operating
income
122.9
150
Net income
60.3
80
ROE
9%
≥10%
Asahi Kasei Annual Report 2011
7
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Operating performance exceeded our targets in fi scal 2006 and 2007, but the impact of the
global fi nancial crisis in autumn 2008 caused results to undershoot our targets by a wide margin in
fi scal 2008 and 2009. In fi scal 2010, although we were unable to meet our original targets, a strong
recovery of demand in emerging economies and an expansion of homes operations enabled our
performance to recover to pre-crisis levels. All in all, I feel that we successfully strengthened our
operational base during the fi ve-year period under “Growth Action – 2010” for a new phase of
development, even as we swiftly adjusted to drastic changes in the operating environment.
For Tomorrow 2015
We launched a new medium-term management initiative, “For Tomorrow 2015,” in April 2011. In
formulating our strategies and plans, in addition to analyzing the major global trends that will be
prominent over the coming years, we took a step back and had a fresh look at our basic principles,
including our Group Mission and Group Values. We realized that our proper course for advancement
was to create new value by anticipating changes in society from the two perspectives of living in
health and comfort and harmony with the natural environment. This is the core concept of “For
Tomorrow 2015,” the naming of which is an expression of our aspiration to create new value for the
future.
Our two main strategies for growth are the expansion of world-leading businesses and the
creation of new value for society. For the expansion of world-leading businesses, we will build on
our established No. 1 and No. 2 global positions, advancing proactively in markets where we can
exert leadership, with a focus on growth in developing countries. For the creation of new value for
society, we will concentrate resources on the expansion of businesses related to the environment
and energy, residential living, and health care, as fi elds that contribute to living in health and
comfort and harmony with the natural environment. Leveraging the diverse strengths of the Asahi
Basic strategy and targets of “For Tomorrow 2015”
The Asahi Kasei Group is creating new things for the future
based on the perspectives of “living in health and comfort”
and “harmony with the natural environment.”
Pursuit of growth
1. Expansion of world-leading businesses
2. Creation of new value for society
Promotion of businesses based on living in health and
comfort and harmony with the natural environment
(cid:129) Environment/energy-related
(cid:129) Residential living-related
(cid:129) Health care-related
8
Asahi Kasei Annual Report 2011
FY 2010
results
1,598.4
122.9
60.3
9%
7%
28%
(39%)
Net sales
Operating
income
Net income
ROE
ROIC
Overseas
sales ratio
(excl. Homes &
Const. Mat.)
(¥ billion)
FY 2015
targets
2,000
200
110
≥10%
≥7%
32%
(45%)
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Kasei Group in these fi elds, we have established three “For
Tomorrow” projects which extend across our various business
units, to anticipate the world’s emerging needs with unique
solutions that only we can provide.
To achieve these strategies we plan to invest some ¥1 trillion
for the creation of new business over the fi ve-year period
through fi scal 2015, including M&A. We are targeting
consolidated net sales of ¥2 trillion and operating income of
¥200 billion in fi scal 2015.
Effect of the Great East Japan Earthquake
To all those affected by the Great East Japan Earthquake, the Asahi Kasei Group expresses its
sincere sympathy. It is our genuine hope that the affl icted areas will be restored and revitalized as
soon as possible.
In terms of direct damage to Asahi Kasei Group assets, four of our plants were damaged by
the earthquake: The Ishinomaki Plant of Asahi Kasei Power Devices Corp. in Miyagi Prefecture, the
Sakai Plant and Neoma Foam Plant of Asahi Kasei Construction Materials Corp. in Ibaraki
Prefecture, and the Tomobe Plant of Asahi Kasei Metals Ltd. in Ibaraki Prefecture. We established
an emergency disaster response headquarters right after the quake to coordinate efforts to confi rm
the safety of all personnel and to minimize the effects on operations. All of the damaged plants
resumed operation in May, and are now operating normally. The direct impact of the disaster on
our fi scal 2010 operating results was an extraordinary loss of ¥800 million. We are forecasting the
effect on fi scal 2011 results to be relatively minor.
Fiscal 2011 Outlook
Although there are some positive economic developments, such as a rebound in manufacturing
activity following the temporary slowdown due to the earthquake, as well as growth in exports, the
operating environment for the Asahi Kasei Group in fi scal 2011 generally remains obscure, with
uncertain economic prospects in the US and Europe, the persistent strength of the yen, and
electric power shortages in Japan. Even in these challenging circumstances, the Asahi Kasei
Group is determined to achieve growth guided by our “For Tomorrow 2015” strategies of
expanding our world-leading businesses and expanding businesses related to the fi elds of the
environment and energy, residential living, and health care. The outlook for fi scal 2011 by business
sector is as follows.
In Chemicals & Fibers, we are forecasting lower operating income in Chemicals as an effect of
higher feedstock costs and the strengthening yen, although we believe shipments to Asian markets
will remain favorable and market prices will be high, most notably for acrylonitrile. In Fibers, we are
forecasting slightly lower operating income as an effect of higher feedstock costs, even as
shipments are expected to grow in all major product areas.
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Asahi Kasei Annual Report 2011
9
In Homes & Construction Materials, we are forecasting higher
operating income in Homes with deliveries of Hebel Haus™ unit
homes increasing as an effect of strong growth in orders from
fi scal 2010. In Construction Materials, we are forecasting higher
operating income thanks to cost reductions in housing and
building materials operations and shipment growth in foundation
systems and insulation materials operations.
In Health Care, we are forecasting higher operating income
with shipment growth for Recomodulin™ in pharmaceuticals and
shipment growth for APS™ artifi cial kidneys and Planova™ virus
removal fi lters in devices.
In Electronics, we are forecasting higher operating income
with shipment growth in each product category in both electronic
materials and electronic devices.
Overall, we believe operating income will be slightly lower than in the previous year, though net
sales, ordinary income, and net income will all be higher.
Return to Shareholders
The annual dividend for fi scal 2010 was raised by ¥1 per share to ¥11, refl ecting the improvement
in fi nancial results. For fi scal 2011, we believe further improved results will enable us to raise it by
another ¥2 to ¥13 per share.
Our basic policy is to strive to continuously increase dividends through earnings growth while
maintaining an appropriate cash reserve based on consolidated income.
Our cash reserve will be used as a source of funds required in order to achieve future earnings
growth by expanding operations, both through investments in established businesses and through
strategic investments and new business development expenditures in fi elds related to the
environment and energy, residential living, and health care as the strategic focus of “For Tomorrow
2015.” We aim to continuously increase dividends by expanding earnings under “For Tomorrow
2015,” with a basic standard for payout ratio of 30%.
Dividends per Share, Payout Ratio
(¥)
15
12
9
6
3
0
13
12
295.0
13
(plan)
10
10
11
55.3
(%)
300
120
90
60
30
24.5
26.0
25.5
26.4
(forecast)
0
FY
06
07
08
09
10
11
Dividends per share, left scale
Payout ratio, right scale
10 Asahi Kasei Annual Report 2011
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Asahi Kasei Group’s new mid-term management initiative:
“For Tomorrow 2015” (fi scal 2011– 2015)
Offering new value based on “living in health and comfort” and “harmony
with the natural environment” in anticipation of changing social needs.
Continuously enhancing our corporate value in accordance with our Group
Slogan: Creating for Tomorrow.
(¥ billion)
Operating income
Net income
(FY 2011–2015)
Long-term investment
¥1 trillion
Net sales
¥1,598.4 billion
Net sales
¥2 trillion
Operating income
¥200
billion
Operating income
¥122.9
billion
Net income
60.3
billion
Net income
¥110
billion
Net sales
¥2.5–3.0 trillion
Operating income
over ¥250
billion
Net income
over¥140
billion
300
250
200
150
100
50
0
FY
2006
2007
2008
2009 2010 2011
2012
2013
2014 2015 2016
target
2017
2018
2019 2020
target
ROE
ROIC
Overseas sales ratio
(excl. Homes &
Const. Mat.)
%9
%7
%28
39
%
)
(
%10
%7
%32
%45
)
(
1
2
3
4
Expansion of world-leading businesses
Creation of new value for society
Reformation of corporate systems
Performance plan by business sector
& long-term investment plan
Asahi Kasei Annual Report 2011
11
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1
Expansion of world-leading businesses
We will expand our global No. 1 and No. 2
businesses with a focus on growth in emerging
markets. For other businesses that are able to
attain a leading position by utilizing our technology
and market strengths, we will proactively expand
as a global market leader.
Overseas sales ratio of world-leading businesses
%62
%69
FY 2010
FY 2015
Acrylonitrile (AN)
Based on our technological strengths of having the world’s highest-yielding
catalyst and the world’s fi rst propane process, we plan to gain the global No. 1
position through expansion centered in Asia.
• Completion of a new plant in Thailand
(start-up in 2011)
• Capacity expansion in Korea
(start-up in 2013)
• Establishment of a joint venture to
implement a project to produce AN in
Saudi Arabia
Share of production capacity in Asia
(Asahi Kasei estimate)
%25
%40
FY 2010
FY 2015
Solution SBR (S-SBR)
Profi t*
(¥ billion)
120
100
80
60
40
20
0
FY
Net sales
¥620 billion
Net sales
¥430 billion
2010
2015
target
* Operating income of each business plus equity in
earnings of AN affi liates.
Asahi Kasei production capacity for AN
(thousand tons/year)
1,500
1,400
1,200
Middle East
Korea expansion
Thailand
950
750
1,000
500
0
FY
2010
2011
2013
2015
S-SBR is an essential material for fuel-effi cient tires, with particularly strong
demand growth in Asia. Asahi Kasei is proactively expanding capacity for
S-SBR which enables the production of tires that provide greater fuel
effi ciency while maintaining safety performance.
Asahi Kasei production capacity for S-SBR
used in fuel-effi cient tires
(thousand tons/year)
300
• Construction of a new S-SBR plant in
Singapore (start-up in 2013)
• Capacity expansion at the
Singapore plant (start-up in 2015)
Share of production capacity
(Asahi Kasei estimate)
%18
%26
FY 2010
FY 2015
Other world-leading businesses
• Electronics: Hipore™ lithium-ion battery separator, LSIs, dry fi lm photoresist, pellicles
• Health Care: Artifi cial kidneys (dialyzers), Planova™ virus removal fi lters
• Fibers: Roica™ elastic polyurethane fi lament
12 Asahi Kasei Annual Report 2011
200
100
0
FY
2010
2013
2015
2020
Second overseas
site
First overseas site
(Phase 2)
First overseas site
(Phase 1)
Domestic capacity
expansion
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2
Creation of new value for society
We are concentrating resources on fi elds
new projects—“Environment & Energy for
related to the environment & energy, residential
Tomorrow,” “Residential Living for Tomorrow,”
living, and health care, to expand businesses
and “Health Care for Tomorrow”—have been
which meet emerging social needs for living in
launched to create new system-based,
health and comfort and harmony with the
combined-unit businesses, making the most of
natural environment. To advance into these
the Asahi Kasei Group’s diverse competencies.
fi elds across different business units, three
Fields of focus
Environment &
Energy
Residential Living
Health Care
Basis of established businesses
Chemicals &
Fibers
Electronics
Homes &
Construction
Materials
Health Care
Combined-unit
projects
Production process
technology,
materials/
processing
technology
Production process
technology,
materials/
processing
technology
Production process
technology,
materials/
processing
technology
Energy-conserving
devices, battery
materials
Insulation,
highly durable
construction
materials
Sensors, energy-
conserving devices,
battery materials
Unit homes, multi-
dwelling homes,
peripheral
businesses
Environment &
Energy for Tomorrow
Residential Living for
Tomorrow
Medical equipment
applications
Rental homes for
the elderly
Pharmaceuticals,
medical-related
devices & systems
Health Care for
Tomorrow
Net sales
(¥ billion)
2,000
1,500
1,000
500
0
FY
2,000.0
1,598.4
2010
2015
target
Operating income
(¥ billion)
200
200.0
Others
Health Care
Residential
Living
Environment
& Energy
150
100
50
0
FY
Others
Health Care
Residential
Living
Environment
& Energy
122.9
2010
2015
target
Asahi Kasei Annual Report 2011
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Environment & Energy
Pushing diverse technology to tackle environmental challenges
Strategy for major businesses
Creation of new businesses through combined-unit projects
(cid:129) Hipore™ lithium-ion battery (LIB) separator
In addition to No. 1 position in LIBs for electronics, establish-
ing fi rm lead in technology and market for automotive LIBs.
(cid:129) Sensors, power-saving LSIs
Greater focus on infrastructure and automotive applications
in addition to consumer electronics. Expansion focused on
global markets in addition to Japan.
(cid:129) Neoma™ phenolic foam panels
Helping society to conserve energy by supplying materials
with world-leading insulation performance.
(cid:129) Water treatment/membrane business
Accelerating the development of business in China with
growing markets for water treatment.
Based on our group technologies with competitive superiority, the
Environment & Energy for Tomorrow project will advance the
development of innovative materials and devices as well as the
establishment of systems for application at each stage from power
generation to energy storage and consumption—including cutting-edge
battery materials, lithium ion capacitor modules and systems, next-
generation energy-saving devices, and LED materials.
Residential Living
Providing comfortable living to more customers, more quickly
Strategy for major businesses
Creation of new businesses through combined-unit projects
(cid:129) Houses, apartments
Pursuing superior structural technology and lifestyle
innovation to anticipate emerging needs in three-story and
two-generation urban homes. Developing unique apartment
buildings for the elderly, single women, pet owners, etc.
(cid:129) Real estate (condominium development, brokerage,
subleasing)
Maximizing the utilization of land value through consensus-
building among diverse interested parties, etc.
(cid:129) Remodeling
Providing greater satisfaction to Hebel Haus™ owners
through remodeling and renovation aligned to lifestyle
changes.
Not only selling homes in the mature urban market, but providing
innovative lifestyle proposals that add new value for society, for instance
by showcasing our services in concept houses. Expansion of our housing
business by emphasizing such elements as healthy and comfortable
living environments, interpersonal bonds, energy and resource
conservation, and maximum utilization of land value.
The Residential Living for Tomorrow project will bring together
technologies from a fresh perspective, including those of the Asahi Kasei
Group and those of generally available products. In addition, we will
adopt innovative technologies, products, and systems from our Health
Care for Tomorrow project and Environment & Energy for Tomorrow
project for practical application in residential settings.
Health Care
Providing unique products and technologies for a lively society of health and longevity
Strategy for major businesses
Creation of new businesses through combined-unit projects
(cid:129) Pharmaceuticals
Focusing on the expansion of Recomodulin™ anticoagulant,
launch and expansion of Teribone™ as an osteoporosis drug,
reinforcement of pipeline by in-licensing new drugs, and
strengthening of clinical development capability in the US.
(cid:129) Blood purifi cation (artifi cial kidneys, apheresis)
Accelerating full coverage of Europe, North America, and
emerging markets, while enhancing cost competitiveness
and product performance.
(cid:129) Bioprocess-related business
Leading the market for process equipment and media for
biologics through the provision of distinctive membrane
modules and the expansion of sales together with biopro-
cess equipment.
We seek to contribute to the advancement and widespread
dissemination of Japanese medical technology as well as the
establishment of Japanese society as a model for healthy longevity,
through proactive collaboration with outside organizations, combining
industry and academia and combining medicine and engineering. While
utilizing the technology and know-how of the Asahi Kasei Group, we will
execute M&As and form alliances to establish the platforms on which
business expansion will be based, as we take on the three challenges of
“heightening emergency and critical care,” “utilizing medical IT to support
healthy life,” and “applying cell therapy and regenerative medicine.”
14 Asahi Kasei Annual Report 2011
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3
4
Reformation of corporate systems
Our October 2003 transformation to a holding
resource policies, management control, and
company confi guration gave the core operating
resource allocation.
companies autonomous and independent
Our previous new business development
management, resulting in improved cash fl ow
strategy was based on market-focused R&D
and greater management speed. Nevertheless,
performed by the relevant core operating
we recognized the need to draw together the
company, and other R&D performed by the
power of the Asahi Kasei Group for the creation
holding company. With the start of the new
of new value for society amidst the dramatically
mid-term initiative, we have adopted a new
changing economic climate. We therefore
confi guration in which key projects that extend
reviewed a number of our corporate structures
across different business units are performed
and systems, including for the creation of new
either as “For Tomorrow” projects or by our
businesses, global business expansion, human
Central R&D Laboratories.
Performance plan by business sector
& long-term investment plan
Targets under “For Tomorrow 2015” include
billion and operating income of ¥15 billion in
consolidated net sales of ¥2 trillion and
fi scal 2015. Long-term investments of some
operating income of ¥200 billion in fi scal 2015.
¥1 trillion will be made over the fi ve-year period
For our new combined-unit “For Tomorrow”
through fi scal 2015 to achieve these targets.
projects, we are aiming for net sales of ¥100
Net sales
Operating income
FY 2010
FY 2015
target
FY 2010
FY 2015
target
(¥ billion)
Long-term investment plan
Chemicals & Fibers
851.0
880.0
Homes & Const. Mat.
456.6
570.0
68.6
38.6
14.3
7.0
75.0
50.0
40.0
25.0
Chemicals & Fibers
Intermittent
expansion
of established
businesses,
establishment of
new businesses,
M&A
Long-term
investment
of some
¥1 trillion
Homes &
Const. Mat.
Electronics
158.3
250.0
116.4
180.0
Electronics
Health Care
Others
Subtotal
“For Tomorrow” projects
16.0
20.0
(5.5)
(5.0)
1,598.4
1,900.0
122.9
185.0
100.0
(FY 2020)
approx. 300
15.0
(FY 2020)
approx. 50
Health Care
Total
1,598.4
2,000.0
122.9
200.0
Asahi Kasei Annual Report 2011
15
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At a Glance
Operating segments
Core operating companies, main businesses/products
Major consolidated subsidiaries
Chemicals
Asahi Kasei Chemicals Corp.
Homes
Health Care
Chemicals and derivative products: Ammonia, nitric acid, caustic soda,
acrylonitrile (AN), styrene, adipic acid, methyl methacrylate (MMA), and
acrylic resin.
Polymer products: Stylac™-AS styrene-acrylonitrile, Stylac™-ABS acrylonitrile-
butadiene-styrene, Tenac™ polyacetal, Xyron™ modifi ed polyphenylene ether
(mPPE), Leona™ nylon 66, Suntec™ polyethylene (PE), synthetic rubber and
elastomer, polystyrene.
Specialty products: Coating materials, latex, Ceolus™ microcrystalline
cellulose, explosives, explosion-bonded metal clad, Microza™ UF and MF
membranes and systems, ion-exchange membranes and electrolysis systems,
Saran Wrap™ cling fi lm, Ziploc™ storage bags, plastic fi lm, sheet, and foam.
Asahi Kasei Homes Corp.
Hebel Haus™ houses, Hebel Maison™ apartments, condominiums,
residential land development, remodeling, real estate brokerage, home
fi nancing.
Asahi Kasei Pharma Corp.
Asahi Kasei Kuraray Medical Co., Ltd.
Asahi Kasei Medical Co., Ltd.
Pharmaceutical-related: Pharmaceuticals including Recomodulin™,
Elcitonin™, Flivas™, Toledomin™, and Bredinin™, Lucica™ GA-L glycated
albumin assay kit, L-series enriched liquid diets.
Medical device–related: APS™ polysulfone-membrane artifi cial kidneys
(dialyzers), therapeutic apheresis devices, Planova™ virus removal fi lters,
Sepacell™ leukocyte reduction fi lters.
Fibers
Asahi Kasei Fibers Corp.
Roica™ elastic polyurethane fi lament, Bemberg™ regenerated cellulose
fi ber, nonwovens including Eltas™ spunbond and Lamous™ artifi cial suede,
Leona™ nylon 66 fi lament.
(cid:129) Asahi Kasei Pax Corp.
(cid:129) Asahi Kasei Home Products Corp.
(cid:129) Japan Elastomer Co., Ltd.
(cid:129) PS Japan Corp.
(cid:129) Tong Suh Petrochemical Corp., Ltd.
(cid:129) Asahi Kasei Plastics Singapore Pte. Ltd.
(cid:129) Asahikasei Plastics (America) Inc.
(cid:129) Asahi Kasei Performance Chemicals Corp.
(cid:129) Asahi Kasei Microza (Hangzhou) Co., Ltd.
(cid:129) Asahi Kasei Jyuko Co., Ltd.
(cid:129) Asahi Kasei Mortgage Corp.
(cid:129) Asahi Kasei Reform Co., Ltd.
(cid:129) Asahi Kasei Real Estate, Ltd.
(cid:129) Asahi Kasei Home Construction Corp.
(cid:129) Med-Tech Inc.
(cid:129) Asahi Kasei Bioprocess, Inc.
(cid:129) Asahi Kasei Medical (Hangzhou) Co., Ltd.
(cid:129) Kyokuyo Sangyo Co., Ltd.
(cid:129) Thai Asahi Kasei Spandex Co., Ltd.
(cid:129) Hangzhou Asahikasei Spandex Co., Ltd.
(cid:129) Asahi Kasei Spandex Europe GmbH
(cid:129) Asahi Kasei Spandex America, Inc.
(cid:129) Asahi Chemical (HK) Ltd.
(cid:129) Hangzhou Asahikasei Textiles Co., Ltd.
Electronics
Asahi Kasei Microdevices Corp.
Asahi Kasei E-materials Corp.
Electronic devices: Mixed-signal LSIs, Hall elements.
Electronic materials: Hipore™ Li-ion battery separator, photomask pellicles,
APR™ photosensitive resin and printing plate making systems, Pimel™
photosensitive polyimide precursor, Sunfort™ dry fi lm photoresist, glass
fabric for printed wiring boards.
(cid:129) Asahi Kasei Power Devices Corp.
(cid:129) AKM Semiconductor, Inc.
(cid:129) Asahi Kasei Electronics Materials
(Suzhou) Co., Ltd.
(cid:129) Asahi-Schwebel (Taiwan) Co., Ltd.
(cid:129) Asahi Kasei Wah Lee Hi-Tech Corp.
(cid:129) Asahi Photoproducts (Europe) SA/NV
Construction Materials
Asahi Kasei Construction Materials Corp.
Hebel™ autoclaved aerated concrete (AAC) panels, Neoma™ foam
insulation panels, piles and foundation systems, steel-frame structural
components.
(cid:129) Asahi Kasei Foundation Systems Corp.
(cid:129) Asahi Kasei Extech Corp.
Others
Plant engineering, environmental engineering, research and analysis,
personnel staffi ng and placement.
(cid:129) Asahi Research Center Co., Ltd.
(cid:129) Asahi Finance Co., Ltd.
(cid:129) Asahi Kasei Engineering Co., Ltd.
(cid:129) Asahi Kasei Amidas Co., Ltd.
16 Asahi Kasei Annual Report 2011
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Fiscal 2010 composition of sales, operating income
Net sales (¥ billion)
Operating income (¥ billion), operating margin (%)
Net sales
46.4%
Operating
income
49.5%
Net sales
25.6%
Operating
income
28.0%
Net sales
7.3%
Operating
income
5.4%
Net sales
6.8%
Operating
income
3.2%
Net sales
9.9%
Operating
income
11.0%
Net sales
3.0%
Operating
income
1.6%
Net sales
1.0%
Operating
income
1.3%
800
600
400
200
0
FY
500
400
300
200
100
0
FY
150
100
50
0
FY
150
100
50
0
FY
200
150
100
50
0
FY
80
60
40
20
0
FY
40
30
20
10
0
FY
689.3
622.1
742.2
08
09
10
409.9
389.7
409.2
08
09
10
119.6
113.2
116.4
08
09
10
116.4
101.2
108.8
08
09
10
142.7
158.3
129.7
08
09
10
60.9
47.0
47.4
80
60
40
20
0
(20)
FY
40
30
20
10
0
FY
15
12
9
6
3
0
FY
6
4
2
0
(2)
(4)
FY
15
12
9
6
3
0
FY
3
2
1
0
64.4
8.7
20.0
15.0
10.0
5.0
0.0
-5.0
26.1
4.2
-0.9
(6.5)
08
09
Operating income (loss), left scale
10
Operating margin, right scale
36.5
8.9
25.3
6.5
21.9
5.3
08
09
10
Operating income, left scale
Operating margin, right scale
12.0
10.1
08
3.5
4.0
09
7.0
6.1
10
Operating income, left scale
Operating margin, right scale
4.2
3.9
-1.3
(1.5)
-2.7
(2.8)
10.0
7.5
5.0
2.5
0.0
15.0
12.0
9.0
6.0
3.0
0.0
6.0
4.0
2.0
0.0
-2.0
-4.0
08
09
Operating income (loss), left scale
10
Operating margin, right scale
14.3
9.0
5.6
7.3
5.1
7.2
08
09
10
Operating income, left scale
Operating margin, right scale
10.0
8.0
6.0
4.0
2.0
0.0
6.0
1.7
2.8
4.4
4.0
2.1
2.6
1.2
09
10
08
09
10
FY
08
Operating income, left scale
Operating margin, right scale
27.3
17.6
16.0
08
09
10
6
4
2
0
FY
5.6
20.6
08
10.3
1.8
09
10.7
10.0
1.7
10
0.0
2.0
0.0
30.0
20.0
Operating income, left scale
Operating margin, right scale
Asahi Kasei Annual Report 2011
17
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Operating Segments
Chemicals
We are pursuing opportunities in growing
markets that make the most of our
strengths and optimizing our operational
confi guration in line with the changing
management climate, with a focus on
enabling “living in health and comfort” and
“harmony with the natural environment”
throughout our broad range of business
operations.
