Annual Report 2012
ASAHI KASEI CORPORATION
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The Asahi Kasei Group operates a diversifi ed range of businesses in the four sectors of Chemicals &
Fibers, Homes & Construction Materials, Electronics, and Health Care. With Asahi Kasei Corp. as a
holding company, these businesses are advanced by nine core operating companies. Under our fi ve-
year medium-term strategic management initiative “For Tomorrow 2015” launched in fi scal 2011, we
are actively expanding our world-leading businesses along with creating new value for society in the
fi elds related to the environment & energy, residential living, and health care. By leveraging the
comprehensive strengths of the Asahi Kasei Group, 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.
Group Mission
We, the Asahi Kasei Group, contribute to life and
living for people around the world.
Group Vision
Providing new value to society by enabling “living in health
and comfort” and “harmony with the natural environment.”
Group Values
Sincerity—Being sincere with everyone.
Challenge—Boldly taking challenges, continuously seeking change.
Creativity—Creating new value through unity and synergy.
Group Slogan
Creating for Tomorrow
Holding company
Business sectors
Asahi Kasei
Chemicals & Fibers
Core operating companies
Homes &
Construction Materials
Core operating companies
Electronics
Health Care
Core operating companies
Core operating companies
Asahi Kasei Chemicals
Asahi Kasei Homes
Asahi Kasei Microdevices
Asahi Kasei Pharma
Asahi Kasei Fibers
Asahi Kasei Construction
Materials
Asahi Kasei E-materials
Asahi Kasei Medical
ZOLL Medical
Asahi Kasei Annual Report 2012
1
Net Sales
Contents
02 Consolidated Financial Highlights
04
To Our Shareholders
05 Outline of “For Tomorrow 2015”
06 A Message from the President
11 Creation of New Value for Society
15 At a Glance
18 Operating Segments
18
20
22
24
26
28
30
Chemicals
Homes
Health Care
Fibers
Electronics
Construction Materials
Others
31
39
Toward Sustainable Growth
Financial Section
80 Major Subsidiaries and Affiliates
82 Company Information
83
Investors Information
Others
1.3%
¥18.6 billion
Construction
Materials
2.9%
¥46.1 billion
Electronics
9.3%
¥146.1 billion
Fibers
7.0%
¥110.8 billion
FY 2011
Net sales
¥1,573.2 billion
Chemicals
43.2%
¥680.1 billion
Homes
28.7%
¥452.0 billion
Health Care
7.6%
¥119.5 billion
Operating Income
(Percentages before corporate expenses and eliminations)
Others
2.6%
¥3.0 billion
Construction
Materials
1.6%
¥1.8 billion
Electronics
5.6%
¥6.4 billion
Fibers
2.8%
¥3.1 billion
FY 2011
Operating income
¥104.3 billion
Chemicals
39.0%
¥44.5 billion
Homes
40.7%
¥46.3 billion
Health Care
7.7%
¥8.8 billion
Disclaimer
The forecasts and estimates shown in this annual report are dependent on a variety of assumptions
and economic conditions. Plans and figures depicting the future do not imply a guarantee of actual
outcome.
Asahi Kasei Annual Report 2012
2
Consolidated Financial Highlights
Asahi Kasei Corporation and consolidated subsidiaries
Fiscal year beginning April 1
2011
2010
¥ billion
2009
2008
2007
For the year
Net sales**
Operating income
Net income
Comprehensive income
Free cash flows
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‡
US$ million*
2011
$ 19,155
1,269
679
762
631
$ 17,175
8,606
2,242
US$*
¥ 1,573.2
104.3
¥ 1,555.9
122.9
55.8
62.6
51.8
60.3
45.1
69.3
¥ 1,392.2
¥ 1,521.2
57.6
25.3
35.0
4.7
¥ 1,663.8
127.7
69.9
—
—
—
69.1
(66.9)
3.8
¥ 1,410.6
¥ 1,425.9
706.8
184.1
663.6
253.9
¥ 39.89
505.72
14.00
¥ 43.11
474.59
11.00
6.6%
35.1%
3.9%
8.1%
50.1%
0.26
7.9%
25.5%
4.3%
9.3%
46.5%
0.38
¥ 1,368.9
633.3
264.6
¥
¥ 18.08
452.91
10.00
4.1%
55.3%
1.8%
4.1%
46.3%
0.42
¥ 1,379.3
603.8
315.6
¥ 1,425.4
666.2
211.4
¥ 3.39
431.77
10.00
¥ 50.01
$
0.49
476.39
13.00
6.16
0.17
2.3%
295.0%
0.3%
0.7%
43.8%
0.52
7.7%
26.0%
4.8%
10.7%
46.7%
0.32
* U.S. dollar amounts in this annual report are translated from Japanese yen, for convenience only, at the rate of ¥82=US$1 as described in Note 1 of Notes to
Consolidated Financial Statements.
** Beginning with the year ended March 31, 2012, the accounting policy for naphtha resale in the Chemicals segment was changed. This change is applied retro-
actively to net sales for the years ended March 31, 2008, through March 31, 2011. Operating margin is recalculated accordingly.
† Net assets less minority interest.
‡ At fiscal year end.
Net Sales
(¥ billion)
2,000
1,663.8
1,500
1,521.2
1,555.9
1,573.2
1,392.2
1,000
500
0
FY
07
08
09
10
11
(%)
20
15
10
60.3
55.8
Operating Income, Operating Margin
Net Income, ROE
(¥ billion)
(¥ billion)
(%)
15
12
9
127.7
122.9
104.3
7.7
7.9
57.6
6.6
6
35.0
4.1
2.3
3
0
07
08
09
10
11
150
120
90
60
30
0
FY
69.9
10.7
80
60
40
20
0
FY
Operating income, left scale
Operating margin, right scale
Net income, left scale
ROE, right scale
25.3
4.1
4.7
0.7
9.3
8.1
5
0
07
08
09
10
11
Asahi Kasei Annual Report 2012
3
(¥ billion)
2,000
1,600
1,200
800
400
0
Strategic Management Initiatives
(¥ billion)
150
120
90
60
30
0
FY
(30)
(60)
(90)
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Ishin2000
(FY 1999–2002)
Selectivity and focus
Disposal of negative legacies
Ishin-05
(FY 2003–2005)
Selective diversification
Creation of cash flow
Growth Action – 2010
(FY 2006–2010)
Business portfolio realignment for
expansion and growth
Strategic investment
For Tomorrow 2015
(FY 2011–2015)
Pursuit of growth
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
1,425.4
(%)
60
1,379.3 1,368.9
1,425.9
1,410.6
46.7
43.8
46.3
1,000
500
0
50.1
46.5
40
20
0
350
300
250
200
150
100
50
0
315.6
264.6
0.52
253.9
211.4
0.32
0.42
0.38
184.1
0.7
0.6
0.5
0.4
0.3
0.26
0.2
0.1
0.0
80
60
40
20
0
(20)
(40)
(60)
(80)
FY
69.1
69.3
51.8
3.8
(66.9)
07
08
09
10
11
FY*
07
08
09
10
11
FY*
07
08
09
10
11
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.
Asahi Kasei Annual Report 2012
4
To Our Shareholders
The Japanese economy slowed down significantly during fiscal 2011, with the global economy being affected by the
sovereign debt crisis in Europe, and with exports to China and other emerging markets declining during the second
half after having been relatively solid during the early part of the fiscal year. Although manufacturing activity generally
recovered from the stagnant period following the Great East Japan Earthquake, Japan’s economic circumstances
remained challenging, with corporate earnings suppressed by the persistent strength of the yen and high prices for
feedstocks and fuel.
Consolidated net sales of Asahi Kasei Corp. and its consolidated subsidiaries and equity-method affiliates (the
Asahi Kasei Group) increased by ¥17.3 billion (1.1%) to ¥1,573.2 billion with strong performance in the Homes
segment. Operating income decreased by ¥18.7 billion (15.2%) to ¥104.3 billion, largely due to the effect of high
feedstock costs and the strong yen in the Chemicals segment. Ordinary income decreased by ¥10.7 billion (9.0%) to
¥107.6 billion, and net income decreased by ¥4.5 billion (7.5%) to ¥55.8 billion.
Although overall performance declined, we raised our annual dividend for the fiscal year by ¥3 per share from
previous year to ¥14 per share.
The Asahi Kasei Group is now advancing under a five-year strategic management initiative called “For Tomorrow
2015,” which we launched in April last year for completion in fiscal 2015. This initiative provides a clear focus that
unifies our diverse operations on our Group Vision of providing new value for people by enabling living in health and
comfort and harmony with the natural environment in accordance with our Group Slogan of “Creating for Tomorrow.”
In order to achieve this, in addition to further accelerating the expansion of our world-leading businesses, we are
creating new value for society by expanding our operations in fields related to the environment & energy, residential
living, and health care. One notable advance was
our April 2012 acquisition of ZOLL Medical
Corporation, a major US manufacturer of critical
care devices, and ZOLL is now a core operating
company within the Asahi Kasei Group.
We will continue to strive for heightened
corporate value through the achievement of further
strategic advances under “For Tomorrow 2015.”
August 2012
Ichiro Itoh
Chairman
Taketsugu Fujiwara
President
Ichiro Itoh, Chairman (left), Taketsugu Fujiwara, President (right)
Asahi Kasei Annual Report 2012
Outline of “For Tomorrow 2015”
5
Mid-term management initiative
“For Tomorrow 2015” (FY 2011 – 2015)
Leveraging our diversified strengths, we will offer new value
from the perspectives of living in health and comfort and
harmony with the natural environment by “Creating for Tomorrow.”
1
Expansion of world-leading businesses
Focused and proactive global development to build market leadership in growing markets.
Acrylonitrile (AN)
Solution-polymerized styrene-butadiene rubber (S-SBR)
Electronics: Hipore™ lithium-ion battery separator, LSIs, Sunfort™ dry film photoresist, photomask pellicles
Health Care: APS™ polysulfone-membrane artificial kidneys, Planova™ virus removal filters
Fibers: Bemberg™ cupro cellulosic fiber, Roica™ elastic polyurethane filament
2
Creation of new value for society
Meeting emerging social needs for “living in health and comfort” and “harmony with the natural
environment” in the following three fields of focus through collaboration among different business units.
Environment & Energy: Leveraging diverse technology to create a future in harmony with the natural environment
(Hipore™ lithium-ion battery separator, LSIs, Microza™ hollow-fiber filtration membranes, Neoma™ and Jupii™ phenolic
foam insulation panels, etc.)
Residential Living: Providing comfortable living to more customers, more quickly
(Order-built homes, real-estate business, remodeling, Hebel™ autoclaved aerated concrete, etc.)
Health Care: Providing unique products and technologies for a lively society of health and longevity
(Teribone™ osteoporosis drug, hemodialysis, etc.)
Creation of new businesses is advanced with “For Tomorrow” projects in each of these three fields.
Financial targets
(¥ billion)
Operating income
Net income
300
250
200
150
100
50
0
FY
Net sales
¥2.5–3.0 trillion
Operating income
over ¥250 billion
Net sales
¥2 trillion
Operating income
¥200 billion
Net income
¥110 billion
Net income
over ¥140 billion
FY 2011–2015
Long-term investment
¥1 trillion
Net sales
¥1,555.9 billion
Operating income
¥122.9 billion
Net income
¥60.3 billion
2006
2007
2008
2009 2010
2015
target
2020
target
Asahi Kasei Annual Report 2012
6
A Message from the President
Taketsugu Fujiwara, President
Accelerating actions for future growth through our
“For Tomorrow 2015” strategic management initiative.
In April 2011, the Asahi Kasei Group launched a strategic management initiative “For Tomorrow
2015” for the five years through fiscal 2015. Despite the challenging operating climate we faced
during the second half of fiscal 2011, we maintained momentum on several strategic actions to
build the foundations for further growth.
For Tomorrow 2015
No. 2 global positions, expanding proactively in
markets where we can exert leadership, with a focus
“For Tomorrow 2015” is focused on the creation of new
on growth in developing countries. For the latter, we
value for the future by anticipating changes in society
have been concentrating our resources on the
from the two perspectives of living in health and comfort
expansion of businesses related to the environment
and harmony with the natural environment, in
and energy, residential living, and health care.
accordance with our Group Mission of contributing to
Leveraging the diverse strengths of the Asahi Kasei
life and living for people around the world.
Group in these fields, we have established “For
Our two main strategies for growth are the
Tomorrow” projects that correspond to each of these
expansion of world-leading businesses and the
three fields, extending across our various business
creation of new value for society. For the former, we
units, working to provide unique solutions to the
have been building on our established No. 1 and
world’s emerging needs.
Asahi Kasei Annual Report 2012
7
We plan to invest some ¥1 trillion to achieve these
displays future products created through synergy
strategies over the five-year period through fiscal
among different operations within the Asahi Kasei
2015. Our targets for fiscal 2015 are consolidated net
Group as well as with various outside entities. In
sales of ¥2 trillion and operating income of ¥200
health care, we began a program of a joint research
billion.
Progress to Date
on cell processing for cancer treatment with
tella, Inc., a company specializing in cell therapy.
Most significant of all is our entry into the field of
critical care through our acquisition of ZOLL Medical
We have taken several important steps during our
Corporation, a major US manufacturer of critical care
first year of “For Tomorrow 2015.” For the expansion
devices and systems.
of world-leading businesses, we have strengthened
the foundations of our acrylonitrile (AN) business to
meet the growing demand in Asia with our world-
leading production technology. We started-up a new
Long-term investment plan
AN plant in Thailand using the world’s first
commercial propane-process technology—which is
now ramping-up toward full-capacity operation,
constructed a new AN plant in Korea, and
established a joint venture in Saudi Arabia to study an
AN project. For S-SBR, whose demand is growing in
the market of fuel-efficient tires, we started
construction of our first plant in Singapore and made
Intermittent expansion
of established
businesses,
establishment of
new businesses, M&A
Long-term
investment of
some
¥1 trillion
Chemicals & Fibers
Homes &
Const. Mat.
Electronics
a decision to add a second plant as well. In
Health Care
electronics, the Asahi Kasei Group enjoys the world’s
top-share with Hipore™ Li-ion battery separator,
which is widely used for smartphones, tablet PCs,
and laptop computers. In order to maintain and
reinforce our leading position, we are not only
increasing production capacity but also making
preparations for market expansion in automotive
applications.
We also made significant progress in developing
and expanding businesses that create new value for
Chemicals &
Fibers
Homes &
Const. Mat.
Performance plan by business sector
(¥ billion)
Net sales
Operating income
FY 2010
FY 2015
target
FY 2010
FY 2015
target
808.6
880.0
68.6
75.0
456.6
570.0
38.6
50.0
society. In the field of the environment and energy, we
Electronics
158.3
250.0
14.3
40.0
established a joint venture with FDK Corp. to
accelerate the development of business related to the
Health Care
116.4
180.0
7.0
25.0
lithium ion capacitor (LIC), an advanced high-capacity
Others
16.0
20.0
(5.5)
(5.0)
energy storage device. We also acquired US venture
company Crystal IS, Inc. to develop business related
to ultraviolet light emitting diodes (UV LEDs). In the
field of residential living, we constructed a
demonstration house called “HH2015” in Fuji,
Shizuoka prefecture, to showcase cutting-edge
technologies, such as solar power generation
systems and home dialysis devices. This facility
Subtotal
1,555.9
1,900.0
122.9
185.0
“For Tomorrow”
projects*
100.0
15.0
FY 2020, approx. 300
FY 2020, approx. 50
Total
1,555.9
2,000.0
122.9
200.0
* With our April 2012 acquisition of ZOLL, Critical Care is added as
a new operating segment beginning in FY 2012. FY 2015 targets
shown above as “For Tomorrow” projects include the Critical Care
segment.
Asahi Kasei Annual Report 2012
8
A Message from the President
Forthcoming Steps
of new value for society, we will strategically expand
businesses in our three fields of focus. Growth in the
Subsequent to the launch of “For Tomorrow 2015,”
field of the environment and energy will be achieved
the operating climate has worsened dramatically, with
through the development of new electronic devices
the extreme strength of Japanese yen impacting the
that, like the electronic compass, establish market
profitability of exports and the sovereign debt crisis in
leadership in each category, the expansion of our
Europe leading to reduced demand in our Chemicals
water-treatment membrane business, and the
and Electronics segments in particular. In response to
development of new businesses for LICs and
these changes, we are not only further accelerating
UV LEDs. In residential living-related businesses, we
progress under our management initiative, but are
will continue to launch new homes that address
also implementing an additional program to enhance
social needs such as support for raising children, and
structural profitability. We are targeting a cost
energy conservation and storage. We will also
reduction of over ¥20 billion by the end of “For
expand business for Jupii™ phenolic foam floor
Tomorrow 2015” by enhancing the efficiency of work
insulation panels. Expansion of operations in the field
in sales and R&D, reducing production costs, and
of health care will be achieved through further sales
streamlining physical distribution. These measures to
growth in Recomodulin™ recombinant
reinforce our business foundation will play a vital part
thrombomodulin and Teribone™ for osteoporosis,
in achieving our “For Tomorrow 2015” targets.
advanced development of cell processing technology,
For the further development of our world-leading
and growth in the area of critical care with ZOLL as a
businesses, we will advance the strategic expansion
core operating company.
of AN operations, and study further capacity
increases for S-SBR overseas. We are also studying
additional expansions of capacity for Hipore™ to
maintain our world-leading share in mobile
Expansion of Health Care Operations
through Acquisition of ZOLL
applications and establish leadership in the growing
We are focusing on three areas for growth in the field
market for automotive applications. For the creation
of health care by creating new value for society:
AN capacity expansion plan
S-SBR capacity expansion plan
(thousand tons/year)
2,000
(thousand tons/year)
6,000
(thousand tons/year)
400
1,500
1,000
500
0
FY
245 kt
in Korea
200 kt in
Thailand
10
11
12
Market share
in Asia
(Asahi Kasei estimate)
25%
Asahi Kasei production capacity, left scale
Global demand forecast, right scale
200 kt
in Mideast
4,500
300
50 kt Phase 1
Singapore
plant
50 kt Phase 2
Singapore
plant
3,000
200
1,500
100
0
0
FY
10
13
Share of
production
capacity
(Asahi Kasei estimate)
18%
15
40%
Asahi Kasei production capacity, left scale
Global demand forecast, right scale
(thousand tons/year)
1,200
Additional
capacity
(overseas)
900
600
300
0
20
15
26%
Asahi Kasei Annual Report 2012
9
critical care, medical IT, and cell culturing. Our
particular interest in the area of critical care stems
from the close coherence this area has with our
Group Mission, the opportunity for synergies with our
other health care operations, and the high market
growth potential in this area worldwide.
ZOLL enjoys an outstanding reputation and
strong brand value in the US, whose medical device
market is highly influential around the world, and it
has a wealth of experience in dealing effectively with
medical regulations and health insurance systems, as
well as a strong track record of successfully
developing innovative new products. ZOLL’s own
future growth plans, moreover, corresponded
flawlessly with our vision for business in this area, and
so we moved to acquire the company. The
acquisition was completed in April 2012, with ZOLL
Fiscal 2012 Outlook
becoming a wholly owned subsidiary of Asahi Kasei
The operating environment for the Asahi Kasei Group
and the newest core operating company in the Asahi
in fiscal 2012 is expected to remain challenging due
Kasei Group. Together, we are now accelerating the
to ongoing effects of the European economic crisis,
expansion of ZOLL’s high-growth products, both in
the persistent strength of the yen, and slower
the US and around the world. The inclusion of ZOLL’s
economic growth in emerging countries. Although our
critical care business will enable us to scale up our
global operations will be vulnerable to such factors,
health care sector to be a major pillar of our operating
we still expect that our overall performance this fiscal
portfolio, on par with Chemicals and Homes.
year will improve from that of the previous year.
Three fields of focus for creation of new value for society
Basis of established businesses
Fields of focus
Chemicals &
Fibers
Homes &
Construction
Materials
Electronics
Health Care
Environment &
Energy
Production process
technology, materials/
processing technology,
membranes/water
treatment
Insulation, highly
durable construction
materials
Sensors, energy-
conserving devices,
battery materials
Combined-unit
projects
Environment &
Energy
for Tomorrow
Residential
Living
Production process
technology, materials/
processing technology
Unit homes,
multidwelling homes,
peripheral businesses
Sensors, energy-
conserving devices,
battery materials
Home health care
devices & systems
Residential Living
for Tomorrow
Health Care
Production process
technology, materials/
processing technology,
medical applications
Rental homes for
the elderly
Medical equipment
applications
Pharmaceuticals,
medical-related
devices & systems
Health Care
for Tomorrow
Asahi Kasei Annual Report 2012
10
A Message from the President
to soften the impact of rising R&D expenses. For the
Critical Care segment, however, we are forecasting
an operating loss due to amortization of goodwill.
For overall performance in fiscal 2012, we are
forecasting increases from the previous year in sales,
operating income, ordinary income, and net income.
Return to Shareholders
The annual dividend for fiscal 2011 was raised by ¥3
per share from the previous year to ¥14 per share.
We aim to maintain this dividend for fiscal 2012
reflecting forecasted consolidated financial results.
Our basic policy is to strive to continuously
increase dividends through earnings growth while
maintaining an appropriate cash reserve based on
In Chemicals & Fibers, we are forecasting a
recovery in sales of chemicals and derivative
consolidated income.
products, especially overseas, despite high feedstock
Our cash reserve will be used as a source of
costs and deteriorating terms of trade. Increased
funds required in order to achieve future earnings
sales of Bemberg™ cupro fiber, spunbond
growth by expanding operations, both through
nonwovens, and Leona™ nylon 66 filament are also
investments in established businesses and through
anticipated.
strategic investments and new business development
In Homes & Construction Materials, increasing
expenditures in fields related to the environment and
deliveries of order-built homes are expected to
continue, along with increased sales of Hebel™
autoclaved aerated concrete (AAC), foundation
systems, and thermal insulation products.