Masaki Sakamoto
President, Asahi Kasei Chemicals
Net sales
¥742.2 billion
vs. fi scal 2009
+19.3%
Operating income
vs. fi scal 2009
¥64.4 billion
+147.0%
Financial Highlights
(¥ billion)
Fiscal year beginning April 1
2008
2009
2010
2011 forecast
Net sales
Overseas sales ratio
Operating income (loss)
Operating margin
R&D expenditure
R&D expenditure as % of net sales
Capital expenditure
Depreciation and amortization
¥689.3
38.7%
(6.5)
-0.9%
14.6
2.0%
36.3
32.2
¥622.1
39.2%
¥742.2
41.0%
26.1
4.2%
14.0
2.3%
27.6
32.4
64.4
8.7%
15.5
2.1%
23.2
31.9
¥800.0
—%
54.5
6.8%
—
—%
30.0
—
“Growth Action – 2010” recap
(cid:129) New acrylonitrile (AN) and methyl methacrylate (MMA) plants in Thailand, capacity
expansion for AN in Korea.
(cid:129) New solution-polymerized styrene-butadiene rubber (S-SBR) plant in Singapore.
(cid:129) New plant in China for assembly of Microza™ fi ltration modules for large-scale water
treatment.
(cid:129) Capacity expansion for ion-exchange membranes and for synthetic rubber and
elastomer.
(cid:129) Establishment of a limited liability partnership (LLP) with Mitsubishi Chemical for
integrated and unifi ed management of naphtha cracker operations in Mizushima,
Japan.
(cid:129) Structural improvement of fertilizer and industrial explosives operations through
consolidation with other producers.
“For Tomorrow 2015” strategies
Aiming for leading position in globally competitive businesses
(cid:129) Acrylonitrile: Serving global demand growth with the construction of cost-
competitive plants, aiming for No. 1 position in the world.
(cid:129) S-SBR: Proactive capacity expansion, aiming for No. 1 position in Asia in the
growing fuel-effi cient tire market.
Business expansion in growing emerging markets, particularly in Asia
(cid:129) Performance plastics: Enhancing established position in target markets in Asia.
(cid:129) Water treatment/membrane businesses: Further reinforcing membrane business,
expanding operations in China.
(cid:129) Duranate™ HDI-based polyisocyanate: Expanding business in Chinese market.
(cid:129) Ceolus™ microcrystalline cellulose: Major expansion in emerging markets.
Creation of new businesses and business fi elds as next strategic pillars
(cid:129) Expansion in healthcare areas (Ceolus™ microcrystalline cellulose, acetonitrile,
active pharmaceutical ingredients, etc.)
(cid:129) Establishment and expansion of new businesses in promising markets.
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design, the development of modifi ed
polyphenylene ether (mPPE) expandable
beads with high fl ame retardance and high
heat resistance, as well as the development
of new composite materials using interface
control technology. Computer-aided
engineering (CAE) technology we developed
in-house has become an essential element
of our R&D capability, and is playing an
increasingly signifi cant role in new market
development and joint development with
customers.
In specialty products, low-cost, safe,
and low-waste processes to manufacture
active pharmaceutical ingredients (APIs) are
under development, utilizing our rich base in
process development technology. In the fi eld
of membrane separation, the focus is on the
development of membranes for the
reduction of NOx emissions from diesel
engines as well as for bacteria separation in
bioprocess applications. The creation and
development of new products and
businesses are advancing through the
accelerated development of materials for
renewable energy and energy conservation,
combining technologies not only within the
Asahi Kasei Group but also with outside
companies.
Industries Corp. (SABIC) and
Mitsubishi Corp. to establish a joint
venture for a project to produce AN in
Saudi Arabia.
Fiscal 2010 Review
Major Investments
Sales increased by ¥120.1 billion (19.3%)
from a year ago to ¥742.2 billion, and
operating income increased by ¥38.3 billion
(147.0%) to ¥64.4 billion.
Operating income in chemicals and
derivative products operations increased as
market prices for acrylonitrile and adipic acid
remained high, buoyed by favorable
demand in Asia. Operating income in
polymer products operations increased as
demand recovery in automotive and
electronics applications led to greater
shipments. Operating income in specialty
products operations increased as home-use
products such as Saran Wrap™ as well as
functional additives and coating materials
performed well.
Fiscal 2011 Outlook
We forecast sales to increase and operating
income to decrease during fi scal 2011.
Although sales of chemicals and derivative
products to Asia are forecasted to remain
favorable with high market prices, margins
are expected to deteriorate due to higher
feedstock prices.
Highlights
Decision to construct a new
solution SBR plant in Singapore
Asahi Kasei Chemicals reached a
decision to construct a new plant to
produce solution-polymerized styrene-
butadiene rubber (S-SBR) in
Singapore. With tightening
environmental regulations and
heightening environmental awareness,
demand for high-performance tires
which provide improved fuel effi ciency
is growing throughout the world.
Under construction in fi scal 2010
(cid:129) New power generation facility for use with
wood biomass fuel
(cid:129) New AN and MMA plants in Thailand
R&D
Throughout the Chemicals segment, R&D
focused on the environment, resources, and
energy is advanced to provide new value to
society through the enhancement of our
established core technologies and the
acquisition of new technologies.
In chemicals and derivative products,
we are advancing the verifi cation of two new
process technologies to enable feedstock
diversifi cation: the “E-fl ex” process for highly
effi cient production of propylene using C2
fractions or bioethanol as feedstock, and the
“BB-fl ex” process to produce butadiene
from butane. Studies on their
commercialization are in progress. Current
projects slated for completion within 1–2
years include the development of new
processes to produce diphenyl carbonate
(DPC) and isocyanate using CO2 as
feedstock.
In polymer products, current projects
include the development of polyamide with
ultra-high heat resistance, high rigidity, and
excellent moldability using novel molecular
Demand for S-SBR which enables the
production of tires that provide greater
fuel effi ciency while maintaining safety
performance is therefore growing
briskly. With its new S-SBR plant in
Singapore, Asahi Kasei Chemicals will
meet both the growing demand and
heightening customer requirements.
Capacity expansion for
acrylonitrile in Korea
In January 2011, Asahi Kasei
Chemicals made a decision to
construct a large new plant in Korea to
expand its production capacity for
acrylonitrile (AN), an intermediate
chemical for plastic used in consumer
electronics. Global demand growth for
AN is forecasted to continue, and in
April 2011 Asahi Kasei Chemicals also
signed an agreement with Saudi Basic
Passenger car tire
AN plant in Korea
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Homes
The order-built homes business will be
expanded with dominant competitiveness
as the differentiated market leader in the
fi eld of urban unit homes. Housing-related
operations will be developed as an array
of businesses, building and utilizing their
own distinctive strengths.
Masahito Hirai
President, Asahi Kasei Homes
Net sales
¥409.2 billion
vs. fi scal 2009
+5.0%
Operating income
¥36.5 billion
vs. fi scal 2009
+43.9%
Financial Highlights
(¥ billion)
Fiscal year beginning April 1
2008
2009
2010
2011 forecast
Net sales
Overseas sales ratio
Operating income
Operating margin
R&D expenditure
R&D expenditure as % of net sales
Capital expenditure
Depreciation and amortization
¥409.9
¥389.7
¥409.2
¥445.0
—%
21.9
5.3%
2.5
0.6%
7.0
3.4
—%
25.3
6.5%
2.1
0.5%
6.0
4.3
—%
36.5
8.9%
2.0
0.5%
6.3
4.3
—%
42.0
9.4%
—
—%
8.0
—
“Growth Action – 2010” recap
(cid:129) Launch of new products: Fine Hebel Haus™, Smart Hebel Haus™, Hebel Haus™
homes featuring electric power generation, Hebel Haus™ Frex “G3”, Hebel
Haus™ “i_co_i”, Hebel Haus™ RONDO, Hebel Haus™ with lower living room fl oor,
Hebel Haus™ Frex “monado”, etc.
(cid:129) Increased promotion with Hebel Haus™ “street-corner showrooms.”
(cid:129) Establishment of new housing R&D center.
(cid:129) Development of a new framing system for next-generation energy conservation
performance.
(cid:129) Shared procurement with other home builders.
“For Tomorrow 2015” strategies
Our focus is on enhancing three-story houses and other products which incorporate
innovative lifestyle proposals in order to secure the leading position in the urban homes
market. We aim provide comfortable living to as many customers as possible, as
quickly as possible, based on our commitment to providing fulfi llment in living in a
mature urban setting.
Houses, apartments
(cid:129) Establishment of No. 1 position as a differentiated market leader in our competitive
fi elds.
(cid:129) Promotion of community-specifi c proposals to increase market share.
(cid:129) Expansion of multi-dwelling homes business.
Real estate
(cid:129) Reinforcing condominium business based on obtaining accord in exchange of
equivalent value.
(cid:129) Maximizing utilization of land value through brokerage-related operations.
(cid:129) Heightening capability to secure tenants.
Expansion of housing-related operations
(cid:129) Expansion of remodeling and renovation work.
(cid:129) Enhancement of the energy-conservation product lineup.
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Fiscal 2010 Review
R&D
Sales increased by ¥19.5 billion (5.0%) from
a year ago to ¥409.2 billion and operating
income increased by ¥11.1 billion (43.9%) to
¥36.5 billion. Orders for order-built homes
increased by ¥47.7 billion to ¥354.5 billion.
Operating income in order-built and pre-
built homes operations increased with a rise
in orders resulting in greater deliveries of
both Hebel Haus™ unit homes and Hebel
Maison™ apartment buildings, and with
continuous cost reductions. Although our
in-house mortgage securitization business
was impacted by an increase in the
proportion of customers utilizing the “Flat
35” fi xed-rate mortgage, remodeling and
real estate businesses performed well and
operating income in housing-related
operations was level with a year ago.
Fiscal 2011 Outlook
With increased deliveries of order-built
homes buoyed by a rise in orders, sales and
operating income are forecasted to increase
in fi scal 2011.
Evaluation/simulation technology is being
enhanced to enable customers to more
intuitively appreciate the real-world effects of
variations and modifi cations, ensuring that
the design of each home is optimized to
match each customer’s preferences.
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.
R&D is focused on enhancing core
technologies. Shelter technology brings
greater safety and security through
earthquake resistance, seismic damping,
base isolation, 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.
Sales Trends
(Asahi Kasei Homes non-consolidated)
Orders Received
(Asahi Kasei Homes non-consolidated)
(¥ billion)
400
300
200
100
0
FY
347.5
1.0
28.9
317.6
338.7
1.5
29.9
322.5
1.0
24.5
297.1
307.3
332.4
2.5
27.8
302.1
316.4
1.9
32.1
282.3
06
07
08
09
10
Others
Pre-built homes
Order-built homes
362.0
2.5
25.0
334.5
11
Forecast
(¥ billion)
400
300
303.4
306.1
291.1
306.9
354.5
360.0
200
100
0
FY
06
07
08
09
10
11
Forecast
Highlights
Successive launch of products
incorporating innovative
lifestyle proposals
Asahi Kasei Homes launched several
new products that incorporate
innovative lifestyle proposals, based
on the results of research on urban
lifestyle conducted by our Lifestyle
R&D Laboratory. In April 2010, we
launched Hebel Haus™ “i_co_i” two-
generation homes with features to
facilitate raising grandchildren. Hebel
Haus™ RONDO two-generation
homes integrating rental units were
launched in July with
features to adapt to
changing family
structure, and Hebel
Haus™ with lower
living room fl oor for
greater comfort was
launched in August.
Launch of Hebel Haus™ Frex
“monado”
Asahi Kasei Homes launched Hebel
Haus™ Frex “monado” enhanced
three-story houses for urban life.
Improvements to the frame structure
enable the creation of large, open
living spaces within confi ned urban
plots, which have many space
constraints such as limited area and
narrow frontage.
Hebel Haus™ i_co_i two-generation home
Hebel Haus™ Frex “monado”
Asahi Kasei Annual Report 2011
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Health Care
We are focused on providing the world
with innovative new drugs that address
unmet medical needs, as a specialized
global pharmaceutical company.
Toshio Asano
President, Asahi Kasei Pharma
We are growing as a comprehensive leader
in blood-related healthcare systems by
providing optimal treatment and preventive
therapy based on our unique experience
and know-how in blood purifi cation.
Yutaka Shibata
President, Asahi Kasei Kuraray Medical
& Asahi Kasei Medical
Net sales
¥116.4 billion
vs. fi scal 2009
+2.8%
Operating income
¥7.0 billion
vs. fi scal 2009
+76.1%
Financial Highlights
(¥ billion)
Fiscal year beginning April 1
2008
2009
2010
2011 forecast
Net sales
Overseas sales ratio
Operating income
Operating margin
R&D expenditure
¥119.6
24.4%
12.0
10.1%
16.4
¥113.2
22.3%
4.0
3.5%
18.4
¥116.4
22.9%
7.0
6.1%
16.5
R&D expenditure as % of net sales
13.7%
16.3%
14.2%
Capital expenditure
Depreciation and amortization
31.6
10.3
9.2
12.2
7.4
11.4
¥124.0
—%
8.0
6.5%
—
—%
14.0
—
“Growth Action – 2010” recap
Pharmaceutical-related:
(cid:129) Market launch of two new products, Recomodulin™ anticoagulant for disseminated
intravascular coagulation and Famvir™ anti-herpes agent.
(cid:129) Application for approval to manufacture and sell Teribone™ teriparatide acetate as
an osteoporosis drug in Japan.
(cid:129) Acquisition of exclusive rights to develop and sell zoledronic acid as an osteoporosis
drug in Japan.
(cid:129) Acquisition of exclusive rights to develop and market XIAFLEX® collagenase
clostridium histolyticum in Japan.
(cid:129) Divestment of sales and R&D operations for contact lenses and related products.
Medical device–related:
(cid:129) Capacity expansion for artifi cial kidneys and Sepacell™ leukocyte reduction fi lters.
(cid:129) New plant for therapeutic apheresis devices.
(cid:129) Capacity expansion for Planova™ virus removal fi lters in Oita, Japan.
(cid:129) Integration of dialyzer business with Kuraray Medical Inc.
(cid:129) Launch of Planova™ BioEX virus removal fi lters and BioOptimal™ MF-SL
microfi lters for bioprocessing.
(cid:129) Acquisition of all shares of Med-tech Inc., making it a wholly owned subsidiary.
(cid:129) Establishment of sales subsidiaries in China, Taiwan, and Korea.
(cid:129) Expansion of polysulfone hollow-fi ber membrane artifi cial kidneys business (incl. tie-
ups with Kawasumi Laboratories, Inc. and US-based NxStage Medical, Inc.)
(cid:129) Market entry in bioprocess equipment business (acquisition of business from
US-based TechniKrom, Inc.)
Note: XIAFLEX is a registered trademark of Auxilium Pharmaceuticals, Inc.
22 Asahi Kasei Annual Report 2011
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“For Tomorrow 2015” strategies
Pharmaceutical-related:
In Japan, the primary objective is to increase earnings by fostering
the growth of Recomodulin™ and Teribone™ as high-selling drugs.
R&D-related investments will be increased to further reinforce the
new drug pipeline, and clinical development will be accelerated.
In our main therapeutic fi eld of orthopedics, we are advancing
the development of drugs related to locomotive syndrome,
including drugs for osteoporosis and rheumatoid arthritis, in order
to build a world-leading position in this area.
Overseas, we are entering a new phase as a specialized global
pharmaceutical company through the advancement of the clinical
development of Recomodulin™ in Europe and the US, as well as
reinforcement of our capabilities for clinical development and
marketing in East Asia.
In diagnostics, we are reinforcing efforts to further expand the
use of Lucica™ GA-L glycated albumin assay kit in Japan and to
obtain approval for it overseas, while advancing the development
of infectious disease diagnostic kits.
Medical device–related:
We are shifting the focus of our business from individual devices for
extracorporeal circulation to blood-related healthcare systems,
spanning from disease treatment to preventive medicine and blood-
based risk-factor analysis/diagnosis, while further developing business
in the fi elds of regenerative medicine and the nervous system.
Our objective is to achieve a leading position in blood-related
healthcare systems, establishing a new value chain of optimal
treatment and preventive therapy that leverages our extensive
experience and know-how in blood-related healthcare. We will also
utilize the comprehensive strengths of the Asahi Kasei Group,
increase emphasis on personnel development, and enhance
management speed and agility.
Fiscal 2010 Review
Sales increased by ¥3.2 billion (2.8%) from a
year ago to ¥116.4 billion and operating
income increased by ¥3.0 billion (76.1%) to
¥7.0 billion.
Operating income in pharmaceuticals
operations increased as Recomodulin™
recombinant thrombomodulin made a
substantial contribution to results, and as
shipments of the Flivas™ therapy for benign
prostatic hyperplasia increased although NHI
price revisions had a negative impact on
product prices. Operating income in
devices-related operations increased with
greater shipments of APS™ polysulfone-
membrane artifi cial kidneys and of
therapeutic apheresis devices, although the
strong yen had an impact on performance in
each product category.
Fiscal 2011 Outlook
The overall sales and operating income for
the segment are forecasted to increase. In
pharmaceuticals operations, shipments of
Recomodulin™ recombinant
thrombomodulin are forecasted to increase,
but we expect an impact from increased
R&D expenses as well as higher selling,
general and administrative expenses due to
an increase in medical representatives. In
devices-related operations, shipments of
APS™ polysulfone-membrane artifi cial
kidneys and Planova™ virus removal fi lters
are forecasted to increase.
Major Investments
Completed in fi scal 2010
(cid:129) New plant for therapeutic apheresis devices
(cid:129) New plant for Planova™ virus removal
fi lters in Oita, Japan
Under construction in fi scal 2010
(cid:129) Medical Material Laboratory
R&D
In pharmaceuticals, we are focused on
addressing unmet medical needs, which are
increasing together with maturing markets
and the aging population, particularly in the
fi elds of orthopedics and urology. To swiftly
identify such needs and provide solutions,
we are not only searching for new subjects
for R&D, but also pursuing continuous
proprietary technological innovation and
enhanced collaboration with world-leading
technologies. In medical devices and related
systems, we are further advancing
technological developments in hemodialysis,
therapeutic apheresis, leukocyte reduction,
and virus removal, while also focusing on
next-generation fi elds of research including
regenerative medicine utilizing
autohemotherapy.
Pharmaceutical Product Pipeline
Development
stage
Code name, form, generic name
Classifi cations
Indication
Remarks
(as of May 2011)
Pending
approval
MN-10-T, injection,
teriparatide acetate
Synthetic human para-
thyroid hormone (PTH)
Osteoporosis
New chemical entity
Phase III
AK-120, oral, famciclovir
Antiviral
Herpes simplex
Additional indication
Phase II
Phase II
(overseas)
AT-877, oral, fasudil
hydrochloride hydrate
Rho-kinase inhibitor
Pulmonary arterial
hypertension
Additional indication,
new dosage form
AK150, injection, pentosan
polysulfate sodium
Anti-osteoarthritic
Osteoarthritis
New chemical entity
ART-123, injection, recombinant
thrombomodulin alpha
Recombinant human
thrombomodulin
Sepsis with disseminated
intravascular coagulation
New biologic
AK106
Anti-infl ammatory
Rheumatoid arthritis
New chemical entity
Highlights
Completion of a new plant for
therapeutic apheresis devices
To meet forecasted global demand
growth, Asahi Kasei Kuraray Medical
constructed a new plant in Oita, Japan,
for greater effi ciency and productivity in
manufacturing therapeutic apheresis
devices. Production equipment located in
several separate production sections
within the existing plant was transferred
to the new plant and incorporated into
integrated production lines featuring the
latest technology. Construction was
completed and manufacturing at the new
plant began in September 2010. As the
world’s pioneer in therapeutic apheresis,
New plant for therapeutic apheresis devices
we are accelerating the global growth of
this business, pursuing new possibilities
for the treatment of autoimmune
disorders and intractable diseases which
are diffi cult to treat with conventional
therapies, while fulfi lling our responsibility
for reliable quality and stable supply as
the world-leading manufacturer.
Application for approval to manu-
facture and sell Teribone™ in Japan
Asahi Kasei Pharma fi led an application for
approval to manufacture and sell
Teribone™ (generic name: teriparatide
acetate) as an osteoporosis drug in Japan
in October 2010. With approval and market
launch in 2011, we believe Teribone™ will
make a signifi cant contribution to the
treatment of osteoporosis, a disease which
affects a greater number of people as the
population ages.
Asahi Kasei Annual Report 2011
23
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Fibers
We are proactively expanding unique
businesses with growth potential as well
as our world-leading businesses, based
on the concepts of “harmony with the
natural environment” and “living in health
and comfort.”
Hidefumi Takai
President, Asahi Kasei Fibers
Net sales
¥108.8 billion
vs. fi scal 2009
+7.5%
Operating income
vs. fi scal 2009
¥4.2 billion
Financial Highlights
– %
(¥ billion)
Fiscal year beginning April 1
2008
2009
2010
2011 forecast
Net sales
Overseas sales ratio
Operating income (loss)
Operating margin
R&D expenditure
R&D expenditure as % of net sales
Capital expenditure
Depreciation and amortization
¥116.4
31.2%
(1.5)
-1.3%
3.9
3.8%
12.4
5.2
¥101.2
32.7%
(2.8)
-2.7%
3.8
3.8%
4.6
7.7
¥108.8
34.4%
4.2
3.9%
3.2
2.9%
3.7
7.0
¥113.0
—%
4.0
3.5%
—
—%
4.5
—
“Growth Action – 2010” recap
(cid:129) Capacity expansion for Roica™ spandex in Thailand.
(cid:129) Establishment of a spunbond manufacturing company in Thailand.
(cid:129) Establishment of a new technology and R&D center.
(cid:129) Launch of Precisé™ spunbond nonwovens and dECOb™ environmentally effi cient
fi lter bag.
(cid:129) Closure of polyester fi lament plant and withdrawal from the fi eld of monofi lament.
(cid:129) Withdrawal from PTT fi ber operations.
“For Tomorrow 2015” strategies
Proactive expansion of unique businesses with growth potential as well as world-
leading businesses, in accordance with the two perspectives of “harmony with the
natural environment” and “living in health and comfort.” Leveraging our strengths as
a materials specialist in collaborative projects for the creation of new businesses.
Roica™ elastic polyurethane
(cid:129) Development and commercialization
of new high-function yarns.
(cid:129) Securing a presence in growing Asian
markets, with the plant in Thailand as
a key manufacturing base.
Nonwovens
(cid:129) Spunbond: Earnings growth in Asia
with polypropylene spunbond for
hygiene materials produced at plant in
Thailand, expansion of Precisé™
spunbond nonwovens.
(cid:129) Bemliese™ cupro cellulosic
nonwoven: Securing stable earnings in
the IT fi eld in Asia, expansion in the
medical and cosmetics fi elds.
(cid:129) Lamous™ artifi cial suede: Steady
expansion in Japanese, Europe, and
US markets for car seat applications,
development of new applications in
industrial fi elds.
(cid:129) Eutec™ oil-water separation fi lter:
Establishing niche market leadership
in oil-water separation, expansion in
applications with microfi ltration, as
well as in the solid-liquid and gas-
liquid separation fi elds.
Bemberg™ regenerated cellulose
(cid:129) Expansion in overseas markets for
lining, particularly in Europe and China.
(cid:129) Development and expansion of non-
lining applications, including
outerwear, innerwear, and beddings in
Europe and the US.
(cid:129) Production processes innovation.
Leona™ nylon 66 fi lament
(cid:129) Stable earnings in tire cord applications.
(cid:129) Expansion in air-bag applications.
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increase, but we anticipate an impact from
high feedstock prices.
R&D
In cooperation with other companies within
the Asahi Kasei Group as well as with
outside companies, we are enriching and
enhancing our R&D functions to achieve
results more quickly. Development of high-
value added grades which meet market
needs is advancing for Roica™
polyurethane, Bemberg™ regenerated
cellulose, Leona™ nylon 66, and various
nonwovens. In addition, the creation of new
cellulose-related business and the
development of new nonwovens are
advancing in accordance with the concepts
of “living in health and comfort” and
“harmony with the natural environment.”