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
In Electronics, we are forecasting increased
standard for payout ratio of 30%.
shipments of electronic devices, especially LSIs for
smartphones and other portable devices. Among
electronic materials, we are forecasting a recovery in
demand most notably for Hipore™ lithium-ion battery
separator.
Within the Health Care business sector, we are
adding a new Critical Care operating segment to
report results of ZOLL. We are forecasting higher
operating income for this sector overall based on
growing sales of Teribone™, Recomodulin™, and
APS™ polysulfone-membrane artificial kidneys.
Dividends per Share, Payout Ratio
(¥)
15
12
9
6
3
0
13
295.0
10
10
11
14
(plan)
14
26.0
55.3
35.1
25.5
29.4
(forecast)
(%)
300
120
90
60
30
0
FY
07
08
09
10
11
12
Favorable performance in these products is expected
Dividends per share, left scale
Payout ratio, right scale
Creation of New Value for Society
11
Asahi Kasei Annual Report 2012
Under our “For Tomorrow 2015” strategic management initiative, we have launched three new
projects: “Environment & Energy for Tomorrow,” “Residential Living for Tomorrow,” and “Health
Care for Tomorrow.” These “For Tomorrow” projects aim to create new system-based,
combined-unit businesses in each field by making the most of the Asahi Kasei Group’s diverse
competencies.
Environment & Energy
for Tomorrow
Leveraging diverse technology to create a future in
harmony with the natural environment
Masafumi Nakao
Director
Lead Executive Officer
Asahi Kasei
Utilizing the technology of the Asahi Kasei Group, we are advancing the
development of innovative materials, devices, and systems for application at each
stage from power generation to storage and consumption—including cutting-edge
battery materials, lithium ion capacitor modules and systems, next-generation
energy-saving devices, and LED materials.
1
Lithium ion capacitors
Ultraviolet light emitting diodes
In October 2011, we established a joint venture with FDK Corp.
In December 2011, we acquired full ownership of Crystal IS, Inc.
to accelerate the development of business related to the lithium
(CIS), a US-based venture focused on the development of ultraviolet
ion capacitor (LIC), a next-generation energy storage device.
light emitting diodes (UV LEDs) using high-quality aluminum nitride
LICs are capable of rapid charging and discharging at high
(AlN) substrates. With shorter wavelength and higher energy than
current, and feature high capacity, long life, and outstanding
visible light, UV light can stimulate chemical reactions and provide a
safety. Demand for LICs is anticipated to grow rapidly in the
bactericidal effect. UV disinfection and sterilization are used for
future, most notably in load leveling for renewable energy and in
water treatment, medical devices, and many other applications,
power regeneration for construction equipment and electric
generally with a mercury-vapor light source. Featuring lower power
vehicles. By combining FDK’s technology for integrated
consumption, more compact size, and longer service life than
manufacture of cells and modules together with the Asahi Kasei
mercury-vapor lamps, UV LEDs are expected to facilitate the
Group’s basic cell technology, the joint venture will accelerate
development of portable disinfection equipment while enabling a
product commercialization as a leader in the LIC market.
wide range of new applications. By merging the technology of CIS
Examples of LIC application
Load leveling
With rapid charge and discharge,
LICs enable load leveling for
intermittent renewable energy
sources such as
solar and wind.
LIC
Power regeneration
LICs are ideal for electric vehicles
with regenerative braking systems
to recover energy and provide
power at start-up.
Power assistance
When a large amount of
electricity is needed
instantaneously, such as when
a photocopier starts up, the LIC
provides additional power.
Backup power
At hospitals or other facilities
where stable power supply is
indispensible, LICs
compensate for voltage sags
due to lightning, etc.
with the Asahi Kasei Group’s established technology for
semiconductor thin films and devices, we will quickly build a new
business for UV LEDs based on AlN substrates in this highly
promising market.
UV LEDs and aluminum nitride substrate
2
Asahi Kasei Annual Report 2012
12
Creation of New Value for Society
Residential Living
for Tomorrow
Providing comfortable living to more
customers, more quickly
Masahito Hirai
Executive Officer
Asahi Kasei
President
Asahi Kasei Homes
In addition to selling homes in the mature urban market, we also provide innovative
lifestyle proposals that add new value for society by emphasizing such elements as
healthy and comfortable living environments, interpersonal bonds, energy and
resource conservation, and maximum utilization of land value.
“HH2015” demonstration house
In December 2011, we completed the
construction of a demonstration house
Seven zones in HH2015
called “HH2015” in Fuji, Shizuoka, Japan,
Low-carbon zone
which showcases the latest technology to
meet the emerging changes in society
Stationary bike-type
power generator, etc.
Natural energy zone
Bifacial solar panels, etc.
through synergy among various
operations within the Asahi Kasei Group
as well as with outside entities. This
provides a venue to test how new
technology in the fields of environment &
energy and health care, such as solar
power generation systems and home
dialysis devices, can be applied in the
residential setting, and allows us to
evaluate the practicality and commercial
prospects of various product designs and
functions.
R
3F
2F
Plant-growing zone
Kitchen with hydroponic culture
system, etc.
1F
Shared-house zone
Communication board, etc.
“HH2015” demonstration house
Home health care zone
Home dialysis, etc.
Energy-saving, low-carbon,
exterior zone
Transpiration louver, etc.
Pet dwelling zone
Pet monitoring system, etc.
2
Yasuyuki Yoshida
Director
Primary Executive Officer
Asahi Kasei
Health Care for Tomorrow
Providing unique products and technologies for a lively
society of health and longevity
Our main aim is 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. While utilizing the technology and know-how of the Asahi
Kasei Group, we proactively collaborate with outside organizations, both in industry
and academia, bringing the disciplines of medicine and engineering together to 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.”
Asahi Kasei Annual Report 2012
13
3
Cell therapy and regenerative medicine
In September 2011 we began joint R&D for cell processing
use its technology, and enjoys Japan’s leading track record of cases
equipment for cancer treatment with tella, Inc., a leader in the field
treated. The joint R&D effort is focused on enabling the culture of
of dendritic cell (DC) vaccine therapy*. Currently, most of the
cells with higher, more stable quality in a shorter time and at
process of culturing cells from patients and donors is performed
reduced cost, by applying the experience and know-how in
manually by cell culture technicians, making it difficult to maintain
membrane and bioprocessing technology of Asahi Kasei and the
efficient culturing procedures and achieve consistent quality of the
cutting-edge technology of tella.
cultured cells. Securing a stable, efficient supply of high-quality cells
is therefore a key concern in this field. DC vaccine therapy, a
promising field of cell therapy, targets and attacks only cancer cells
without harming normal cells, with little concern of side effects. As a
pioneer in this field, tella has contracted many medical institutions to
* Dendritic cell (DC) vaccine therapy is a newly emerging and potent form
of immunotherapy for the treatment of cancer. A cancer patient’s DCs are
cultured in vitro in large numbers, and are conditioned to recognize spe-
cific cancer antigens. After being returned to the patient’s body, these DCs
transmit the antigen characteristics to lymphocytes, which then specifically
target and attack cancer cells based on their antigens.
Acquisition of ZOLL
In April 2012, Asahi Kasei acquired ZOLL Medical Corporation, a
major US manufacturer of critical care devices, for approximately
US$2.21 billion. This acquisition provides an entry into the field
of critical care, a major focus of our “Health Care for Tomorrow”
project. ZOLL has a broad lineup of innovative products based
on its world-leading core technology of resuscitation, including a
new type of defibrillator for patients at high risk of sudden
cardiac arrest. The company enjoys an outstanding reputation
and strong brand value in the US, whose medical device market
ZOLL headquarters in Massachusetts, US
is highly influential around the world, and has a strong business
platform in R&D, clinical development, dealing with medical
regulations, manufacturing, and quality control. Together with
ZOLL we are accelerating the expansion of operations in critical
care. Combined with growth in our existing health care
operations, this will enable our overall health care business
sector to scale-up as a major pillar of our operating portfolio.
The ZOLL AED Plus™ automated
external defibrillator (AED), sold in Japan
by Asahi Kasei since August 2011.
Asahi Kasei Annual Report 2012
14
Creation of New Value for Society
Acquisition of
ZOLL Medical Corporation
Profile of ZOLL
Growth strategy
ZOLL is a major US manufacturer of critical care devices and
The initial focus is to further expand US sales of ZOLL’s growing
systems. Its major strength is in defibrillators, with a rich product
products such as defibrillators for patients at risk of sudden
lineup that includes AEDs (automatic external defibrillators) for
cardiac arrest and temperature management systems. We will
public use as well as number of models for medical
also further develop marketing channels in Europe and Asia to
professionals. ZOLL is the leading US supplier of defibrillators
enable the expansion of ZOLL’s operations in these regions, and
used by hospitals and emergency medical services (EMS). With
begin to study ways to gain synergy between ZOLL and our
these and a wide range of other products for critical care, the
existing health care businesses. Through such strategic
company is well positioned to maintain its strong pace of
advancements, we will together strengthen our presence in the
growth.
global critical care market.
Company name
ZOLL Medical Corporation
Establishment
1980
ZOLL consolidated net sales trend
Head office
Chelmsford, MA, USA
(US$ million)
Main business
Manufacture and sale of defibrillators, CPR devices,
temperature management systems, and data
management solutions
Operation sites
Chelmsford, MA; Pittsburgh, PA; Sunnyvale, CA;
Broomfield, CO; and some 20 other sites in Europe
and Asia
CEO
Richard A. Packer
Employees
1,908 (as of October 2, 2011)
600
500
400
300
200
100
0
FY
CAGR 16.0%
(FY2001−2011)
524
444
398
385
310
256
212
218
185
150
119
01
02
03
04
05
06
07
08
09
10
11
Note: Fiscal year ending in September (beginning in October of the previous
year) until 2011, fiscal year beginning in April (ending in March of the fol-
lowing year) from 2012.
Background of the acquisition by Asahi Kasei
Product portfolio based on “Chain of Survival”*
Our relationship begun with a business alliance under which
Asahi Kasei began the exclusive sale in Japan of ZOLL’s latest
AED, the ZOLL AED Plus™, in August 2011. Subsequently, the
management of the two companies deepened their interaction,
and a merger agreement was signed in March 2012. We
completed a TOB in April 2012, and ZOLL became a wholly
owned subsidiary of Asahi Kasei.
Effect on Asahi Kasei’s financial performance
Due to depreciation and amortization, we expect that it will take
two to three years for the Critical Care segment to contribute to
consolidated operating income. Anticipating synergy between
ZOLL and our existing health care operations, we are scaling up
our health care business sector to reach sales of ¥500 billion in
fiscal 2020.
* A guideline for the essential life-saving process in case of cardiac arrest as
set forth by the American Heart Association (AHA), including procedures of
reporting to EMS, CPR, defibrillation, and transfer to EMS.
EARLY
INTERVENTION
ACCESS
CPR
DEFIBRILLATION
ACLS
POST RESUS
CARE
ZOLL products
Defibrillators
for patients
at risk of
sudden
cardiac arrest
Data man-
agement
suite for fire
and EMS
Non-invasive
cardiac sup-
port pump
Automated
external defi-
brillators
Defibrillators
for hospitals
and EMS
Temperature
management
systems
Asahi Kasei Annual Report 2012
At a Glance
15
By continuously transforming its business portfolio in anticipation of the changing needs of the times, the
Asahi Kasei Group has developed and grown as one of Japan’s leading chemical manufacturers, with a
selectively diversified array of businesses. Under our medium-term strategic management initiative “For
Tomorrow 2015,” we are expanding our world-leading businesses as well as concentrating resources on
fields related to the environment & energy, residential living, and health care, to create new businesses
which meet emerging social needs.
History of business portfolio transformation
(sales composition)
FY 1950
Net sales
¥13.5 billion
Chemicals
Fibers
•Start of synthetic
rubber business
•Expansion into
synthetic fiber business
FY 1965
Chemicals
Net sales
¥112.9 billion
Fibers
•Advancement into
construction materials
and housing businesses
•Advancement into
petrochemical business
•Start of medical device business
FY 1980
Homes &
Construction
Materials
Fibers
Net sales
Chemicals
¥800.1 billion
•Expansion of housing business
•Expansion into
pharmaceutical business
•Expansion into
LSI business
FY 1995
Electronics
Health Care
Chemicals
Net sales
¥1,210.2 billion
Homes &
Construction
Materials
Fibers
Others
1.3%
Net sales
¥18.6 billion
Operating income ¥3.0 billion
Construction Materials
2.9%
¥46.1 billion
Net sales
Operating income ¥1.8 billion
Electronics
9.3%
Net sales
¥146.1 billion
Operating income ¥6.4 billion
Fibers
7.0%
Net sales
¥110.8 billion
Operating income ¥3.1 billion
Chemicals
43.2%
Net sales
¥680.1 billion
Operating income ¥44.5 billion
Net sales
¥1,573.2 billion
Health Care
7.6%
Net sales
¥119.5 billion
Operating income ¥8.8 billion
Homes
28.7%
Net sales
¥452.0 billion
Operating income ¥46.3 billion
FY 2011
Asahi Kasei Annual Report 2012
16
At a Glance
Operating segments
Core operating companies, main businesses/products
Major consolidated subsidiaries
Chemicals
Asahi Kasei Chemicals Corp.
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™ modified 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 film, Ziploc™ storage bags, plastic film, sheet, and foam.
Asahi Kasei Homes Corp.
Order-built homes operations (unit homes and apartment buildings): Hebel
Haus™ unit homes, Hebel Maison™ apartments.
Real estate–related operations: Management of Hebel Maison™ rental
units, Hebel Town™ housing developments, Atlas™ condominiums,
brokerage of used Hebel Haus™ homes
Remodeling: Exterior wall refurbishing, reroofing, redesign, interior
renovation, solar panel installation.
Financial and other services: Mortgage financing, etc.
• Tong Suh Petrochemical Corp., Ltd.
• Asahi Kasei Home Products Corp.
• Asahi Kasei Pax Corp.
• Asahi Kasei Plastics Singapore Pte. Ltd.
• Asahikasei Plastics (America) Inc.
• Japan Elastomer Co., Ltd.
• Asahi Kasei Synthetic Rubber Singapore
Pte. Ltd.
• PS Japan Corp.
• Asahi Kasei Performance Chemicals Corp.
• Asahi Kasei Microza (Hangzhou) Co., Ltd.
• Asahi Kasei Fudousan Residence Corp.
• Asahi Kasei Reform Co., Ltd.
• Asahi Kasei Mortgage Corp.
• Asahi Kasei Jyuko Co., Ltd.
• Asahi Kasei Home Construction Corp.
Asahi Kasei Pharma Corp.
Asahi Kasei Medical Co., Ltd.
Pharmaceutical-related: Teribone™, Recomodulin™, Elcitonin™, Flivas™,
Toledomin™, Bredinin™, and other pharmaceuticals, Lucica™ GA-L
glycated albumin assay kit, L-series enriched liquid diets.
Medical device–related: APS™ polysulfone-membrane artificial kidneys
(dialyzers), therapeutic apheresis devices, Planova™ virus removal filters,
Sepacell™ leukocyte reduction filters.
• Asahi Kasei Pharma America Corp.
• Asahi Kasei Medical (Hangzhou) Co., Ltd.
• Asahi Kasei Bioprocess, Inc.
• Asahi Kasei Medical Europe GmbH
Homes
Health Care
Fibers
Asahi Kasei Fibers Corp.
Roica™ elastic polyurethane filament, Bemberg™ regenerated cellulose
fiber, Eltas™ spunbond, Lamous™ artificial suede, and other nonwovens,
Leona™ nylon 66 filament.
• Hangzhou Asahikasei Spandex Co., Ltd.
• Hangzhou Asahikasei Textiles Co., Ltd.
• Thai Asahi Kasei Spandex Co., Ltd.
• Asahi Kasei Spandex Europe GmbH
• Asahi Kasei Spunbond (Thailand) 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/PBO precursor, Sunfort™ dry film photoresist,
glass fabric for printed wiring boards.
• AKM Semiconductor, Inc.
• Asahi Kasei Electronics Materials
(Suzhou) Co., Ltd.
• Asahi Kasei Wah Lee Hi-Tech Corp.
• Asahi-Schwebel (Taiwan) Co., Ltd.
• Asahi Photoproducts (Europe) SA/NV
Construction Materials
Asahi Kasei Construction Materials Corp.
Hebel™ and Hebel Powerboard™ autoclaved aerated concrete (AAC)
panels, Neoma™ and Jupii™ phenolic foam insulation panels, Eazet™, ATT
Column™, and other piling systems, BasePack™ column base attachment
systems.
• Asahi Kasei Extech Corp.
• Asahi Kasei Foundation Systems Corp.
Others
Plant engineering, environmental engineering, research and analysis,
personnel staffing and placement.
• Asahi Research Center Co., Ltd.
• Asahi Kasei Engineering Corp.
• Asahi Kasei Amidas Co., Ltd.
Fiscal 2011 composition of sales, operating income*
Net sales (¥ billion)
Operating income (¥ billion), operating margin (%)
Asahi Kasei Annual Report 2012
17
Asahi Kasei Chemicals Corp.
• Tong Suh Petrochemical Corp., Ltd.
• Asahi Kasei Home Products Corp.
• Asahi Kasei Pax Corp.
• Asahi Kasei Plastics Singapore Pte. Ltd.
• Asahikasei Plastics (America) Inc.
• Japan Elastomer Co., Ltd.
• Asahi Kasei Synthetic Rubber Singapore
Pte. Ltd.
• PS Japan Corp.
• Asahi Kasei Performance Chemicals Corp.
• Asahi Kasei Microza (Hangzhou) Co., Ltd.
Asahi Kasei Homes Corp.
• Asahi Kasei Fudousan Residence Corp.
Order-built homes operations (unit homes and apartment buildings): Hebel
• Asahi Kasei Reform Co., Ltd.
Haus™ unit homes, Hebel Maison™ apartments.
Real estate–related operations: Management of Hebel Maison™ rental
units, Hebel Town™ housing developments, Atlas™ condominiums,
brokerage of used Hebel Haus™ homes
Remodeling: Exterior wall refurbishing, reroofing, redesign, interior
renovation, solar panel installation.
Financial and other services: Mortgage financing, etc.
• Asahi Kasei Mortgage Corp.
• Asahi Kasei Jyuko Co., Ltd.
• Asahi Kasei Home Construction Corp.
Asahi Kasei Pharma Corp.
Asahi Kasei Medical Co., Ltd.
Pharmaceutical-related: Teribone™, Recomodulin™, Elcitonin™, Flivas™,
Toledomin™, Bredinin™, and other pharmaceuticals, Lucica™ GA-L
glycated albumin assay kit, L-series enriched liquid diets.
Medical device–related: APS™ polysulfone-membrane artificial kidneys
(dialyzers), therapeutic apheresis devices, Planova™ virus removal filters,
Sepacell™ leukocyte reduction filters.
• Asahi Kasei Pharma America Corp.
• Asahi Kasei Medical (Hangzhou) Co., Ltd.
• Asahi Kasei Bioprocess, Inc.
• Asahi Kasei Medical Europe GmbH
Asahi Kasei Fibers Corp.
Roica™ elastic polyurethane filament, Bemberg™ regenerated cellulose
fiber, Eltas™ spunbond, Lamous™ artificial suede, and other nonwovens,
Leona™ nylon 66 filament.
• Hangzhou Asahikasei Spandex Co., Ltd.
• Hangzhou Asahikasei Textiles Co., Ltd.
• Thai Asahi Kasei Spandex Co., Ltd.
• Asahi Kasei Spandex Europe GmbH
• Asahi Kasei Spunbond (Thailand) Co., Ltd.
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/PBO precursor, Sunfort™ dry film photoresist,
glass fabric for printed wiring boards.
• AKM Semiconductor, Inc.
• Asahi Kasei Electronics Materials
(Suzhou) Co., Ltd.
• Asahi Kasei Wah Lee Hi-Tech Corp.
• Asahi-Schwebel (Taiwan) Co., Ltd.
• Asahi Photoproducts (Europe) SA/NV
Asahi Kasei Construction Materials Corp.
Hebel™ and Hebel Powerboard™ autoclaved aerated concrete (AAC)
panels, Neoma™ and Jupii™ phenolic foam insulation panels, Eazet™, ATT
Column™, and other piling systems, BasePack™ column base attachment
systems.
• Asahi Kasei Extech Corp.
• Asahi Kasei Foundation Systems Corp.
Plant engineering, environmental engineering, research and analysis,
personnel staffing and placement.
• Asahi Research Center Co., Ltd.
• Asahi Kasei Engineering Corp.
• Asahi Kasei Amidas Co., Ltd.
Net sales 43.2%
Operating
income 39.0%
Net sales
28.7%
Operating
income
40.7%
Net sales
7.6%
Operating
income
7.7%
Net sales
7.0%
Operating
income
2.8%
Net sales
9.3%
Operating
income
5.6%
Net sales
2.9%
Operating
income
1.6%
Net sales
1.3%
Operating
income
2.6%
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
30
20
10
0
FY
* Percentages before corporate expenses and eliminations.
699.8
680.1
580.7
09
10
11
389.7
409.2
452.0
09
10
11
113.2
116.4
119.5
09
10
11
101.2
108.8
110.8
09
10
11
142.7
158.3
146.1
09
10
11
47.0
47.4
46.1
80
60
40
20
0
FY
50
40
30
20
10
0
FY
10.0
7.5
5.0
2.5
0.0
FY
6
4
2
0
(2)
(4)
FY
15
12
9
6
3
0
FY
3
2
1
0
09
10
11
FY
64.4
44.5
9.2
20.0
15.0
10.0
6.5
5.0
0.0
26.1
4.5
09
10
11
Operating income, left scale
Operating margin, right scale
46.3
10.3
36.5
8.9
25.3
6.5
09
10
11
Operating income, left scale
Operating margin, right scale
8.8
7.4
7.0
6.1
4.0
3.5
09
10
11
Operating income, left scale
Operating margin, right scale
4.2
3.9
3.1
2.8
(2.7)
(2.8)
15.0
12.0
9.0
6.0
3.0
0.0
10.0
7.5
5.0
2.5
0.0
6.0
4.0
2.0
0.0
(2.0)
(4.0)
09
10
Operating income (loss), left scale
11
Operating margin, right scale
14.3
9.0
5.1
7.2
4.4
6.4
09
10
11
Operating income, left scale
Operating margin, right scale
4.4
2.1
4.0
1.8
10
11
2.6
1.2
09
Operating income, left scale
Operating margin, right scale
17.6
16.0
18.6
4
3
2
1
0
10.3
1.8
09
10
11
FY
09
16.0
3.0
10.7
1.7
10
11
Operating income, left scale
Operating margin, right scale
10.0
8.0
6.0
4.0
2.0
0.0
6.0
4.0
2.0
0.0
20.0
15.0
10.0
5.0
0.0
Asahi Kasei Annual Report 2012
18
Operating Segments
We are pursuing global growth
opportunities in fields that make
the most of our technological
advantage and optimizing our
operational configuration 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.
Yuji Kobayashi
President, Asahi Kasei Chemicals
Chemicals
Net sales
¥680.1 billion
Operating income
¥44.5 billion
vs. fiscal 2010
–2.8%
vs. fiscal 2010
–30.9%
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
2009
¥580.7
42.0%
26.1
4.5%
14.0
2.4%
27.6
32.4
2010
¥699.8
43.5%
64.4
9.2%
15.5
2.2%
23.2
31.9
(¥ billion)
2011
2012 forecast
¥680.1
41.3%
44.5
6.5%
16.2
2.4%
39.1
29.6
¥782.0
—
46.0
5.9%
—
—
50.0
—
“For Tomorrow 2015” strategies
Through flexible investment of management resources, we are building a business
portfolio that will meet society’s future needs.
1. Aiming for leading position in globally competitive businesses
• Acrylonitrile (AN): Constructing cost-competitive plants to meet global demand growth,
aiming for world No. 1 position.
• Solution-polymerized styrene-butadiene rubber (S-SBR): Proactive capacity expansion
to meet strong demand growth in the fuel-efficient tire market.
2. Business expansion in growing emerging markets, particularly in Asia
• Performance plastics: Expanding established position in Asian markets through
enhanced application development capability and global production infrastructure.
• Water treatment/membrane business: Further reinforcing membrane business,
expanding operations in China.
• Duranate™ HDI-based polyisocyanate: Expanding business in the rapidly growing
Chinese market.
• Health care materials: Major expansion of Ceolus™ microcrystalline cellulose in
emerging markets, reinforcement of acetonitrile supply infrastructure.
3. Creation of new business and business fields as next strategic pillars
• Establishment and expansion of new businesses in promising markets.
4. Optimization of petrochemical operations in Japan for stable profitability
Asahi Kasei Annual Report 2012
19
19
Fiscal 2011 Review
Major Investments
Sales decreased by ¥19.7 billion (2.8%) to
¥680.1 billion, and operating income
decreased by ¥19.9 billion (30.9%) to ¥44.5
billion.
Operating income from chemicals and
derivative products decreased as market
demand in China and other Asian countries
declined in the second half of the fiscal year,
and terms of trade for monomer products
such as acrylonitrile and adipic acid
deteriorated significantly due to high prices for
naphtha and other feedstocks and the strong
yen. Operating income from polymer products
increased as domestic Japanese demand in
automotive applications recovered in the
second half of the fiscal year after a downturn
following the Great East Japan Earthquake,
and also synthetic rubber for tires performed
well. Operating income from specialty
products increased as home-use products
such as Saran Wrap™ performed well, as did
functional additives.
Fiscal 2012 Outlook
Shipment volumes are expected to increase in
fiscal 2012, especially for chemicals and
derivative products, enabling increased sales
and operating income despite deteriorating
margins due to higher feedstock prices.
Highlights
Decision to construct second
plant in Singapore for S-SBR for
fuel efficient tires
In December 2011, Asahi Kasei Chemicals
finalized a decision to construct its second
S-SBR plant with annual production
capacity of 50,000 tons in Singapore. With
tightening environmental regulations and
heightening environmental awareness,
Groundbreaking for our first S-SBR plant in
Singapore
Under construction in fiscal 2011
• New power generation facility for use with
wood biomass fuel in Nobeoka,
Miyazaki, Japan
• New AN and MMA plants in Thailand
• Capacity expansion for AN in Korea
• New S-SBR plant (1st phase) in Singapore
• New integrated R&D center in Kawasaki,
Kanagawa, Japan
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 verification of two new
process technologies to enable feedstock
diversification: the “E-flex” process for highly
efficient production of propylene using C2
fractions or bioethanol as feedstock, and the
“BB-flex” process to produce butadiene from
butene. Studies on their commercialization are
in progress. We have also developed new
process technology to produce diphenyl
carbonate (DPC) using CO2 as feedstock, and
are now studying plans for commercialization.
In polymer products, we are advancing
the development of a number of innovative
products including polyamide with ultra-high
demand for high-performance tires which
provide improved fuel efficiency is growing
throughout the world. Demand for S-SBR
which enables the production of tires that
provide greater fuel efficiency while main-
taining safety performance is therefore
growing briskly. With this second plant in
addition to the plant currently under con-
struction in Singapore, Asahi Kasei
Chemicals will enhance its ability to pro-
vide a stable supply of S-SBR as strong
market growth continues.
Decision to construct a new
acetonitrile plant in Korea
In January 2012, Asahi Kasei Chemicals
finalized a decision to construct a new
plant in Korea to produce acetonitrile—a
byproduct of acrylonitrile (AN) used as a
solvent in the manufacture of
pharmaceuticals. The production of crude
acetonitrile byproduct is expected to
increase in Korea once a new AN plant
currently under construction begins oper-
heat resistance, high rigidity, and excellent
moldability using novel molecular design;
synthetic rubber for next-generation eco
efficient tires; modified polyphenylene ether
(mPPE) expandable beads with high flame
retardance and high heat resistance; and a
new resin having optically isotropic properties
in all directions. Computer-aided engineering
(CAE) technology we developed in-house has
become an essential element of our R&D
capability, and is playing an increasingly
significant role in new market development
and joint development with customers.
Projects in specialty products include the
development of LED encapsulants based on
our silicone modification technology, and the
development of low-cost, safe, and low-waste
processes to manufacture active
pharmaceutical ingredients (APIs) through a
combination of our organic synthesis
technology and process technology. In the
field of membrane separation we have
developed a phosphorus adsorbent with a
porous structure to enable the world’s fastest
selective, high-level removal and high-purity
recovery of phosphorus from treated water,
and trials are in progress at large-scale water
treatment facilities. 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 entities.
ating in 2013. The new acetonitrile plant,
with a production capacity of 11,000 tons
per year, will utilize the additional byprod-
uct in Korea, serving as Asahi Kasei
Chemicals’ second production base in
addition to a plant in Kawasaki,
Kanagawa, Japan with capacity of 14,000
tons per year. With these two facilities,
Asahi Kasei Chemicals will be in a stron-
ger position to provide a reliable supply of
acetonitrile to meet growing demand in
the pharmaceutical industry, especially in
India and China.
AN plant in Korea
Asahi Kasei Annual Report 2012
20
Operating Segments
Homes
Net sales
¥452.0 billion
Operating income
¥46.3 billion
vs. fiscal 2010
+10.4%
vs. fiscal 2010
+27.0%
The order-built homes business
will be expanded with dominant
competitiveness as the
differentiated market leader in the
field 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
Financial Highlights
(¥ billion)
Fiscal year beginning April 1
2009
2010
2011
2012 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
¥389.7
¥409.2
¥452.0
¥482.0
—
25.3
6.5%
2.1
0.5%
6.0
4.3
—
36.5
8.9%
2.0
0.5%
6.3
4.3
—
46.3
—
50.0
10.3%
10.4%
2.1
0.5%
6.3
4.8
—
—
5.0
—
“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 to provide comfortable living to as many
customers as possible, as quickly as possible, based on our commitment to
providing fulfillment in living in a mature urban setting.
1. Houses, apartments
• Establishment of No. 1 position as a differentiated market leader with new residential
lifestyle proposals that meet emerging social needs.
• Promotion of community-specific proposals to increase market share, and reinforcing
marketing capabilities in selected urban areas of Japan.
• Expansion of multi-dwelling homes business.
2. Real estate
• Reinforcing condominium business based on obtaining accord among owners
regarding exchange of equivalent value.
• Maximizing utilization of land value through brokerage-related operations.
• Heightening capability to secure tenants.
3. Expansion of housing-related operations
• Expansion of remodeling and renovation work.
• Enhancement of the energy-conservation product lineup.
Asahi Kasei Annual Report 2012
21
21
Fiscal 2011 Review
Sales increased by ¥42.7 billion (10.4%) to
¥452.0 billion, and operating income
increased by ¥9.9 billion (27.0%) to ¥46.3
billion. Customer orders for order-built homes
increased by ¥17.4 billion to ¥371.9 billion.
Operating income from order-built
homes increased as deliveries of both Hebel
Haus™ unit homes and Hebel Maison™
apartment buildings increased. Operating
income from pre-built homes remains
unchanged since last year. Operating
income from housing-related operations
increased as real-estate rental operations
performed well and remodeling operations
expanded steadily.
Fiscal 2012 Outlook
With increased deliveries of order-built
homes buoyed by a rise in orders, sales
and operating income are forecasted to
increase in fiscal 2012.
R&D
R&D is focused on enhancing core
technologies. Shelter technology brings
greater safety and security through
earthquake resistance, seismic damping,
base isolation, and fire 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.
Evaluation/simulation technology is being
enhanced to enable customers to more
intuitively appreciate the real-world effects of
variations and modifications, 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 efficiency and
environmental compatibility in homes
optimized for health and comfort.
Sales Trends
(Asahi Kasei Homes consolidated)
Orders Received
(¥ billion)
(¥ billion)
500
400
300
200
100
0
FY
409.9
72.7
29.9
386.2
64.7
24.5
297.1
307.3
409.2
79.3
27.8
302.1
389.7
75.3
32.1
282.3
482.0
100.0
27.0
452.0
88.7
23.7
339.6
355.0
07
08
09
10
11
12
Forecast
Order-built homes
Pre-built homes
Others
500
400
300
200
100
0
FY
354.5
371.9
392.0
306.1
291.1
306.9
07
08
09
10
11
12
Forecast
Highlights
Establishment of Asahi Kasei
Fudosan Residence Corp.
Asahi Kasei Real Estate, Ltd. was
renamed Asahi Kasei Fudosan Residence
Corp. in October 2011 with the transfer of
the housing development business from
Asahi Kasei Homes Corp. for integrated
operation of real estate–related
businesses. The new configuration will
enable the efficient provision of more
optimal solutions to a wide range of
customers’ needs related to urban
residence and asset management.
Launch of new homes featuring
the feel of nature
In April 2011, Asahi Kasei Homes
launched Hebel Haus™ Soranoma Plus,
a home featuring semi-outdoor space
integrated with a second-story living
room. This design facilitates maximum
utilization of sunlight and natural wind
while maintaining a high level of privacy
for residents. This was followed with the
November 2011 launch of Hebel Haus™
Sky Cottage, a home featuring a third-
floor patio that extends from a large
room on the top floor to form a large
open area suited to variety of activities
that facilitate family gatherings.
Hebel Haus™ Soranoma Plus
Hebel Haus™ Sky Cottage
Asahi Kasei Annual Report 2012
22
Operating Segments
In order to contribute to life and
living for people around the world,
we are focused on providing the
world with innovative new drugs
that address unmet medical needs,
as a specialized global
pharmaceutical company.
Toshio Asano (left)
President, Asahi Kasei Pharma
With the ideal of healthy and affluent
society that provides fair access to
health care of a high standard, we are
developing new medical enterprises
that enable the development of
innovative medical devices as well as
the improvement, creation, and
establishment of treatment
technologies by leveraging our vast
expertise and resources.
Yutaka Shibata (right)
President, Asahi Kasei Medical
Health Care
Net sales
¥119.5 billion
Operating income
¥8.8 billion
vs. fiscal 2010
+2.7%
vs. fiscal 2010
+25.0%
Financial Highlights
Fiscal year beginning April 1
Net sales
Overseas sales ratio
Operating income
Operating margin
R&D expenditure
2009
¥113.2
22.3%
4.0
3.5%
18.4
2010
¥116.4
22.9%
7.0
6.1%
16.5
R&D expenditure as % of net sales
16.3%
14.2%
14.6%
Capital expenditure
Depreciation and amortization
9.2
12.2
7.4
11.4
10.7
11.5
(¥ billion)
2011
2012 forecast
¥119.5
23.9%
8.8
7.4%
17.5
¥131.0
—
12.5
9.5%
—
—
11.0
—
“For Tomorrow 2015” strategies
Pharmaceutical-related
We are growing business with our new high-selling drugs as
major pillars of earnings, and focusing on the development
of novel drugs in the fields of orthopedics and urology for
worldwide markets.
1. Japanese operations
We will continue to increase earnings by advancing 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 field 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. In diagnostics,
we are working to expand use of the Lucica™ GA-L glycated
albumin assay kit, while advancing the development of
infectious disease diagnostic kits.
2. Overseas operations
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 obtain approval for Lucica™ GA-L
overseas.
Asahi Kasei Annual Report 2012
23
23
Fiscal 2011 Review
Sales increased by ¥3.1 billion (2.7%) to
¥119.5 billion, and operating income
increased by ¥1.8 billion (25.0%) to ¥8.8
billion.
Although operating expenses in
pharmaceuticals operations rose with an
increase in the number of medical
representatives and higher R&D expenses,
operating income increased with growing
sales of Recomodulin™ recombinant
thrombomodulin and the November 2011
launch of sales of Teribone™, a new
osteoporosis drug. In devices-related
operations, shipments of Planova™ virus
removal filters increased, but operating
income remains unchanged as the strong
yen impacted performance in each product
group.
membrane artificial kidneys in medical
devices. Some impact from rising expenses
for pharmaceuticals R&D is forecasted.
Major Investments
Completed in fiscal 2011
• Medical Material Laboratory, Nobeoka,
Miyazaki, Japan
R&D
In pharmaceuticals, we are focused on
contributing to “living in health and comfort”
by addressing unmet medical needs which
are increasing together with maturing
markets and the aging population,
particularly in the fields of orthopedics and
urology. 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 utilizing our comprehensive strength
to advance R&D to provide products,
technology, and services that extend the
potential of medical treatment as well as
heighten medical standards. We are further
advancing technological developments in
blood-related therapies (hemodialysis and
therapeutic apheresis), leukocyte reduction,
and virus removal, while also focusing on
next-generation fields of research including
regenerative medicine utilizing
autohemotherapy.
Fiscal 2012 Outlook
Pharmaceutical Product Pipeline (as of May 2012)
We are forecasting higher sales and
operating income for the Health Care
segment based on growing sales of
Teribone™ and Recomodulin™ in
pharmaceuticals, and APS™ polysulfone-
Medical device–related
Leveraging our technological strengths in membrane
separation and selective absorption, we are expanding our
dialysis-related business and developing new applications
that meet therapeutic needs as we reinforce our global
presence.
1. Blood purification
To meet forecasted growth in demand for artificial kidneys, we
are strengthening our hemodialysis business by developing
new variations of APS™ polysulfone membrane artificial
kidneys and making continuous investments for expansion. For
therapeutic apheresis devices that enable new possibilities for
the treatment of intractable diseases and for the prevention of
illnesses, we are enhancing our manufacturing process
technology and heightening competitiveness as we continue to
grow as the world leader in this field.
2. Blood transfusion
We will continue to meet expanding global needs for our world-
leading Sepacell™ leukocyte reduction filters by enhancing the
product lineup and reinforcing our capability.
3. Bioprocess products
As the manufacturer of Planova™, a hollow-fiber membrane
filter that is the world’s leading virus removal filter for enhancing
safety in the production of biotherapeutics, we will maintain the
stable supply of high-quality products to meet growing
demand.
Development
stage
Pending
approval
Code name,
form, generic
name
AK-120, oral,
famciclovir
AK-156,
injection,
zoledronic acid
AK-160,
injection
AT-877, oral,
fasudil
hydrochloride
hydrate
ART-123,
injection,
recombinant
thrombomodulin
alpha
Phase III
Phase II
Phase II
(overseas)
Classifications
Indication
Remarks
Antiviral
Herpes simplex
Bisphosphonate
Osteoporosis
Additional
indication
New efficacy,
new dose; once-
yearly
administration
Collagenase
clostridium
histolyticum
Rho-kinase
inhibitor
Dupuytren’s
contracture
New biologic
Pulmonary
arterial
hypertension
Additional
indication, new
dosage form
Recombinant
human
thrombomodulin
Sepsis with
disseminated
intravascular
coagulation
New biologic
AK106
Anti-
inflammatory
Rheumatoid
arthritis
New chemical
entity
Highlights
Launch of Teribone™ osteoporosis drug in Japan
In November 2011, Asahi Kasei Pharma launched the sale of a
56.5 μg subcutaneous injection formulation of Teribone™ (generic
name: teriparatide acetate) for the osteoporosis, which affects an
increasing number of people as the population ages. The drug
facilitates bone formation for
patients with just weekly admin-
istration. Since osteoporosis car-
ries an increased risk of vertebral
and femoral fracture, with a high
probability of resulting in con-
finement to bed, this drug is
expected to provide a valuable
contribution to dealing with an
important social issue.
Teribone™
Asahi Kasei Annual Report 2012
24
Operating Segments
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.”
Toshio Takanashi
President, Asahi Kasei Fibers
Net sales
¥110.8 billion
Operating income
¥3.1 billion
vs. fiscal 2010
+1.9%
vs. fiscal 2010
–25.2%
Financial Highlights
Fiscal year beginning April 1
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
2009
¥101.2
32.7%
(2.8)
(2.7)%
3.8
3.8%
4.6
7.7
2010
¥108.8
34.4%
4.2
3.9%
3.2
2.9%
3.7
7.0
(¥ billion)
2011
2012 forecast
¥110.8
31.9%
3.1
2.8%
2.8
2.6%
5.7
6.4
¥112.0
—
4.5
4.0%
—
—
11.0
—
“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 various collaborative projects for the creation of new
businesses.
1. Roica™ elastic polyurethane
• Further development and commercialization of new high-function yarns.
• Securing a presence in growing Asian markets and globally, with the plant in Thailand
as a key manufacturing base.
2. Nonwovens
• Spunbond: Earnings growth in Asia with polypropylene spunbond for hygiene materials
produced at new plant in Thailand, expansion of Precisé™ spunbond nonwovens.
• Bemliese™ cupro cellulosic nonwoven: Securing stable earnings in the IT field in Asia,
expansion in the medical and cosmetics fields.
• Lamous™ artificial suede: Steady expansion in Japanese, Europe, and US markets for
car seat applications, development of new applications in industrial fields.
• Eutec™ oil-water separation filter: Establishing niche market leadership in oil-water
separation, expansion in applications with microfiltration, as well as in the solid-liquid
and gas-liquid separation fields.
3. Bemberg™ regenerated cellulose
• Expansion in overseas markets for lining, particularly in Europe and China.
• Development and expansion of non-lining applications, including outerwear, innerwear,
and beddings in Europe and the US.
• Production processes innovation.
4. Leona™ nylon 66 filament
• Stable earnings in tire cord applications.
• Expansion in air-bag applications.
Asahi Kasei Annual Report 2012
2525
Bemberg™, spunbond, and Leona™
filament.
Major Investments
Under construction in fiscal 2011
• New spunbond plant in Thailand
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.”
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 based on our unique
technologies and manufacturing process
innovation are advancing for Roica™
polyurethane, Bemberg™ regenerated
Asahi Kasei Award for Fashion
Design Creativity in China
In March 2012, Asahi Kasei participated
in China International Fashion Week, a
major fashion event held in Beijing twice
a year, to recognize top Chinese fashion
designers with its “Asahi Kasei Award
for Fashion Design Creativity in China.”
Together with the award ceremony, a
fashion show by the prize- winning
designer is held to showcase apparel
made with Asahi Kasei’s top-quality
Bemberg™ cupro cellulosic fiber. The
prize has been awarded ten times since
its start in 2007, and it has now become
an influential recognition within the
Chinese fashion industry. Through this
award, Asahi Kasei will continue sup-
porting the development of the coun-
try’s fashion design talent while
heightening recognition of the Asahi
Kasei Group in China.
Fiscal 2011 Review
Sales increased by ¥2.1 billion (1.9%) to
¥110.8 billion, however operating income
decreased by ¥1.1 billion (25.2%) to ¥3.1
billion.
Although shipments of spunbond in
diaper applications increased, shipments of
Leona™ nylon 66 filament in airbag
applications increased, and Bemberg™
regenerated cellulose performed well,
operating income decreased as the strong
yen and high feedstock costs impacted
products throughout the segment.