Fiscal 2010 Review
Sales increased by ¥7.6 billion (7.5%) from a
year ago to ¥108.8 billion and operating
income increased by ¥7.0 billion to ¥4.2
billion.
Operations throughout the segment
were impacted by the strong yen and high
feedstock costs. Operating income from
Bemberg™ regenerated cellulose increased
with substantially greater shipments in non-
lining applications such as innerwear and
outerwear. Operating income from Roica™
elastic polyurethane fi lament increased with
growing sales of functional yarns, from
nonwovens with growing shipments in
disposable diaper applications, and from
Leona™ nylon 66 fi lament with growing
shipments in automotive applications.
Fiscal 2011 Outlook
We forecast sales to increase and operating
income to decrease slightly during fi scal
2011. Shipments of Roica™, spunbond,
and Leona™ fi lament are expected to
Highlights
Launch of Pulshut™ – a thin,
lightweight noise suppression
sheet
Asahi Kasei Fibers launched Pulshut™ as
a high-performance noise suppression
sheet in August 2010. In recent years, the
evolution of electronics products has
advanced rapidly, with greater
miniaturization and higher performance in
terms of speed and capacity, making it
increasingly important to suppress the
electromagnetic noise generated by the
individual components within such
products. Using Precisé™, a specialty
nonwoven fabric made with innovative
technology, the thin, lightweight
Pulshut™ provides a high noise
suppression effect across a wide range
of frequencies. Its adoption in a wide
variety of electronic devices is
forthcoming.
Establishment of a spunbond
manufacturing company in
Thailand
Asahi Kasei Fibers made a decision in
February 2011 to establish Asahi Kasei
Spunbond (Thailand) Co., Ltd. as a
subsidiary for the manufacture and sale
of spunbond nonwovens in Thailand.
With two spunbond production sites in
Japan (Moriyama, Shiga, and Nobeoka,
Miyazaki), Asahi Kasei Fibers has
mainly focused on the Japanese
market. As China, ASEAN, and other
Asian markets continue their
remarkable economic development,
overseas demand for hygiene materials,
particularly for disposable diapers, is
forecasted to continue to increase
signifi cantly. Asahi Kasei Fibers will
study the expansion of spunbond
production capacity in Thailand in line
with further market growth.
Pulshut™ – a thin, lightweight noise suppression sheet
Asahi Kasei Annual Report 2011
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Electronics
Making the most of our unique technology,
we are building our position as a leading
supplier of electronic components, which
continues to develop and supply category-
leading products to the global market, and
expand business for all applications based
on the trust we have earned from
customers throughout the world.
Hideki Kobori
President, Asahi Kasei Microdevices
We are focused on materials that lead to
reduced environmental burdens—both
materials for energy storage and power
generation devices, and electronics-related
materials that enable energy conservation—
based on our corporate commitment of
“contributing to sustainable growth and
prosperity, using chemical technology for
green electronic materials, enhancing the
environmental performance of electronic
products.”
Makoto Konosu
President, Asahi Kasei E-materials
26 Asahi Kasei Annual Report 2011
Net sales
¥158.3 billion
vs. fi scal 2009
+11.0%
Operating income
¥14.3 billion
vs. fi scal 2009
+96.9%
Financial Highlights
(¥ billion)
Fiscal year beginning April 1
2008
2009
2010
2011 forecast
Net sales
Overseas sales ratio
Operating income
Operating margin
R&D expenditure
¥129.7
43.4%
7.3
5.6%
18.4
¥142.7
46.5%
7.2
5.1%
18.4
¥158.3
50.3%
14.3
9.0%
18.4
R&D expenditure as % of net sales
20.1%
12.9%
11.6%
Capital expenditure
Depreciation and amortization
31.8
19.8
22.8
23.6
20.3
23.9
¥169.0
—%
15.5
9.2%
—
—%
16.0
—
“Growth Action – 2010” recap
Electronic devices:
(cid:129) Expansion of LSI production capacity.
(cid:129) Incorporation of local marketing subsid-
iaries in Korea, Europe, China and
Taiwan.
(cid:129) Full-scale entry into power management
LSI business by acquisition of semicon-
ductor business from Toko, Inc.
(cid:129) Launch and expansion of electronic
compass business.
Electronic materials:
(cid:129) Capacity expansion for Hipore™ Li-ion
battery separator: plant expansion in
Moriyama, Shiga, Japan, and new
plant in Hyuga, Miyazaki, Japan.
(cid:129) Capacity expansion for dry fi lm photo-
resist in China.
(cid:129) Capacity expansion for Pimel™ semi-
conductor buffer coat.
(cid:129) New production line for photomask
pellicles for 10G LCD panels.
(cid:129) Establishment of pellicle sales subsid-
iary in Taiwan, market launch of new
pellicle compatible with ArF exposure
and capacity expansion for semicon-
ductor pellicles.
(cid:129) Strategic alliance in optical materials
with Luminit, LLC.
“For Tomorrow 2015” strategies
Electronic devices:
Building our position as a leading suppli-
er of electronic components, which con-
tinues to develop and supply category-
leading products to the global electronic
devices market, with a strategic product
lineup that makes most of our unique
strength in having both silicon semicon-
ductor technology led by world-leading
mixed-signal LSI technology, and com-
pound semiconductor technology gained
over many years of experience with mag-
netic sensors. Advancing well-balanced
business expansion while maintaining
high earnings, through the development
and provision of high-quality products
with new functions as required in the
infrastructure, automotive, and industrial
fi elds, in addition to our established
applications in the fi eld of consumer
electronics, including mobile terminal
devices.
Electronic materials:
Reducing environmental burdens with
“energy materials” for energy storage and
power generation devices, and with
electronics-related materials that enable
energy conservation—based on our cor-
porate commitment of “contributing to
sustainable growth and prosperity, using
chemical technology for green electronic
materials, enhancing the environmental
performance of electronic products.”
Providing products that support living in
health and comfort, including semicon-
ductor process materials, interconnecting
and insulation materials for electronics,
and materials for information printing and
display.
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conservation, reduced environmental
burdens, and living in health and comfort is
advancing based on our core technologies
for polymer design and synthesis,
membrane formation, and precision surface
processing. Environment and energy–related
materials such as high-performance lithium-
ion battery materials for both portable
electronics and automotive applications, and
materials for solar cells are currently under
development, as are new materials which
correspond to leading technological trends
for fi ner patterning in both semiconductors
and printed wiring boards.
Fiscal 2010 Review
Sales increased by ¥15.6 billion (11.0%)
from a year ago to ¥158.3 billion and
operating income increased by ¥7.0 billion
(96.9%) to ¥14.3 billion.
Operating income in electronic devices
operations increased as growth in
shipments of LSIs for smartphones and
other portable devices, particularly
overseas, outweighed a sharp impact from
the strong yen. In electronic materials
operations, although shipments grew, most
notably in Hipore™ Li-ion battery (LIB)
separator, operating income decreased
slightly with the impact of declining product
prices and high feedstock costs.
Fiscal 2011 Outlook
We forecast an increase in both sales and
operating income during fi scal 2011. In
electronic materials, shipments are projected
to increase, but we expect an impact from
increased depreciation as a result of
capacity expansions and from higher
feedstock prices. In electronic devices,
shipments of LSIs for smartphones and
other portable devices are expected to
increase, but we anticipate an impact from
the strong yen.
Major Investments
Completed in fi scal 2010
(cid:129) New plant for Hipore™ LIB separator in
Hyuga
Under construction in fi scal 2010
(cid:129) Capacity expansion for Hipore™ LIB
separator in Hyuga
R&D
Swift R&D to keep pace with the rapid
technology innovation of the electronics
industry is directed toward the creation of
products that meet the emerging needs and
demanding requirements which are
identifi ed through close interaction with
customers.
In electronic devices, advanced
development of high-performance products
is based on both compound semiconductor
process technology gained through
development of high-sensitivity magnetic
sensors and mixed-signal LSI technology.
Development of new electronic materials
which contribute to energy and resource
Highlights
Development of world’s fi rst*
surface mount current sensor
Asahi Kasei Microdevices developed
the world’s fi rst and smallest-class
surface mount current sensor with a
magnetic core. Current sensors have
been mainly used in control systems
for industrial equipment. Miniaturization
enables their use in a much broader
range of applications, including
consumer-oriented uses. It is expected
that this new current sensor will lead
to signifi cantly enhanced energy
conservation not only by enabling real-
time monitoring of home appliances in
smart grid and smart home systems,
but also by enabling higher-precision
and higher-effi ciency control of power
consumption in energy-saving home
appliances.
* Asahi Kasei Microdevices estimate
Capacity expansion for
Hipore™
Asahi Kasei E-materials adopted
decisions in April and June 2010 to
increase production capacity for
Hipore™ LIB separator at its plant in
Hyuga, Miyazaki, Japan. In addition to
the mainstream applications for
notebook computers and mobile
phones, Hipore™ is now being used in
hybrid electric and all-electric vehicles
worldwide. The company has been
advancing a program of strategic
expansion of its Hipore™ separator
business to meet this growing demand
in the LIB market.
World’s fi rst* surface mount current sensor
Hipore™ LIB separator
Asahi Kasei Annual Report 2011
27
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Construction Materials
We are focused on the development and
provision of products that provide safety,
security, and comfort, in our core areas of
AAC-related products, foundation systems,
insulation materials, and structural
components.
Hiroshi Kobayashi
President,
Asahi Kasei Construction Materials
Net sales
¥47.4 billion
vs. fi scal 2009
+0.8%
Operating income
¥2.1 billion
vs. fi scal 2009
+74.0%
Financial Highlights
Fiscal year beginning April 1
Net sales
Overseas sales ratio
Operating income
Operating margin
R&D expenditure
R&D expenditure as % of net sales
Capital expenditure
Depreciation and amortization
2008
¥60.9
—%
1.7
2.8%
1.0
1.7%
2.4
3.6
2009
¥47.0
—%
1.2
2.6%
1.1
2.3%
1.2
3.3
(¥ billion)
2010
2011 forecast
¥47.4
—%
2.1
4.4%
1.1
2.4%
1.7
2.8
¥54.0
—%
3.5
6.5%
—
—%
4.5
—
“Growth Action – 2010” recap
(cid:129) Launch of Jupii™ fl oor insulation panels for wood-frame houses.
(cid:129) Start of handling of “Triangle A” fi re insurance product for wood-frame homes built
with AAC walls.
(cid:129) Launch of DynaWing™ pre-cast concrete piling system featuring minimal soil
disposal and high load-bearing capacity.
(cid:129) Launch of CSV™ soil improvement system for small-scale architecture, featuring
minimal soil disposal and semi-dry application.
(cid:129) Launch of Freedonut™ system for reinforcement of openings to pass plumbing and
wiring through I-beams.
(cid:129) Opening of “Construction Materials Gallery” to showcase products.
(cid:129) Reoptimization of AAC production infrastructure: closure of Shiraoi plant and one of
two production lines in Hozumi.
28 Asahi Kasei Annual Report 2011
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“For Tomorrow 2015” strategies
1. Business expansion in fi elds of competitive superiority
Management resources are focused on businesses where we can exert our strengths in markets which are growing in step with ongoing
changes, such as heightening environmental awareness and a society-wide transformation to longer-lasting, more sustainable
infrastructure.
2. Transformation to solution-oriented business
A transformation of business is advancing to effect a shift from simply selling products to a more solution-oriented confi guration
encompassing peripheral fi elds and including systems and combination products.
AAC-related:
Enhancing cost competitiveness while pursuing further effi ciency,
in order to maintain stable profi tability. Strengthening business for
Hebel Powerboard™ AAC panels for wood-frame houses by
expanding related businesses including painting. Utilizing our
superior technology to reinforce the exterior renovation business
targeting the extensive number of houses built with our AAC
panels.
Foundation systems:
Expanding business by further reinforcement in fi elds other than
homes and buildings, including transportation infrastructure and
seismic reinforcement, centered on competitive Eazet™ and ATT
Column™ small-diameter steel-pipe piling systems.
Insulation materials:
Expanding business centered on our two phenolic foam insulation
panel products, Neoma™ and Jupii™, whose competitiveness is
further increasing with the growing adoption of next-generation
standards for insulation performance in energy-effi cient homes.
Structural materials:
Expanding business by reinforcing the product lineup with both
new products and new variations of current products.
Fiscal 2010 Review
Sales increased by ¥0.4 billion (0.8%) from a
year ago to ¥47.4 billion and operating
income increased by ¥0.9 billion (74.0%) to
¥2.1 billion.
Although operating costs in housing and
building materials operations were reduced,
operating income decreased with fewer
shipments of Hebel™ autoclaved aerated
concrete panels. Operating income in
foundation system operations increased with
growing shipments of Eazet™ and ATT
Column™ small-scale piles in new
applications. Operating income in insulation
materials operations increased as shipments
of Neoma™ phenolic foam insulation panels
grew substantially, supported by government
policy such as the eco-point program for
energy conservation. Operating income in
Highlights
Launch of Jupii™ fl oor
insulation panels for wood-
frame houses
Asahi Kasei Construction Materials
launched Jupii™ high-performance
phenolic foam insulation panels for
fl oors of wood-frame houses in
October 2010. The new panels enable
wood-frame houses to meet the
performance standards specifi ed in
preferential policies for energy effi cient
structural materials operations increased
with growing shipments of the BasePack™
earthquake-resistant column base
attachment system.
performance foundation systems, as well as
on the proactive development of new
products in peripheral areas.
Fiscal 2011 Outlook
We forecast an increase in sales and
operating income during this fi scal year,
thanks to continuing cost reductions in
housing and building materials, an
expansion of housing materials business,
and increased shipments in foundation
systems and insulation materials.
R&D
R&D is focused on strengthening the
operational base for established businesses
of AAC, phenolic foam insulation, and high-
homes, including for long-life quality
housing and the eco-point system for
housing, without any structural
modifi cation. The company is focused
on making further growth in insulation
materials, positioning Jupii™ as a new
fl agship product together with its
Neoma™ foam panels.
Jupii™ phenolic foam insulation panels for
wood-frame houses
Asahi Kasei Annual Report 2011
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Others
Net sales
¥16.0 billion
Operating income
¥1.7 billion
vs. fi scal 2009
–9.2%
vs. fi scal 2009
–6.4%
(¥ billion)
2010
2011 forecast
¥16.0
7.5%
1.7
¥19.0
—%
2.0
Financial Highlights
Fiscal year beginning April 1
Net sales
Overseas sales ratio
Operating income
Operating margin
R&D expenditure
R&D expenditure as % of net sales
Capital expenditure
Depreciation and amortization
2008
¥27.3
2009
¥17.6
20.9%
10.9%
5.6
1.8
20.6%
10.3%
10.7%
10.5%
0.09
0.3%
1.1
0.8
0.21
1.2%
0.9
0.8
0.28
1.7%
1.0
0.9
—
—%
0.5
—
Fiscal 2010 Review
R&D
Engineering developments in progress
include technology to inspect for internal
pipe corrosion as well as a joint project for
the development of high-performance
inspection equipment.
Sales decreased by ¥1.6 billion (9.2%)
from a year ago to ¥16.0 billion and
operating income decreased by ¥0.1
billion (6.4%) to ¥1.7 billion.
Operating income in engineering
operations decreased as a curtailment of
capital investments led to a decline in
orders received.
Fiscal 2011 Outlook
Overall sales and operating income are
forecasted to increase in fi scal 2011
thanks to fi rm performance in engineering
operations.
30 Asahi Kasei Annual Report 2011
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Toward Sustainable Growth
Contents
32 Corporate Governance
36 Corporate Social Responsibility
38 Directors, Corporate Auditors, Executive Offi cers
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Asahi Kasei Annual Report 2011
31
Corporate Governance
Basic Concept for Corporate Governance
We believe that constant effort to increase the effi ciency
and transparency of management is essential for
continuous enhancement of the corporate value of the
Asahi Kasei Group. One major reform for this purpose
was the adoption of the structure of a holding company
and core operating companies, since which time the
Asahi Kasei Group has exercised corporate governance
for the Group based on the following two principles.
1) Based on the structure of a holding company and core
operating companies, the core operating companies are
responsible for business execution and the holding
company is responsible for oversight.
2) The Group Approval Authority Regulations are
positioned as the highest ranking among all the
regulations governing the overall Group for decision-
making in executing business. Authority is distributed
to each organ of the holding company and the core
operating companies in accordance with the degree of
infl uence on management.
In this context, corporate governance is further enhanced
by implementing various measures, including the election
of multiple Outside Directors and the institutionalization of
Internal Auditing and Internal Control.
We will continue to advance measures to heighten
corporate governance for the further enhancement of
corporate value.
Structures Related to Management Decision-Making, Execution, and Oversight
Management Confi guration (as of March 31, 2011)
Holding company
Asahi Kasei
Board of Corporate Auditors
Shareholders
Internal Auditing
Internal Control
Board of Directors
Group Advisory Committee
Chairman
President
Strategic Management Council
CSR Council
Group staff functions
(cid:115)(cid:0)(cid:51)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:73)(cid:67)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:6)(cid:0)(cid:65)(cid:78)(cid:65)(cid:76)(cid:89)(cid:83)(cid:73)(cid:83)
(cid:115)(cid:0)(cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:6)(cid:0)(cid:82)(cid:73)(cid:83)(cid:75)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)
(cid:115)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:65)(cid:68)(cid:77)(cid:73)(cid:78)(cid:73)(cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)
New Business Development
Executive Officer for
Chemicals & Fibers
Executive Officer for
Homes &
Construction Materials
Executive Officer for
Electronics
Executive Officer for
Health Care
Core operating
companies
Asahi Kasei
Fibers
Asahi Kasei
Chemicals
Fiber, textiles
Chemicals
Asahi Kasei
Construction
Materials
Construction
materials
Asahi Kasei
Homes
Asahi Kasei
Microdevices
Asahi Kasei
E-materials
Asahi Kasei
Pharma
Housing
Electronic
devices
Electronic
materials
Pharmaceuticals
Asahi Kasei
Kuraray
Medical
Medical
devices
Asahi Kasei
Medical
Medical-related
products/
systems
Chemicals & Fibers
business sector
Homes & Construction
Materials business sector
Electronics
business sector
Health Care
business sector
32 Asahi Kasei Annual Report 2011
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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’s Board of
Directors. Meets twice per year.
Corporate Governance System
An outline of the corporate governance system of the
Asahi Kasei Group is as follows.
1) Asahi Kasei Corporation is a holding company and has
elected to take the form of a company with a Board of
Corporate Auditors.
2) Two Outside Directors were elected in June 2007 to
enable oversight of the management of the Asahi
Kasei Group based on their wealth of experience and
broad range of insight, for the further strengthening of
the management oversight function of the Board of
Directors. Furthermore, an additional Outside Director
was installed in June 2008 and the Company currently
has three Outside Directors out of ten Directors.
3) The company has a Group Advisory Committee as an
advisory body to the Board of Directors, enabling the
receipt of various advice and recommendations of
knowledgeable persons from outside the Company for
the benefi t of the overall management of the Asahi
Kasei Group.
4) Internal Auditing serves as the corporate organ for
internal audits of the execution of duties in the Asahi
Kasei Group in accordance with basic corporate
regulations for internal audits. Results of the internal
audits conducted by each group staff function are also
reported to Internal Auditing, so that all information
regarding results of internal audits in the Asahi Kasei
Group are centralized at Internal Auditing.
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.
We employ an Executive Offi cer system, under which we
have ten Directors, including three Outside Directors, and
sixteen Executive Offi cers, including six who concurrently
serve as Director, as well as a Corporate Auditor system,
under which we have four Corporate Auditors, including
two Outside Corporate Auditors. (as of June 29, 2011)
To help ensure that Directors and Corporate Auditors
may perform their duties to the fullest extent, in
accordance with Article 426 Paragraph 1 of the
Corporation Law our Articles of Incorporation provide for
the indemnifi cation of Directors (including former
Directors) and Corporate Auditors (including former
Corporate Auditors) from liability stipulated in Article 423
Paragraph 1 of the Corporation Law, through resolution
of the Board of Directors, within limitations set forth by
law or ordinance.
5) In accordance with the audit policy adopted by the
Board of Corporate Auditors, each Corporate Auditor
audits Directors in the discharge of their duties by
attending Board of Directors’ meetings and examining
business performance. Corporate Auditors of the
Company and Corporate Auditors of the core
operating companies exchange information on a
regular basis. Our Corporate Auditors Offi ce has
multiple dedicated personnel who, independently from
Directors, support the Corporate Auditors in their
duties.
6) PricewaterhouseCoopers Aarata performs fi nancial
audits of the Company and the core operating
companies in accordance with the Corporation Law
and the Financial Instruments and Exchange Act.
7) Company standards stipulate that as a general rule a
Director is not to concurrently serve as Director at four
or more other companies whose shares are stock-
market listed.
8) The Company has a performance-linked remuneration
system as stated above, and remuneration of Directors
is determined by the Board of Directors within the
range stipulated therein.
Given the above, the current corporate governance
system of the Asahi Kasei Group is considered to be
optimum within the formulation of a holding company/
core operating company confi guration and a company
with a Board of Corporate Auditors.
Asahi Kasei Annual Report 2011
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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 2010 were Mr. Katsunori Sasayama and Mr. Keiichi
Otsuka. 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.
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. Furthermore,
renewal of the Shareholder Rights Plan was approved at
the Ordinary General Meeting of Shareholders held in
June 2011.
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
http://www.asahi-kasei.co.jp/asahi/en/news/2011/
e110511.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 it or an equivalent standard
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. Education and training for all employees, including
the distribution of an information security handbook which
covers issues related to personal information protection, is
monitored by the Corporate Ethics Committee.
34 Asahi Kasei Annual Report 2011
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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.
fundamental element of our Corporate Ethics – Basic
Policy. We proactively engage in information disclosure
and communication based on these basic concepts.
(cid:129) 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.
(cid:129) With our Group Mission of “contributing to life and living
for people around the world,” 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
(cid:129) 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 laws and
regulations including personal information protection law,
and operation of the Compliance Hotline.
Risk Management
The Asahi Kasei Group has a Risk Management
Committee under its CSR Council to enhance the risk
management system for prevention of operational crises
and minimization of the effects should a crisis occur. Our
Basic Risk Management Regulations, which were
established by the Board of Directors in March 2007
(effective April 1, 2007), provide clear guidelines to
heighten the capability and effectiveness for risk
management and emergency response throughout the
Asahi Kasei Group.
In June 2010, the Risk Management Committee
introduced a Safety Confi rmation System throughout the
Asahi Kasei Group. Using this system, the safety of over
90% of our personnel was confi rmed within two days after
the Great East Japan Earthquake of March 2011. In
addition, the Asahi Kasei Group established an Emergency
Disaster Response Headquarters to coordinate additional
efforts to confi rm the safety of personnel and collect
information regarding the state of damage to our facilities.
It also distributed emergency provisions to personnel who
were unable to return home, and delivered relief supplies
to the affected operating bases. In support of the people in
the areas damaged by the earthquake and tsunami, the
Asahi Kasei Group made a donation of ¥100 million and
500,000 rolls of Saran Wrap™ cling fi lm, and delivered
60,000 boxes of Ziploc™ storage bags and 60,000
Ziploc™ freezer bags.
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Asahi Kasei Annual Report 2011
35
Corporate Social Responsibility
CSR at the Asahi Kasei Group
CSR in Action
We believe that CSR is achieved by raising corporate
value for our various stakeholders through our business
operations in accordance with our Group Mission of
contributing to life and living for people around the world.
CSR Fundamentals
Based on a clear understanding of the effects of our
operations on the global environment and the global
community, our efforts and actions related to CSR are
focused on four CSR Fundamentals: Compliance,
Respect for Employee Individuality, Responsible Care*,
and Corporate Citizenship.
Asahi Kasei Group CSR
The
Community
Community
outreach
The
Employee
Employee
fulfillment
The
Environment
Environmental
protection
The
Customer
Customer
satisfaction
Sustainable Increase
in Corporate Value
The
Shareholder
Shareholder
returns
The
Supplier
Fair business
dealings
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 firm producing and handling chemical products. As of October 2010, fifty-four countries
throughout the world have a Responsible Care program.
36 Asahi Kasei Annual Report 2011
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Framework for Advancement
The CSR Council, formed in April 2005 with the holding
company President serving as chair, formulates CSR
policy and guides the CSR effort throughout the Asahi
Kasei Group. At the same time, it monitors specifi c CSR
initiatives implemented by its seven committees, including
the Corporate Ethics Committee to ensure regulatory
compliance and the Responsible Care Committee to
guide efforts for environment, health, and safety.