Fiscal 2012 Outlook
We forecast increased sales and operating
income with growing shipments of
Highlights
New functional knit Spiel™ which
generates heat when stretched
In November 2011, Asahi Kasei Fibers
launched Spiel™, a new functional knit
that generates heat when stretched.
This material was created by leveraging
the company’s advanced knitting tech-
nology and high- performance Roica™
spandex yarn. The heat generation
function of this product will not only
meet heightening demand for comfort
and eco-efficiency in daily clothing, but
also have great potential to expand its
applications to various apparel catego-
ries such as sportswear. Asahi Kasei
Fibers will continue to strengthen the
Roica™ brand with additional develop-
ments of innovative yarns and fabrics
that respond to customer’s need.
（グラデーション）
Fashion show featuring top-quality Bemberg™ fabric
Asahi Kasei Annual Report 2012
26
Operating Segments
Making the most of our unique technology,
we are building our position as a leading sup-
plier of electronic components, which contin-
ues to develop and supply category-
leading products to the global market, and
expand business as an electronic device
manufacturer that customers throughout the
world can rely on.
Makoto Konosu (left)
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.”
Tetsuro Ota (right)
President, Asahi Kasei E-materials
Electronics
Net sales
¥146.1 billion
Operating income
¥6.4 billion
vs. fiscal 2010
–7.7%
vs. fiscal 2010
–55.0%
Financial Highlights
Fiscal year beginning April 1
Net sales
Overseas sales ratio
Operating income
Operating margin
R&D expenditure
2009
¥142.7
46.5%
7.2
5.1%
18.4
2010
¥158.3
50.3%
14.3
9.0%
18.4
R&D expenditure as % of net sales
12.9%
11.6%
13.1%
Capital expenditure
Depreciation and amortization
22.8
23.6
20.3
23.9
13.4
21.0
(¥ billion)
2011
2012 forecast
¥146.1
50.8%
6.4
4.4%
19.2
¥152.0
—
10.5
6.9%
—
—
20.0
—
“For Tomorrow 2015” strategies
Electronic devices
We are continuing 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 semiconductor technology and
compound semiconductor technology.
We are advancing business expansion through the development of
new electronic devices such as infrared sensors and current sensors
with the potential to establish market leadership in their respective
categories, as exemplified in our electronic compass which has a
dominant market share as an essential component of portable
devices. In each application we are developing new high-quality
products that keenly match customer’s needs, further building
relationships of mutual trust and reliance, in a wide range of fields
including infrastructure and automotive in addition to consumer
electronics.
Electronic materials
We are expanding business and enhancing supply capabilities
for our leading businesses such as semiconductor process
materials and circuit board materials, with a focus on high-
performance, green electronic materials that reduce
environmental burdens.
For Hipore™ LIB separator, by leveraging our superior technology and
marketing platform we have gained as the market leader in consumer
electronics applications, we will proactively expand production
capacity and develop new membranes that match individual customer
needs to establish a leading position in rapidly emerging automotive
applications. We will also continue expanding production capacity for
Sunfort™ dry film photoresist in China to meet growing demand, in
accordance with our focus on expanding business in growth markets
based on our technological advantage.
Asahi Kasei Annual Report 2012
2727
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 finer patterning in
both semiconductors and printed wiring
boards.
Fiscal 2011 Review
Major Investments
Sales decreased by ¥12.2 billion (7.7%) to
¥146.1 billion, and operating income
decreased by ¥7.8 billion (55.0%) to ¥6.4
billion.
Although sales of mixed-signal LSIs for
smartphones were firm, operating income in
electronic devices decreased as an effect of
a general deterioration in the operating
climate which resulted in sluggish growth in
shipment volumes, and by declining
product prices and the strong yen. Although
sales of Hipore™ Li-ion battery separator
increased, operating income in electronic
materials decreased with declining product
prices and high feedstock costs.
Fiscal 2012 Outlook
For electronic devices we are forecasting
increased shipments, especially of LSIs for
smartphones and other portable devices,
and a recovery in demand for electronic
materials, most notably Hipore™ LIB
separator. For the segment overall, both
sales and operating income are forecasted
to increase from the previous year.
Completed in fiscal 2011
• Capacity expansion for Hipore™ LIB
separator (lines 2 and 3) in Hyuga,
Miyazaki, Japan
Under construction in fiscal 2011
• Capacity expansion for Hipore™ LIB
separator (line 4) in Hyuga, Miyazaki,
Japan
R&D
With a wealth of design assets and a
sophisticated organization of design
engineers, we develop unique electronic
devices in a timely fashion to keep pace
with the rapid technology innovation of the
electronics industry. 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 conservation, reduced
environmental burdens, and living in health
and comfort is advancing based on our
Highlights
New 6-axis electronic compass
Asahi Kasei Microdevices developed its
latest 6-axis electronic compass, the
AK8978, for portable appliances in
January 2012. Asahi Kasei’s electronic
compasses have earned the leading
global market share in smartphones and
tablet PCs, and this is new 6-axis
compass combines the company’s
3-axis electronic compass with a
high-performance 3-axis accelerometer
from Analog Devices, Inc. in a single
package.
AK8978, the latest 6-axis electronic compass
Asahi Kasei Annual Report 2012
28
Operating Segments
We are focused on the
development and provision of
products that provide safety,
security, and comfort, based on
constant innovation in our core
areas of AAC-related products,
foundation systems, insulation
materials, and structural
components.
Tomihiro Maeda
President,
Asahi Kasei Construction Materials
Construction Materials
Net sales
vs. fiscal 2010
¥46.1 billion
Operating income
¥1.8 billion
–2.7%
vs. fiscal 2010
–12.8%
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
2009
¥47.0
—
1.2
2.6%
1.1
2.3%
1.2
3.3
2010
¥47.4
—
2.1
4.4%
1.1
2.4%
1.7
2.8
2011
¥46.1
—
1.8
4.0%
1.1
2.5%
1.6
2.4
(¥ billion)
2012 forecast
¥53.0
—
3.0
5.7%
—
—
1.5
—
“For Tomorrow 2015” strategies
Pursuing business expansion in fields of competitive superiority while transforming
the business to be more solution oriented.
We are focusing management resources 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.
We are also advancing a transformation of business to achieve a shift from simply selling
products to a more solution-oriented configuration encompassing peripheral fields and
including systems and combination products based on the customer’s perspective.
1. AAC-related
Enhancing cost competitiveness with measures to gain further efficiency and maintain
stable profitability. Strengthening business for Hebel Powerboard™ AAC panels for
wood-frame houses by extending peripheral operations, including with broader lineup of
specialty coatings for greater durability and longer service life. Leveraging our superior
technology to strengthen the exterior renovation business targeting the extensive
number of houses built with our AAC panels.
2. Foundation systems
Expanding business by further development of fields other than homes and buildings,
including transmission towers, transportation infrastructure, and seismic reinforcement,
centered on competitive Eazet™ and ATT Column™ small-diameter steel-pipe piling
systems.
3. 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-efficient homes.
4. Structural materials
Increasing sales of BasePack™ column base attachment systems by raising awareness
of its superior earthquake resistance. Expanding the overall structural materials business
by reinforcing the product lineup with both new products and new variations of current
products.
Asahi Kasei Annual Report 2012
29
29
Fiscal 2011 Review
Sales decreased by ¥1.3 billion (2.7%) to
¥46.1 billion, and operating income
decreased by ¥0.3 billion (12.8%) to ¥1.8
billion.
Although shipment volumes and
product prices of Hebel™ autoclaved
aerated concrete panels were recovering,
performance in foundation systems was
sluggish, and performance in insulation
materials operations were impacted by the
expiration of government policy such as the
eco-point program to support energy
conservation.
Fiscal 2012 Outlook
We forecast an increase in sales and
operating income during fiscal 2012 with
increased shipments of Hebel™ panels and
of products throughout the foundation
systems and insulation materials lineups.
R&D
R&D is focused on heightening basic
technology in our four businesses of AAC,
foundation systems, insulation materials,
and steel-frame structural materials. We are
also proactively advancing R&D to establish
new solution-oriented businesses by
creating services and products in fields
peripheral to existing businesses, such as
remodeling service for exterior AAC walls
and non-construction applications for small-
scale pilling systems such as Eazet™ and
ATT Column™.
Highlights
Expansion of capacity for
phenolic foam insulation panels
In April 2012, Asahi Kasei Construction
Materials finalized a decision to increase
production capacity of Neoma™ high-
performance phenolic foam insulation
panels and Jupii™ floor insulation
panels developed based on Neoma™
technology. The market for high-
performance insulation panels is
anticipated to grow dramatically against
a background of heightened demand for
energy conservation and better
insulated homes, with renewed
consumer interest in “smart” and “zero-
energy” homes as well as the roadmap
toward mandatory energy conservation
standards for homes in 2020 which was
recently issued by the Japanese
government. Asahi Kasei Construction
Materials will add a new production line
at its plant in Ibaraki prefecture to
secure stable supply of their products.
As a Japan’s leading manufacturer of
phenolic foam insulation panels, the
company will continue to strengthen
operations through the reliable supply of
high-quality, high-performance products
that contribute to improved thermal
environments in architectural works.
Neoma™
Jupii™
Asahi Kasei Annual Report 2012
30
Operating Segments
Others
Net sales
¥18.6 billion
Operating income
¥3.0 billion
vs. fiscal 2010
+15.9%
vs. fiscal 2010
+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
2009
¥17.6
10.9%
1.8
2010
¥16.0
7.5%
1.7
2011
¥18.6
12.7%
3.0
(¥ billion)
2012 forecast
¥20.0
—
2.0
10.3%
10.7%
16.0%
10.0%
0.2
1.2%
0.9
0.8
0.3
1.7%
1.0
0.9
0.2
1.2%
0.8
0.9
—
—
1.5
—
Fiscal 2011 Review
R&D
Engineering developments in progress
include inspection technology as well as a
joint project for the development of high-
performance inspection equipment.
Sales increased by ¥2.5 billion (15.9%)
from a year ago to ¥18.6 billion, and
operating income increased by ¥1.3 billion
(74.0%) to ¥3.0 billion.
Operating income in engineering
operation increased from fiscal 2010 due
to firm performance of large-scale
constructions and overseas plant
operations.
Fiscal 2012 Outlook
We are forecasting increased sales from
engineering operations in fiscal 2012, and
increased sales for Others overall, but
decreased operating income due to
intensified competition.
Asahi Kasei Annual Report 2012
31
Toward Sustainable Growth
Contents
32 Corporate Governance
36 Corporate Social Responsibility
38 Directors, Corporate Auditors, Executive
Officers
Asahi Kasei Annual Report 2012
32
Corporate Governance
Basic Concept for Corporate Governance
We believe that constant effort to increase the efficiency
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
influence 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 Configuration (as of June 28, 2012)
Holding company
Shareholders
Board of Corporate Auditors
Board of Directors
Group Advisory Committee
Chairman
President
Strategic Management Council
CSR Council
Group staff functions
• Strategic planning & analysis
• Compliance & risk management
• Resources administration
New Business Development
Internal Auditing
Internal Control
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
Asahi Kasei
Medical
ZOLL
Medical
Housing
Electronic
devices
Electronic
materials
Pharmaceuticals
Medical devices
and systems
Critical care
devices
and systems
Chemicals & Fibers
business sector
Homes & Construction
Materials business sector
Electronics
business sector
Health Care
business sector
Asahi Kasei Annual Report 2012
33
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.
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 Officer system, under which we
have ten Directors, including three Outside Directors, and
eighteen Executive Officers, 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 28, 2012)
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 indemnification 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.
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 benefit 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.
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 Office has
multiple dedicated personnel who, independently from
Directors, support the Corporate Auditors in their
duties.
6) PricewaterhouseCoopers Aarata performs financial
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 configuration and a company
with a Board of Corporate Auditors.
Asahi Kasei Annual Report 2012
34
Corporate Governance
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 Office provides staff to support Corporate
Auditors in their duties.
PricewaterhouseCoopers Aarata is contracted as the
Independent Auditors to perform financial audits in
accordance with the Companies Act and Financial
Instruments and Exchange Act. Partners of the
Independent Auditors designated to perform the audit for
fiscal 2011 were Mr. Keiichi Ohtsuka and Mr. Takahiro
Nakazawa. The Independent Auditors form a team of
assistants for performance of the audit in accordance
with its audit plan. The team mainly comprises certified
public accountants and junior accountants, and also
includes certified 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 confirm 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 financial audit of Asahi Kasei
each quarter and each fiscal 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 financial 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 financial 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 sufficient 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.
Asahi Kasei Annual Report 2012
35
Information Disclosure Policy
The Asahi Kasei Group has established an Information
Disclosure Policy, enhancing the management and
disclosure of corporate information to obtain greater
corporate value. Corporate regulations for information
disclosure based on this policy were adopted on July 1,
2008. The basic principles of the Information Disclosure
Policy are shown below.
• With our 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
fundamental element of our Corporate Ethics – Basic
Policy. We proactively engage in information disclosure
and communication based on these basic concepts.
• Corporate information is disclosed fairly, impartially,
accurately, and as swiftly as possible to stakeholders
such as customers, suppliers, shareholders, investors,
employees, and local communities, and to the general
public.
• In our communication with stakeholders and with the
general public, we strive for dialog which fosters a
relationship of trust, promoting greater understanding of
the Asahi Kasei Group and its operations, to increase
brand strength and heighten corporate value.
Compliance Monitoring by the Corporate Ethics Committee
Monitoring of compliance and oversight of education and
training for compliance throughout the Asahi Kasei Group
are performed by the Corporate Ethics Committee, which
was formed in July 1998. Where shortcomings are
discovered, the committee formulates and implements
measures for improvement.
The committee discusses the training programs
implemented at each group company, measures for
prevention of sexual harassment, environmental
countermeasures, the state of compliance with 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.
After the Great East Japan Earthquake, the Asahi
Kasei Group reviewed its preparedness for the possible
occurrence of a major earthquake in areas such as Tokai,
Minami-tokai, Nankai, and Hyuganada. Important matters
were identified for group-wide implementation from the
perspectives of 1) preparatory measures to minimize
damage, 2) immediate earthquake response measures,
and 3) restoration and recovery measures. All operating
sites, plants, and offices have reviewed their earthquake
and tsunami response preparations accordingly, and
instituted programs for ongoing periodic review to ensure
continuous improvement.
When major flooding occurred in Thailand in October
2011, inundating one of our plants, the safety of all Asahi
Kasei Group personnel throughout the country was swiftly
confirmed. In addition, a broad communication network
was established to connect all of our manufacturing bases
and offices in Thailand during the early stages of flooding
to enable personnel to smoothly share information about
damage, evacuation, and risk management measures
taken at each location.
Asahi Kasei Annual Report 2012
36
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 local
communities, 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.
Asahi Kasei Annual Report 2012
37
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 specific 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
• Preparation of Basic Policy and Code of Conduct for corporate ethics
• Advancement of ethics education and operation of compliance hotline
CSR Council
Responsible Care Committee
• Formulation of unified policy
and action plans
• Guidance and counsel for
the subordinate committees
• Preparation of CSR Reports
• Monitoring of independent
evaluation
• Disclosure of CSR information
in concert with Corporate
Communications and
Investor Relations
• Deliberation of plans and results in regard to environmental protection, product safety,
operational safety, etc.
Global Environment Committee
• Deliberation and adoption of group-wide measures to counter global warming
Market Compliance Committee
• Examination prior to all across-the-board price revisions to confirm compliance with
Antimonopoly Law
Export Control Committee
• Compliance with export-related regulations
Risk Management Committee
• Formulation of plans and measures to respond to actual or potential crises
Community Fellowship Committee
• Formulation of policy, plans, and courses of action in regard to community fellowship activities
Highlight
Forest planting in China
Since June 2011, the Asahi Kasei Group and China
Business Network, a leading Chinese media group, have
jointly advanced an environmental public service project
in China to heighten people’s awareness for the
preservation of natural forest and water environments. As
a part of the project, the Asahi Kasei Group participated
in an afforestation program in the Horqin desert of Inner
Mongolia, planting 8,300 trees on April 10, 2012.
Forest planting in Inner Mongolia, China
Asahi Kasei Annual Report 2012
38
Directors, Corporate Auditors, Executive Officers
(As of June 28, 2012)
Ichiro Itoh
Chairman &
Representative Director
Taketsugu Fujiwara
Koji Fujiwara
President & Representative Director
Presidential Executive Officer
Director
Primary Executive Officer
Yasuyuki Yoshida
Director
Primary Executive Officer
Hideki Kobori
Hiroshi Kobayashi
Masafumi Nakao
Director
Senior Executive Officer
Director
Lead Executive Officer
Director
Lead Executive Officer
Yukiharu Kodama
Outside Director
Morio Ikeda
Outside Director
Norio Ichino
Outside Director
Kenji Nakamae
Corporate Auditor
Yuji Mizuno
Senior Executive Officer
Hiroshi Sawayama
Lead Executive Officer
Toshio Asano
Executive Officer
Toshiyuki Kawasaki
Corporate Auditor
Ryo Matsui
Lead Executive Officer
Makoto Konosu
Executive Officer
Shoichiro Tonomura
Executive Officer
Kazuo Tezuka
Outside Corporate Auditor
Toshikatsu Sunami
Lead Executive Officer
Masahito Hirai
Executive Officer
Yoshihiro Wada
Executive Officer
Yuji Aoki
Outside Corporate Auditor
Shinichiro Nei
Lead Executive Officer
Yuji Kobayashi
Executive Officer
Naoki Okada
Executive Officer
Asahi Kasei Annual Report 2012
39
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
79 Report of Independent Auditors
Asahi Kasei Annual Report 2012
40
Consolidated Eleven-Year Summary
Asahi Kasei Corporation and Consolidated Subsidiaries
For the years ended March 31
2012
2011b,c
2010b,d
2009b,d
2009b
2008b,e
2007
2006f
2005
2004g
2003g
2003
2002
Net sales
Chemicals
Life & Living
Chemical and Chemical-related
¥ 1,573,230
¥ 1,555,945
¥ 1,392,212
¥ 1,521,178
¥ 1,521,178
¥ 1,663,778
¥ 1,623,791
¥ 1,498,620
¥ 1,377,697
¥ 1,253,534
¥ 1,193,614
¥ 1,193,614
¥ 1,195,393
680,112
699,801
580,709
657,393
709,556
846,224
752,632
660,402
557,439
453,707
424,673
—
—
—
—
—
—
—
—
—
—
—
—
52,558
51,942
59,149
59,813
52,908
—
—
—
—
—
477,581
440,698
Homes
451,965
409,224
389,728
409,882
409,882
386,227
405,695
404,539
375,755
361,273
320,553
Housing and Construction Materials
—
—
—
—
—
—
—
—
—
—
—
383,654
408,474
Health Care
Fibers
Electronics
Construction Materials
Others
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 wortha
Net worth per share, yen
Net worth/total assets, %
Number of employees
119,483
110,849
146,113
46,146
18,562
1,151,705
421,525
104,258
107,567
94,866
55,766
62,561
39.89
85,124
78,440
66,269
14.00
116,387
108,761
158,337
47,418
16,017
1,106,656
449,289
122,927
118,219
98,342
60,288
45,088
43.11
66,014
84,092
62,320
11.00
113,207
101,201
142,700
47,024
17,642
1,021,803
370,409
57,622
56,367
46,056
25,286
119,619
116,405
129,655
60,927
27,297
1,127,213
393,965
34,959
32,500
19,031
4,745
—
—
119,619
102,176
91,721
60,927
27,297
1,127,213
393,965
34,959
32,500
19,031
4,745
—
3.39
18.08
83,990
86,166
62,924
10.00
3.39
126,725
126,725
79,436
60,849
10.00
79,436
60,849
10.00
2012
2011
2010
2009
2009
2008
2007
2006
2005
2004
2003
2003
2002
¥ 1,410,568
¥ 1,425,879
¥ 1,368,892
¥ 1,379,337
¥ 1,379,337
¥ 1,425,367
¥ 1,459,922
¥ 1,376,044
¥ 1,270,057
¥ 1,249,206
¥ 1,212,374
¥ 1,212,374
¥ 1,193,011
279,206
416,119
227,489
706,846
505.72
50.1
25,409
256,248
418,354
220,773
663,566
474.59
46.5
25,016
251,084
447,497
226,331
633,343
452.91
46.3
25,085
273,539
441,271
218,477
603,846
431.77
43.8
24,244
273,539
441,271
218,477
603,846
431.77
43.8
24,244
a. Net assets less minority interest. Through the year ended March 31, 2006, figures for shareholders’ equity shown.
b. Beginning with the year ended March 31, 2012, the accounting policy for naphtha resale in the Chemicals segment was changed. This change is applied retroactively to net
sales for the years ended March 31, 2008, through March 31, 2011.
f. In the year ended March 31, 2006, Leona™ nylon 66 filament operations were transferred from the Fibers segment to the Chemicals segment.
g. In the year ended March 31, 2004, business categories were aligned with the core operating companies in the holding company configuration adopted on October 1, 2003.
• 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
c. In the year ended March 31, 2011, the Services, Engineering and Others segment was replaced with the Others category. Figures under the previous classification are shown
and Chemical-related sector is reclassified as the Chemicals segment.
on the same line.
• The Housing and Construction Materials sector is separated into the Homes segment and the Construction Materials segment.
d. In the year ended March 31, 2010, the following segment name changes and intersegment transfers were made. For comparison purposes, results for the year ended March
• The Fibers and Textiles sector is renamed the Fibers segment.
31, 2009, are recalculated to reflect these intersegment transfers.
• The Pharma segment was renamed the Health Care segment, and the Electronics Materials & Devices segment was renamed the Electronics segment. Figures under the
• With the divestment of liquors operations, the Liquors, Services and Others sector is renamed the Services, Engineering and Others segment.
For comparison purposes, results for the year ended March 31, 2003, are recalculated in accordance with the revised categories.
previous classifications are shown on the same line.
• Electronic materials operations were transferred from the Chemicals segment and from corporate expenses to the Electronics segment.
• Leona™ nylon 66 filament operations were transferred from the Chemicals segment to the Fibers segment.
e. In the year ended March 31, 2008, the Life & Living segment was combined with the Chemicals segment.
Millions of yen, except where noted
—
—
—
—
105,463
110,551
71,579
44,786
981,064
212,550
61,555
50,389
71,579
63,101
44,786
981,064
212,550
61,555
50,389
(100,869)
(100,869)
(66,791)
(66,791)
(47.63)
93,985
60,808
49,311
6.00
(47.63)
93,985
60,808
49,311
6.00
176,788
427,188
198,697
407,639
290.92
33.6
25,730
176,788
427,188
198,697
407,639
290.92
33.6
25,730
—
—
—
98,686
125,908
64,062
—
57,565
1,006,810
188,583
45,664
39,849
10,679
5,180
—
3.61
74,826
60,676
49,574
6.00
180,826
415,193
181,618
496,826
353.16
41.6
26,227
103,933
104,261
105,965
101,514
105,463
110,551
111,232
114,072
113,267
55,732
37,024
1,176,441
487,337
127,656
120,456
105,599
69,945
50.01
82,911
73,983
56,170
13.00
272,372
424,193
234,873
666,244
476.39
46.7
23,854
104,474
106,639
112,094
60,818
28,881
1,195,751
428,040
127,801
126,507
114,883
68,575
49.00
84,413
71,646
52,426
12.00
240,006
426,959
281,502
645,655
461.50
44.2
23,715
105,842
89,704
102,859
56,512
26,821
1,125,454
373,166
108,726
104,166
94,481
59,668
42.46
66,310
69,399
51,467
10.00
214,062
414,368
284,390
594,211
424.34
43.2
23,030
93,025
59,908
24,228
1,067,893
309,804
115,809
112,876
91,141
56,454
40.16
68,479
71,531
50,715
8.00
202,521
419,969
223,958
511,726
365.43
40.3
23,820
82,484
60,622
28,156
1,011,366
242,168
60,932
53,643
54,820
27,672
19.62
86,387
64,408
48,420
6.00
181,609
428,302
226,825
450,451
321.41
36.1
25,011
—
—
—
—
—
—
—
For the years ended March 31
2012
2011b,c
2010b,d
2009b,d
2009b
2008b,e
2007
2006f
2005
2004g
2003g
2003
2002
¥ 1,573,230
¥ 1,555,945
¥ 1,392,212
¥ 1,521,178
¥ 1,521,178
¥ 1,663,778
¥ 1,623,791
¥ 1,498,620
¥ 1,377,697
¥ 1,253,534
¥ 1,193,614
¥ 1,193,614
¥ 1,195,393
Asahi Kasei Annual Report 2012
41
Millions of yen, except where noted
—
—
—
—
680,112
699,801
580,709
657,393
709,556
846,224
752,632
660,402
557,439
453,707
424,673
Chemical and Chemical-related
—
—
—
—
—
—
—
—
—
—
52,558
51,942
59,149
59,813
52,908
—
—
—
—
—
477,581
440,698
Housing and Construction Materials
—
—
—
—
—
—
—
—
—
—
383,654
408,474
451,965
409,224
389,728
409,882
409,882
386,227
405,695
404,539
375,755
361,273
320,553
—
—
Net sales
Chemicals
Life & Living
Homes
Health Care
Fibers
Electronics
Others
Domestic sales
Overseas sales
Operating income
Ordinary income
Construction Materials
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 wortha
Net worth per share, yen
Net worth/total assets, %
Number of employees
119,483
110,849
146,113
46,146
18,562
1,151,705
421,525
104,258
107,567
94,866
55,766
62,561
39.89
85,124
78,440
66,269
14.00
279,206
416,119
227,489
706,846
505.72
50.1
25,409
116,387
108,761
158,337
47,418
16,017
1,106,656
449,289
122,927
118,219
98,342
60,288
45,088
43.11
66,014
84,092
62,320
11.00
256,248
418,354
220,773
663,566
474.59
46.5
25,016
113,207
101,201
142,700
47,024
17,642
1,021,803
370,409
57,622
56,367
46,056
25,286
18.08
83,990
86,166
62,924
10.00
251,084
447,497
226,331
633,343
452.91
46.3
25,085
119,619
116,405
129,655
60,927
27,297
1,127,213
393,965
34,959
32,500
19,031
4,745
3.39
79,436
60,849
10.00
273,539
441,271
218,477
603,846
431.77
43.8
24,244
—
—
—
119,619
102,176
91,721
60,927
27,297
1,127,213
393,965
34,959
32,500
19,031
4,745
—
3.39
79,436
60,849
10.00
273,539
441,271
218,477
603,846
431.77
43.8
24,244
a. Net assets less minority interest. Through the year ended March 31, 2006, figures for shareholders’ equity shown.
b. Beginning with the year ended March 31, 2012, the accounting policy for naphtha resale in the Chemicals segment was changed. This change is applied retroactively to net
sales for the years ended March 31, 2008, through March 31, 2011.
on the same line.
31, 2009, are recalculated to reflect these intersegment transfers.
previous classifications are shown on the same line.
• Electronic materials operations were transferred from the Chemicals segment and from corporate expenses to the Electronics segment.
• Leona™ nylon 66 filament operations were transferred from the Chemicals segment to the Fibers segment.
e. In the year ended March 31, 2008, the Life & Living segment was combined with the Chemicals segment.
103,933
104,261
105,965
101,514
105,463
110,551
111,232
114,072
113,267
55,732
37,024
1,176,441
487,337
127,656
120,456
105,599
69,945
104,474
106,639
112,094
60,818
28,881
1,195,751
428,040
127,801
126,507
114,883
68,575
105,842
89,704
102,859
56,512
26,821
1,125,454
373,166
108,726
104,166
94,481
59,668
93,025
59,908
24,228
1,067,893
309,804
115,809
112,876
91,141
56,454
82,484
60,622
28,156
1,011,366
242,168
60,932
53,643
54,820
27,672
105,463
110,551
71,579
—
44,786
981,064
212,550
61,555
50,389
71,579
63,101
44,786
981,064
212,550
61,555
50,389
(100,869)
(100,869)
(66,791)
(66,791)
—
—
—
—
—
—
—
—
—
126,725
126,725
50.01
82,911
73,983
56,170
13.00
49.00
84,413
71,646
52,426
12.00
42.46
66,310
69,399
51,467
10.00
40.16
68,479
71,531
50,715
8.00
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
98,686
125,908
64,062
—
57,565
1,006,810
188,583
45,664
39,849
10,679
5,180
—
3.61
74,826
60,676
49,574
6.00
2012
2011
2010
2009
2009
2008
2007
2006
2005
2004
2003
2003
2002
¥ 1,410,568
¥ 1,425,879
¥ 1,368,892
¥ 1,379,337
¥ 1,379,337
¥ 1,425,367
¥ 1,459,922
¥ 1,376,044
¥ 1,270,057
¥ 1,249,206
¥ 1,212,374
¥ 1,212,374
¥ 1,193,011
272,372
424,193
234,873
666,244
476.39
46.7
23,854
240,006
426,959
281,502
645,655
461.50
44.2
23,715
214,062
414,368
284,390
594,211
424.34
43.2
23,030
202,521
419,969
223,958
511,726
365.43
40.3
23,820
181,609
428,302
226,825
450,451
321.41
36.1
25,011
176,788
427,188
198,697
407,639
290.92
33.6
25,730
176,788
427,188
198,697
407,639
290.92
33.6
25,730
180,826
415,193
181,618
496,826
353.16
41.6
26,227
f. In the year ended March 31, 2006, Leona™ nylon 66 filament operations were transferred from the Fibers segment to the Chemicals segment.
g. In the year ended March 31, 2004, business categories were aligned with the core operating companies in the holding company configuration adopted on October 1, 2003.
• 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
c. In the year ended March 31, 2011, the Services, Engineering and Others segment was replaced with the Others category. Figures under the previous classification are shown
and Chemical-related sector is reclassified as the Chemicals segment.
d. In the year ended March 31, 2010, the following segment name changes and intersegment transfers were made. For comparison purposes, results for the year ended March
• The Housing and Construction Materials sector is separated into the Homes segment and the Construction Materials segment.
• The Fibers and Textiles sector is renamed the Fibers segment.
• With the divestment of liquors operations, the Liquors, Services and Others sector is renamed the Services, Engineering and Others segment.
• The Pharma segment was renamed the Health Care segment, and the Electronics Materials & Devices segment was renamed the Electronics segment. Figures under the
For comparison purposes, results for the year ended March 31, 2003, are recalculated in accordance with the revised categories.
Asahi Kasei Annual Report 2012
42
Management’s Discussion and Analysis
Fiscal year 2011 (April 1, 2011 – March 31, 2012)
Operating Environment
Operating income decreased by ¥18.7 billion (15.2%) to
¥104.3 billion. As a percentage of net sales, cost of sales
The Japanese economy slowed down significantly during the
increased by 0.9 percentage points to 74.9%. SG&A
fiscal year, with the global economy being affected by the
increased by ¥8.2 billion, increasing as a percentage of net
sovereign debt crisis in Europe, and with exports to China and
sales by 0.3 percentage points to 18.4% despite the increase
other emerging markets slowing down in the second half after
in sales. Operating margin decreased by 1.3 percentage
having been relatively solid during the early part of the fiscal
points to 6.6%.
year. Although manufacturing activity generally recovered from
the stagnant period following the Great East Japan
Earthquake, Japan’s economic circumstances remained
challenging, with corporate earnings suppressed by the
Non-operating income and expenses, ordinary
income
Net non-operating income was ¥3.3 billion, an ¥8.0 billion
persistent strength of the yen and high prices for feedstocks
improvement from the ¥4.7 billion net non-operating expenses
and fuel.
Overview of Consolidated Results
of a year earlier, largely due to the recording of a ¥2.2 billion
gain on reversal of provision for removal cost of property, plant
and equipment and a ¥3.7 billion decrease in foreign
exchange loss. As a result, ordinary income decreased by
The accounting policy for naphtha resale transactions was
¥10.7 billion (9.0%) to ¥107.6 billion.
changed during the fiscal year under review. Comparisons
with the previous year’s results as described below are based
on this change being applied retroactively. This also applies to
Extraordinary income and loss
Extraordinary income of ¥3.0 billion included a ¥2.3 billion gain
Results by Operating Segment.
on step acquisitions. Extraordinary loss of ¥15.7 billion
included ¥8.5 billion in business structure improvement
Net sales, operating income
Consolidated net sales for the fiscal year increased by ¥17.3
expenses and a ¥3.5 billion loss on disposal of noncurrent
assets. The net extraordinary loss of ¥12.7 billion was ¥7.2
billion (1.1%) to ¥1,573.2 billion. Overseas sales decreased,
billion lower than a year ago.
largely in Chemicals, by ¥27.8 billion (6.2%) to ¥421.5 billion,
and decreased by 2.1 percentage points as a portion of
consolidated net sales from 28.9% to 26.8%. Domestic sales
Net income
With ordinary income of ¥107.6 billion and the net
increased by ¥45.0 billion (4.1%) to ¥1,151.7 billion with
extraordinary loss of ¥12.7 billion, income before income
strong performance in the Homes segment.
taxes and minority interests was ¥94.9 billion. Income tax
Net Sales,
Overseas Sales Ratio
(¥ billion)
2,000
1,500
1,000
500
0
Operating Income,
Operating Margin
(¥ billion)
150
120
90
60
30
0
(%)
40
30
20
10
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
07
08
09
10
11
FY
07
08
09
10
11
FY
07
08
09
10
11
FY
07
08
09
10
11
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
Asahi Kasei Annual Report 2012
43
expense was ¥38.0 billion (current income taxes of ¥31.2
billion combined with a deferred income tax obligation of ¥6.8
Homes
Sales increased by ¥42.7 billion (10.4%) from a year ago to
billion). Minority interests in income of consolidated
¥452.0 billion, and operating income increased by ¥9.9 billion
subsidiaries were ¥1.1 billion. As a result, net income
(27.0%) to ¥46.3 billion. Orders for order-built homes
decreased by ¥4.5 billion (7.5%) to ¥55.8 billion, and net
increased by ¥17.4 billion to ¥371.9 billion.
income per share decreased by ¥3.22 to ¥39.89 from the
Operating income from order-built homes increased as
¥43.11 of a year earlier.
Results by Operating Segment
deliveries of both Hebel Haus™ unit homes and Hebel
Maison™ apartment buildings increased. Operating income
from pre-built homes was largely unchanged from a year ago.
Operating income from housing-related operations increased
The Asahi Kasei Group’s operations are described by major
as real-estate rental operations performed well and
business classification: six reportable segments of Chemicals,
remodeling operations expanded steadily.
Homes, Health Care, Fibers, Electronics, and Construction
Materials, together with an “Others” category.
Chemicals
Sales decreased by ¥19.7 billion (2.8%) from a year ago to
Health Care
Sales increased by ¥3.1 billion (2.7%) from a year ago to
¥119.5 billion, and operating income increased by ¥1.8 billion
(25.0%) to ¥8.8 billion.
¥680.1 billion, and operating income decreased by ¥19.9
Although operating expenses in pharmaceuticals
billion (30.9%) to ¥44.5 billion.
operations rose with an increase in the number of medical
Operating income from chemicals and derivative
representatives and higher R&D expenses, operating income
products decreased as market demand in China and other
increased with growing sales of Recomodulin™ recombinant
Asian countries declined in the second half, and terms of
thrombomodulin and the November 2011 launch of sales of
trade for monomer products such as acrylonitrile and adipic
Teribone™, a new osteoporosis drug. In devices-related
acid deteriorated significantly due to high prices for naphtha
operations, shipments of Planova™ virus removal filters
and other feedstocks and the strong yen. Operating income
increased, but operating income was largely unchanged as
from polymer products increased as engineering plastics
the strong yen impacted performance in each product group.
recovered in the second half after a downturn following the
Great East Japan Earthquake, and synthetic rubber for tires
performed well. Operating income from specialty products
increased as home-use products such as Saran Wrap™
performed well, as did functional additives.
ROE
(%)
12
9
6
3
0
Chemicals
(¥ billion)
800
600
400
200
4.5%
9.2%
Homes
Health Care
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
80
500
60
150
60
40
6.5%
20
0
400
300
200
100
48
120
10.3%
36
90
8.9%
6.5%
24
60
7.4%
6.1%
12
30
3.5%
0
FY
09
10
11
0
0
FY
09
10
11
20
16
12
8
4
0
Net sales, left scale
Net sales, left scale
Net sales, left scale
Operating income, right scale
Operating income, right scale
Operating income, right scale
Operating margin (%)
Operating margin (%)
Operating margin (%)
FY
07
08
09
10
11
0
FY
09
10
11
Asahi Kasei Annual Report 2012
44
Management’s Discussion and Analysis
Fibers
Sales increased by ¥2.1 billion (1.9%) from a year ago to
Construction Materials
Sales decreased by ¥1.3 billion (2.7%) from a year ago to
¥110.8 billion, but operating income decreased by ¥1.1 billion
¥46.1 billion, and operating income decreased by ¥0.3 billion
(25.2%) to ¥3.1 billion.
(12.8%) to ¥1.8 billion.
Although shipments of spunbond in diaper applications
Although shipment volumes and product prices of
increased, shipments of Leona™ nylon 66 filament in airbag
Hebel™ autoclaved aerated concrete panels were recovering,
applications increased, and Bemberg™ regenerated cellulose
performance in foundation systems was sluggish, and
performed well, operating income decreased as the strong
performance in insulation materials operations were impacted
yen and high feedstock costs impacted products throughout
by the expiration of government policy such as the eco-point
the segment.
program to support energy conservation.
Electronics
Sales decreased by ¥12.2 billion (7.7%) from a year ago to
Others
Sales increased by ¥2.5 billion (15.9%) from a year ago to
¥146.1 billion, and operating income decreased by ¥7.8 billion
¥18.6 billion, and operating income increased by ¥1.3 billion
(55.0%) to ¥6.4 billion.
(74.0%) to ¥3.0 billion.
Although sales of mixed-signal LSIs for smartphones
were firm, operating income in electronic devices decreased
as an effect of a general deterioration in the operating climate
which resulted in sluggish growth in shipment volumes, and
by declining product prices and the strong yen. Although
sales of Hipore™ Li-ion battery separator increased, operating
income in electronic materials decreased with declining
product prices and high feedstock costs.
Fibers
(¥ billion)
150
120
90
60
30
0
3.9%
-2.7%
FY
09
10
11
7.5
6.0
4.5
3.0
2.8%
1.5
0
(1.5)
(3.0)
(4.5)
200
160
120
80
40
0
FY
Electronics
Construction Materials
Others
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
30
90
24
18
12
6
0
60
30
0
9.0%
5.1%
4.4%
6
4
2
4.4%
2.6%
4.0%
40
30
20
10
0
0
(¥ billion)
12
16.0%
10.3%
10.7%
9
6
3
0
09
10
11
FY
09
10
11
FY
09
10
11
Net sales, left scale
Net sales, left scale
Net sales, left scale
Net sales, left scale
Operating income (loss), right scale
Operating income, right scale
Operating income, right scale
Operating income, right scale
Operating margin (%)
Operating margin (%)
Operating margin (%)
Operating margin (%)
Asahi Kasei Annual Report 2012
45
Liquidity and Capital Resources
Financial position
Total assets at fiscal year end were ¥1,410.6 billion, ¥15.3
billion (1.1%) lower than a year earlier.
Net assets increased by ¥43.7 billion (6.5%) from ¥675.6
billion to ¥719.3 billion. Net income was ¥55.8 billion, and net
unrealized gain on other securities increased by ¥10.5 billion,
while dividend payments were ¥18.2 billion. As a result, net
worth per share increased by ¥31.14 to ¥505.72, net worth/
Although inventories increased by ¥23.0 billion, current
total assets increased from 46.5% to 50.1%, and debt-to-
assets decreased by ¥33.9 billion (4.5%) to 721.8 billion,
equity ratio decreased by 0.12 to 0.26.
mainly as cash and deposits decreased by ¥37.4 billion and
notes and accounts receivable—trade decreased by ¥7.4
billion.
Noncurrent assets increased by ¥18.6 billion (2.8%) to
¥688.8 billion, notably with a ¥14.1 billion increase in
intangible assets and a ¥11.2 billion increase in investment
securities largely due to higher fair market value.
Current liabilities decreased by ¥34.2 billion (7.1%) to
¥449.6 billion, mainly as a result of a ¥34.4 billion decrease in
short-term loans payable.
Noncurrent liabilities decreased by ¥24.8 billion (9.3%) to
¥241.7 billion, mainly as a result of a ¥29.0 billion decrease in
long-term loans payable.
Interest-bearing debt decreased by ¥69.8 billion to
¥184.1 billion.
Total Assets, Net Worth
Net Worth to Total Assets
(¥ billion)
1,500
1,200
900
600
300
0
(%)
50
40
30
20
10
0
FY
07
08
09
10
11
FY
07
08
09
10
11
Total assets
Net worth
Asahi Kasei Annual Report 2012
46
Management’s Discussion and Analysis
Capital expenditure
Capital expenditure (capex) was primarily for new and
expanded production plant and equipment in long-term
growth fields. Investments were also made for rationalization,
Notable capex by operating segment was as follows.
Chemicals
Rationalization of equipment in Mizushima, other
labor-saving, 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 (other
than goodwill), combined, excluding consumption tax.
Homes
Leases, rationalization, labor-saving, and maintenance.
A total of ¥85.1 billion was invested during the fiscal year
for the expansion of businesses with competitive superiority,
Health Care
Construction of laboratory for medical materials research,
particular in the Chemicals, Health Care, and Electronics
rationalization, labor-saving, and maintenance.
segments, as well as for modification and rationalization.
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
39,080
6,272
10,678
5,697
13,429
1,631
786
77,572
Corporate assets and eliminations
7,551
Consolidated
85,124
168.6
99.5
143.8
155.3
66.3
96.9
80.1
122.2
301.0
128.9
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, and 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
07
08
09
10
11
FY
07
08
09
10
11
Interest-bearing debt, left scale
Capex
D/E ratio, right scale
Depreciation and amortization
Asahi Kasei Annual Report 2012
47
Cash flows
Free cash flows* were a positive ¥51.8 billion, as cash
Cash flows from financing activities
In addition to ¥71.6 billion of net cash used to reduce interest-
generated, principally from income before income taxes and
bearing debt, including loans, ¥18.2 billion was used for
minority interests and from depreciation and amortization,
dividend payments. Net cash used in financing activities was
exceeded cash used, principally for purchase of noncurrent
¥91.0 billion, ¥64.9 billion more than a year earlier.
assets and purchase of investment securities. Cash flows
from financing activities were a net ¥91.0 billion used,
principally due to decrease in short-term loans payable. As a
result, cash and cash equivalents at fiscal year end were
* Total of net cash provided by (used in) operating activities and net cash
provided by (used in) investment activities.
¥96.4 billion, ¥38.1 billion less than a year earlier.