President of
holding company
Corporate Ethics Committee
(cid:115)(cid:0)(cid:48)(cid:82)(cid:69)(cid:80)(cid:65)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:34)(cid:65)(cid:83)(cid:73)(cid:67)(cid:0)(cid:48)(cid:79)(cid:76)(cid:73)(cid:67)(cid:89)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:35)(cid:79)(cid:68)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:35)(cid:79)(cid:78)(cid:68)(cid:85)(cid:67)(cid:84)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:67)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69)(cid:0)(cid:69)(cid:84)(cid:72)(cid:73)(cid:67)(cid:83)
(cid:115)(cid:0)(cid:33)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:69)(cid:84)(cid:72)(cid:73)(cid:67)(cid:83)(cid:0)(cid:69)(cid:68)(cid:85)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:72)(cid:79)(cid:84)(cid:76)(cid:73)(cid:78)(cid:69)
CSR Council
Responsible Care Committee
(cid:115)(cid:0)(cid:38)(cid:79)(cid:82)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:85)(cid:78)(cid:73)(cid:70)(cid:73)(cid:69)(cid:68)(cid:0)(cid:80)(cid:79)(cid:76)(cid:73)(cid:67)(cid:89)
and action plans
(cid:115)(cid:0)(cid:39)(cid:85)(cid:73)(cid:68)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:79)(cid:85)(cid:78)(cid:83)(cid:69)(cid:76)(cid:0)(cid:70)(cid:79)(cid:82)
the subordinate committees
(cid:115)(cid:0)(cid:48)(cid:82)(cid:69)(cid:80)(cid:65)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:35)(cid:51)(cid:50)(cid:0)(cid:50)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:83)
(cid:115)(cid:0)(cid:45)(cid:79)(cid:78)(cid:73)(cid:84)(cid:79)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84)
evaluation
(cid:115)(cid:0)(cid:36)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:35)(cid:51)(cid:50)(cid:0)(cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)
in concert with Corporate
Communications and
Investor Relations
(cid:115)(cid:0)(cid:36)(cid:69)(cid:76)(cid:73)(cid:66)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:82)(cid:69)(cid:71)(cid:65)(cid:82)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:0)(cid:80)(cid:82)(cid:79)(cid:84)(cid:69)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:0)(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:12)(cid:0)
(cid:0)(cid:0)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:12)(cid:0)(cid:69)(cid:84)(cid:67)(cid:14)
(cid:39)(cid:76)(cid:79)(cid:66)(cid:65)(cid:76)(cid:0)(cid:55)(cid:65)(cid:82)(cid:77)(cid:73)(cid:78)(cid:71)(cid:0)(cid:50)(cid:69)(cid:83)(cid:80)(cid:79)(cid:78)(cid:83)(cid:69)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)
(cid:115)(cid:0)(cid:36)(cid:69)(cid:76)(cid:73)(cid:66)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:65)(cid:68)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:71)(cid:82)(cid:79)(cid:85)(cid:80)(cid:13)(cid:87)(cid:73)(cid:68)(cid:69)(cid:0)(cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:82)(cid:0)(cid:71)(cid:76)(cid:79)(cid:66)(cid:65)(cid:76)(cid:0)(cid:87)(cid:65)(cid:82)(cid:77)(cid:73)(cid:78)(cid:71)
(cid:45)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84)(cid:0)(cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)
(cid:115)(cid:0)(cid:37)(cid:88)(cid:65)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:80)(cid:82)(cid:73)(cid:79)(cid:82)(cid:0)(cid:84)(cid:79)(cid:0)(cid:65)(cid:76)(cid:76)(cid:0)(cid:65)(cid:67)(cid:82)(cid:79)(cid:83)(cid:83)(cid:13)(cid:84)(cid:72)(cid:69)(cid:13)(cid:66)(cid:79)(cid:65)(cid:82)(cid:68)(cid:0)(cid:80)(cid:82)(cid:73)(cid:67)(cid:69)(cid:0)(cid:82)(cid:69)(cid:86)(cid:73)(cid:83)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:67)(cid:79)(cid:78)(cid:70)(cid:73)(cid:82)(cid:77)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)
(cid:0)(cid:0)(cid:0)(cid:33)(cid:78)(cid:84)(cid:73)(cid:77)(cid:79)(cid:78)(cid:79)(cid:80)(cid:79)(cid:76)(cid:89)(cid:0)(cid:44)(cid:65)(cid:87)
(cid:37)(cid:88)(cid:80)(cid:79)(cid:82)(cid:84)(cid:0)(cid:35)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)
(cid:115)(cid:0)(cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:0)(cid:69)(cid:88)(cid:80)(cid:79)(cid:82)(cid:84)(cid:13)(cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:82)(cid:69)(cid:71)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)
(cid:50)(cid:73)(cid:83)(cid:75)(cid:0)(cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)
(cid:115)(cid:0)(cid:38)(cid:79)(cid:82)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:82)(cid:69)(cid:83)(cid:80)(cid:79)(cid:78)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:65)(cid:67)(cid:84)(cid:85)(cid:65)(cid:76)(cid:0)(cid:79)(cid:82)(cid:0)(cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:0)(cid:67)(cid:82)(cid:73)(cid:83)(cid:69)(cid:83)
(cid:35)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:89)(cid:0)(cid:38)(cid:69)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83)(cid:72)(cid:73)(cid:80)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)
(cid:115)(cid:0)(cid:38)(cid:79)(cid:82)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:79)(cid:76)(cid:73)(cid:67)(cid:89)(cid:12)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:12)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:79)(cid:85)(cid:82)(cid:83)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:82)(cid:69)(cid:71)(cid:65)(cid:82)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:89)(cid:0)(cid:70)(cid:69)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83)(cid:72)(cid:73)(cid:80)(cid:0)(cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)
Highlight
The Asahi Kasei Group is proactively involved in activities
to preserve biodiversity as a founding member of the
International Partnership for the Satoyama Initiative (IPSI),
which was established at COP10 held in October 2010.
As part of this initiative, the Nobeoka Power Supply
Dept. of Asahi Kasei Chemicals is advancing a project for
the sustainable utilization of the forest resources of the
Gokase River watershed area as biomass fuel for power
generation at a new power plant currently under
construction. The sustainable utilization of forest
resources in this way is expected to make a signifi cant
contribution to the preservation of biodiversity in the area.
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Asahi Kasei Annual Report 2011
37
Directors, Corporate Auditors, Executive Offi cers
(As of June 29, 2011)
Ichiro Itoh
Chairman &
Representative Director
Taketsugu Fujiwara
Koji Fujiwara
President & Representative Director
Presidential Executive Offi cer
Director
Primary Executive Offi cer
Yasuyuki Yoshida
Director
Primary Executive Offi cer
Tsutomu Inada
Yuji Mizuno
Masanori Mizunaga
Director
Senior Executive Offi cer
Director
Senior Executive Offi cer
Director
Senior Executive Offi cer
Yukiharu Kodama
Outside Director
Morio Ikeda
Outside Director
Norio Ichino
Outside Director
Kenji Nakamae
Corporate Auditor
Katsuhiko Yamazoe
Senior Executive Offi cer
Makoto Konosu
Executive Offi cer
Shoichiro Tonomura
Executive Offi cer
Toshiyuki Kawasaki
Corporate Auditor
Ryo Matsui
Lead Executive Offi cer
Masaki Sakamoto
Executive Offi cer
Yoshihiro Wada
Executive Offi cer
Kazuo Tezuka
Outside Corporate Auditor
Toshikatsu Sunami
Lead Executive Offi cer
Masahito Hirai
Executive Offi cer
Yuji Aoki
Outside Corporate Auditor
Shinichiro Nei
Lead Executive Offi cer
Toshio Asano
Executive Offi cer
38 Asahi Kasei Annual Report 2011
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Financial Section
Contents
40 Consolidated Eleven-Year Summary
42 Management’s Discussion and Analysis
48 Risk Analysis
50 Consolidated Balance Sheets
52 Consolidated Statements of Income
53 Consolidated Statements of Comprehensive Income
54 Consolidated Statements of Changes in Net Assets
55 Consolidated Statements of Cash Flows
56 Notes to Consolidated Financial Statements
77 Report of Independent Auditors
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Asahi Kasei Annual Report 2011
39
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
Health Careb
Fibersb
Electronicsb
Construction Materials
Special Products and Services
Electronics
Membranes and Systems
Biotechnology and Medical Products
Engineering and Others
Othersb
Domestic sales
Overseas sales
Operating income
Ordinary income
Income (loss) before income taxes
Net income (loss)
Comprehensive income
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
2011
2010
2009d
2008
¥ 1,598,387 ¥ 1,433,595 ¥ 1,553,108 ¥ 1,696,789
742,243
622,093
689,323
879,235
—
—
—
—
—
—
—
—
—
—
—
—
409,224
389,728
409,882
386,227
—
—
—
—
116,387
113,207
119,619
111,232
108,761
101,201
116,405
114,072
158,337
142,700
129,655
113,267
47,418
47,024
60,927
55,732
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
16,017
17,642
27,297
37,024
1,149,098
1,063,186
1,159,143
1,209,452
449,289
370,409
393,965
487,337
122,927
118,219
98,342
60,288
45,088
43.11
66,014
84,092
62,320
11.00
57,622
56,367
46,056
25,286
—
18.08
34,959
127,656
32,500
120,456
19,031
105,599
4,745
69,945
—
3.39
83,990
126,725
86,166
62,924
10.00
79,436
60,849
10.00
—
50.01
82,911
73,983
56,170
13.00
2011
20120100
2009
2008
¥ 1,425,879 ¥ 1,368,892 ¥ 1,379,337 ¥ 1,425,367
256,248
251,084
273,539
272,372
418,354
447,497
441,271
424,193
220,773
226,331
218,477
234,873
663,566
633,343
603,846
666,244
474.59
452.91
431.77
476.39
46.5
46.3
43.8
46.7
25,016
25,085
24,244
23,854
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) From the year ended March 31, 2004, through the year ended March 31, 2009: Figures shown as Health Care are for the previous Pharma segment, and fi gures shown as
Electronics are for the previous Electronics Materials & Devices segment.
(cid:129) From the year ended March 31, 2001, through the year ended March 31, 2003: Figures shown as Fibers are those for the previous Fibers and Textiles sector, and fi gures
shown as Others are those for the former Liquors, Services and Others sector.
(cid:129) From the year ended March 31, 2004, through the year ended March 31, 2010: Figures shown as Others are those for the previous Services, Engineering and Others 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, 2009, are recalculated to refl ect the April 2010 transfer of electronic materials operations from the Chemicals
segment and from Corporate Expenses to the Electronics segment, and the April 2010 transfer of Leona™ nylon 66 fi lament operations from the Chemicals segment to the
Fibers segment.
40 Asahi Kasei Annual Report 2011
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2007
2006
2005e
2004
2003f
2003
2002
2001g
2001
¥ 1,623,791 ¥ 1,498,620 ¥ 1,377,697 ¥ 1,253,534 ¥ 1,193,614 ¥ 1,193,614 ¥ 1,195,393 ¥ 1,269,415 ¥ 1,269,415
Millions of yen, except where noted
752,632
660,402
570,182
453,707
424,673
52,558
51,942
59,149
59,813
52,908
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
405,695
404,539
375,755
361,273
320,553
—
477,581
440,698
449,470
—
—
—
—
—
430,934
—
—
—
—
—
—
—
383,654
408,474
433,440
433,440
104,474
105,842
103,933
105,965
105,463
105,463
98,686
95,481
—
106,639
89,704
91,518
101,514
110,551
110,551
125,908
134,791
134,791
112,094
102,859
60,818
56,512
93,024
59,908
82,484
60,622
71,579
63,101
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
71,579
64,062
95,999
—
—
—
—
—
—
270,250
96,228
18,307
95,481
60,234
—
—
—
—
—
—
28,881
26,821
24,228
28,156
44,786
44,786
57,565
60,234
1,195,751
1,125,454
1,067,893
1,011,366
981,064
981,064
1,006,810
1,086,219
1,086,219
428,040
373,166
309,804
242,168
212,550
212,550
188,583
183,196
183,196
127,801
108,726
115,809
126,507
104,166
112,876
114,883
68,575
—
49.00
84,413
71,646
52,426
12.00
94,481
59,668
—
42.46
66,310
69,399
51,467
10.00
91,141
56,454
—
40.16
68,479
71,531
50,715
8.00
60,932
53,643
61,555
50,389
61,555
50,389
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
2007
2006
2005
2004
2003
2003
2002
2001
2001
¥ 1,459,922 ¥ 1,376,044 ¥ 1,270,057 ¥ 1,249,206 ¥ 1,212,374 ¥ 1,212,374 ¥ 1,193,011 ¥ 1,240,008 ¥ 1,240,008
240,006
214,062
202,521
181,609
176,788
176,788
180,826
196,510
196,510
426,959
414,368
419,969
428,302
427,188
427,188
415,193
419,168
419,168
281,502
284,390
223,958
226,825
198,697
198,697
181,618
176,177
176,177
645,655
594,211
511,726
450,451
407,639
407,639
496,826
516,013
516,013
461.50
424.34
365.43
321.41
290.92
290.92
353.16
357.70
357.70
44.2
43.2
40.3
36.1
33.6
33.6
41.6
41.6
41.6
23,715
23,030
23,820
25,011
25,730
25,730
26,227
26,695
26,695
e. 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.
f. 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 Fibers and Textiles sector is renamed the Fibers segment.
(cid:129) With the divestment of liquors operations, the Liquors, Services and Others sector is renamed the Services, Engineering and Others segment.
g. 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.
Asahi Kasei Annual Report 2011
41
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Management’s Discussion and Analysis
Fiscal year 2010 (April 1, 2010 – March 31, 2011)
Overview of Fiscal 2010 Consolidated Results
Operating environment
The Japanese economy was recovering in the fi rst half as
Non-operating income and expenses, ordinary income
Net non-operating expenses were ¥4.7 billion, ¥3.5 billion
higher than the ¥1.3 billion of a year earlier, largely due to an
increase in foreign exchange loss and the occurrence of
corporate performance improved with the effect of government
litigation related expenses, although equity in earnings of
stimulus measures and thanks to economic recovery in emerging
affi liates increased. As a result, ordinary income increased by
markets. In the second half, however, the economy was severely
¥61.9 billion (109.7%) to ¥118.2 billion.
affected by the rapid rise of the yen, a decline in automotive sales
due to the expiration of government subsidies for fuel-effi cient
vehicles, high feedstock prices driven by political unrest in North
Extraordinary income and loss
Extraordinary losses of ¥21.6 billion included ¥10.0 billion in
Africa and the Middle East, and the impact of the Great East
business structure improvement expenses and a ¥4.9 billion
Japan Earthquake, resulting in uncertainty regarding the
loss on disposal of noncurrent assets. Combined with
economic outlook.
extraordinary income, the net extraordinary loss was ¥19.9
billion, ¥9.6 billion higher than a year earlier.
Net sales, operating income
Consolidated net sales for the fi scal year increased by ¥164.8
billion (11.5%) from a year ago to ¥1,598.4 billion. Overseas sales
Net income
With ordinary income of ¥118.2 billion and the net
increased, largely in Chemicals, by ¥78.9 billion (21.3%) to
extraordinary loss of ¥19.9 billion, income before income
¥449.3 billion, and increased by 2.3 percentage points as a
taxes was ¥98.3 billion. Income tax expense was ¥36.7 billion
portion of consolidated net sales from 25.8% to 28.1%.
(current income taxes of ¥39.6 billion less deferred income
Domestic sales increased by ¥85.9 billion (8.1%) to ¥1,149.1
billion with high feedstock prices as well as high market prices
taxes of ¥3.0 billion). Minority interests in income of
consolidated subsidiaries was ¥1.4 billion. As a result, net
buoyed by robust demand in the Chemicals segment.
income increased by ¥35.0 billion (138.4%) to ¥60.3 billion,
Operating income increased by ¥65.3 billion (113.3%) to
and net income per share increased by ¥25.03 to ¥43.11 from
¥122.9 billion. As a percentage of net sales, cost of sales
the ¥18.08 of a year earlier.
increased by 2.1 percentage points to 74.7%, largely due to
improved operating rates driven by demand recovery. SG&A
increased by ¥6.5 billion, but decreased as a percentage of net
sales by 1.6 percentage points to 17.6% due to the large
increase in sales. Operating margin increased by 3.7 percentage
points to 7.7%.
Net Sales,
Overseas Sales Ratio
(¥ billion)
2,000
1,500
1,000
500
0
Operating Income,
Operating Margin
(¥ billion)
150
120
90
60
30
(%)
40
30
20
10
0
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
09
10
FY
06
07
08
09
10
FY
06
07
08
09
10
FY
06
07
08
09
10
Net sales, left scale
Operating income, left scale
SG&A, left scale
Net income, left scale
Overseas sales ratio, right scale
Operating margin, right scale
SG&A ratio, right scale
Net income per share, right scale
42 Asahi Kasei Annual Report 2011
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Results by Operating Segment
increased as demand recovery in automotive and electronics
applications led to greater shipments. Operating income in
Beginning in fi scal 2010, Accounting Standard for Disclosures
specialty products operations increased as home-use
about Segments of an Enterprise and Related Information
products such as Saran Wrap™ as well as functional additives
issued by the Accounting Standards Board of Japan (ASBJ
and coating materials performed well.
Statement No. 17) and Guidance on Accounting Standard for
Disclosures about Segments of an Enterprise and Related
Information (ASBJ Guidance No. 20) have been applied,
Homes
Sales increased by ¥19.5 billion (5.0%) from a year ago to
resulting in six reporting segments: Chemicals, Homes, Health
¥409.2 billion and operating income increased by ¥11.1 billion
Care, Fibers, Electronics, and Construction Materials.
(43.9%) to ¥36.5 billion. Orders for order-built homes
In describing the state of the Asahi Kasei Group’s
increased by ¥47.7 billion to ¥354.5 billion.
businesses by major business classifi cation, businesses not
Operating income in order-built and pre-built homes
included in the above six reporting segments are categorized
operations increased with a rise in orders resulting in greater
as “Others.” The “Others” category is equivalent to the
deliveries of both Hebel Haus™ unit homes and Hebel
previous Services, Engineering and Others segment, including
Maison™ apartment buildings, and with continuous cost
plant engineering and environmental engineering, research
reductions. Although our in-house mortgage securitization
and analysis, and employment agency/staffi ng operations.
business was impacted by an increase in the proportion of
The operating expenses of one consolidated subsidiary
customers utilizing the “Flat 35” fi xed-rate mortgage,
previously included in Services, Engineering and Others have
remodeling and real estate businesses performed well and
been included in “corporate expenses” beginning in fi scal
operating income in housing-related operations was level with
2010. The impact of this is immaterial.
a year ago.
Chemicals
Sales increased by ¥120.1 billion (19.3%) from a year ago to
¥742.2 billion and operating income increased by ¥38.3 billion
(147.0%) to ¥64.4 billion.
Operating income in chemicals and derivative products
operations increased as market prices for acrylonitrile and
adipic acid remained high, buoyed by favorable demand in
Asia. Operating income in polymer products operations
ROE
(%)
12
9
6
3
0
Chemicals
(¥ billion)
1,000
(¥ billion)
100
800
600
400
200
0
-0.9%
8.7%
4.2%
80
60
40
20
0
Homes
(¥ billion)
(¥ billion)
500
400
300
200
100
5.3%
6.5%
8.9%
50
40
30
20
10
0
FY
06
07
08
09
10
FY
08
09
10
(20)
0
FY
08
09
10
Net sales, left scale
Net sales, left scale
Operating income (loss), right scale
Operating income, right scale
Operating margin (%)
Operating margin (%)
Asahi Kasei Annual Report 2011
43
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Health Care
Sales increased by ¥3.2 billion (2.8%) from a year ago to
Electronics
Sales increased by ¥15.6 billion (11.0%) from a year ago to
¥116.4 billion and operating income increased by ¥3.0 billion
¥158.3 billion and operating income increased by ¥7.0 billion
(76.1%) to ¥7.0 billion.
(96.9%) to ¥14.3 billion.
Operating income in pharmaceuticals operations
Operating income in electronic devices operations
increased as Recomodulin™ recombinant thrombomodulin
increased as growth in shipments of LSIs for smartphones
made a substantial contribution to results, and as shipments
and other portable devices, particularly overseas, outweighed
of the Flivas™ therapy for benign prostatic hyperplasia
a sharp impact from the strong yen. In electronic materials
increased although NHI price revisions had a negative impact
operations, although shipments grew, most notably in
on product prices. Operating income in devices-related
Hipore™ Li-ion battery separator, operating income
operations increased with greater shipments of APS™
decreased slightly with the impact of declining product prices
polysulfone-membrane artifi cial kidneys and of therapeutic
and high feedstock costs.
apheresis devices, although the strong yen had an impact on
performance in each product category.
Fibers
Sales increased by ¥7.6 billion (7.5%) from a year ago to
Construction Materials
Sales increased by ¥0.4 billion (0.8%) from a year ago to
¥47.4 billion and operating income increased by ¥0.9 (74.0%)
billion to ¥2.1 billion.
¥108.8 billion and operating income increased by ¥7.0 billion
Although operating costs in housing and building
to ¥4.2 billion.
materials operations were reduced, operating income
Operations throughout the segment were impacted by
the strong yen and high feedstock costs. Operating income
decreased with fewer shipments of Hebel™ autoclaved
aerated concrete panels. Operating income in foundation
from Bemberg™ regenerated cellulose increased with
system operations increased with growing shipments of
substantially greater shipments in non-lining applications such
Eazet™ and ATT Column™ small-scale piles in new
as innerwear and outerwear. Operating income from Roica™
applications. Operating income in insulation materials
elastic polyurethane fi lament increased with growing sales of
operations increased as shipments of Neoma™ phenolic foam
functional yarns, from nonwovens with growing shipments in
insulation panels grew substantially, supported by government
disposable diaper applications, and from Leona™ nylon 66
policy such as the eco-point program for energy conservation.
fi lament with growing shipments in automotive applications.
Operating income in structural materials operations increased
with growing shipments of the BasePack™ earthquake-
resistant column base attachment system.
Health Care
(¥ billion)
(¥ billion)
Fibers
(¥ billion)
Electronics
(¥ billion)
(¥ billion)
(¥ billion)
150
120
90
60
30
0
FY
150
120
90
60
30
0
10.1%
20
16
12
3.5%
6.1%
8
4
0
-1.3%
-2.7%
7.5
6.0
4.5
3.9%
3.0
1.5
0.0
(1.5)
(3.0)
(4.5)
200
160
120
80
40
0
5.6%
5.1%
30
24
9.0%
18
12
6
0
08
09
10
FY
08
09
10
FY
08
09
10
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 (%)
44 Asahi Kasei Annual Report 2011
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Others
Sales decreased by ¥1.6 billion (9.2%) from a year ago to
Net assets increased by ¥30.9 billion (4.8%) from ¥644.7
billion to ¥675.6 billion. Net income was ¥60.3 billion, and
¥16.0 billion and operating income decreased by ¥0.1 billion
dividend payments were ¥14.0 billion. Foreign currency
translation adjustments decreased by ¥9.2 billion, and
valuation difference on other securities decreased by ¥7.0
billion. As a result, net worth per share increased by ¥21.68 to
¥474.59, net worth/total assets increased from 46.3% to
46.5%, and debt-to-equity ratio decreased by 0.04 to 0.38.
(6.4%) to ¥1.7 billion.
Liquidity and Capital Resources
Financial position
Total assets at fi scal year end were ¥1,425.9 billion, ¥57.0
billion (4.2%) higher than a year earlier.
Current assets increased by ¥95.2 billion (14.4%) to
¥755.7 billion, mainly because cash and deposits increased
by ¥46.4 billion and notes and accounts receivable, trade,
increased by ¥34.5 billion primarily due to a year-on-year
increase in fourth quarter net sales.
Noncurrent assets decreased by ¥38.3 billion (5.4%) to
¥670.2 billion, with property, plant and equipment decreasing
by ¥29.1 billion largely because capital expenditure was lower
than depreciation and amortization, and with investment
securities decreasing by ¥8.7 billion mainly due to decreased
fair value.
Current liabilities increased by ¥55.1 billion (12.7%) to
¥489.9 billion, with a ¥15.0 billion increase in notes and
accounts payable, trade, a ¥14.9 billion increase in short-term
loans payable, and a ¥14.5 billion increase in advances
received.
Noncurrent liabilities decreased by ¥29.0 billion (10.0%)
to ¥260.4 billion, largely due to a ¥30.2 billion decrease in
long-term loans payable.
Interest-bearing debt decreased by ¥10.7 billion to
¥253.9 billion.