Financial Policy
Cash flows from operating activities
Cash used included ¥22.5 billion for increase in inventories
and ¥46.9 billion for income taxes paid. Income before income
taxes and minority interests generated ¥94.9 billion and
depreciation and amortization generated ¥78.4 billion. Net
cash provided by operating activities was ¥141.3 billion, ¥6.9
billion less than a year earlier.
Cash flows from investing activities
Cash used included ¥67.4 billion for purchase of property,
plant and equipment for continuing expansion of competitively
superior operations and enhancement of overall
competitiveness, ¥9.2 billion for purchase of intangible assets,
and ¥7.1 billion for purchase of additional shares in
subsidiaries resulting in change in scope of consolidation. Net
cash used in investing activities was ¥89.5 billion, ¥10.7 billion
more than a year earlier.
We aim to increase free cash flows with increased earnings
through enhanced cost efficiency, greater product
competitiveness, and business structure improvements, and
with greater capital efficiency through utilization of group
finance and maintenance of optimum inventory levels.
Free cash flows will be used as a source of funds for
strategic investments to further enhance corporate value
under the “For Tomorrow 2015” strategic management
initiative focused on the expansion of world-leading
businesses and the creation of new value for society by
expanding operations in the fields of the environment &
energy, residential living, and health care.
A wide range of fund-raising methods including bank
borrowings, bonds, and commercial paper will be utilized
dynamically in accordance with the financial circumstances of
the Asahi Kasei Group in order to obtain stable financing at
low cost.
Advancing these measures will enable us to reinforce our
financial condition while providing an appropriate return to
shareholders.
Free Cash Flows
Cash Flows
(¥ billion)
80
60
40
20
0
(20)
(40)
(60)
(80)
(¥ billion)
200
100
0
(100)
(200)
FY
07
08
09
10
11
FY
07
08
09
10
11
Net cash provided by operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities
Asahi Kasei Annual Report 2012
48
Risk Analysis
Operating risks and non-operating risks which may materially influence 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 fluctuation
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 fluctuations 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 sufficient price spreads. Price spreads
fluctuations in Japanese interest rates may result in
may diminish, thereby affecting our consolidated
diminished housing demand, thereby affecting our
performance and financial condition.
consolidated performance and financial condition.
Exchange rate fluctuation
Profitability 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 profitability of electronics-related businesses
carried in these accounts is affected by the rate of
may decline significantly in a relatively short time, thereby
exchange at the time of conversion to yen. Although
affecting our consolidated performance and financial
measures such as currency exchange hedges are utilized
condition. Because products in this field rapidly become
to minimize the short-term effects of exchange rate
obsolete, the timely development and commercialization of
fluctuations, such fluctuations 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 financial condition.
fluctuations may exceed expectations, thereby affecting
our consolidated performance and financial 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
significantly affected by government measures to curtail
and regulatory changes, vulnerability of infrastructure,
health care expenditure or other changes in government
difficulty in hiring/retaining qualified employees, or other
policy. Unforeseeable side effects or complications may
factors, and social or political instability due to terrorism,
emerge, significantly 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
Asahi Kasei Annual Report 2012
49
intensify as a result of the market entry of generics. For
Business and capital alliances
pharmaceuticals and medical devices under development,
regulatory approval may fail to be obtained, market
Acquisitions, business alliances, and capital alliances may
demand may be lower than expected, and the national
bear lower results or less synergy than anticipated due to
reimbursement prices may be lower than expected. Such
deterioration of the operating environment, thereby
scenarios may affect our consolidated performance and
affecting our consolidated performance and financial
financial condition.
condition. Poor performance at companies in which we
have invested may require the recording of an impairment
loss for goodwill, etc., thereby affecting our consolidated
Industrial accidents and natural disasters
performance and financial condition.
The occurrence of a significant 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 financial 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 financial condition.
Irrecoverable credits
Credits extended to customers may become irrecoverable
to an unforeseeable extent, necessitating additional losses
or allowances to be recorded in financial accounts, and
thereby affecting our consolidated performance and
financial condition.
Asahi Kasei Annual Report 2012
50
Consolidated Balance Sheets
Asahi Kasei Corporation and Consolidated Subsidiaries
March 31, 2012 and 2011
ASSETS
Current assets:
Cash and deposits (Notes 9 and 11)
Notes and accounts receivable—trade (Note 5(e))
Short-term investment securities (Notes 9, 11 and 12)
Merchandise and finished goods
Work in progress
Raw materials and supplies
Deferred tax assets (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)
2012
2011
2012
¥102,875
266,056
360
138,133
87,450
53,623
19,454
54,835
(1,017)
721,770
¥140,319
273,414
371
129,898
76,551
49,799
23,131
63,240
(1,072)
755,651
410,057
(235,060)
174,997
409,263
(231,474)
177,789
$1,252,587
3,239,450
4,383
1,681,882
1,064,775
652,904
236,868
667,661
(12,383)
8,788,141
4,992,780
(2,862,048)
2,130,732
14,658,529
Machinery, equipment and vehicles (Note 5(b), (d))
1,203,905
1,192,132
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
(1,075,668)
(1,047,912)
(13,097,139)
128,237
55,667
11,694
(4,804)
6,890
37,787
122,426
(109,884)
12,542
416,119
144,220
55,243
8,581
(3,118)
5,463
22,173
118,718
(105,252)
13,466
418,354
1,561,390
677,791
142,384
(58,493)
83,891
460,088
1,490,637
(1,337,928)
152,709
5,066,590
8,502
36,687
45,189
5,087
26,015
31,101
103,519
446,694
550,213
Investments and other assets
Investment securities (Notes 5(a), 11 and 12)
177,513
166,317
2,161,366
Long-term loans receivable (Note 11)
Deferred tax assets (Note 15)
Other
Allowance for doubtful accounts
Subtotal
5,559
18,965
25,692
(240)
5,181
22,005
27,507
(237)
67,685
230,914
312,821
(2,922)
227,489
220,773
2,769,865
Total noncurrent assets
688,798
670,228
8,386,680
Total assets
¥ 1,410,568
¥ 1,425,879
$ 17,174,820
The accompanying notes are an integral part of these statements.
Asahi Kasei Annual Report 2012
51
Millions of yen
Thousands of
U.S. dollars (Note 1)
2012
2011
2012
LIABILITIES AND NET ASSETS
Liabilities:
Current liabilities:
Notes and accounts payable—trade (Notes 5(e) and 11)
¥143,194
Short-term loans payable (Notes 5(b), 11 and 21)
Commercial paper (Notes 11 and 21)
Lease obligations (Notes 10, 11 and 21)
Accrued expenses
Income taxes payable (Note 11)
Advances received
Provision for periodic repairs
Provision for product warranties
Provision for removal cost of property, plant and equipment
Asset retirement obligations (Note 17)
Other (Note 5(e))
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 benefits (Note 14)
Provision for directors’ retirement benefits
Provision for periodic repairs
Provision for removal cost of property, plant and equipment
Asset retirement obligations (Note 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
(2012—4,925,730 shares, 2011—4,420,688 shares)
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on other securities
Deferred gains or 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)
74,490
15,000
2,207
92,663
8,380
49,950
6,045
2,151
1,818
460
53,242
449,600
25,000
62,710
4,707
11,402
¥136,407
108,889
23,000
1,522
88,750
24,085
52,346
3,239
2,465
2,885
512
39,668
483,768
25,000
91,722
3,802
6,374
$1,743,504
906,977
182,637
26,872
1,128,248
102,033
608,182
73,603
26,190
22,136
5,601
648,265
5,474,248
304,395
763,546
57,312
138,829
106,277
107,309
1,294,009
806
1,977
4,204
3,242
18,286
3,072
241,683
691,283
103,389
79,404
516,401
(2,388)
696,805
40,148
(1,734)
(28,374)
10,040
12,439
719,285
1,119
2,131
6,110
3,316
18,340
1,284
266,509
750,277
103,389
79,402
478,681
(2,115)
659,357
29,647
(140)
(25,299)
4,209
12,036
9,814
24,072
51,187
39,474
222,647
37,404
2,942,688
8,416,937
1,258,846
966,809
6,287,605
(29,076)
8,484,171
488,835
(21,113)
(345,477)
122,245
151,455
675,602
8,757,884
Total liabilities and net assets
¥ 1,410,568
¥ 1,425,879
$ 17,174,820
The accompanying notes are an integral part of these statements.
Asahi Kasei Annual Report 2012
52
Consolidated Statements of Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2012 and 2011
Net sales (Note 18)
Cost of sales (Note 6(b))
Gross profit
Selling, general and administrative expenses (Note 6(a))
Operating income (Note 18)
Non-operating income:
Interest income
Dividends income
Equity in earnings of affiliates
Gain on reversal of provision for removal cost of property, plant and
equipment
Other
Total non-operating income
Non-operating expenses:
Interest expense
Foreign exchange loss
Donations
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 business transfer
Gain on step acquisitions (Note 16)
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 (Note 6(e))
Environmental expenses (Note 6(f))
Cumulative adjustment for adoption of accounting standard for asset
retirement obligations
Loss on disaster (Note 6(g))
Business structure improvement expenses (Note 6(h))
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.
Millions of yen
Thousands of
U.S. dollars (Note 1)
2012
2011
2012
¥ 1,573,230
¥ 1,555,945
$ 19,155,363
1,178,968
1,151,204
14,354,901
394,261
290,003
104,258
1,434
2,744
669
2,236
3,734
10,817
2,685
162
979
3,681
7,507
107,567
191
494
—
—
2,277
2,961
—
1,898
3,546
460
277
—
1,027
8,454
15,662
94,866
31,152
6,829
37,981
56,885
1,119
407,741
281,814
122,927
4,800,451
3,531,024
1,269,427
1,118
2,273
2,212
—
4,248
9,851
3,313
3,880
1,009
6,357
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
17,460
33,410
8,146
27,225
45,465
131,706
32,692
1,972
11,920
44,819
91,404
1,309,716
2,326
6,015
—
—
27,724
36,053
—
23,110
43,175
5,601
3,373
—
12,505
102,934
190,698
1,155,071
379,301
83,149
462,450
692,621
13,625
¥55,766
¥60,288
$678,997
Consolidated Statements of Comprehensive Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2012 and 2011
Income before minority interests
Other comprehensive income
Net increase or decrease in unrealized gain on other securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of affiliates accounted for using
equity method
Total other comprehensive income (Note 7)
Comprehensive income (Note 7)
Comprehensive income attributable to:
Owners of the Parent
Minority interests
The accompanying notes are an integral part of these statements.
Asahi Kasei Annual Report 2012
53
Millions of yen
2012
¥56,885
10,553
(1,594)
(1,029)
(2,255)
5,676
62,561
61,597
¥963
2011
¥61,667
(7,059)
(31)
(7,114)
(2,375)
(16,579)
45,088
44,042
¥1,047
Thousands of
U.S. dollars (Note 1)
2012
$692,621
128,491
(19,408)
(12,529)
(27,456)
69,110
761,731
749,994
$11,725
Asahi Kasei Annual Report 2012
54
Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2012 and 2011
Shareholders’ equity
Accumulated other comprehensive income
Millions of yen
Capital
stock
Capital
surplus
Retained
earnings
(Note 8(b))
Treasury
stock
Total
shareholders’
equity
Net unrealized
gain on other
securities
Deferred gains
or losses on
hedges
Foreign
currency
translation
adjustment
Total
accumulated
other
comprehensive
income
Minority
interests
Total
net assets
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
Changes during the fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of equity method
Increase resulting from corporate
split
Effect of change in the reporting
period of consolidated subsidiaries
and affiliates
Net changes of items other than
shareholders’ equity
Total changes of items
during the period
(18,173)
55,766
1
(291)
18
(111)
71
168
(18,173)
55,766
(291)
19
(111)
71
168
(18,173)
55,766
(291)
19
(111)
71
168
—
1
37,720
(273)
37,448
10,501
(1,594)
(3,075)
5,832
403
43,683
10,501
(1,594)
(3,075)
5,832
403
6,235
Balance at March 31, 2012
¥ 103,389 ¥ 79,404 ¥ 516,401 ¥ (2,388) ¥ 696,805 ¥ 40,148 ¥ (1,734)
¥ (28,374) ¥ 10,040 ¥ 12,439 ¥ 719,285
Shareholders’ equity
Accumulated other comprehensive income
Millions of yen
Capital
stock
Capital
surplus
Retained
earnings
(Note 8(b))
Treasury
stock
Total
shareholders’
equity
Net unrealized
gain on other
securities
Deferred gains
or 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 fiscal 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
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
Net unrealized
gain on other
securities
Deferred gains
or losses on
hedges
Foreign
currency
translation
adjustment
Total
accumulated
other
comprehensive
income
Minority
interests
Total
net assets
Balance at March 31, 2011
$ 1,258,846 $ 966,784 $ 5,828,333 $ (25,752) $ 8,028,211 $ 360,977 $(1,705) $ (308,036)
$51,248 $ 146,548 $ 8,226,008
Changes during the fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of equity method
Increase resulting from corporate
split
Effect of change in the reporting
period of consolidated subsidiaries
and affiliates
Net changes of items other than
shareholders’ equity
Total changes of items
during the period
(221,271)
678,997
(221,271)
678,997
(3,543)
(3,543)
12
219
(1,352)
864
231
(1,352)
864
2,046
2,046
(221,271)
678,997
(3,543)
231
(1,352)
864
2,046
—
12
459,272
(3,324)
455,960
127,858
(19,408)
(37,441)
71,009
4,907
531,876
127,858
(19,408)
(37,441)
71,009
4,907
75,916
Balance at March 31, 2012
$ 1,258,846 $ 966,809 $ 6,287,605 $ (29,076) $ 8,484,171 $ 488,835 $ (21,113) $ (345,477) $ 122,245 $ 151,455 $ 8,757,884
The accompanying notes are an integral part of these statements.
Asahi Kasei Annual Report 2012
55
Millions of yen
Thousands of
U.S. dollars (Note 1)
2012
2011
2012
Consolidated Statements of Cash Flows
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2012 and 2011
Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill
Increase (decrease) in provision for periodic repairs
Decrease in provision for product warranties
(Decrease) increase in provision for removal cost of property, plant and
equipment
Decrease in provision for retirement benefits
Interest and dividend income
Interest expense
Equity in earnings of affiliates
Gain on sales of investment securities
Loss on valuation of investment securities
Gain on sale of property, plant and equipment
Loss on disposal of noncurrent assets
Gain on business transfer
Gain on step acquisition
Decrease (increase) in notes and accounts receivable—trade
Increase in inventories
Increase in notes and accounts payable—trade
Increase in accrued expenses
(Decrease) increase in advances received
Other, net
Subtotal
Interest and dividend income, received
Interest expense paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of additional shares 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 flows from financing activities:
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from issuance of commercial paper
Redemptions of commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash used in financing activities
¥94,866
78,440
460
1,179
(231)
2,652
(317)
(2,973)
(999)
(4,178)
2,685
(669)
(191)
1,898
(494)
3,546
—
(2,277)
4,918
(22,532)
6,859
3,905
(2,488)
21,331
185,391
5,555
(2,787)
(46,899)
141,260
(11,930)
10,917
(67,435)
1,205
(9,224)
(5,251)
543
(7,080)
—
—
(5,144)
5,224
(1,328)
(89,503)
45,588
(76,627)
15,000
(23,000)
2,384
(32,911)
(2,063)
(299)
19
(18,173)
(805)
(143)
(91,030)
Effect of exchange rate change on cash and cash equivalents
Net (decrease) increase 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
Effect of change in the reporting period of consolidated subsidiaries and affiliates
Cash and cash equivalents at end of year (Note 9)
(823)
(40,096)
134,450
1,528
469
¥96,351
The accompanying notes are an integral part of these statements.
¥98,342
84,092
2,404
1,073
(266)
(2,990)
(1,139)
3,754
(2,050)
(3,391)
3,313
(2,212)
(36)
651
(463)
4,879
(736)
—
(36,454)
(4,841)
13,618
2,922
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
$1,155,071
955,071
5,601
14,355
(2,813)
32,290
(3,860)
(36,199)
(12,164)
(50,871)
32,692
(8,146)
(2,326)
23,110
(6,015)
43,175
—
(27,724)
59,881
(274,346)
83,514
47,547
(30,293)
259,722
2,257,287
67,637
(33,934)
(571,034)
1,719,956
(145,258)
132,923
(821,076)
14,672
(112,310)
(63,935)
6,611
(86,205)
—
—
(62,632)
63,606
(16,169)
(1,089,772)
555,071
(932,996)
182,637
(280,044)
29,027
(400,718)
(25,119)
(3,641)
231
(221,271)
(9,802)
(1,741)
(1,108,365)
(10,021)
(488,202)
1,637,039
876
—
¥134,450
18,605
5,710
$1,173,152
Asahi Kasei Annual Report 2012
56
Notes to Consolidated Financial Statements
Asahi Kasei Corporation and Consolidated Subsidiaries
1. Major policies for preparing the consolidated financial statements
The consolidated financial statements, which are filed 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 differ-
ent in certain respects from the application and disclosure require-
ments of International Financial Reporting Standards. The
accompanying consolidated financial statements are a translation
of those filed with the prime minister of Japan and incorporate cer-
tain modifications to enhance foreign readers’ understanding of the
financial statements. In addition, the notes to the consolidated
financial statements include certain financial information which is
not required under the disclosure regulations in Japan, but is pre-
sented herein as additional information.
The U.S. dollar amounts presented in the consolidated financial
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 com-
puted in accordance with generally accepted translation proce-
dures, the approximate current exchange rate of ¥82=US$1
prevailing on March 31, 2012, has been used.
Consolidation and investments in affiliated companies
The consolidated financial statements consist of the accounts of
the parent company and 105 subsidiaries (101 subsidiaries at
March 31, 2011, hereinafter collectively referred to as the
“Company”) which, with minor exceptions due to immateriality, are
all majority and wholly owned companies, including 9 core operat-
ing 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.), and Tong Suh
Petrochemical Corp. Ltd. (Korea). Material inter-company transac-
tions and accounts have been eliminated.
Investments in unconsolidated subsidiaries and 20% to 50%
owned companies in which the Company exercises significant influ-
ence are accounted for, with minor exceptions due to immateriality,
using the equity method of accounting. There were 46 such unconsoli-
dated subsidiaries and 20% to 50% owned companies to which the
equity method is applied at March 31, 2012 (49 at March 31, 2011),
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
financial statements using a fiscal year ending December 31.
Material differences in inter-company transactions and accounts
arising from the use of different fiscal year-ends are appropriately
adjusted for through consolidation procedures.
Among the consolidated subsidiaries whose closing date was
December 31 until the fiscal year ended March 31, 2011, account-
ing treatment for 8 companies was changed from the conventional
method of applying appropriate accounting adjustments to reflect
their significant transactions which occur between December 31
and March 31. Beginning with the fiscal year ended March 31,
2012, those 8 subsidiaries either provisionally close their accounts
on March 31, or have changed their formal closing date to March
31. The impact of this change is shown in the consolidated state-
ments of changes in net assets and, as an adjustment to cash and
cash equivalents at the beginning of the fiscal year, in the consoli-
dated statements of cash flows as “effect of change in the reporting
period of consolidated subsidiaries and affiliates.”
All assets and liabilities of acquired companies are measured at
their fair value and any difference between the net assets and the
cost of investment is recognized as goodwill or negative goodwill.
Goodwill, and negative goodwill incurred through business combi-
nations which took place before April 1, 2010, are amortized by
straight-line method over a reasonable period during which their
effects would last, with the exception of minor amounts which are
charged to income as incurred.
2. Significant accounting policies
(a) Cash and cash equivalents
For cash flow statement purposes, cash and cash equivalents
include all highly liquid investments, generally with original maturi-
ties of three months or less, which are readily convertible to known
amounts of cash, and therefore present an insignificant risk of
changes in value due to changes in interest rates.
(b) Inventories
Inventories held for sale in the ordinary course of business are stat-
ed at the lower of cost or net realizable value. Residential lots and
dwellings for sale are stated at specifically identified costs.
(c) Noncurrent assets and depreciation/amortization
Property, plant and equipment (except for lease assets) are stated
at cost. Significant 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 machin-
ery and equipment and vehicles.
Intangible fixed assets (except for lease assets), including soft-
ware 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 (financing lease transactions without title transfer)
are depreciated/amortized on a straight-line basis over the period
of the lease with no residual value. For financing 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 financing
leases being charged to income as incurred.
(d) Significant allowances
i) Allowance for doubtful accounts
Estimates of the unrecoverable portion of receivables, generally
based on historical rates and for specific receivables of particu-
lar 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 fiscal period is recog-
nized 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 deficient eave assembly
specification are recognized as provision for product warranties.
iv) Provision for removal cost of property, plant and equipment
Provision for removal cost of property, plant and equipment is
recorded based on estimated future removal cost of property,
plant and equipment at each year end.
v) Provision for retirement benefits
Provision for retirement benefits represent the estimated present
value of projected benefit obligations in excess of the fair value
of the plan assets. Unrecognized actuarial gains/losses, result-
ing from variances between actual results and economic esti-
mates 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.
vi) Provision for directors’ retirement benefits
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) Significant revenue and expense recognition
i) Construction activities that are realizable as of current
fiscal year end
The percentage-of-completion method (progress of work is esti-
mated using the percentage of costs incurred to the total projected
costs).
Asahi Kasei Annual Report 2012
57
ii) Other construction activities
The completed-contract method
(f) Financial instruments
i) Securities
Securities are classified into four categories: trading securities,
held-to-maturity debt securities, equity securities of unconsoli-
dated subsidiaries and affiliates, and other securities. At March
31, 2012 and 2011, the Company did not have trading securi-
ties or held-to-maturity debt securities.