Construction Materials
Others
Total Assets, Net Worth
Net Worth to Total Assets
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
90
60
30
0
6
4
2
0
40
30
20
10
0
12
1,500
9
6
20.6%
10.3%
10.7%
3
1,200
900
600
300
0
0
4.4%
2.6%
2.8%
(%)
50
40
30
20
10
0
FY
08
09
10
FY
08
09
10
FY
06
07
08
09
10
FY
06
07
08
09
10
Net sales, left scale
Net sales, left scale
Operating income, right scale
Operating income, right scale
Operating margin (%)
Operating margin (%)
Total assets
Net worth
Asahi Kasei Annual Report 2011
45
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Capital expenditure
Capital expenditure (capex) was primarily for new and
expanded production plant and equipment in long-term
growth fi elds. Investments were also made for rationalization,
Notable capex by operating segment was as follows.
Chemicals
Rationalization of equipment in Mizushima, other
modifi cation, maintenance, and IT systems to bring greater
rationalization, labor-saving, and maintenance.
product reliability and cost reductions.
Capex by operating segment shown below is for
property, plant and equipment and intangible assets,
Homes
Leases, rationalization, labor-saving, and maintenance.
combined, before consumption tax.
A total of ¥66.0 billion was invested during the fi scal year
for the expansion of businesses with competitive superiority,
Health Care
New molding plant for Planova™ virus removal fi lters, new
particularly in the Chemicals and Electronics segments, as
plant for therapeutic apheresis devices, rationalization, labor-
well as for modifi cation and rationalization.
saving, and maintenance.
Totals for the year
(¥ million)
Compared to
previous year (%)
Fibers
Rationalization, labor-saving, and maintenance.
Chemicals
Homes
Health Care
Fibers
Electronics
Construction Materials
Others
Combined
23,174
6,304
7,427
3,668
20,267
1,684
981
63,505
Corporate assets and eliminations
2,509
Consolidated
66,014
83.8
104.9
81.0
80.5
89.0
141.4
105.8
87.9
21.4
78.6
Electronics
Capacity expansion for Hipore™ Li-ion battery separator,
capacity expansion for LSIs, IT systems, rationalization, labor-
saving, and maintenance.
Construction Materials
Rationalization, labor-saving, and maintenance.
Others
Rationalization, labor-saving, and maintenance.
Corporate assets
R&D equipment, IT systems, maintenance.
Interest-Bearing Debt,
D/E Ratio
Capex, Depreciation
and Amortization
(¥ billion)
(¥ billion)
350
300
250
200
150
100
50
0
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
150
120
90
60
30
0
FY
06
07
08
09
10
FY
06
07
08
09
10
Interest-bearing debt, left scale
Capex
D/E ratio, right scale
Depreciation and amortization
46 Asahi Kasei Annual Report 2011
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Cash fl ows
Free cash fl ows* were a positive ¥69.3 billion, as cash
bearing debt, including loans, ¥14.0 billion was used for
dividend payments. Net cash used in fi nancing activities was
generated, principally from operating income and depreciation
¥26.1 billion, ¥48.9 less than a year earlier.
and amortization, exceeded cash used, principally for
acquisition of noncurrent assets and acquisition of investment
* Total of net cash provided by (used in) operating activities and net cash
provided by (used in) investment activities.
securities. Cash fl ows from fi nancing activities were a net
¥26.1 billion cash used, principally due to repayment of long-
term loans payable. As a result, cash and cash equivalents at
fi scal year end were ¥134.4 billion, ¥41.3 billion more than a
year earlier.
Cash fl ows from operating activities
Cash used included a ¥36.5 billion increase in notes and
accounts receivable, trade, largely in Chemicals, and ¥25.3
billion in income taxes paid. Income before income taxes
generated ¥98.3 billion, and depreciation and amortization
generated ¥84.1 billion. Net cash provided by operating
activities was ¥148.1 billion, ¥21.2 billion less than a year earlier.
Cash fl ows from investing activities
Cash used included ¥63.7 billion for purchase of property,
plant and equipment for continuing expansion of competitively
superior operations and enhancement of overall
competitiveness, ¥5.3 billion for purchase of intangible assets,
and ¥7.6 billion for purchase of investment securities. Net
cash used in investing activities was ¥78.8 billion, ¥21.3 billion
less than a year earlier.
Cash fl ows from fi nancing activities
In addition to ¥11.7 billion of net cash used to reduce interest-
Free Cash Flows
Cash Flows
(¥ billion)
80
60
40
20
0
(20)
(40)
(60)
(80)
(¥ billion)
200
100
0
(100)
(200)
FY
06
07
08
09
10
FY
06
07
08
09
10
Net cash provided by operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities
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Asahi Kasei Annual Report 2011
47
Risk Analysis
Operating risks and non-operating risks which may materially infl uence investor decisions are described below.
The management maintains awareness of the possibility that these scenarios may emerge and, to the fullest
possible extent, implements measures to avoid their emergence and to minimize their impact on corporate
performance in the event that they do emerge.
The description of risks given here includes elements which may emerge in the future, but as it is based on
current evaluations at the time of preparation of this report, it does not include risks which could not be foreseen.
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 oil
Japanese tax policies as they relate to home acquisition
and naphtha prices rise, selling prices for products derived
and by fl uctuations in Japanese interest rates. Changes in
from these feedstocks must be increased in a timely
Japanese tax policy, including consumption taxes, or
manner to maintain suffi cient price spreads. Price spreads
fl uctuations in Japanese interest rates may result in
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
Pharmaceuticals and medical devices
Overseas operations may face a variety of risks which
cannot be foreseen, including the existence or emergence
Pharmaceutical and medical device businesses may be
of economically unfavorable circumstances due to legal
signifi cantly affected by government measures to curtail
and regulatory changes, vulnerability of infrastructure,
health care expenditure or other changes in government
diffi culty in hiring/retaining qualifi ed employees, or other
policy. Unforeseeable side effects or complications may
factors, and social or political instability due to terrorism,
emerge, signifi cantly affecting these businesses. The
war, or other factors. Overseas operations may be
pharmaceutical business additionally faces the possibility
impaired by such scenarios, thereby affecting our
that product approval may be withdrawn as a result of
consolidated performance and business plans.
Japan’s reexamination system, and that competition may
48 Asahi Kasei Annual Report 2011
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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
opportunity loss due to plant shutdown caused by damage
to plant facilities, supply chain disruptions which impede
raw materials procurement, etc., 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.
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Asahi Kasei Annual Report 2011
49
Consolidated Balance Sheets
Asahi Kasei Corporation and Consolidated Subsidiaries
March 31, 2011 and 2010
ASSETS
Current assets:
Cash and deposits (Notes 9 and 11)
Notes and accounts receivable, trade
Short-term investment securities (Notes 9, 11 and 12)
Merchandise and fi nished goods
Work in progress
Raw materials and supplies
Deferred tax assets—current (Note 15)
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment
Buildings and structures (Note 5(b), (d))
Accumulated depreciation
Buildings and structures, net
Millions of yen
Thousands of
U.S. dollars (Note 1)
2011
2010
2011
¥ 140,319
¥
93,928
$ 1,690,589
273,414
371
129,898
76,551
49,799
23,131
63,240
(1,072)
755,651
238,931
985
124,557
75,044
51,484
23,106
54,027
(1,654)
660,408
409,263
(231,474)
177,789
404,974
(224,608)
180,366
3,294,144
4,472
1,565,031
922,300
599,990
278,689
761,930
(12,921)
9,104,224
4,930,883
(2,788,847)
2,142,036
14,363,040
Machinery, equipment and vehicles (Note 5(b), (d))
1,192,132
1,169,979
Accumulated depreciation
Machinery, equipment and vehicles, net
Land (Note 5(d))
Lease assets (Note 10)
Accumulated depreciation
Lease assets, net
Construction in progress
Other (Note 5(b), (d))
Accumulated depreciation
Other, net
Subtotal
Intangible assets
Goodwill
Other
Subtotal
(1,047,912)
(1,005,094)
(12,625,447)
144,220
55,243
8,581
(3,118)
5,463
22,173
118,718
(105,252)
13,466
418,354
164,885
55,031
5,808
(1,132)
4,676
27,380
115,024
(99,867)
15,158
447,497
1,737,593
665,580
103,383
(37,561)
65,822
267,140
1,430,339
(1,268,097)
162,242
5,040,413
5,087
26,015
31,101
5,927
28,729
34,656
61,287
313,429
374,715
Investments and other assets
Investment securities (Notes 5(a), 11 and 12)
166,317
175,059
2,003,822
Long-term receivable (Note 11)
Deferred tax assets—noncurrent (Note 15)
Other
Allowance for doubtful accounts
Subtotal
5,181
22,005
27,507
(237)
6,074
15,383
29,962
(147)
62,416
265,122
331,404
(2,851)
220,773
226,331
2,659,913
Total noncurrent assets
670,228
708,485
8,075,042
Total assets
¥ 1,425,879
¥ 1,368,892
$ 17,179,265
The accompanying notes are an integral part of these statements.
50 Asahi Kasei Annual Report 2011
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LIABILITIES AND NET ASSETS
Liabilities:
Current liabilities:
Millions of yen
Thousands of
U.S. dollars (Note 1)
2011
2010
2011
Notes and accounts payable, trade (Note 11)
¥ 136,407
¥ 121,409
$ 1,643,461
Short-term loans payable (Notes 5(b), 11 and 21)
Commercial paper (Notes 11 and 21)
Lease obligations (Notes 10, 11 and 21)
Income taxes payable (Note 11)
Accrued expenses
Advances received
Provision for periodic repairs
Provision for product warranties
Asset retirement obligations (Notes 3(b) and 17)
Other
Total current liabilities
Noncurrent liabilities:
Bonds payable (Notes 11 and 21)
Long-term loans payable (Notes 5(b), 11 and 21)
Lease obligations (Notes 10 and 11)
Deferred tax liabilities (Note 15)
Provision for retirement benefi ts (Note 14)
Provision for directors’ retirement benefi ts
Provision for periodic repairs
Asset retirement obligations (Notes 3(b) and 17)
Long-term guarantee deposited (Note 11)
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
Capital surplus
Retained earnings (Note 8(b)(ii))
Treasury stock
(2011—4,420,688 shares, 2010—4,228,468 shares)
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on other securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests
Total net assets
Commitments and contingent liabilities (Notes 5(c) and 10)
108,889
23,000
1,522
24,085
97,745
52,346
3,239
2,465
512
39,668
489,878
25,000
91,722
3,802
6,374
107,309
1,119
2,131
3,316
18,340
1,284
260,399
750,277
103,389
79,402
478,681
(2,115)
659,357
29,647
(140)
(25,299)
4,209
12,036
675,602
93,962
19,000
1,123
12,160
91,371
37,815
8,191
3,607
—
46,189
434,827
25,000
121,921
3,593
7,597
109,450
1,225
169
—
18,321
2,101
289,378
724,204
103,389
79,403
432,114
(2,017)
612,888
36,692
(109)
(16,128)
20,455
11,346
1,311,915
277,108
18,333
290,183
1,177,649
630,680
39,021
29,701
6,164
477,928
5,902,143
301,205
1,105,090
45,812
76,794
1,292,878
13,486
25,679
39,957
220,966
15,468
3,137,336
9,039,479
1,245,645
956,656
5,767,244
(25,481)
7,944,064
357,196
(1,686)
(304,802)
50,708
145,014
644,688
8,139,787
Total liabilities and net assets
¥ 1,425,879
¥ 1,368,892
$ 17,179,265
The accompanying notes are an integral part of these statements.
Asahi Kasei Annual Report 2011
51
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Consolidated Statements of Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2011 and 2010
Net sales (Note 18)
Cost of sales (Note 6(a), (b))
Gross profi t
Selling, general and administrative expenses (Note 6(a))
Operating income (Note 18)
Non-operating income:
Interest income
Dividends income
Equity in earnings of affi liates
Other
Total non-operating income
Non-operating expenses:
Interest expense
Foreign exchange loss
Litigation related expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income:
Gain on sales of investment securities
Gain on sales of noncurrent assets (Note 6(c))
Reversal of allowance for doubtful accounts
Gain on change in equity
Gain on business transfer (Note 16)
Gain as a result of arbitration award
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 18)
Environmental expenses (Note 6(f))
Cumulative adjustment for adoption of accounting standard
for asset retirement obligations (Note 17)
Loss on disaster (Note 6(g))
Business structure improvement expenses (Notes 6(h) and 18)
Total extraordinary loss
Income before income taxes and minority interests
Income taxes (Note 15) — current
— deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income
The accompanying notes are an integral part of these statements.
52 Asahi Kasei Annual Report 2011
Millions of yen
Thousands of
U.S. dollars (Note 1)
2011
2010
2011
¥ 1,598,387
¥ 1,433,595
$ 19,257,678
1,193,646
1,100,688
14,381,278
404,741
281,814
122,927
332,907
275,285
57,622
1,118
2,273
2,212
4,248
9,851
3,313
3,880
1,908
5,458
14,560
118,219
416
463
84
—
736
—
1,699
380
651
4,879
2,404
1,185
1,240
821
10,016
21,576
98,342
39,628
(2,952)
36,675
61,667
1,379
1,071
2,276
1,151
3,394
7,891
3,714
702
—
4,730
9,146
56,367
112
152
—
153
—
6,502
6,919
—
1,918
2,944
836
1,482
—
—
10,050
17,230
46,056
17,107
3,377
20,483
25,573
286
4,876,400
3,395,350
1,481,051
13,471
27,380
26,649
51,187
118,686
39,921
46,745
22,992
65,758
175,416
1,424,321
5,014
5,574
1,017
—
8,869
—
20,474
4,578
7,845
58,779
28,959
14,277
14,944
9,890
120,674
259,946
1,184,848
477,440
(35,568)
441,873
742,976
16,620
¥
60,288
¥
25,286
$
726,356
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Consolidated Statements of Comprehensive Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2011 and 2010
Millions of yen
Thousands of
U.S. dollars (Note 1)
Income before minority interests
Other comprehensive income
Valuation difference on other securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Share of other comprehensive income of affi liates accounted
for using equity method
Total other comprehensive income (Note 7(b))
Comprehensive income (Note 7(a))
Comprehensive income attributable to:
Owners of the parent
Minority interests
The accompanying notes are an integral part of these statements.
2011
2010
2011
¥
61,667
¥
—
$
742,976
(7,059)
(31)
(7,114)
(2,375)
(16,579)
45,088
44,042
—
—
—
—
—
—
—
(85,052)
(368)
(85,711)
(28,612)
(199,743)
543,233
530,624
¥
1,047
¥
—
$
12,609
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Asahi Kasei Annual Report 2011
53
Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2011 and 2010
Shareholders’ equity
Accumulated other comprehensive income
Millions of yen
Capital
stock
Capital
surplus
Retained
earnings
(Note 8(b))
Treasury
stock
Total
shareholders’
equity
Valuation
difference on
other securities
Deferred
gains
(losses) on
hedges
Foreign
currency
translation
adjustment
Total
accumulated
other
comprehensive
income
Minority
interests
Total
net assets
Balance at March 31, 2010
¥ 103,389 ¥ 79,403 ¥ 432,114 ¥ (2,017) ¥ 612,888 ¥ 36,692 ¥ (109) ¥ (16,128) ¥ 20,455 ¥ 11,346 ¥ 644,688
Changes during the fi scal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
Net changes of items other than
shareholders’ equity
Total changes of items
during the period
(13,984)
60,288
307
(43)
(0)
(116)
18
(13,984)
60,288
(116)
18
307
(43)
(13,984)
60,288
(116)
18
307
(43)
—
(0)
46,568
(98)
46,469
(7,045)
(31)
(9,170)
(16,246)
691
30,914
(7,045)
(31)
(9,170)
(16,246)
691
(15,555)
Balance at March 31, 2011
¥ 103,389 ¥ 79,402 ¥ 478,681 ¥ (2,115) ¥ 659,357 ¥ 29,647 ¥ (140) ¥ (25,299) ¥ 4,209 ¥ 12,036 ¥ 675,602
Shareholders’ equity
Valuation, translation adjustments
Millions of yen
Capital
stock
Capital
surplus
Retained
earnings
(Note 8(b))
Treasury
stock
Total
shareholders’
equity
Valuation
difference on
other securities
Deferred
gains
(losses) on
hedges
Foreign
currency
translation
adjustment
Total
valuation,
translation
adjustments
Minority
interests
Total
net assets
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
Changes during the fi scal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of
equity method
Net changes of items
other than shareholders’
equity
Total changes of items
during the period
(1)
(11,188)
25,286
(10)
(267)
(96)
25
(11,188)
25,286
(96)
24
(10)
(267)
(11,188)
25,286
(96)
24
(10)
(267)
—
(1)
13,821
(71)
13,749
13,391
68
2,287
15,747
3,841
33,338
13,391
68
2,287
15,747
3,841
19,588
Balance at March 31, 2010
¥ 103,389 ¥ 79,403 ¥ 432,114 ¥ (2,017) ¥ 612,888 ¥ 36,692 ¥ (109) ¥ (16,128) ¥ 20,455 ¥ 11,346 ¥ 644,688
Shareholders’ equity
Accumulated other comprehensive income
Thousands of U.S. dollars (Note 1)
Capital
stock
Capital
surplus
Retained
earnings
(Note 8(b))
Treasury
stock
Total
shareholders’
equity
Valuation
difference on
other securities
Deferred
gains
(losses) on
hedges
Foreign
currency
translation
adjustment
Total
accumulated
other
comprehensive
income
Minority
interests
Total
net assets
Balance at March 31, 2010
$ 1,245,645 $ 956,657 $ 5,206,187 $ (24,297) $ 7,384,192 $ 442,075 $ (1,317) $ (194,318) $ 246,440 $ 136,695 $ 7,767,328
Changes during the fi scal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
Net changes of items other than
shareholders’ equity
Total changes of items
during the period
(168,478)
726,356
(168,478)
726,356
(1,399)
(1,399)
(1)
215
3,700
(521)
214
3,700
(521)
(168,478)
726,356
(1,399)
214
3,700
(521)
—
(1)
561,057
(1,185)
559,872
(84,878)
(369)
(110,485)
(195,732)
8,319
372,459
(84,878)
(369)
(110,485)
(195,732)
8,319
(187,413)
Balance at March 31, 2011
$ 1,245,645 $ 956,656 $ 5,767,244 $ (25,481) $ 7,944,064 $ 357,196 $ (1,686) $ (304,802) $ 50,708 $ 145,014 $ 8,139,787
The accompanying notes are an integral part of these statements.
54 Asahi Kasei Annual Report 2011
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Consolidated Statements of Cash Flows
Asahi Kasei Corporation and Consolidated Subsidiaries
Years ended March 31, 2011 and 2010
Millions of yen
Thousands of
U.S. dollars (Note 1)
2011
2010
2011
Cash fl ows from operating activities:
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill
(Decrease) increase in provision for periodic repairs
Decrease in provision for product warranties
Decrease in provision for retirement benefi ts
Interest and dividend income
Interest expense
Equity in earnings of affi liates
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
Gain on business transfer
Gain as a result of arbitration award
Increase in notes and accounts receivable, trade
(Increase) decrease in inventories
Increase in notes and accounts payable, trade
Increase in accrued expenses
Increase (decrease) in advances received
Other, net
Subtotal
Interest and dividend income, received
Interest expense, paid
Proceeds from arbitration award
Income taxes (paid) refund
Net cash provided by operating activities
Cash fl ows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from purchase of investments in subsidiaries resulting in change
in scope of consolidation
Additional purchase of investments in consolidated subsidiaries
Proceeds from business transfer
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
Proceeds from issuance of bonds
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
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 changes in scope of
consolidation
Cash and cash equivalents at end of year (Note 9)
The accompanying notes are an integral part of these statements.
¥ 98,342
84,092
2,404
1,073
(266)
(2,990)
(1,139)
(2,050)
(3,391)
3,313
(2,212)
(36)
651
(463)
4,879
(736)
—
(36,454)
(4,841)
13,618
6,676
15,309
(3,405)
172,376
4,458
(3,424)
—
(25,282)
148,128
(11,720)
6,773
(63,651)
1,092
(5,333)
(7,619)
1,303
—
(408)
2,538
(5,840)
6,513
(2,486)
(78,838)
71,335
(72,682)
46,000
(42,000)
6,910
(19,878)
—
—
(1,345)
(119)
18
(13,984)
(547)
147
(26,144)
(2,698)
40,449
93,125
¥ 46,056
86,166
836
1,089
(190)
2,187
(5,790)
(1,284)
(3,347)
3,714
(1,151)
(112)
1,918
(152)
2,944
—
(6,502)
(25,106)
33,994
1,603
2,555
(2,476)
20,048
157,003
4,418
(3,758)
6,502
5,143
169,308
—
—
(84,482)
675
(6,876)
(11,291)
5,272
914
—
—
(12,623)
11,665
(3,438)
(100,185)
7,744
(9,956)
59,000
(95,000)
5,633
(29,863)
20,000
(20,000)
(908)
(99)
24
(11,188)
(342)
(115)
(75,071)
620
(5,327)
98,092
$ 1,184,848
1,013,162
28,959
12,923
(3,199)
(36,020)
(13,726)
(24,703)
(40,850)
39,921
(26,649)
(436)
7,845
(5,574)
58,779
(8,869)
—
(439,207)
(58,320)
164,069
80,437
184,446
(41,018)
2,076,817
53,715
(41,256)
—
(304,599)
1,784,676
(141,204)
81,601
(766,875)
13,156
(64,254)
(91,792)
15,702
—
(4,918)
30,574
(70,363)
78,473
(29,956)
(949,855)
859,459
(875,685)
554,217
(506,024)
83,258
(239,491)
—
—
(16,208)
(1,432)
212
(168,478)
(6,586)
1,772
(314,986)
(32,501)
487,333
1,121,989
876
¥ 134,450
360
¥ 93,125
10,557
$ 1,619,879
Asahi Kasei Annual Report 2011
55
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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 year’s
presentation. 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 ¥83=US$1
prevailing on March 31, 2011, has been used.
Consolidation and investments in affi liated companies
The consolidated fi nancial statements consist of the accounts of the
parent company and 101 subsidiaries (98 subsidiaries at March 31,
2010, hereinafter collectively referred to as the “Company”) which,
with minor exceptions due to materiality, are all majority and wholly
owned companies, including 9 core operating companies (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
Microdevices Corp., Asahi Kasei E-materials Corp. 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 49
such unconsolidated subsidiaries and 20% to 50% owned
companies to which the equity method is applied at March 31,
2011 (49 at March 31, 2010), including Asahi Kasei Metals Ltd.,
Asahi Kasei Geotechnologies Co., Ltd. and Asahi Organic
Chemicals Industry Co., Ltd.
Certain subsidiaries results are reported in the consolidated
fi nancial statements using a December 31 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.
All assets and liabilities of consolidated subsidiaries are valued
using the fair value method. 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 in excess of
the cost over the underlying net equity (the cost below the
underlying net equity) is recognized as goodwill or negative
goodwill. Amortization of goodwill and negative goodwill incurred
through business combinations which took place before April 1,
2010, are performed by straight-line amortization over a reasonable
period during which their effects would last, with the exception of
minor amounts which are charged or credited to income in the year
of acquisition.
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 for 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 5 to 60 years for buildings and from 4 to 22 years for
machinery and equipment and vehicles.
Intangible fi xed assets (except for 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 5 years.
Lease assets (fi nancing lease transactions without title transfer)
are depreciated/amortized on a straight-line basis over the period of
the lease with no residual value. For fi nancing 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.
(d) Signifi cant allowances
i) Allowance for doubtful accounts
Estimates of the unrecoverable portion of receivables, generally
56 Asahi Kasei Annual Report 2011
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 periodic repairs
The portion of foreseeable periodic repair expenses deemed to
correspond 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 periodic 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,
resulting from variances between actual results and economic
estimates or actuarial assumptions, are amortized on a straight-
line basis primarily over the following 10 years. Unrecognized
prior service costs are amortized on a straight-line basis
primarily over the following 10 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) Signifi cant revenue and expense recognition
i) Construction activities that are realizable as of current
fi scal year end.
The percentage-of-completion method (progress of work is
estimated using the percentage of costs incurred to the total
projected costs).
ii) Other construction activities
The completed-contract method.
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(f) Financial instruments
i) Securities
Securities are classifi ed into four categories: trading securities,
held-to-maturity debt securities, equity securities of
unconsolidated subsidiaries and affi liates, and other securities.
At March 31, 2011 and 2010, 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 statements.
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
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.
(g) Taxes
Accrued income taxes are stated at the estimated amount payable
3. Changes in signifi cant accounting policies
(a) Application of Accounting Standard for Equity Method of
Accounting for Investments and Practical Solution on
Unifi cation of Accounting Policies Applied to Affi liates
Accounted for Using the Equity Method
Accounting Standard for Equity Method of Accounting for Investments
(Accounting Standards Board of Japan (ASBJ) Statement No. 16) and
Practical Solution on Unifi cation of Accounting Policies Applied to
Affi liates Accounted for Using the Equity Method (PITF No. 24) have
been applied beginning from the fi scal year ended March 31, 2011.