Equity securities of unconsolidated subsidiaries and affiliates
are accounted for, with minor exceptions due to immateriality,
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, net
of income taxes, being included as a component of net assets.
Other securities whose fair values are not readily determinable
are stated at cost. In cases where any significant 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 reflected in the consoli-
dated income statements.
ii) Derivative financial instruments
All derivatives are stated at fair value. Gains or losses arising
from changes in fair value are recognized in 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
3. Changes in significant accounting policies
(a) Change in accounting policy
Change in accounting policy of naphtha resale transactions
Asahi Kasei Chemicals Corp., a consolidated subsidiary of Asahi
Kasei Corp., resells a portion of the naphtha it has originally pur-
chased and subsequently purchases other naphtha for use, in
order to improve raw material quality as well as save production
costs. Through the third quarter of the fiscal year ended March 31,
2012, the naphtha resale amount was included in net sales, and
the cost for purchased naphtha was included in cost of sales.
During the fourth quarter of the fiscal year ended March 31, 2012,
the Company changed its accounting policy for naphtha resale
transactions to charging or crediting to cost of sales the net differ-
ence between sales and cost of sales for resold naphtha.
The proportion of naphtha resale amounts within the group’s
total sales has increased over the years as a result of changes in
the business environment. At the beginning of the current fiscal
year, Asahi Kasei Chemicals Corp., absorbed by merger one of its
subsidiaries, Sanyo Petrochemical, Co., Ltd., which had been
engaged in naphtha resale transactions as a principal business,
and Asahi Kasei Chemicals Corp., reassessed its accounting policy
for naphtha resale transactions. Because its principal business is to
produce petrochemical products, Asahi Kasei Chemicals Corp.
concluded that the new accounting policy, which includes in cost of
sales the net difference between sales and cost of sales relevant to
resold naphtha, more appropriately reflects the substance of naph-
tha resale transactions, resulting in a more appropriate presentation
of its chemical business, as compared to the existing accounting
policy, which presents sales and cost of sales relevant to naphtha
resale transactions on a gross basis.
This new accounting policy was applied retroactively in the fourth
quarter of the fiscal year ended March 31, 2012, when it became
clear that naphtha resale transactions continue to increase, as well
as in the prior fiscal year, and the respective financial information pre-
sented for the prior fiscal year is restated accordingly.
As an impact of this accounting change, both net sales and
cost of sales for the fiscal year ended March 31, 2011, decreased
by ¥42,442 million. This accounting change has no impact on
operating income, ordinary income, and income before income
taxes. Furthermore, this accounting change does not have any
cumulative impact on net assets at the beginning of the prior fiscal
year nor per share information for the prior fiscal year.
losses on hedges” until being offset against gains or losses of
the underlying hedged assets and liabilities.
(g) Taxes
Accrued income taxes are stated at the estimated amount of pay-
ables 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 flat rate of 5% unless otherwise
specified. Assets, liabilities, and profit and loss accounts are stated
net of consumption tax. The Company has elected to file its return
under the consolidated tax filing system in Japan.
(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 to income for the period.
Assets and liabilities of foreign subsidiaries are translated into
Japanese yen at year-end exchange rates, and income and expens-
es of same are translated into Japanese yen at the average
exchange rate for the fiscal year. Shareholders’ equity of foreign sub-
sidiaries 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 consolidated 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 com-
ponent of net assets in the consolidated balance sheets.
(b) Change in presentation
i) Consolidated balance sheets
Until the fiscal year ended March 31, 2011, “provision for
removal cost of property, plant and equipment” was included in
“accrued expenses” under current liabilities. In the fiscal year
ended March 31, 2012, the Company disclosed this provision in
the consolidated balance sheets as a separate line item. This is
because of a change in the estimate of the removal cost, as
stated in the footnote for “change in accounting estimates,”
which resulted in a reversal of the provision of removal cost
being reported in the consolidated statements of income, as
“gain on reversal of provision for removal cost of property, plant
and equipment” under non-operating income. The current and
noncurrent portions of the provision are reported separately
under current liabilities and noncurrent liabilities.
In order to reflect this change, the balance sheets as of
March 31, 2011, have also been reclassified accordingly, result-
ing in “accrued expenses” being ¥8,995 million lower than pre-
viously reported, reflecting the separation of ¥2,885 million as
“provision for removal cost of property, plant and equipment”
(the current portion) under current liabilities, and of ¥6,110 mil-
lion as “provision for removal cost of property, plant and equip-
ment” (the noncurrent portion) under noncurrent liabilities.
ii) Consolidated statements of income
Through the fiscal year ended March 31, 2011, “donations”
were included in “others” under non-operating expenses. In the
fiscal year ended March 31, 2012, “donations” exceeded 10%
of total of non-operating expenses, and therefore are reported
separately. The consolidated statements of income for the fiscal
year ended March 31, 2011, have also been reclassified
accordingly, resulting in “others” under non-operating expenses
being ¥1,009 million lower than previously reported, reflecting
the separation of ¥1,009 million as “donations.”
“Litigation related expenses,” which were reported separate-
ly in the fiscal year ended March 31, 2011, are now less than
10% of total of non-operating expenses and therefore included
in “others” in the fiscal year ended March 31, 2012. The consol-
idated statement of income for the fiscal year ended March 31,
2011, has been reclassified accordingly, resulting ¥1,908 million
which had been reported as “litigation related expenses” now
being included in “others.”
Asahi Kasei Annual Report 2012
58
Notes to Consolidated Financial Statements
iii) Consolidated statements of cash flows
“(Decrease) increase in provision for removal cost of property,
plant and equipment,” which had been included in “increase in
accrued expenses” under cash flows from operating activities
until the fiscal year ended March 31, 2011, is reported sepa-
rately in the fiscal year ended March 31, 2012. This is due to a
change in the presentation of the balance sheets which resulted
in “provision for removal cost of property, plant and equipment”
being reported separately from “accrued expenses.” The con-
solidated statement of cash flows for the fiscal year ended
March 31, 2011, has been reclassified accordingly, resulting in
“increase in accrued expenses” being ¥3,754 million lower than
previously reported, reflecting the separate reporting of the
same amount as “(decrease) increase in provision for removal
cost of property, plant and equipment.”
(c) Change in accounting estimates
To provide for the future removal cost of property, plant and equip-
ment, an estimate of the required amount has been set aside as “pro-
vision for removal cost of property, plant and equipment,” and it has
been included as part of “accrued expenses.” During the fiscal year
ended March 31, 2012, based on an updated estimate of the removal
cost due to a change in the removal method, the Company reversed
the corresponding accrued expenses and presented the remaining
balance as “provision for removal cost of property, plant and equip-
ment” as a separate line item in the consolidated balance sheets.
As a result of this change in accounting estimates, both ordi-
nary income and income before taxes for the fiscal year ended
March 31, 2012, increased by ¥2,236 million.
4. Additional information
With regard to accounting changes and corrections of prior period
errors which are made on or after the beginning of the fiscal year
ended March 31, 2012, the Company has applied the “Accounting
Standard for Accounting Changes and Error Corrections”
5. Notes to Consolidated Balance Sheets
(Accounting Standards Board of Japan (“ASBJ”) Statement No. 24)
and the “Guidance on Accounting Standard for Accounting
Changes and Error Corrections” (ASBJ Guidance No. 24).
(a) Investment securities
Among investment securities, shares of unconsolidated subsidiaries and affiliates as of March 31, 2012 and 2011, amounted to ¥64,099
million (US$780,458 thousand) and ¥63,690 million, respectively. Included in those amounts are investments in joint ventures of ¥31,415
million (US$382,503 thousand) and ¥34,266 million, respectively.
(b) Pledged assets and secured debt
A summary of assets pledged as collateral and secured debt as of March 31, 2012 and 2011, is shown below:
Pledged assets
Buildings and structures
Machinery, equipment and vehicles
Other
Secured debt
Short-term loans payable
Long-term loans payable
Millions of yen
2012
¥ 251
7
0
¥ 258
¥ 107
315
¥ 423
2011
¥ 341
12
0
¥ 353
¥ 109
423
¥ 531
Thousands of
U.S. dollars
2012
$ 3,056
85
0
$ 3,141
$ 1,303
3,835
$ 5,150
Besides the above, investment securities pledged to suppliers as transaction guarantee at March 31, 2012 and 2011, were ¥40 million
(US$487 thousand) and ¥87 million, respectively.
(c) Contingent liabilities
Contingent liabilities at March 31, 2012 and 2011, 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
2012
¥ 33,464
491
114
17,163
17
¥ 51,249
2011
¥ 31,592
760
309
15,002
37
¥ 47,700
Thousands of
U.S. dollars
2012
$ 407,452
5,978
1,388
208,974
207
$ 623,999
The parent company and certain of its subsidiaries and affiliates 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 impact to the Company’s consolidated financial statements.
(d) Deferred gain on property, plant and equipment deducted for tax purposes
The accumulated reduced-value entries, which is directly deducted from property, plant and equipment, as of March 31, 2012 and 2011,
were ¥7,631 million (US$92,914 thousand) and ¥7,268 million, respectively. The breakdown of reduced-value entries as of March 31, 2012
and 2011, is as follows:
Buildings and structures
Machinery, equipment and vehicles
Land
Other
Millions of yen
2012
¥ 3,134
4,103
230
164
¥ 7,631
2011
¥ 3,095
3,810
226
137
¥ 7,268
Thousands of
U.S. dollars
2012
$ 38,159
49,957
2,800
1,997
$ 92,914
Asahi Kasei Annual Report 2012
59
(e) Notes maturing on March 31, 2012
Although financial institutions in Japan were closed on March 31, 2012, and notes maturing on that date were actually settled on the fol-
lowing business day, April 2, 2012, those were accounted for as if settled on March 31, 2012.
The breakdown of those notes at March 31, 2012 were as follows:
Notes and accounts receivable—trade
Notes and accounts payable—trade
Current liabilities—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 benefits
Research and development*
Millions of yen
2012
¥3,443
1,807
¥372
2011
¥—
—
¥—
Millions of yen
2012
¥33,435
101,863
¥48,537
2011
¥ 33,946
94,383
¥44,745
Thousands of
U.S. dollars
2012
$41,921
22,002
$4,529
Thousands of
U.S. dollars
2012
$407,099
1,240,265
$590,978
* The aggregate amounts of research and development expenses included in manufacturing costs and selling, general and administrative expenses for the years ended March 31, 2012 and
2011, were ¥66,269 million (US$806,879 thousand) and ¥62,320 million, respectively.
(b) Gain or loss on devaluation of inventories
Inventories held for sale in the ordinary course of business are stated at the lower of cost or net realizable value. Loss or (gain) on devalua-
tion of inventories for the years ended March 31, 2012 and 2011, was as follows:
(c) Gain on sales of noncurrent assets
Major components of gain on sales of noncurrent assets are as follows:
Land
Machinery
Other
Millions of yen
2012
¥983
2011
¥(429)
Millions of yen
2012
¥261
101
¥132
2011
¥423
—
¥40
(d) Loss on disposal of noncurrent assets
Loss on disposal of noncurrent assets for the years ended March 31, 2012 and 2011, 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, 2012 and 2011, were as follows:
Use
Production facility for glass fabric
Asset class
Machinery and
equipment, etc.
Location
Moriyama, Shiga
Production facility for semiconductor
Buildings, etc.
Tateyama, Chiba
Production facility for microcrystalline
cellulose
Machinery and
equipment, etc.
Nobeoka, Miyazaki
Idle assets
Production facility for resin molding
Land
Iizuka, Fukuoka
Machinery and
equipment, etc.
Kawasaki, Kanagawa
Production facility for fine-pattern devices Machinery and
equipment, etc.
Hyuga, Miyazaki
Production facility for ammonia
Production facility for synthetic fibers
Production facility for resin molding
Production facility for benzene
Research facility for pharmaceuticals
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Kurashiki, Okayama
USA
Fuji, Shizuoka
Kurashiki, Okayama
Fuji, Shizuoka
Rental facilities
Buildings, etc.
Nobeoka, Miyazaki
Production facility for synthetic resin
Machinery and
equipment, etc.
Kurashiki, Okayama
Millions of yen
2012
¥ 3,761
1,120
137
127
119
77
—
—
—
—
—
—
—
2011
¥—
—
—
—
—
79
3,154
1,977
708
651
330
295
52
Thousands of
U.S. dollars
2012
$11,969
Thousands of
U.S. dollars
2012
$ 3,178
1,230
$ 1,607
Thousands of
U.S. dollars
2012
$ 45,793
13,637
1,668
1,546
1,449
938
—
—
—
—
—
—
—
Asahi Kasei Annual Report 2012
60
Notes to Consolidated Financial Statements
Grouping of operating assets is based on managerial accounting categories, with consideration given to production process, geograph-
ic location, and domain of authority for making investment decisions. Idle assets are recorded separately in each fixed assets class.
With respect to production and research facilities as shown in the above table, the book value was reduced to the recoverable amount
due to diminished profitability. The recoverable amount is stated as value for future usage, which is calculated based on discounted future
cash flow with applicable discount rate of 6% as of March 31, 2012 and 2011.
For idle land of which the market value has significantly decreased, the book value is reduced to the recoverable amount. The recover-
able amount is measured at the net selling price primarily based on the value appraised by real estate appraisers. The resulting extraordi-
nary losses for production facility for glass fabric and semiconductor were recorded under business structure improvement expenses for
the year ended March 31, 2012.
(f) Environmental expenses
Environmental expenses for the years ended March 31, 2012 and 2011, were mainly for decontamination of idle land, etc.
(g) Loss on disaster
Major components of loss on disaster were as follows:
Repair or maintenance expenses related to delivered homes in housing operations
Fixed costs incurred during suspension of operations
Others
(h) Business structure improvement expenses
Major components of business structure improvement expenses were as follows:
Impairment of fixed assets
Loss on restructuring group company
Loss on disposal and devaluation of inventory and others
7. Notes to Consolidated Statements of Comprehensive Income
Recycling adjustment and tax effects on other comprehensive income are as follows:
Net unrealized gain on other securities
Changes during the fiscal year
Recycling adjustment
Pre-tax effect
Tax effect
Net increase or decrease in unrealized gain on other securities
Deferred gain or loss on hedges
Changes during the fiscal year
Recycling adjustment
Pre-tax effect
Tax effect
Deferred gains or losses on hedges
Foreign currency translation adjustment
Changes during the fiscal year
Pre-tax effect
Foreign currency translation adjustment
Share of other comprehensive income of affiliates accounted for using equity method
Changes during the fiscal year
Recycling adjustment
Share of other comprehensive income of affiliates accounted for using equity method
Total other comprehensive income
Millions of yen
2012
¥423
58
546
¥ 1,027
2011
¥—
410
411
¥ 821
Millions of yen
2012
¥ 4,881
1,883
1,691
¥ 8,454
2011
¥4,842
—
5,174
¥ 10,016
Millions of yen
2012
¥ 12,194
228
12,421
(1,868)
10,553
(2,005)
(180)
(2,185)
591
(1,594)
(1,029)
(1,029)
(1,029)
(2,251)
(4)
(2,255)
¥5,676
Thousands of
U.S. dollars
2012
$5,150
706
6,648
$ 12,505
Thousands of
U.S. dollars
2012
$59,430
22,927
20,589
$ 102,934
Thousands of
U.S. dollars
2012
$ 148,472
2,776
151,236
(22,744)
128,491
(24,413)
(2,192)
(26,604)
7,196
(19,408)
(12,529)
(12,529)
(12,529)
(27,408)
(49)
(27,456)
$69,110
Asahi Kasei Annual Report 2012
61
8. Notes to Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2012
(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, 2011
Increase in
number of shares
during the fiscal year
Decrease in
number of shares
during the fiscal year
Number of
shares as of
March 31, 2012
Thousands of shares
1,402,616
1,402,616
4,421
4,421
—
—
541
541
—
—
36
36
1,402,616
1,402,616
4,926
4,926
Notes: 1. The increase of 541 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 36 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 11, 2011.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥8,389 million (US$102,143 thousand)
¥6.00 (US$0.07)
March 31, 2011
June 7, 2011
2) The following was resolved by the Board of Directors on November 2, 2011.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥9,784 million (US$119,128 thousand)
¥7.00 (US$0.09)
September 30, 2011
December 1, 2011
ii) Dividends for which the date of record falls within the fiscal year under review but the payment date occurs in the
following fiscal year
The following was resolved by the Board of Directors on May 9, 2012.
Dividends for common stock
Total dividends
Source of dividends
Dividend per share
Date of record
Payment date
¥9,784 million (US$119,128 thousand)
Retained earnings
¥7.00 (US$ 0.09)
March 31, 2012
June 6, 2012
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 fiscal year
Decrease in
number of shares
during the fiscal 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
¥5.00
March 31, 2010
June 7, 2010
Asahi Kasei Annual Report 2012
62
Notes to Consolidated Financial Statements
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
¥5.00
September 30, 2010
December 1, 2010
ii) Dividends for which the date of record falls within the fiscal year under review but the payment date occurs in the
following fiscal year
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
¥8,389 million
Retained earnings
¥6.00
March 31, 2011
June 7, 2011
9. Note to Consolidated Statements of Cash Flows
Cash and cash equivalents
Reconciliation of cash and cash equivalents on the consolidated statements of cash flows to the amounts disclosed on the consolidated
balance sheets at March 31, 2012 and 2011, 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
2012
¥ 102,875
(6,884)
360
¥96,351
2011
¥ 140,319
(6,240)
371
¥ 134,450
Thousands of
U.S. dollars
2012
$ 1,252,587
(83,818)
4,383
$ 1,173,152
1) Property, plant and equipment: Mainly model homes (buildings and structures) for housing operations.
2) Intangible fixed assets: Software
ii) Depreciation of lease assets:
As stated in Note 2. Significant accounting policies (c) Noncurrent assets and depreciation/amortization. The financing lease trans-
actions without title transfer which occurred prior to March 31, 2008, are accounted for on a basis similar to operating lease. Such
lease transactions accounted for as operating lease be accounted for as financing lease, cost and related accumulated amortiza-
tion, computed using the straight-line method over the term of the lease, at March 31, 2012 and 2011, would have been as follows:
Machinery, equipment and vehicles
Property, plant and equipment, other
Intangible fixed assets, other
Buildings and structures
Machinery, equipment and vehicles
Property, plant and equipment, other
Intangible fixed assets, other
Millions of yen
2012
Accumulated
depreciation/
amortization
¥89
253
163
¥505
Millions of yen
2011
Accumulated
depreciation/
amortization
¥ 1,868
134
497
179
¥ 2,678
Net amount
¥53
47
19
¥119
Net amount
¥ 250
78
142
62
¥ 532
Cost
¥143
300
182
¥625
Cost
¥ 2,118
212
639
241
¥ 3,210
Asahi Kasei Annual Report 2012
63
Machinery, equipment and vehicles
Property, plant and equipment, other
Intangible fixed assets, other
Thousands of U.S. dollars
2012
Accumulated
amortization
$1,084
3,080
1,985
$6,149
Cost
$1,741
3,653
2,216
$7,610
Net amount
$645
572
231
$1,449
The future lease payments under the Company’s financing leases at March 31, 2012 and 2011, including amounts representing inter-
est, were as follows:
Due within one year
Due after one year
Millions of yen
2012
¥70
49
¥ 119
2011
¥ 412
119
¥ 532
Thousands of
U.S. dollars
2012
$852
597
$ 1,449
Lease charges were ¥359 million (US$4,371 thousand) and ¥1,213 million for the years ended March 31, 2012 and 2011, 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 ¥359 million (US$4,371 thousand) and ¥1,213 million for the years ended March 31, 2012 and 2011, 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, 2012 and 2011, were as follows:
Thousands of
U.S. dollars
Millions of yen
Due within one year
Due after one year
11. Financial instruments
(a) Overview of financial instruments
i) Policy related to financial 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 financial assets. Short-term working funds are raised
by bank borrowings, issuance of commercial paper, etc.
Derivative transactions are mainly entered into for the pur-
pose of reducing risks related to assets and liabilities which
are exposed to risks of fluctuations of exchange rate and
interest rate. Derivatives are not traded for speculative pur-
poses.
ii) Components of financial instruments, their risks and
risk management structure
As operating receivables, notes and accounts receivable—
trade, are exposed to credit risk of customers. As the busi-
ness of the Company spans a wide range of fields,
operating receivables are not excessively concentrated on
specific customers, but each group company monitors and
manages the credit condition for each customer.
Investment securities are exposed to the risk of fluctua-
tions in market price, but they are mainly equity securities of
companies with which the Company has business relation-
ships. These securities are held for the purpose of maintain-
ing the business relationships. Fair value is periodically
evaluated, and the financial condition of the issuing compa-
ny 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 fluctuations, but derivatives (interest currency
swaps, interest-rate swaps) are used as hedges to fix inter-
est expenses for a portion of long-term variable interest-rate
borrowings.
2012
¥4,975
5,147
2011
¥4,456
7,856
¥ 10,121
¥ 12,312
2012
$60,575
62,669
$ 123,231
Operating receivables and operating liabilities include
those denominated in currencies other than Japanese yen,
and are thus exposed to the risk of exchange rate fluctua-
tions. In order to minimize the effects of short-term
exchange-rate fluctuations, the Company hedges with
derivative transactions (forward exchange contracts), in prin-
ciple, within the range of the underlying receivables and lia-
bilities amount.
Derivative transactions are exposed to the credit risk of
transacting financial institutions, but the credit condition of
those financial institutions is reviewed through periodical
monitoring. Such transactions are performed and managed
in accordance with the Company’s internal regulations
which stipulate the related authority, procedures, limits, etc.