This change has no impact on the consolidated fi nancial statements.
(b) Application of Accounting Standard for Asset Retirement
Obligations
Accounting Standard for Asset Retirement Obligations (ASBJ
Statement No. 18) and Guidance on Accounting Standard for Asset
Retirement Obligations (ASBJ Guidance No. 21) have been applied
beginning from the fi scal year ended March 31, 2011. As a result,
income before income taxes and minority interests was ¥1,738
million (US$20,936 thousand) lower than it would have been if the
previous method had been used. The impact on operating income
and ordinary income was immaterial.
4. Additional information
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.
(h) 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 adjustments in the balance sheets.
A portion of the foreign currency translation adjustment is allocated
to minority interest and the Company’s portion is presented as a
separate component of net assets in the balance sheets.
(c) Application of Accounting Standard for Business
Combinations and related matters
Accounting Standard for Business Combinations (ASBJ Statement
No. 21), Accounting Standard for Consolidated Financial
Statements (ASBJ Statement No. 22), Partial Amendments to
Accounting Standard for Research and Development Costs (ASBJ
Statement No. 23), Revised Accounting Standard for Business
Divestitures (ASBJ Statement No. 7), Revised Accounting Standard
for Equity Method of Accounting for Investments (ASBJ Statement
No. 16), and Revised Guidance on Accounting Standard for
Business Combinations and Accounting Standard for Business
Divestitures (ASBJ Guidance No. 10) have been applied beginning
from the fi scal year ended March 31, 2011. With the application of
Accounting Standard for Consolidated Financial Statements (ASBJ
Statement No. 22), the evaluation method for assets and liabilities
of consolidated subsidiaries changed from the partial fair value
evaluation method to the full fair value evaluation method. The
impact of this change on the consolidated fi nancial statements was
immaterial.
A consolidated subsidiary, Asahi Kasei Pharma Corp. has an
ongoing legal action against Actelion Ltd. of Switzerland which
acquired CoTherix, Inc. of the US, claiming compensation for
damages incurred due to unlawful acts in relation to performance of
a license agreement to develop Fasudil Rho-kinase inhibitor. For
this, a total of ¥1,908 million (US$22,993 thousand) was recorded
as litigation related expenses under non-operating expenses in the
consolidated statements of income for the year ended March 31, 2011.
5. Notes to Consolidated Balance Sheets
(a) Investment securities
Among investment securities, shares of unconsolidated subsidiaries
and affi liates as of March 31, 2011 and 2010, amounted to
¥63,690 million (US$767,346 thousand) and ¥61,501 million,
respectively.
Included in those amounts are investments in joint ventures of
¥34,266 million ( US$412,839 thousand) and ¥33,654 million,
respectively.
(b) Hypothecated assets and secured debt
A summary of assets pledged as collateral and secured debt as of
March 31, 2011 and 2010, is shown below:
Asahi Kasei Annual Report 2011
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Hypothecated assets
Buildings and structures
Machinery, equipment and vehicles
Other
Secured debt
Short-term loans payable
Long-term loans payable
Millions of yen
2011
¥ 341
12
0
¥ 353
¥ 109
423
¥ 531
2010
¥ 433
16
0
¥ 449
¥ 24
620
¥ 644
Thousands of
U.S. dollars
2011
$ 4,114
139
2
$ 4,255
$ 1,308
5,092
$ 6,400
Besides the above, investment securities pledged to suppliers as transaction guarantee at March 31, 2011 and 2010, were ¥87 million
(US$1,047 thousand) and ¥98 million, respectively.
(c) Contingent liabilities
Contingent liabilities at March 31, 2011 and 2010, 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
2011
¥ 31,592
760
309
15,002
37
¥ 47,700
2010
¥ 8,920
1,144
797
10,605
13
¥ 21,479
Thousands of
U.S. dollars
2011
$ 380,630
9,151
3,725
180,746
452
$ 574,703
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.
(d) 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, 2011 and
2010, were ¥7,268 million (US$87,570 thousand) and ¥5,936 million, respectively. The breakdown of reduction entries as of March 31,
2011, 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
2011
¥ 3,095
3,810
226
137
¥ 7,268
2010
¥ 2,612
2,958
252
113
¥ 5,936
Thousands of
U.S. dollars
2011
$ 37,291
45,904
2,728
1,646
$ 87,570
Millions of yen
2011
¥ 33,946
94,383
44,745
2010
¥ 32,102
90,623
44,846
Thousands of
U.S. dollars
2011
$ 408,985
1,137,148
539,094
* The aggregate amounts of research and development expenses included in manufacturing costs and selling, general and administrative expenses for the years ended March 31, 2011 and
2010, were ¥62,320 million (US$750,846 thousand) and ¥62,924 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. Loss on devaluation of
inventories for the years ended March 31, 2011 and 2010, was as follows:
Millions of yen
2011
¥(429)
2010
¥(5,241)
Thousands of
U.S. dollars
2011
$(5,172)
58 Asahi Kasei Annual Report 2011
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(c) Gain on sales of noncurrent assets
Gain on sales of noncurrent assets for the year ended March 31, 2011, was primarily gain on the sale of land, etc. amounting to ¥423
million (US$5,097 thousand). Gain on sales of noncurrent assets for the year ended March 31, 2010, was comprised of sales of machinery
and equipment, etc. amounting to ¥152 million.
(d) Loss on disposal of noncurrent assets
Loss on disposal of noncurrent assets for the years ended March 31, 2011 and 2010, was primarily loss on abandonment and sale 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.
(e) Impairment losses
Impairment losses for the years ended March 31, 2011 and 2010, were as follows:
Use
Production facility for ammonia
Production facility for synthetic fi bers
Asset class
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Location
Kurashiki, Okayama
USA
Production facility for autoclaved aerated
concrete (AAC) panels
Machinery and
equipment, etc.
Mizuho, Gifu
Production facility for synthetic resin
Production facility for resin molding
Production facility for benzene
Production facility for performance
paper
Research facility for pharmaceuticals
Rental facilities
Idle assets
Production facility for fi ne-pattern
devices
Production facility for synthetic resin
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Sodegaura, Chiba
Fuji, Shizuoka
Kurashiki, Okayama
Gobo, Wakayama
Fuji, Shizuoka
Buildings, etc.
Nobeoka, Miyazaki
Land
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Atsugi, Kanagawa,
and elsewhere
Hyuga, Miyazaki
Kurashiki, Okayama
Millions of yen
2011
2010
Thousands of
U.S. dollars
2011
¥ 3,154
¥ —
$ 37,994
1,977
—
—
708
651
—
330
295
—
79
52
—
1,365
955
—
—
531
—
—
198
108
—
23,821
—
—
8,525
7,841
—
3,979
3,555
—
956
627
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 value for future usage, which is calculated as discounted future cash fl ow with applicable discount rate
of 6% and 5%, as of March 31, 2011 and 2010, respectively. The resulting extraordinary losses for production facility for ammonia,
production facility for resin molding, production facility for benzene and research facility for pharmaceuticals were recorded under business
structure improvement expenses for the year ended March 31, 2011. The resulting extraordinary losses for production facility for autoclaved
aerated concrete (AAC) panels and production facility for synthetic resin was recorded under business structure improvement expenses for
the year ended March 31, 2010. For idle land of which the market value has signifi cantly decreased, the book value is reduced to the
recoverable amount. The recoverable amount is measured at the net selling price primarily based on the value appraised by real estate
appraisers.
(f) Environmental expenses
Environmental expenses for the year ended March 31, 2011, were mainly for decontamination of idle land, etc. and those for the year
ended March 31, 2010, were mainly for the treatment of polychlorinated biphenyl (PCB) wastes, etc.
(g) Loss on disaster
Loss on disaster for the year ended March 31, 2011, was primarily fi xed costs incurred during suspension of operations amounting to ¥410
million (US$4,940 thousand), loss on disposal of inventories amounting to ¥332 million (US$4,002 thousand) and loss on disposal of
facilities, etc. amounting to ¥79 million (US$948 thousand).
(h) Business structure improvement expenses
Major components of business structure improvement expenses were as follows:
Loss on disposal and devaluation of assets and others
Impairment of fi xed assets
Millions of yen
2011
¥ 5,174
4,842
¥ 10,016
2010
¥ 7,730
2,320
¥ 10,050
Thousands of
U.S. dollars
2011
$ 62,335
58,339
$ 120,674
Asahi Kasei Annual Report 2011
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7. Notes to Consolidated Statements of Comprehensive Income
For the year ended March 31, 2011
(a) Comprehensive income for the previous fi scal year
Comprehensive income attributable to owners of the parent company
Comprehensive income attributable to minority interests
(b) Other comprehensive income for the previous fi scal year
Valuation difference on other securities
Deferred gains on hedges
Foreign currency translation adjustment
Share of other comprehensive income of affi liates accounted for using equity method
Millions of yen
2010
¥ 41,033
458
¥ 41,492
Millions of yen
2010
¥ 13,332
69
2,045
473
¥ 15,919
Thousands of
U.S. dollars
2010
$ 494,377
5,523
$ 499,900
Thousands of
U.S. dollars
2010
$ 160,625
827
24,643
5,700
$ 191,796
(Additional information)
Accounting Standard for Presentation of Comprehensive Income (ASBJ Statement No. 25) has been applied beginning from the fi scal year ended
March 31, 2011. The items “accumulated other comprehensive income” and “total accumulated other comprehensive income” are exactly the
same as “valuation and translation adjustments” and “total valuation and translation adjustments” of the previous fi scal year, respectively.
8. Notes to Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2011
(a) Class and total number of issued and outstanding shares and treasury stock
Issued and outstanding shares
Common stock
Total
Treasury stock
Common stock (Notes 1 & 2)
Total
Number of
shares as of
March 31, 2010
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, 2011
Thousands of shares
1,402,616
1,402,616
4,228
4,228
—
—
230
230
—
—
37
37
1,402,616
1,402,616
4,421
4,421
Notes: 1. The increase of 230 thousand shares in common stock of treasury stock was due to purchase of shares in quantities of less than one share unit.
2. The decrease of 37 thousand shares in common stock of treasury stock was due to sale of shares in quantities of less than one share unit.
(b) Dividends
i) Cash dividends paid
1) The following was resolved by the Board of Directors on May 10, 2010.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥6,992 million (US$84,240 thousand)
¥5.00 (US$0.06)
March 31, 2010
June 7, 2010
2) The following was resolved by the Board of Directors on November 2, 2010.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥6,992 million (US$84,245 thousand)
¥5.00 (US$0.06)
September 30, 2010
December 1, 2010
ii) 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
1) The following was resolved by the Board of Directors on May 11, 2011.
Dividends for common stock
Total dividends
Source of dividends
Dividend per share
Date of record
Payment date
60 Asahi Kasei Annual Report 2011
¥8,389 million (US$101,074 thousand)
Retained earnings
¥6.00 (US$0.07)
March 31, 2011
June 7, 2011
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For the year ended March 31, 2010
(a) Class and total number of issued and outstanding shares and treasury stock
Issued and outstanding shares
Common stock
Total
Treasury stock
Common stock (Notes 1 & 2)
Total
Number of
shares as of
March 31, 2009
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, 2010
Thousands of shares
1,402,616
1,402,616
4,071
4,071
—
—
211
211
—
—
53
53
1,402,616
1,402,616
4,228
4,228
Notes: 1. The increase of 211 thousand shares in common stock of treasury stock was due to purchase of shares in quantities of less than one share unit.
2. The decrease of 53 thousand shares in common stock of treasury stock was due to sale of shares in quantities of less than one share unit.
(b) Dividends
i) Cash dividends paid
1) The following was resolved by the Board of Directors on May 12, 2009.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥4,196 million
¥3.00
March 31, 2009
June 3, 2009
2) The following was resolved by the Board of Directors on November 2, 2009.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥6,992 million
¥5.00
September 30, 2009
December 1, 2009
ii) 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
1) The following was resolved by the Board of Directors on May 10, 2010.
Dividends for common stock
Total dividends
Source of dividends
Dividend per share
Date of record
Payment date
¥6,992 million
Retained earnings
¥5.00
March 31, 2010
June 7, 2010
9. Note to Consolidated Statements of Cash Flows
Cash and cash equivalents
Reconciliation of cash and cash equivalents on the consolidated statements of cash fl ows to the amounts disclosed on the consolidated
balance sheets at March 31, 2011 and 2010, is as follows:
Cash and deposits
Time deposits with deposit term of over 3 months
Money market funds and others included in short-term investment securities
Cash and cash equivalents
10. Leases
(a) Financing lease transactions
Financing lease transactions without title transfer
i) Components of lease assets are as follows:
Millions of yen
2011
¥ 140,319
(6,240)
371
¥ 134,450
2010
¥ 93,928
(1,788)
985
¥ 93,125
Thousands of
U.S. dollars
2011
$ 1,690,589
(75,182)
4,472
$ 1,619,879
1) Property, plant and equipment: Mainly model homes (buildings and structures) for housing operations
2) Intangible fi xed assets: Software
ii) Depreciation of lease assets:
As stated in 2. Signifi cant accounting policies (c) Noncurrent assets and depreciation/amortization. The fi nancing lease transactions
without title transfer which occurred prior to March 31, 2008, are accounted for on a basis similar to operating lease.
Asahi Kasei Annual Report 2011
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Such lease transactions accounted for as operating lease be accounted for as fi nancing lease, cost and related accumulated amortization,
computed using the straight-line method over the term of the lease, at March 31, 2011 and 2010, would have been as follows:
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
Buildings and structures
Machinery, equipment and vehicles
Property, plant and equipment, other
Intangible fi xed assets, other
Millions of yen
2011
Accumulated
amortization
¥ 1,868
134
497
179
¥ 2,678
Millions of yen
2010
Accumulated
amortization
¥ 4,503
156
678
149
¥ 5,486
Thousands of U.S. dollars
2011
Accumulated
amortization
$ 22,512
1,609
5,991
2,152
$ 32,264
Cost
¥ 2,118
212
639
241
¥ 3,210
Cost
¥ 5,863
269
981
259
¥ 7,372
Cost
$ 25,524
2,549
7,698
2,898
$ 38,669
Net amount
¥ 250
78
142
62
¥ 532
Net amount
¥ 1,360
113
303
110
¥ 1,886
Net amount
$ 3,012
940
1,707
746
$ 6,405
The future lease payments under the Company’s fi nancing leases at March 31, 2011 and 2010, including amounts representing
interest, were as follows:
Due within one year
Due after one year
Millions of yen
2011
¥ 412
119
¥ 532
2010
¥ 1,333
552
¥ 1,886
Thousands of
U.S. dollars
2011
$ 4,968
1,437
$ 6,405
Lease charges were ¥1,213 million (US$14,610 thousand) and ¥2,229 million for the years ended March 31, 2011 and 2010,
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 ¥1,213 million (US$14,610 thousand) and ¥2,229 million for the years ended March 31, 2011 and 2010, 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, 2011 and 2010, were as follows:
Due within one year
Due after one year
11. Financial instruments
(a) State of fi nancial instruments
i) Policy related to fi nancial instruments
The Company raises long-term funds as required mainly for
its planned capital expenditures by borrowing from banks,
borrowing from life insurance companies, issuing bonds,
etc. A portion of the surplus funds is invested only in highly
stable fi nancial assets. Short-term working funds are raised
62 Asahi Kasei Annual Report 2011
Millions of yen
2011
¥ 4,456
7,856
¥ 12,312
2010
¥ 4,651
11,697
¥ 16,349
Thousands of
U.S. dollars
2011
$ 53,688
94,655
$ 148,342
by bank borrowings, issuance of commercial paper, etc.
Derivative transactions are mainly entered into for the
purpose of reducing risks related to assets and liabilities
which are exposed to risks of fl uctuations of exchange rate
and interest rate. Derivatives are not traded for speculative
purposes.
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ii) Components of fi nancial instruments, their risks, and
management of risks
As operating receivables, notes and accounts receivable,
trade, are exposed to credit risk of customers. As the
business of the Company spans a wide range of fi elds,
operating receivables are not excessively concentrated on
specifi c customers, but each group company monitors and
manages the state of credit for each customer.
Investment securities are exposed to the risk of
fl uctuations in market price, but they are mainly shares in
supplier companies, etc., held for policy purposes. Fair
value is periodically evaluated, and the fi nancial condition of
the issuing company is monitored.
As operating liabilities, notes and accounts payable,
trade, generally have a payment term of 1 year or less.
Variable interest-rate borrowings are exposed to the risk
of interest rate fl uctuations, but derivatives (interest currency
swaps, interest-rate swaps) are used as hedges to fi x
interest expenses for a portion of long-term variable interest-
rate borrowings.
Operating receivables and operating liabilities include
those denominated in currencies other than Japanese yen,
and are thus exposed to the risk of exchange rate
fl uctuations. In order to minimize the effects of short-term
exchange-rate fl uctuations, the Company hedges with
derivative transactions (forward exchange contracts) in
principle within the range of the underlying receivables and
liabilities.
Derivative transactions are exposed to the
credit risk of transacting fi nancial institutions, but the state of
credit is verifi ed through periodical monitoring. Such
transactions are performed and managed in accordance
with each company’s internal regulations which stipulate the
related authority, procedures, limits, etc.
Borrowings are exposed to liquidity risk, but
the parent company specifi es standards for required
on-hand funds based on the Company’s funding plans,
prepares and revises plans for cash receipts and
disbursements as appropriate, and enters into commitment-
line agreements with transacting fi nancial institutions to
manage such risk.
Loan securitization in housing operations is
exposed to the risk of interest rate fl uctuations between the
time of execution of housing loans and the time of execution
of their securitization, but derivative transactions (interest
rate swaps) are entered into to reduce such risk.
iii) Supplementary explanation of fair value of fi nancial
instruments
Fair value of fi nancial instruments includes value based on
market price, and, in the case where no market price exists,
a reasonably calculated value. As variable factors are
incorporated in its calculation, fair value may change due to
the adoption of different assumptions, conditions, etc.
Amount of contract regarding derivative transactions in the
note 13 “Derivative fi nancial instruments” is not itself an
indication of the market risk of the derivative transactions.
(b) Fair value of fi nancial instruments
Amounts carried on the consolidated balance sheets, their fair values, and the differences between them as of March 31, 2011 and 2010,
are as shown below.
Financial instruments whose fair values are deemed extremely diffi cult to determine are not included in this table (See Notes 2), 3) and 4)
below).
Cash and deposits
Notes and accounts receivable, trade
Allowance for doubtful accounts (*1)
Short-term investment securities
Other securities
Investment securities
Other securities
Long-term receivables
Allowance for doubtful accounts (*1)
Total assets
Notes and accounts payable, trade
Short-term loans payable
Commercial paper
Income taxes payable
Bonds payable
Long-term loans payable
Lease obligations
Long-term guarantee deposited
Total liabilities
Derivative fi nancial instruments (*2)
Carrying
amount
¥ 140,319
273,414
(1,028)
272,386
Millions of yen
2011
Fair value
¥ 140,319
272,386
116
116
93,921
5,860
(11)
5,849
512,590
136,407
76,611
23,000
24,085
25,000
123,493
5,324
5,845
419,766
(419)
93,921
6,249
512,991
136,407
76,611
23,000
24,085
25,311
125,156
5,343
5,731
421,644
(419)
Difference
¥ —
—
—
—
400
400
—
—
—
—
(311)
(1,663)
(19)
114
(1,879)
—
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Cash and deposits
Notes and accounts receivable, trade
Allowance for doubtful accounts (*1)
Short-term investment securities
Other securities
Investment securities
Other securities
Long-term receivables
Allowance for doubtful accounts (*1)
Total assets
Notes and accounts payable, trade
Short-term loans payable
Commercial paper
Income taxes payable
Bonds payable
Long-term loans payable
Lease obligations
Long-term guarantee deposited
Total liabilities
Derivative fi nancial instruments (*2)
Cash and deposits
Notes and accounts receivable, trade
Allowance for doubtful accounts (*1)
Short-term investment securities
Other securities
Investment securities
Other securities
Long-term receivables
Allowance for doubtful accounts (*1)
Total assets
Notes and accounts payable, trade
Short-term loans payable
Commercial paper
Income taxes payable
Bonds payable
Long-term loans payable
Lease obligations
Long-term guarantee deposited
Total liabilities
Derivative fi nancial instruments (*2)
Carrying
amount
¥ 93,928
238,931
(1,543)
237,388
Millions of yen
2010
Fair value
¥ 93,928
237,388
112
112
105,303
6,844
(73)
6,770
443,501
121,409
78,302
19,000
12,160
25,000
137,406
4,716
5,694
403,686
(200)
105,303
7,125
443,856
121,409
78,302
19,000
12,160
24,808
138,385
4,774
5,583
404,421
(200)
Thousands of U.S. dollars
2011
Fair value
$ 1,690,589
3,281,758
Carrying
amount
$ 1,690,589
3,294,144
(12,386)
3,281,758
1,394
1,394
1,131,577
1,131,577
70,601
(130)
70,471
6,175,788
1,643,461
923,023
277,108
290,183
301,205
75,292
6,180,610
1,643,461
923,023
277,108
290,183
304,949
1,487,870
1,507,902
64,146
70,424
5,057,420
(5,051)
64,376
69,052
5,080,054
(5,051)
Difference
¥ —
—
—
—
355
355
—
—
—
—
192
(980)
(58)
111
(735)
—
Difference
$
—
—
—
—
4,821
4,821
—
—
—
—
(3,745)
(20,032)
(230)
1,372
(22,634)
—
(*1) Specifi c allowance for doubtful accounts is deducted from notes and accounts receivable, trade, and long-term loans receivable.
(*2) Net amount of assets and liabilities resulted from derivative transactions is shown. In the case of a net liability, the amount is shown in parentheses.
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Note 1) Method of calculating fair value of fi nancial instruments; securities and derivative
fi nancial instruments
i) Assets
1) Cash and deposits; notes and accounts receivable, trade
As their fair value approximates book value due to their short maturity, the
corresponding book value amount is used as fair value.
2) Short-term investment securities, investment securities
The stock exchange price is used to determine fair value of these traded stocks.
Refer to the Note 12 “Marketable securities and investment securities” for
information regarding securities based on each objective for which they are held.
3) Long-term receivables
The carrying amount shown includes long-term loans receivable scheduled
for repayment within one year. Their fair value is determined by a method of
calculation in which the total amount of principal and interest is discounted
using the interest rate that would apply if equivalent long-term loans were newly
issued. For long-term loans receivable that have a variable interest rate, as they
are deemed to refl ect market interest rates within a short term, book value is
used as fair value.
ii) Liabilities
1) Notes and accounts payable, trade; short-term loans payable; commercial
paper; income taxes payable
As their fair value approximates book value due to their short maturity, the
corresponding book value amount is used as fair value.
2) Bonds payable
With regard to fair value of the bonds payable issued by the parent company,
for those with market price, fair value is determined by the market price. For
those without market price that are subject to exceptional treatment for interest
rate swaps, fair value is determined by a method of calculation in which the total
amount of principal and interest, treated as a unit with such interest rate swaps,
is discounted using the interest rate that would apply if equivalent bonds were
newly issued.
term loans payable that have a variable interest rate, fair value of those subject
to exceptional treatment of interest rate swaps is determined by a method of
calculation in which the total amount of principal and interest, treated as a unit
with such interest rate swaps, is discounted using the interest rate that would
apply if equivalent long-term loans were newly entered, and book value is used
as fair value of others, as they are deemed to refl ect market interest rates within
a short term.
4) Lease obligations
The carrying amount shown is the total amount of lease obligations under
current liabilities and lease obligations under noncurrent liabilities. Present value,
calculated by discounting the total amount of principal and interest using the
presumed interest rate that would apply if lease transactions were newly made,
is used as the fair value.
5) Long-term guarantee deposited
In case where the deposit period can be estimated, the fair value of long-term
guarantee deposited is determined through calculation of the discount over that
period.
iii) Derivative transactions
Refer to the Note 13 “Derivative fi nancial instruments.”
Note 2) For equity investments in nonpublic companies, with a carrying amount as of March
31, 2011 and 2010, amounting to ¥72,652 million (US$875,323 thousand) and
¥70,630 million, respectively, fair value is not included in short-term investment
securities or in investment securities, as no market price exists and it is deemed
extremely diffi cult to determine fair value due to the impossibility of estimating future
cash fl ows.
Note 3) A portion of the carrying amount of long-term loans payable, as of March 31,
2011 and 2010, amounting to ¥507 million (US$6,112 thousand) and ¥176 million,
respectively, is for loans from the Japan Science and Technology Agency, and the
timing of repayment is yet to be determined as it begins after development success
is certifi ed. Fair value is not included as it is deemed extremely diffi cult to determine
due to the impossibility of estimating future cash fl ows.
3) Long-term loans payable
Note 4) Within long-term guarantee deposited, the fair value of a portion having a carrying
The carrying amount shown includes long-term loans payable that are
scheduled for repayment within one year of March 31, 2011 and 2010,
amounted to ¥32,278 million (US$388,892 thousand) and ¥15,660 million,
respectively. Their fair value is determined by a method of calculation in which
the total amount of principal and interest is discounted using the interest rate
that would apply if equivalent long-term loans were newly entered. Of long-
amount as of March 31, 2011 and 2010, amounting to ¥12,495 million (US$150,542
thousand) and ¥12,628 million, respectively, is not included as no market price exists
and it is deemed extremely diffi cult to determine fair value due to the impossibility of
estimating future cash fl ows.
Note 5) For monetary credits and securities with maturity, amount scheduled for redemption
subsequent to the closing date.
Cash and deposits
Notes and accounts receivable, trade
Short-term investment securities, investment securities
Government and municipal bonds
Long-term receivables
Cash and deposits
Notes and accounts receivable, trade
Short-term investment securities, investment securities
Government and municipal bonds
Long-term receivables
Millions of yen
2011
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
¥ 140,319
273,414
2
679
¥ 414,414
¥ —
—
2
5,166
¥ 5,168
¥ —
—
—
15
¥ 15
Millions of yen
2010
¥ —
—
—
—
¥ —
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
¥ 93,928
238,931
2
769
¥ 333,631
¥ —
—
5
6,059
¥ 6,064
¥ —
—
—
15
¥ 15
Thousands of U.S. dollars
2011
¥ —
—
—
—
¥ —
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
Cash and deposits
$ 1,690,589
$ —
Notes and accounts receivable, trade
3,294,144
Short-term investment securities, investment securities
Government and municipal bonds
Long-term receivables
27
8,184
$ 4,992,944
—
27
62,236
$ 62,263
$ —
—
—
181
$ 181
$ —
—
—
—
$ —
Note 6) For bonds payable, long-term loans payable, lease obligations, and other interest-bearing debt, amount scheduled for repayment subsequent to the closing date.
Refer to Note 21 “Borrowings”
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12. 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, 2011 and 2010, were as follows:
Securities with unrealized gains:
Equity securities
Securities with unrealized losses:
Equity securities
Debt securities
Carrying
amount
Millions of yen
2011
Cost
Unrealized gains
(losses)
¥ 85,780
¥ 32,629
¥ 53,151
8,141
116
8,256
¥ 94,037
11,440
116
11,555
¥ 44,185
(3,299)
—
(3,299)
¥ 49,852
Note) For equity investment in nonpublic companies, with a carrying amount of ¥72,652 million, fair value is not included in short-term investment securities or in investment securities, as no
market price exists and it is deemed extremely diffi cult to determine fair value.
Securities with unrealized gains:
Equity securities
Securities with unrealized losses:
Equity securities
Debt securities
Carrying
amount
Millions of yen
2010
Cost
Unrealized gains
(losses)
¥ 96,284
¥ 33,280
¥ 63,004
9,019
0
9,019
¥ 105,303
10,415
0
10,415
¥ 43,695
(1,396)
—
(1,396)
¥ 61,608
Note) For equity investment in nonpublic companies, with a carrying amount of ¥70,630 million, fair value is not included in short-term investment securities or in investment securities, as no
market price exists and it is deemed extremely diffi cult to determine fair value.
Securities with unrealized gains:
Equity securities
Securities with unrealized losses:
Equity securities
Debt securities
Thousands of U.S. dollars
Carrying
amount
2011
Cost
Unrealized gains
(losses)
$ 1,033,499
$ 393,126
$ 640,372
98,078
1,394
99,472
137,829
1,394
139,222
$ 1,132,970
$ 532,348
(39,750)
—
(39,750)
$ 600,622
Note) For equity investment in nonpublic companies, with a carrying amount of US$875,323 thousand, fair value is not included in short-term investment securities or in investment securities, as
no market price exists and it is deemed extremely diffi cult to determine fair value.
(b) The realized gains and losses on the sale of other securities during the year ended March 31 2011 and 2010, were as
follows:
Selling amount
Gain on sales of securities
Loss on sales of securities
Millions of yen
2011
¥ 1,292
416
380
2010
¥ 275
112
—
Thousands of
U.S. dollars
2011
$ 15,567
5,014
4,578
(c) Loss on other devaluation of investment securities whose fair values are readily determinable for the years ended March 31,
2011 and 2010, was ¥651 million (US$7,845 thousand) and ¥1,918 million, respectively.
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13. Derivative fi nancial instruments
(a) Derivative fi nancial instruments for which hedge accounting is not applied
i) Foreign exchange forward contracts
Classifi cation
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profi t (loss) from valuation
Foreign exchange forward contracts
Millions of yen
2011
Off–market
transactions
Selling
U.S. dollar
Euro
Thai baht
Buying
U.S. dollar
¥ 13,234
2,359
469
1,505
¥ 17,567
¥ —
—
—
—
¥ —
¥ (159)
(104)
(15)
12
¥ (268)
¥ (159)
(104)
(15)
12
¥ (268)
Millions of yen
2010
Classifi cation
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profi t (loss) from valuation
Foreign exchange forward contracts
Off–market
transactions
Selling
U.S. dollar
Euro
Thai baht
Buying
U.S. dollar
¥ 11,406
3,518
479
1,311
¥ 16,714
¥ —
—
—
—
¥ —
¥ (105)
(8)
(27)
16
¥ (124)
¥ (105)
(8)
(27)
16
¥ (124)
Thousands of U.S. dollars
2011
Classifi cation
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profi t (loss) from valuation
Foreign exchange forward contracts
Off–market
transactions
Selling
U.S. dollar
Euro
Thai baht
Buying
U.S. dollar
$ 159,445
28,425
5,648
18,130
$ 211,648
$ —
—
—
—
$ —
$ (1,922)
(1,259)
(184)
139
$ (3,225)
(b) Derivative fi nancial instruments for which hedge accounting is applied
i) Foreign exchange forward contracts
Classifi cation
Items
Hedged assets / liabilities
Amount of contract
Foreign exchange forward contracts
Millions of yen
2011
Amount of contract
over 1 year
Selling
U.S. dollar
Principled
treatment
Euro
Buying
U.S. dollar
Euro
Singapore dollar
Accounts receivable, trade
¥ 9,467
Accounts receivable, trade
Accounts payable, trade
Accounts payable, trade
Accounts payable, trade
936
370
4
13
¥ —
—
—
—
—
$ (1,922)
(1,259)
(184)
139
$ (3,225)
Fair value
¥ (121)
(40)
9
(0)
0
¥ 10,790
¥ —
¥ (152)
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Classifi cation
Items
Hedged assets / liabilities
Amount of contract
Foreign exchange forward contracts
Millions of yen
2010
Amount of contract
over 1 year
Selling
U.S. dollar
Principled
treatment
Euro
Buying
U.S. dollar
Euro
Accounts receivable, trade
Accounts receivable, trade
Accounts payable, trade
Accounts payable, trade
¥ 3,263
698
53
60
¥ 4,075
¥ —
—
—
—
¥ —
Classifi cation
Items
Hedged assets / liabilities
Amount of contract
Foreign exchange forward contracts
Selling
U.S. dollar
Principled
treatment
Euro
Buying
Accounts receivable, trade
Accounts receivable, trade
$ 114,059
11,278
U.S. dollar
Euro
Singapore dollar
Accounts payable, trade
Accounts payable, trade
Accounts payable, trade
4,460
45
159
Thousands of U.S. dollars
2011
Amount of contract
over 1 year
$ —
—
—
—
—
Fair value
¥ (79)
5
(1)
(1)
¥ (77)
Fair value
$ (1,453)
(480)
106
(3)
4
ii) Interest rate swaps, and interest rate and currency swaps
$ 130,002
$ —
$ (1,826)
Classifi cation
Exceptional
treatment for an
interest rate
swaps
Exceptional
treatment for an
interest rate
swap and
currency swaps
Classifi cation
Exceptional
treatment for an
interest rate
swaps
Exceptional
treatment for an
interest rate
swap and
currency swaps
Items
Hedged assets / liabilities
Amount of contract
Interest rate swaps
Millions of yen
2011
Amount of contract
over 1 year
Fair value
Receive fi xed/pay fl oating
Long-term loans payable
Pay fi xed/receive fl oating
Long-term loans payable
¥ 5,000
43,884
¥ —
25,915
Interest rate and currency swaps
U.S. dollar receive fi xed/
Japanese yen pay fl oating
U.S. dollar receive fl oating/
Thai baht pay fi xed
Bonds payable
5,000
5,000
Long-term loans payable
1,093
¥ 54,978
820
¥ 31,735
(*)
(*)
(*)
(*)
—
Items
Hedged assets / liabilities
Amount of contract
Interest rate swaps
Millions of yen
2010
Amount of contract
over 1 year
Fair value
Receive fi xed/pay fl oating
Long-term loans payable
Pay fi xed/receive fl oating
Long-term loans payable
¥ 5,000
45,178
¥ 5,000
44,054
Interest rate and currency swaps
U.S. dollar receive fi xed/
Japanese yen pay fl oating
U.S. dollar receive fl oating/
Thai baht pay fi xed
Bonds payable
5,000
5,000
Long-term loans payable
731
585
¥ 55,909
¥ 54,638
(*)
(*)
(*)
(*)
—
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Classifi cation
Exceptional
treatment for an
interest rate
swaps
Exceptional
treatment for an
interest rate
swap and
currency swaps
Items
Hedged assets / liabilities
Amount of contract
Interest rate swaps
Thousands of U.S. dollars
2011
Amount of contract
over one year
Fair value
Receive fi xed/pay fl oating
Long-term loans payable
$ 60,241
$
—
Pay fi xed/receive fl oating
Long-term loans payable
528,727
312,231
Interest rate and currency swaps
U.S. dollar receive fi xed/
Japanese yen pay fl oating
U.S. dollar receive fl oating/
Thai baht pay fi xed
Bonds payable
60,241
60,241
Long-term loans payable
13,174
9,881
$ 662,383
$ 382,353
(*)
(*)
(*)
(*)
—
(*) Fair value of interest rate swaps and interest currency swaps for which exceptional treatment is applied, is included in fair value of the corresponding long-term loans payable and bonds
payable for which hedge accounting is applied.
14. Provision for retirement benefi ts
Upon terminating employment, employees of the parent company and its major subsidiaries in Japan are entitled, under most
circumstances, 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, 2011 and 2010, 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
2011
¥ (310,990)
164,396
(146,593)
46,746
(2,692)
2010
¥ (295,842)
170,895
(124,947)
24,478
(4,019)
Thousands of
U.S. dollars
2011
$ (3,746,865)
1,980,680
(1,766,185)
563,210
(32,440)
(102,539)
(104,488)
(1,235,415)
4,769
4,961
57,463
¥ (107,309)
¥ (109,450)
$ (1,292,878)
Note: The fi gures in the above table do not include additional benefi t payables amounting to ¥111 million (US$1,341 thousand) and ¥45 million at March 31, 2011 and 2010, respectively. The
amounts were recorded as part of current liabilities on the consolidated balance sheets at March 31, 2011 and 2010.
Periodic retirement benefi t expenses for employees for the years ended March 31, 2011 and 2010, 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
2011
¥ 9,031
7,237
(4,219)
2,317
(1,378)
2010
¥ 9,235
7,313
(3,797)
3,969
(1,375)
Thousands of
U.S. dollars
2011
$ 108,804
87,193
(50,831)
27,910
(16,602)
¥ 12,987
¥ 15,346
$ 156,474
Note: In addition to the above costs, additional benefi ts amounting to ¥878 million (US$10,584 thousand) and ¥717 million were charged to income for the years ended March 31, 2011 and
2010, 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
2011
Mainly 2.0%
Mainly 2.5%
2010
Mainly 2.5%
Mainly 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
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15. 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, 2011 and 2010, were as follows:
Deferred tax assets:
Provision for retirement benefi ts
Tax loss carryforwards
Accrued bonuses
Loss on disposal of noncurrent assets
Impairment loss
Unrealized gain on noncurrent assets and others
Devaluation of investment securities
Accrued enterprise tax
Provision for repairs
Depreciation
Devaluation of inventories
Asset retirement obligations
Provision for product warranties
Environmental expenses
Allowance for doubtful accounts
Other
Subtotal deferred tax assets
Less: Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Valuation difference on other securities
Reserve for noncurrent assets reduction
Reserve for special depreciation
Other
Total deferred tax liabilities
Millions of yen
2011
2010
¥ 43,436
12,741
8,904
5,533
4,605
4,302
3,287
2,322
2,316
2,146
1,459
1,456
1,171
953
412
7,445
102,488
(21,904)
80,585
(22,454)
(13,402)
(247)
(5,720)
(41,822)
¥ 44,158
11,377
6,994
4,061
2,684
4,053
2,853
1,330
3,346
649
1,296
—
1,636
1,146
823
9,267
95,673
(18,336)
77,336
(27,166)
(13,316)
(149)
(5,814)
(46,445)
Thousands of
U.S. dollars
2011
$ 523,329
153,501
107,274
66,660
55,485
51,834
39,604
27,976
27,901
25,856
17,576
17,542
14,106
11,484
4,967
89,703
1,234,799
(263,900)
970,899
(270,534)
(161,466)
(2,971)
(68,912)
(503,882)
Net deferred tax assets
¥ 38,762
¥ 30,891
$ 467,017
Net deferred tax assets (liabilities) at March 31, 2011 and 2010, were included in the following line items 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
2011
¥ 23,131
22,005
—
(6,374)
2010
¥ 23,106
15,383
—
(7,597)
Thousands of
U.S. dollars
2011
$ 278,689
265,122
—
(76,794)
Reconciliation of the differences between the statutory tax rate and the effective income tax rate for the years ended March 31, 2011
and 2010, was as follows:
Statutory tax rate
Increase (reduction) in taxes resulting from:
Non-deductible expenses and non-taxable income
Equalization of inhabitants taxes
Equity in earnings of unconsolidated subsidiaries and affi liates
Undistributed earnings of foreign subsidiaries
Difference of tax rates for foreign subsidiaries
Valuation allowance
R&D expenses deductible from income taxes
Other
Effective income tax rate
2011
40.7%
1.4
0.4
(0.8)
0.7
(4.4)
4.0
(5.1)
0.4
37.3%
Statutory tax rate
Increase (reduction) in taxes resulting from:
Non-deductible expenses and non-taxable income
Equalization of inhabitants taxes
Amortization of goodwill
Equity in earnings of unconsolidated subsidiaries and affi liates
Undistributed earnings of foreign subsidiaries
Valuation allowance
Unrealized profi t
R&D expenses deductible from income taxes
Other
Effective income tax rate
2010
40.7%
4.0
1.0
0.4
(0.8)
1.5
7.2
(2.2)
(8.1)
0.8
44.5%
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16. Business combinations, etc.
For the year ended March 31, 2011
Business divestiture
Business divestiture in the fi scal year ended March 31, 2011, was
as follows:
(a) Outline of the business divestiture
i) Name of the transferee
Aime Corp.
ii) Nature of the divested businesses
Contact lens and lens-care product businesses of Asahi
Kasei Aime Co., Ltd, a consolidated subsidiary of the parent
company
iii) Main reasons for the divestiture
Asahi Kasei Aime Co., Ltd. had developed its businesses
with conventional (long-term use) hard and soft contact
lenses as the main products. During the past 10 years in the
contact lens market, demand for disposable lenses
increased rapidly, while demand for conventional lenses
decreased dramatically. As disposable lenses became
dominant in the soft contact lens market where Asahi Kasei
Aime had enjoyed strength, the expansion of this business
was signifi cantly impacted. Under these circumstances,
US-based CooperVision, Inc., with which Asahi Kasei Aime
had a business alliance in the development of contact lens
materials, etc., suggested a transfer of Asahi Kasei Aime’s
business to them. After extensive negotiations, on
December 1, 2010, Asahi Kasei Aime’s contact lens and
lens-care product businesses (excluding manufacturing
functions), were transferred to Aime Corp., which was newly
established in Japan by CooperVision. This was based on a
judgment that joint development with CooperVision’s
product lineup, rather than Asahi Kasei Aime on its own,
would enhance business effi ciency and competitiveness,
and thus be optimal for the development of businesses
focused on contact lenses.
iv) Date of divestiture
December 1, 2010
v) Overview of transactions including statutory form
Business transfer for which consideration received is limited
to assets including cash.
(b) Overview of accounting treatment implemented
i) Amount of gain on business transfer
¥736 million (US$8,869 thousand)
ii) Appropriate book value of assets and liabilities
pertaining to the transferred businesses
Current assets
Noncurrent assets
Total assets
Current liabilities
Total liabilities
Millions of yen
Thousands of
U.S. dollars
2011
¥ 1,677
133
1,810
4
4
2011
$ 20,204
1,598
21,802
52
52
iii) Accounting treatment
Considering that investments related to the transferred
contact lens and lens-care businesses were liquidated, the
differences between the fair value of assets received in
consideration of such transfer and the amount
corresponding to shareholders’ equity pertaining to the
transferred businesses was recognized as gain on transfer.
(c) Name of reporting segment in which the divested
businesses were included
Health Care
(d) Approximate amount of income (loss) pertaining to the
divested businesses recorded in the consolidated
statements of income during the fi scal year ended March
31, 2011.
Net sales
Operating loss
Millions of yen
2011
¥ 2,077
(302)
Thousands of
U.S. dollars
2011
$ 25,026
(3,639)
For the year ended March 31, 2010
Transactions under common control, etc.
Transactions under common control, etc. in the fi scal year ended
March 31, 2010, were as follows:
(a) Establishment of Asahi Kasei E-materials Corp. through a
business split of the electrochemicals-related operations
of Asahi Kasei Chemicals Corp. and Asahi Kasei
Microdevices Corp.
i)
Name and nature of business subject to transaction,
statutory form of business combination, name of
company after transaction, and outline and purpose of
transaction
1) Name and nature of business subject to transaction
Name of business:
Electronics-related operations of the parent company and
of consolidated subsidiaries Asahi Kasei Chemicals Corp.
and Asahi Kasei Microdevices Corp.
Nature of business:
Production and sales of Hipore™ Li-ion rechargeable
battery separators, light diffusion plates, APR™
photopolymer and printing plate making systems, Pimel™
photosensitive polyimide precursor, Sunfort™ dry fi lm
photoresist, glass fabric for printed wiring boards,
photomask pellicles, etc.
2) Statutory form of business combination
Establishment of Asahi Kasei E-materials Corp. by
business split of electrochemicals-related operations of
the parent company, Asahi Kasei Chemicals Corp., and
Asahi Kasei Microdevices Corp.
3) Name of company after transaction
Asahi Kasei E-materials Corp.
4) Outline and purpose of transaction
Asahi Kasei E-materials Corp. was established through a
business split of the electrochemicals-related operations
of the parent company, Asahi Kasei Chemicals Corp., and
Asahi Kasei Microdevices Corp. in order to clarify those
operations as a fi eld of focus for growth for the Asahi
Kasei Group and to facilitate greater management
effi ciency in a structure for swift execution of strategic
decisions and resource investment.
ii) Outline of the accounting treatment implemented
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 the Accounting Standard for Business
Divestitures (Accounting Standard No. 7) and Guidance on
Accounting Standard for Business Combinations and
Accounting Standard for Business Divestitures (Accounting
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Standard Guidance No. 10) issued by the Accounting
Standards Board of Japan.
(b) Business split of Leona™ fi lament business from Asahi
Kasei Chemicals Corp. to Asahi Kasei Fibers Corp.
i)
Name and nature of business subject to transaction,
statutory form of business combination, name of
company after transaction, and outline and purpose of
transaction
1) Name and nature of business subject to transaction
Name of business:
Leona™ fi lament business of consolidated subsidiary
Asahi Kasei Chemicals Corp.
Nature of business:
Production and sale of Leona™ nylon 66 fi lament
2) Statutory form of business combination
Business split from Asahi Kasei Chemicals Corp. to Asahi
Kasei Fibers Corp.
3) Name of company after transaction
Asahi Kasei Fibers Corp.
4) Outline and purpose of transaction
For the further expansion and development of the
Leona™ fi lament business, it is essential to reinforce and
accelerate applications development based on advanced
17. Asset retirement obligation
technical know-how in the fi eld of fi bers. Asahi Kasei
Fibers Corp. holds the realignment of its business
portfolio from apparel to industrial-use materials as a pillar
of mid-term management strategy, and it can be
expected that by transferring the Leona™ fi lament
business, which is focused on industrial applications such
as tire cord and air bags, this portfolio realignment can be
accelerated through the pursuit of synergies with existing
fi ber business, in both technology and marketing. The
Leona™ fi lament business of Asahi Kasei Chemicals
Corp. was therefore split off to be absorbed by Asahi
Kasei Fibers Corp.
ii) Outline of the accounting treatment implemented
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 the Accounting Standard for Business
Divestitures (Accounting Standard No. 7) 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.
As of March 31, 2011
Asset retirement obligations recorded on the consolidated balance
sheet
(a) Outline of relevant asset retirement obligations
Due to commitments pertaining to restoration to original state
before vacating in accordance with land lease agreements such as
for offi ces, and due to commitments to dismantle leased buildings
upon termination of lease period, etc., in accordance with lease
agreements for model home parks, relevant asset retirement
obligations are recorded in the consolidated balance sheet.
In accordance with building lease agreements such as for the
head offi ces, commitments pertaining to restoration to original state
before vacating are recognized as asset retirement obligations.
However, instead of recording the relevant asset retirement
obligations as liabilities, the amount of deposit that can not
ultimately be expected to be collected was calculated in a
reasonable manner, and of that, the amount corresponding to the
fi scal year ended March 31, 2011, was recorded under operating
expenses.
(b) Method of calculating the amount of relevant asset
retirement obligations
The calculation of asset retirement obligations is based on the
following: expected term of use of 4 to 55 years, infl ation rate of
0.0% to 3.3%, and discount rate of 0.3% to 6.0%.
(c) Increase (decrease) in the total amount of asset retirement obligations in the fi scal year ended March 31, 2011.
Balance at beginning of year*
Increase due to asset retirement obligations accrued
Adjustment due to passage of time
Decrease due to fulfi llment of asset retirement obligations
Decrease due to foreign exchange fl uctuation
Balance at end of year
Millions of yen
2011
¥ 4,038
346
173
(420)
(310)
Thousands of
U.S. dollars
2011
$ 48,648
4,168
2,090
(5,056)
(3,729)
¥ 3,828
$ 46,121
* Balance at beginning of year after application of Accounting Standard for Asset Retirement Obligations (ASBJ Statement No. 18) and Guidance on Accounting Standard for Asset Retirement
Obligations (ASBJ Guidance No. 21).
With regard to asset retirement obligations for which the method of calculating the amount of deposit that can not ultimately be expected to be collected and then recording the amount
corresponding to the fi scal year ended March 31, 2011, under operating expenses rather than recording the asset retirement obligations as liabilities, the amount of such deposit calculated at
the beginning of the fi scal year was ¥1,553 million. With adjustment to include ¥66 million accrued due to lease agreements newly entered into, the total amount recorded in the fi scal year was
¥1,619 million.
1 8. Business segment information
(a) Overview of reportable segments
The Company is organized under a holding company confi guration
with core operating companies performing operations in eight
business fi elds.
Separate fi nancial information is available in these eight units,
and the Board of Directors carries out periodic review to allocate
management resources and evaluate business performance.
The eight units are combined into six reportable segments of
Chemicals, Homes, Health Care, Fibers, Electronics, and
Construction Materials through application of Paragraph 13 of
“Accounting Standard for Disclosures about Segments of an
Enterprise and Related Information.”
Main products of the six reportable segments are as follows:
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Chemicals
The Company produces, processes and sells chemicals and
derivative products (such as ammonia, nitric acid, caustic soda,
acrylonitrile, styrene, adipic acid, methyl methacrylate (MMA) and
acrylic resin), polymer products (such as Stylac™-AS styrene-
acrylonitrile, Stylac™-ABS acrylonitrile-butadiene-styrene, Tenac™
polyacetal, Xyron™ modifi ed polyphenylene ether (mPPE), Leona™
poyamide 66, Suntec™ polyethylene, synthetic rubber, and
polystyrene), specialty products (such as coating materials, latex,
Ceolus™ microcrystalline cellulose, explosives, explosion-bonded
metal clad, Microza™ UF and MF membranes and systems, ion-
exchange membranes and electrolysis systems, Saran Wrap™ cling
fi lm, Ziploc™ storage bags, and plastic fi lms, sheets, and foams).
Homes
The Company constructs Hebel Haus™ order-built unit homes and
Hebel Maison™ apartments, and operates related businesses such
as condominiums, residential land development, remodeling, real
estate, and home fi nancing.
Health Care
The Company manufuctures and sells pharmaceuticals (such as
Recomodulin™, Elcitonin™, Flivas™, Toledomin™, and
Bredinin™), Lucica™GA-L assay kits, L series enriched liquid diets,
APS™ polysulfone-membrane artifi cial kidneys, therapeutic
apheresis devices, Planova™ virus removal fi lters, and Sepacell™
leukocyte reduction fi lters.
Fibers
The Company produces, processes, and sells Roica™ elastic
polyurethane fi lament, Bemberg™ cupro fi ber, nonwoven fabrics
(such as Eltas™ spunbond and Lamous™ artifi cial suede), Leona™
nylon 66 fi lament, and polyester fi lament.
Electronics
The Company manufactures and sells Hipore™ Li-ion battery
separators, photomask pellicles, APR™ photosensitive resin and
printing plate making systems, Pimel™ photosensitive polyimide
precursor, Sunfort™ dry fi lm photoresist, mixed-signal LSIs, Hall
elements, and glass fabric for printed wiring boards.
Construction Materials
The Company produces and sells Hebel™ autoclaved aerated
concrete (AAC) panels, Neoma™ phenolic foam insulation panels,
foundation piles, and steel-frame structural components.
(b) Methods to determine net sales, income or loss, assets,
and other items by reportable business segment
Profi t by reportable business segment is stated on an operating
income basis. Intersegment net sales and transfers are based on
the values of transactions undertaken between third parties.
(c) Information concerning net sales, income or loss, assets, and other items for each repotable segment
Millions of yen
2011
Sales:
External customers
¥ 742,243
¥ 409,224
¥ 116,387
¥ 108,761
¥ 158,337 ¥ 47,418 ¥ 1,582,370 ¥ 16,017
¥ 1,598,387
Chemicals
Homes
Health Care
Fibers
Electronics
Construction
Materials
Sub total
Others
(Note 1)
Total
Intersegment
Total
Operating income
Assets
Other items
18,657
160
81
1,732
729
14,152
35,510
23,950
59,461
760,899
409,384
116,468
110,493
159,066
61,570
1,617,880
39,968
1,657,848
64,379
36,476
7,045
4,197
14,258
2,091
128,444
1,706
130,151
563,034
265,342
165,277
102,163
178,739
39,570
1,314,126
49,268
1,363,394
Depreciation (Note 2)
31,460
4,266
10,833
6,945
23,882
2,795
443
36,295
—
—
610
272
5
14
4,124
2,759
—
—
80,181
1,073
862
—
81,043
1,073
43,450
15,975
59,425
Amortization of goodwill
Investments in affi liates accounted
for using equity method
Increase in property, plant and
equipment, and intangible assets
23,174
6,304
7,427
3,668
20,267
1,684
62,524
981
63,505
Millions of yen
2010
Chemicals
Homes
Health Care
Fibers
Electronics
Construction
Materials
Sub total
Others
(Note 1)
Total
Sales:
External customers
¥ 622,093
¥ 389,728
¥ 113,207
¥ 101,201
¥ 142,700 ¥ 47,024 ¥ 1,415,953 ¥ 17,642
¥ 1,433,595
Intersegment
Total
16,495
24
96
1,772
1,159
13,048
32,593
23,541
56,134
638,588
389,752
113,303
102,973
143,859
60,072
1,448,547
41,182
1,489,729
Operating income (loss)
26,068
25,340
3,999
(2,764)
7,243
1,202
61,087
1,822
62,909
Assets
Other items
533,296
232,031
164,161
110,426
174,131
39,981
1,254,027
46,506
1,300,533
Depreciation (Note 2)
31,968
4,309
11,556
7,719
23,587
3,263
447
17,302
—
—
635
356
—
6
4,228
2,315
—
—
82,403
1,089
799
—
83,201
1,089
24,202
16,489
40,691
Amortization of goodwill
Investments in affi liates accounted
for using equity method
Increase in property, plant and
equipment, and intangible assets
27,649
6,009
9,173
4,556
22,761
1,191
71,339
927
72,266
Asahi Kasei Annual Report 2011
73
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Chemicals
Homes
Health Care
Fibers
Electronics
Construction
Materials
Sub total
Others
(Note 1)
Total
Thousands of U.S. dollars
2011
Sales:
External customers
$ 8,942,683 $ 4,930,410 $ 1,402,253 $ 1,310,373 $ 1,907,673 $ 571,307 $ 19,064,699 $ 192,980 $ 19,257,678
Intersegment
Total
Operating income
Assets
Other items
224,778
1,930
976
20,863
8,786
170,503
427,837
288,558
716,395
9,167,461
4,932,341
1,403,229
1,331,236
1,916,459
741,810
19,492,535
481,538
19,974,073
775,646
439,466
84,876
50,565
171,779
25,190
1,547,521
20,559
1,568,080
6,783,545
3,196,891
1,991,295
1,230,880
2,153,485
476,747
15,832,843
593,585
16,426,428
Depreciation (Note 2)
379,036
51,402
130,514
83,676
287,734
33,674
966,036
10,383
976,419
Amortization of goodwill
Investments in affi liates accounted
for using equity method
Increase in property, plant and
equipment, and intangible assets
5,339
437,283
—
—
7,355
60
168
3,277
49,687
33,247
—
—
12,923
—
12,923
523,495
192,465
715,960
279,203
75,955
89,482
44,194
244,180
20,287
753,301
11,818
765,119
Notes: 1. The “Others” category is equivalent to the previous Services, Engineering and Others segment, including plant engineering and environmental engineering, research and analysis, and
employment agency/staffi ng operations.
2. Amortization of goodwill is not included.
(d) Reconciliation of differences between total amounts of reportable segments and amounts appearing in the consolidated
fi nancial statements (adjustment of difference)
Sales
Total of reporting segments
Net sales in “Others” category
Elimination of intersegment transactions
Net sales on consolidated statements of income
Operating income
Total of reporting segments
Operating income in “Others” category
Elimination of intersegment transactions
Corporate expenses, etc.*
Operating income on consolidated statements of income
Millions of yen
2011
2010
¥ 1,617,880
39,968
(59,461)
¥ 1,598,387
¥ 1,448,547
41,182
(56,134)
¥ 1,433,595
Millions of yen
2011
¥ 128,444
1,706
708
(7,932)
¥ 122,927
2010
¥ 61,087
1,822
1,438
(6,726)
¥ 57,622
*Corporate expenses, etc. include corporate revenue, basic research expense, and group management expense, etc. which are not allocated to reporting segments.
Assets
Total of reporting segments
Assets in “Others” category
Elimination of intersegment transactions
Corporate assets*
Total net assets on consolidated balance sheets
Millions of yen
2011
2010
¥ 1,314,126
49,268
(167,618)
230,103
¥ 1,425,879
¥ 1,254,027
46,506
(164,202)
232,562
¥ 1,368,892
Thousands of
U.S. dollars
2011
$ 19,492,535
481,538
(716,395)
$ 19,257,678
Thousands of
U.S. dollars
2011
$ 1,547,521
20,559
8,532
(95,561)
$ 1,481,051
Thousands of
U.S. dollars
2011
$ 15,832,843
593,585
(2,019,494)
2,772,331
$ 17,179,265
* Corporate assets include assets of the parent company and those of a fi nancial subsidiary—surplus operating funds (cash and deposits), long-term investment capital (investment securities,
etc.), and land, etc.
Total of reportable segments
Others
Adjustments (Note 1)
Amounts from consolidated
fi nancial statements
Millions of yen
Thousands
of U.S.
dollars
Millions of yen
Thousands
of U.S.
dollars
Millions of yen
Thousands
of U.S.
dollars
Millions of yen
Thousands
of U.S.
dollars
Other items
2011
2010
2011
2011
2010
2011
2011
2010
2011
2011
2010
2011
Depreciation (Note 2)
¥ 80,181 ¥ 82,403 $ 966,036 ¥
862 ¥
799 $ 10,383 ¥ 3,049 ¥ 2,965 $ 36,738 ¥ 84,092 ¥ 86,166 $ 1,013,158
Amortization of goodwill
Investments in associates
accounted for using equity
method
Increase in property, plant
and equipment, and
intangible assets
¥ 1,073 ¥ 1,089 $ 12,923 ¥ — ¥ — $
— ¥ — ¥ — $ — ¥ 1,073 ¥ 1,089 $
12,923
¥ 43,450 ¥ 24,202 $ 523,495 ¥ 15,975 ¥ 16,489 $ 192,465 ¥ — ¥ — $ — ¥ 59,425 ¥ 40,691 $ 715,960
¥ 62,524 ¥ 71,339 $ 753,301 ¥
981 ¥
927 $ 11,818 ¥ 2,509 ¥ 11,724 $ 30,224 ¥ 66,014 ¥ 83,990 $ 795,344
Notes: 1. Adjustments include elimination of intersegment transactions and Corporate expenses, etc.
2. Amortization of goodwill is not included.
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(Additional information)
Accounting Standard for Disclosures about Segments of an Enterprise and Related Information (ASBJ Statement No. 17) and the Guidance
on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information (ASBJ Guidance No. 20) have been
applied beginning from the fi scal year ended March 31, 2011.
(e) Related Information
i) Information on products and services
Please refer to (c) Information concerning net sales, income or loss, assets, and other items for each reportable segment.
ii) Geographic information
1) Net sales
Japan
China
2011
Other
regions
Total
Japan
China
2010
Other
regions
Millions of yen
Thousands of U.S. dollars
2011
Total
Japan
China
Other regions
Total
¥1,149,098
¥169,637
¥279,652
¥1,598,387
¥1,063,186
¥134,271
¥236,138
¥1,433,595
$13,844,558 $2,043,814 $3,369,307
$19,257,678
2) Property, plant and equipment
Geographic information is not shown because over 90% of the amount of property, plant and equipment on the consolidated
balance sheets is located in Japan.
3) Information by major customer
Information by major customer is not shown because no customer accounts for 10% or more of net sales on the statements of income.
19. Information about related parties
For the year ended March 31, 2011
Related party transactions
Transactions between consolidated subsidiaries of the company submitting the consolidated fi nancial statements and related parties
Subsidiaries, affi liates, etc. of the company submitting the consolidated fi nancial statements
Type of related party
Name of company
Location
Paid-in capital
Business line
Holding ratio of voting rights (of which, indirect holding ratio) 48.5% (48.5%)
Debt guarantee
Relationship with the related party
Completion guarantee
Nature of transaction
¥15,002 million
Transaction amount
—
Item
—
Balance at end of year
An affi liated company
PTT Asahi Chemical Co., Ltd.
Rayong, Thailand
14,246 million Thai baht
Chemicals
20. Per share information
Reconciliation of the differences between basic and diluted net assets per share and net income per share for the years ended March 31,
2011 and 2010, 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
U.S. dollars
2011
¥ 474.59
¥ 43.11
2010
¥ 452.91
¥ 18.08
Millions of yen
2011
2010
2011
$5.72
$0.52
Thousands of
U.S. dollars
2011
¥ 675,602
¥ 644,688
$ 8,139,787
12,036
12,036
11,346
11,346
145,014
145,014
¥ 663,566
¥ 633,343
$ 7,994,772
Number of shares of capital stock outstanding at fi scal year end used in calculation of
net assets per share (thousand)
1,398,196
1,398,388
1,398,196
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Asahi Kasei Annual Report 2011
75
(b) Net income per share
Net income
Amount not allocated to capital stock
Net income allocated to capital stock
Millions of yen
2011
2010
Thousands of
U.S. dollars
2011
¥
60,288
¥
25,286
$ 726,356
—
—
—
¥
60,288
¥
25,286
$ 726,356
Weighted-average number of shares of capital stock (thousand)
1,398,311
1,398,463
1,398,311
As the Company had no dilutive securities at March 31, 2011 and 2010, the Company does not disclose diluted net income per share
for the years ended March 31, 2011 and 2010.
21. Borrowings
(a) Bonds payable at March 31, 2011 and 2010, comprised the following:
Unsecured 1.90% Euro yen bonds due in 2013
Unsecured 1.46% yen bonds due in 2019
Notes 1) The 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 aggregate annual maturities of long-term debt after March 31, 2011, are as follows:
Year ending March 31
2012
2013
2014
2015
2016 and thereafter
(b) Loans payable at March 31, 2011 and 2010, are comprised of the following:
Millions of yen
2011
¥ 5,000
20,000
¥ 25,000
2010
¥ 5,000
20,000
¥ 25,000
Millions of yen
¥ —
—
5,000
—
20,000
¥ 25,000
Millions of yen
2011
2010
Thousands of
U.S. dollars
2011
$ 60,241
240,964
$ 301,205
Thousands of
U.S. dollars
$
—
—
60,241
—
240,964
$ 301,205
Thousands of
U.S. dollars
2011
Short-term loans payable with interest rate 0.88%
¥ 76,611
¥ 77,763
$ 923,023
Current portion of long-term loans payable with interest rate 1.10%
Current portion of lease obligations with interest rate 2.36%
Long-term loans payable (except portion due within one year) with interest rate 1.07%
Lease obligations (except portion due within one year) with interest rate 2.28%
Commercial paper with interest rate 0.20% (due within one year)
32,278
1,522
91,722
3,802
23,000
16,199
1,123
121,921
3,593
19,000
388,892
18,333
1,105,090
45,812
277,108
¥ 228,935
¥ 239,600
$ 2,758,259
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, 2012, are as follows:
Year ending March 31
2013
2014
2015
2016
2017 and thereafter
Long-term loans payable
Lease obligations
Millions of yen
¥ 29,805
23,404
7,444
1,891
28,671
Thousands of
U.S. dollars
$ 359,092
281,980
89,686
22,788
345,432
Millions of yen
¥ 1,556
1,363
658
206
20
Thousands of
U.S. dollars
$ 18,747
16,423
7,924
2,483
236
3) The timing of repayments for the loan payables from Japan Science and Technology Agency have yet to be determined as they begin after the development success is certifi ed. Thus,
the related aggregate annual maturities for these long-term loans payable after March 31, 2011 are not included in the above.
76 Asahi Kasei Annual Report 2011
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Asahi Kasei Annual Report 2011
77
Main products/business line
Paid-in capital
(million)
Equity
interest (%)
Major Subsidiaries and Affi liates
As of April 1, 2011
Company
Chemicals Segment
Asahi Kasei Chemicals Corp.*
Asahi Kasei Pax Corp.*
Chemicals
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 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 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.*
Caustic soda, chlorine
Industrial explosives
Polystyrene
Asahikasei Plastics (America) Inc.*
Compounded performance resin operations
Asahi Kasei Plastics North America, Inc.*
Coloring and compounding of performance resin
Sun Plastech Inc.*
Tong Suh Petrochemical Corp., Ltd.*
Sale of purging compound
Acrylonitrile, sodium cyanide
Asahi Kasei Chemicals Korea Co., Ltd.
Sale of adipic acid
Asahikasei Plastics (Shanghai) Co., Ltd.
Sale of performance resin
Asahikasei (Suzhou) Plastics Compound Co., Ltd.
Coloring and compounding 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 fi ltration 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
Asahi Kasei Synthetic Rubber Singapore Pte. Ltd.
Synthetic rubber
PTT Asahi Chemical Co., Ltd.
Acrylonitrile, methyl methacrylate
Asahikasei Plastics (Thailand) Co., Ltd.
Coloring and compounding of performance resin
PT Nippisun Indonesia
Coloring and compounding of styrenic resin
Asahi Kasei Plastics Europe SA/NV*
Sale of compounded performance resin
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.*
Housing
Steel frames
Financial services
Home maintenance and remodeling
Home leasing, real estate brokerage
Asahi Kasei Home Construction Corp.*
Construction of homes
Health Care Segment
Asahi Kasei Pharma Corp.*
Asahi Kasei Kuraray Medical Co., Ltd.*
Asahi Kasei Medical Co., Ltd.*
Pharmaceuticals
Hemodialyzers, therapeutic apheresis devices
Medical devices, medical systems
Med-Tech Inc.*
Medical devices
Asahi Kasei Bioprocess, Inc.*
Bioprocess equipment and systems
Asahi Kasei Medical America Inc.*
Sale of medical devices, medical systems
Asahi Kasei Medical Trading (Korea) Co., Ltd.*
Sale of medical devices, medical systems
Asahi Kasei Medical (Hangzhou) Co., Ltd.*
Hemodialyzers; sale of medical devices
Asahi Kasei Medical Trading (Taiwan) Co. Ltd.*
Asahi Kasei Medical Europe GmbH*
Sale of medical devices, medical systems
Sale of medical devices, medical systems
* Consolidated subsidiary
** Including capital reserve
78 Asahi Kasei Annual Report 2011
1.0
W 50,642
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
US$
US$
US$
W
CNY
CNY
US$
CNY
CNY
US$
US$
US$
US$
B
B
US$
A
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
3,000
490
250
250
325
132
100
100
160
1,000
1,500
1,050
1,000
60
5,000
100.0
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
62.1
17.8** 100.0
21.7** 100.0
100.0
100.0
100.0
100.0
51.0
50.0
100.0
100.0
100.0
100.0
70.0
100.0
48.5
1,500
18
50
32.0
149
49
2.6
46.0
35.0
15.0
12,400
140
100.0
6.3
5.0
25.7
100.0
3,250
2,820
1,000
250
200
100
3,000
800
200
140
100.0
100.0
100.0
100.0
100.0
100.0
100.0
93.0
100.0
68.3
US$
US$
W
CNY
NT$
A
30.0
100.0
0.5
93.0
1,000
100.0
163
5
0.2
93.0
100.0
93.0
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Company
Main products/business line
Asahi Kasei Medical Trading Ltd. Sti.
Asahi Kasei Bioprocess Europe SA/NV*
Sale of medical devices, medical systems
Sale of virus removal fi lters
Asahi Pharma Spain, SL
Fibers Segment
Asahi Kasei Fibers Corp.*
Kyokuyo Sangyo Co., Ltd.*
DuPont-Asahi Flash Spun Products Co., Ltd.
Asahi Kasei Spandex America, Inc.*
Hangzhou Asahikasei Spandex Co., Ltd.*
Pharmaceuticals
Fibers, textiles
Processing of fi bers and textiles
Flash spun products
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 bers and textiles
Thai Asahi Kasei Spandex Co., Ltd.*
Spandex
Asahi Kasei Spunbond (Thailand) Co., Ltd.
Spunbond nonwovens
Asahi Kasei Spandex Europe GmbH*
Spandex
Asahi Kasei Fibers Italy SRL*
Sale of cupro cellulosic fi ber
Asahi Kasei Fibers Deutschland GmbH
Sale of artifi 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.*
Asahi Kasei Power Devices Corp.*
AKM Semiconductor, Inc.*
Electronic devices
Electronic materials
Epoxy resin
LSIs
Glass fabric
Hall elements
Power management semiconductors
Sale of LSIs
Asahi Kasei Microdevices Korea Corp.
Electronic devices marketing and technical support
Asahi Kasei E-materials Korea Inc.
Energy and electronic materials
Asahi Kasei Electronics Materials (Suzhou) Co., Ltd.*
Dry fi lm photoresist
Asahi Kasei Microdevices (Shanghai) Co., Ltd.
Electronic devices marketing and technical support
Asahi Kasei Microdevices Taiwan Corp.
Electronic devices marketing and technical support
Asahi Kasei EMD Taiwan Corp.
Asahi Kasei Wah Lee Hi-Tech Corp.*
Asahi-Schwebel (Taiwan) Co., Ltd.*
Sale of pellicles
Dry fi lm photoresist
Glass fabric
Asahi Kasei Microdevices Europe SAS
Electronic devices marketing and technical support
Asahi Photoproducts (Europe) SA/NV*
Sale of photopolymer, printing-plate making systems
Asahi Photoproducts (UK) Ltd.*
Construction Materials Segment
Asahi Kasei Construction Materials Corp.*
Asahi Kasei Foundation Systems Corp.*
Asahi Kasei Extech Corp.*
Sale of photopolymer, printing-plate making systems
Construction materials
Installation of piles
Exterior wall panel installation
Others (formerly Services, Engineering and Others segment)
Asahi Research Center Co., Ltd.*
Asahi Finance Co., Ltd.
Asahi Kasei Engineering Corp.*
Asahi Kasei Trading Co., Ltd.*
Sun Trading Co., Ltd.*
Asahi Kasei Amidas Co., Ltd.*
AJS Inc.
Information and analysis
Investment, fi nance
Plant, equipment, process engineering
Sale of Asahi Kasei products
Sale of Asahi Kasei products
Employment agency, consulting
Computer software, IT systems
Asahi Organic Chemicals Industry Co., Ltd.
Synthetic resin, fabricated plastic products
Asahi Kasei America, Inc.*
Business support services
Asahi Kasei Business Management
(Shanghai) Co., Ltd.
* Consolidated subsidiary
** Including capital reserve
Business support services
Paid-in capital
(million)
Equity
interest (%)
YTL
A
A
5,000
0.5
100.0
100.0
0.1
100.0
¥
¥
¥
US$
CNY
CNY
NT$
HK$
B
B
A
A
A
¥
¥
¥
¥
¥
¥
¥
US$
W
W
CNY
CNY
NT$
NT$
NT$
NT$
A
A
£
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
3,000
80
450
100.0
100.0
50.0
32.3** 100.0
132
78
802
65
1,350
100.0
82.5
50.0
100.0
60.0
225
100.0
19.6** 100.0
3.0
0.3
100.0
100.0
3,000
3,000
300
50
50
50
100
2.9
820
100.0
100.0
100.0
100.0
100.0
100.0
80.0
100.0
100.0
5,500
100.0
181
14
10
1.0
49
326
0.4
3.4
0.3
3,000
200
50
1,000
800
400
98
94
80
800
5,000
100.0
100.0
100.0
100.0
80.6
51.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
49.0
30.1
US$
US$
0.1
100.0
3.0
100.0
Asahi Kasei Annual Report 2011
79
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Corporate Profi le
As of March 31, 2011
Company Name
Asahi Kasei Corporation
Date of Establishment
May 21, 1931
Paid-in Capital
¥103,388,521,767
Employees
25,016 (consolidated)
810 (non-consolidated)
Asahi Kasei Group Offi ces
Asahi Kasei Corporation
Core Operating Companies
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
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
Asahi Kasei Business Management
(Shanghai) Co., Ltd.
8/F, One ICC
Shanghai International Commerce Centre
No. 999 Huai Hai Zhong Road
Shanghai 200031 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
80 Asahi Kasei Annual Report 2011
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Investors Information
As of March 31, 2011
Stock Listings
Tokyo, Osaka, Nagoya, Fukuoka,
Sapporo
Stock Code
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
Largest Shareholders
% of equity*
Master Trust Bank of Japan, Ltd. (trust account)
Japan Trustee Services Bank, Ltd. (trust account)
Nippon Life Insurance Co.
Asahi Kasei Group Employee Stockholding Assn.
Sumitomo Mitsui Banking Corp.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
SSBT OD05 Omnibus Account Treaty Clients
Japan Trustee Services Bank, Ltd. (trust account 9)
Independent Auditors
PricewaterhouseCoopers Aarata
Number of Shareholders 116,237
Mizuho Corporate Bank, Ltd.
Sumitomo Life Insurance Co.
* Percentage of equity ownership after exclusion of treasury stock.
Distribution by Type of Shareholder
Distribution by Number of Shares Held
Japanese financial institutions
46.86%
Foreign investors
24.52%
100,000 or more
80.38%
Japanese individuals and groups
22.79%
10,000–99,999
6.96%
Other Japanese companies
4.42%
1,000–9,999
12.33%
Japanese securities companies
1.41%
Less than 1,000
0.33%
Stock Chart
Share price
(¥)
600
400
200
0
6.63
5.67
5.22
3.25
2.53
1.84
1.77
1.56
1.45
1.40
Volume
(thousand shares)
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
’08/10 11
12 ’09/1 2
3
4
5
6
7
8
9
10
11
12 ’10/1 2
3
4
5
6
7
8
9
10
11
12 ’11/1 2
3
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.
Asahi Kasei Annual Report 2011 81
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A
S
A
H
I
K
A
S
E
I
C
O
R
P
O
R
A
T
O
N
I
A
N
N
U
A
L
R
E
P
O
R
T
2
0
1
1
1-105 Kanda Jinbocho, Chiyoda-ku, Tokyo 101-8101 Japan
www.asahi-kasei.co.jp
Corporate Communications
Tel: +81-3-3296-3008, Fax: +81-3-3296-3162
Printed in Japan
2011.11
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