Borrowings are exposed to liquidity risk, but the parent
company specifies standards for required on-hand funds
based on the Company’s funding plans, prepares and revis-
es plans for cash receipts and disbursements as appropri-
ate, and enters into commitment-line agreements with
transacting financial institutions to manage such risk.
Loan securitization in housing business is exposed to
the risk of interest rate fluctuations between the time of orig-
ination 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 financial
instruments
The fair value of financial instruments is based on their quot-
ed market price, if available. In the case where no quoted
market price is available, a reasonably estimated fair value is
used. As variable factors are incorporated in its estimation,
fair value may change due to the adoption of different
assumptions, conditions, etc. Amount of contract regarding
derivative transactions in the Note 13 “Derivative financial
instruments” is not itself an indication of the market risk of
the derivative transactions.
Asahi Kasei Annual Report 2012
64
Notes to Consolidated Financial Statements
(b) Fair value of financial instruments
Amounts carried on the consolidated balance sheets, their fair values, and the differences between them as of March 31, 2012 and 2011,
are as shown below.
Financial instruments whose fair values are deemed extremely difficult 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)
Investment securities
Other securities
Long-term loans receivables
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 financial 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 financial instruments (*2)
Millions of yen
2012
Fair value
¥ 102,875
Difference
¥—
265,118
—
Carrying
amount
¥ 102,875
266,056
(938)
265,118
105,130
6,539
479,662
143,194
44,751
15,000
8,380
25,000
91,942
6,914
6,109
341,289
¥(2,822)
Carrying
amount
¥ 140,319
273,414
(1,028)
272,386
105,130
7,097
480,220
143,194
44,751
15,000
8,380
25,953
93,901
6,915
6,006
344,100
¥(2,822)
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)
—
558
558
—
—
—
—
(953)
(1,959)
(1)
102
(2,811)
¥—
Difference
¥—
—
—
—
400
400
—
—
—
—
(311)
(1,663)
(19)
114
(1,879)
¥—
Asahi Kasei Annual Report 2012
65
Carrying
amount
$ 1,252,587
3,239,450
(11,421)
3,228,029
1,280,044
79,618
5,840,278
1,743,504
544,880
182,637
102,033
304,395
1,119,469
84,184
74,382
4,155,473
$(34,360)
Thousands of U.S. dollars
2012
Fair value
$ 1,252,587
Difference
$—
3,228,029
—
1,280,044
86,412
5,847,072
1,743,504
544,880
182,637
102,033
315,999
1,143,322
84,196
73,128
4,189,699
$(34,360)
—
6,794
6,794
—
—
—
—
(11,604)
(23,852)
(12)
1,242
(34,226)
$—
fair values are based on present value of principal and interest discounted using
the current assumed rates for similar long-term loans payable. Of long-term
loans payable bearing variable interest rates, fair value of those subject to special
treatment of interest rate swaps is based on present value by totaling the amount
of principal and interest, together with related interest rate swaps, discounted
by the interest rate that would apply if equivalent long-term loans were newly
entered. For other long-term loans payable, book value is used as fair value as
they are deemed to reflect market interest rates within a short term.
4) Lease obligations
The carrying amounts shown are the total amount of lease obligations under
current liabilities and lease obligations under noncurrent liabilities. Present value
is 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 discounted cashflow over that period.
iii) Derivative transactions
Refer to the Note 13 “Derivative financial instruments.”
Note 2)
Note 3)
Note 4)
For equity investments in nonpublic companies, with a carrying amount as of March
31, 2012 and 2011, amounting to ¥72,743 million (US$885,706 thousand) and
¥72,652 million, respectively, fair value is not included in short-term investment
securities or in investment securities, as no quoted market price is available and
it is deemed extremely difficult to determine fair value due to the impossibility of
estimating future cash flows.
A portion of the carrying amount of long-term loans payable, as of March 31,
2012 and 2011, amounting to ¥507 million (US$6,173 thousand) and ¥507 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 certified. Fair value is not included as it is deemed extremely difficult to determine
due to the impossibility of estimating future cash flows.
For long-term guarantee deposited, the fair value of a portion having a carrying
amount as of March 31, 2012 and 2011, amounting to ¥12,178 million (US$148,277
thousand) and ¥12,495 million, respectively, is not included as no quoted market
price is available and it is deemed extremely difficult to determine fair value due to
the impossibility of estimating future cash flows.
For monetary credits and securities with maturity, amount scheduled for redemption
subsequent to the closing date.
Millions of yen
2012
Cash and deposits
Notes and accounts receivable—trade
Allowance for doubtful accounts (*1)
Investment securities
Other securities
Long-term loans receivables
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 financial instruments (*2)
(*1) This reduction represents specific allowance for doubtful accounts related to notes and
accounts receivable—trade, and long-term loans receivable.
(*2) The amounts represent net amount of assets and liabilities resulted from derivative
transactions. In the case of a net liability, the amount is shown in parentheses.
Note 1) Method to determine the estimated fair value of financial instruments; securities and
derivative financial 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 and investment securities
The stock exchange prices are used to determine fair value of these traded
stocks. Refer to the Note 12 “Marketable securities and investment securities” for
information on securities classified holding purpose.
3) Long-term loans receivables
The carrying amounts shown include long-term loans receivable scheduled for
repayment within one year. Their fair values are determined based on the present
value of principal and interest, discounted using current assumed rates for similar
long-term loans receivable. For long-term loans receivable bearing variable
interest rates, as they are deemed to reflect market interest rates within a short
term, book values are used as fair value.
ii) Liabilities
1) Notes and accounts payable—trade; short-term loans payable; commercial
paper; income taxes payable
As their fair values approximate book value due to their short maturity, the
corresponding book value amounts are used as fair value.
2) Bonds payable
Fair value of the bonds payable issued by the parent company is based on the
quoted market price determined by the market price. For those without quoted
market price that are subject to special treatment for interest rate swaps, fair
value is based on the present value by totaling the amount of principal and
interest, together with related interest rate swaps, discounted by the interest rate
that would apply if equivalent bonds were newly issued.
3) Long-term loans payable
The carrying amounts shown include long-term loans payable that are scheduled
for repayment within one year of March 31, 2012 and 2011, amounted to
¥29,739 million (US$362,097 thousand) and ¥32,278 million, respectively. Their
Note 5)
Cash and deposits
Notes and accounts receivable—trade
Short-term investment securities, investment securities
Government and municipal bonds
Long-term receivables
Due within one year
Due after one year,
within five years
Due after five years,
within ten years
Due after more than
ten years
¥ 102,875
266,056
2
979
¥ 369,913
¥—
—
—
5,344
¥ 5,344
¥—
—
—
215
¥ 215
¥ —
—
—
—
¥ —
Asahi Kasei Annual Report 2012
66
Notes to Consolidated Financial Statements
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 five years
Due after five 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
¥ —
—
—
—
¥ —
Thousands of U.S. dollars
2012
Due after one year,
within five years
Due after five years,
within ten years
Due after more than
ten years
$—
—
—
65,068
$ 65,068
$—
—
—
2,618
$ 2,618
$ —
—
—
—
$ —
Due within one year
$ 1,252,587
3,239,450
24
11,920
$ 4,503,994
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.”
12. Marketable securities and investment securities
(a) Other securities with available fair value
The aggregate cost, carrying amount which were identical to fair value, and gross unrealized gains and losses of debt and equity securities
classified as other securities for which fair values are available at March 31, 2012 and 2011, are as follows:
Securities with unrealized gains:
Equity securities
Securities with unrealized losses:
Equity securities
Carrying
amount
Millions of yen
2012
Cost
Unrealized gains
(losses)
¥97,644
¥ 32,027
¥ 65,617
7,486
¥ 105,130
10,840
¥ 42,867
(3,354)
¥ 62,263
Note) For equity investment in nonpublic companies, with a carrying amount of ¥72,743 million, fair value is not included in short-term investment securities or in investment securities, as no
quoted market price is available and it is deemed extremely difficult to determine fair value.
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
quoted market price is available and it is deemed extremely difficult to determine fair value.
Securities with unrealized gains:
Equity securities
Securities with unrealized losses:
Equity securities
Thousands of U.S. dollars
2012
Carrying
amount
Cost
Unrealized gains
(losses)
$ 1,188,896
$ 389,955
$ 798,941
91,148
$ 1,280,044
131,986
$ 521,941
(40,838)
$ 758,103
Note) For equity investment in nonpublic companies, with a carrying amount of US$885,706 thousand, fair value is not included in short-term investment securities or in investment securities, as
no quoted market price is available and it is deemed extremely difficult to determine fair value.
Asahi Kasei Annual Report 2012
67
(b) The realized gains and losses on the sale of other securities during the year ended March 31, 2012 and 2011, are as
follows:
Selling amount
Gain on sales of securities
Loss on sales of securities
Millions of yen
2012
¥ 541
191
—
2011
¥ 1,292
416
380
Thousands of
U.S. dollars
2012
$6,587
2,326
—
(c) Loss on other devaluation of investment securities whose fair values are readily determinable for the years ended March
31, 2012 and 2011, was ¥1,898 million (US$23,110 thousand) and ¥651 million, respectively.
13. Derivative financial instruments
(a) Derivative financial instruments for which hedge accounting is not applied
i) Foreign exchange forward contracts
Classification
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profit (loss) from valuation
Millions of yen
2012
Off-market
transactions
Foreign exchange forward contracts
Selling
U.S. dollar
Euro
Thai baht
Singapore dollar
Buying
U.S. dollar
¥ 12,155
4,070
594
21
2,138
¥ 18,978
¥ —
—
—
—
—
¥ —
¥ (376)
(227)
(32)
(0)
6
¥ (630)
¥ (376)
(227)
(32)
(0)
6
¥ (630)
Millions of yen
2011
Classification
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profit (loss) from valuation
Foreign exchange forward contracts
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)
Thousands of U.S. dollars
2012
Classification
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profit (loss) from valuation
Off-market
transactions
Foreign exchange forward contracts
Selling
U.S. dollar
Euro
Thai baht
Singapore dollar
Buying
U.S. dollar
$ 147,997
49,556
7,232
256
26,032
$ 231,073
$ —
—
—
—
—
$ —
$ (4,578)
(2,764)
(390)
(0)
73
$ (4,578)
(2,764)
(390)
(0)
73
$ (7,671)
$ (7,671)
Asahi Kasei Annual Report 2012
68
Notes to Consolidated Financial Statements
(b) Derivative financial instruments for which hedge accounting is applied
i) Foreign exchange forward contracts
Classification
Items
Hedged assets/liabilities
Amount of contract
Foreign exchange forward contracts
Millions of yen
2012
Amount of contract
over 1 year
Principle-
based
accounting
Selling
U.S. dollar
Euro
U.S. dollar
Buying
U.S. dollar
Accounts receivable—trade
Accounts receivable—trade
Investment securities
Accounts payable—trade
¥8,001
146
144,500
264
¥ 152,911
¥ 410
—
—
—
¥ 410
Classification
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
Principle-
based
accounting
Euro
Buying
U.S. dollar
Euro
Singapore dollar
Accounts receivable—trade
Accounts receivable—trade
Accounts payable—trade
Accounts payable—trade
Accounts payable—trade
¥9,467
936
370
4
13
¥ 10,790
¥ —
—
—
—
—
¥ —
Classification
Items
Hedged assets/liabilities
Amount of contract
Foreign exchange forward contracts
Thousands of U.S. dollars
2012
Amount of contract
over 1 year
Fair value
¥(390)
(1)
(1,804)
2
¥ (2,192)
Fair value
¥ (121)
(40)
9
(0)
0
¥ (152)
Fair value
Principle-
based
accounting
Selling
U.S. dollar
Euro
U.S. dollar
Buying
U.S. dollar
Accounts receivable—trade
$97,419
$ 4,992
$(4,749)
Accounts receivable—trade
1,778
—
(12)
Investment securities
1,759,406
—
(21,965)
Accounts payable—trade
3,214
—
24
$ 1,861,817
$ 4,992
$ (26,689)
ii) Interest rate swaps, and interest rate and currency swaps
Classification
Special
treatment for
interest rate
swaps
Special
treatment for
interest rate and
currency swaps
Items
Hedged assets/liabilities
Amount of contract
Interest rate swaps
Millions of yen
2012
Amount of contract
over 1 year
Fair value
Pay fixed/receive floating
Long-term loans payable
¥ 27,044
¥ 16,304
Interest rate and currency swaps
U.S. dollar receive fixed/
Japanese yen pay floating
U.S. dollar receive floating/
Thai baht pay fixed
Bonds payable
5,000
5,000
Long-term loans payable
747
498
¥ 32,791
¥ 21,802
(*)
(*)
(*)
—
Asahi Kasei Annual Report 2012
69
Items
Hedged assets/liabilities
Amount of contract
Interest rate swaps
Millions of yen
2011
Amount of contract
over 1 year
Fair value
Classification
Special
treatment for
interest rate
swaps
Receive fixed/pay floating
Long-term loans payable
Pay fixed/receive floating
Long-term loans payable
¥5,000
43,884
¥—
25,915
Special
treatment for
interest rate and
currency swaps
Interest rate and currency swaps
U.S. dollar receive fixed/
Japanese yen pay floating
U.S. dollar receive floating/
Thai baht pay fixed
Bonds payable
5,000
5,000
Long-term loans payable
1,093
¥ 54,978
820
¥ 31,735
(*)
(*)
(*)
(*)
—
Classification
Special
treatment for
interest rate
swaps
Special
treatment for
interest rate and
currency swaps
Items
Hedged assets/liabilities
Amount of contract
Interest rate swaps
Thousands of U.S. dollars
2012
Amount of contract
over 1 year
Fair value
Pay fixed/receive floating
Long-term loans payable
$ 329,283
$ 198,515
Interest rate and currency swaps
U.S. dollar receive fixed/
Japanese yen pay floating
U.S. dollar receive floating/
Thai baht pay fixed
Bonds payable
60,879
60,879
Long-term loans payable
9,095
6,064
$ 399,257
$ 265,457
(*)
(*)
(*)
—
(*) Fair value of interest rate swaps and interest currency swaps, for which special 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 benefits
Upon terminating employment, employees of the parent company and its major subsidiaries in Japan are entitled, under most circumstanc-
es, 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 benefits may be granted to employees depending on the conditions under which termination of employment
occurs. Certain foreign subsidiaries have defined benefit pension plans or defined contribution plans.
The obligation for these severance indemnity benefits is provided for through accruals, contributory funded defined benefit pension
plans, contributory funded defined benefit enterprise pension plans and non-contributory funded tax-qualified pension plans.
Information on provision for retirement benefits at March 31, 2012 and 2011, was as follows:
(a) Projected benefit obligations
(b) Fair value of plan assets
(c) Unfunded benefit 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 benefits [(f)-(g)]
Millions of yen
2012
2011
Thousands of
U.S. dollars
2012
¥ (311,561)
¥ (310,990)
$ (3,793,510)
161,838
(149,723)
49,107
(1,309)
(101,925)
4,353
164,396
(146,593)
46,746
(2,692)
(102,539)
4,769
1,970,510
(1,823,000)
597,918
(15,938)
(1,241,020)
53,001
¥ (106,277)
¥ (107,309)
$ (1,294,009)
Note: The figures in the above table do not include additional benefit payables amounting to ¥93 million (US$1,132 thousand) and ¥111 million at March 31, 2012 and 2011, respectively. The
amounts were recorded as part of current liabilities on the consolidated balance sheets at March 31, 2012 and 2011.
Periodic retirement benefit expenses for employees for the years ended March 31, 2012 and 2011, 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 benefit expenses
Millions of yen
2012
¥9,744
6,312
(4,060)
4,760
(1,380)
2011
¥9,031
7,237
(4,219)
2,317
(1,378)
Thousands of
U.S. dollars
2012
$ 118,641
76,854
(49,434)
57,957
(16,803)
¥ 15,376
¥ 12,987
$ 187,215
Note: In addition to the above costs, additional benefits amounting to ¥340 million (US$4,140 thousand) and ¥878 million were charged to income for the years ended March 31, 2012 and
2011, respectively.
* Not including contributions made by employees.
Asahi Kasei Annual Report 2012
70
Notes to Consolidated Financial Statements
The assumptions used in calculation of the above information are as follows:
Discount rate
Expected rate of return on plan assets
2012
Mainly 2.0%
Mainly 2.5%
2011
Mainly 2.0%
Mainly 2.5%
Method of attributing the projected benefits 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
15. Taxes
Income taxes applicable to the parent company and subsidiaries in Japan include (1) corporation tax, (2) enterprise tax, and (3) inhabitants
tax.
Significant components of the deferred tax assets and liabilities at March 31, 2012 and 2011, were as follows:
Deferred tax assets:
Provision for retirement benefits
Tax loss carry forwards
Accrued bonuses
Unrealized gain on noncurrent assets and others
Impairment loss
Unrealized loss on investment securities
Loss on disposal of noncurrent assets
Provision for repairs
Depreciation
Asset retirement obligations
Accrued enterprise tax
Devaluation of inventories
Provision for product warranties
Deferred gains or losses on hedges
Environmental expenses
Allowance for doubtful accounts
Other
Subtotal deferred tax assets
Less: Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized gain on other securities
Deferred gain on property, plant and equipment
Identified intangible assets during business combination
Reserve for accelerated depreciation
Other
Total deferred tax liabilities
Millions of yen
2012
2011
¥37,608
16,377
8,272
4,233
4,104
3,411
3,434
2,989
1,964
1,415
1,368
1,022
889
834
662
341
7,897
96,821
(24,557)
72,263
(24,168)
(11,862)
(3,698)
(249)
(5,269)
(45,247)
¥43,436
12,741
8,904
4,302
4,605
3,287
5,533
2,316
2,146
1,456
2,322
1,459
1,171
78
953
412
7,368
102,488
(21,904)
80,585
(22,454)
(13,402)
—
(247)
(5,720)
(41,822)
Thousands of
U.S. dollars
2012
$457,908
199,403
100,718
51,540
49,970
41,532
41,812
36,394
23,913
17,229
16,657
12,444
10,824
10,155
8,060
4,152
96,152
1,178,875
(299,002)
879,861
(294,265)
(144,430)
(45,026)
(3,032)
(64,154)
(550,919)
Net deferred tax assets
¥27,017
¥38,762
$328,954
Net deferred tax assets (liabilities) at March 31, 2012 and 2011, 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
2012
¥ 19,454
18,965
—
(11,402)
2011
¥ 23,131
22,005
—
(6,374)
Thousands of
U.S. dollars
2012
$ 236,868
230,914
—
(138,829)
Asahi Kasei Annual Report 2012
71
Reconciliation of the differences between the statutory tax rate
and the effective income tax rate for the years ended March 31,
2012 and 2011, was as follows:
Statutory tax rate
2012
40.7%
Statutory tax rate
Increase (reduction) in taxes resulting from:
Increase (reduction) in taxes resulting from:
Non-deductible expenses and non-taxable income
Equalization of inhabitants taxes
Equity in earnings of unconsolidated subsidiaries and affiliates
Undistributed earnings of foreign subsidiaries
Difference of tax rates for foreign subsidiaries
Valuation allowance
R&D expenses deductible from income taxes
Decrease in deferred tax asset due to the change
in statutory tax rate
1.5
0.5
(0.3)
(0.5)
(3.2)
1.4
(6.3)
5.7
Non-deductible expenses and non-taxable income
Equalization of inhabitants taxes
Equity in earnings of unconsolidated subsidiaries and affiliates
Undistributed earnings of foreign subsidiaries
Difference of tax rates for foreign subsidiaries
Valuation allowance
R&D expenses deductible from income taxes
Decrease in deferred tax asset due to the change
in statutory tax rate
Other
Effective income tax rate
0.6
40.0%
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%
Change in deferred tax assets and deferred tax liabilities due
to changes in the corporate income tax rate
The “Act for Partial Amendment of the Income Tax Act, etc., for the
Purpose of Creating a Taxation System Responding to Changes in
Economic and Social Structures” (Act No.114 of 2011) and the
“Act on Special Measures for Securing Financial Resources
Necessary to Implement Measures for Reconstruction from the
Great East Japan Earthquake” (Act No.117 of 2011) were issued
on December 2, 2011 and the income tax rate is to be changed
accordingly with the effect on business terms beginning on April 1,
2012 onward.
In accordance with the change, statutory effective tax rates
used to calculate the amounts of deferred tax assets and liabilities
have been applied as follows depending on the timing of reversal
for each temporary item.
Timing of reversal
April 1, 2012 through March 31, 2015
April 1, 2015 onward
Tax rate
38.0%
35.6%
As a result of this change, net deferred tax assets (after netting
deferred tax liabilities) decreased by ¥2,296 million, net unrealized
gain on other securities increased by ¥3,133 million and deferred
gains or losses on hedges decreased by ¥46 million, respectively,
and income taxes—deferred increased by ¥5,383 million.
16. Business combinations
Business combinations accounted for by purchase method were as
follows:
1. Artisan Pharma, Inc.
(a) Outline of business combination
1) Name of acquiree
Artisan Pharma, Inc.
2) Nature of the businesses
Clinical trials for new drugs, sale of pharmaceuticals
3) Main reasons for the acquisition
In 2006, Asahi Kasei Pharma Corp. established Artisan
Pharma, Inc. together with several venture capital firms, and
licensed its ART-123 (recombinant thrombomodulin alpha,
marketed as Recomodulin™ in Japan) to the new company
for the advancement of overseas development. Artisan
Pharma conducted a global Phase IIb clinical trial for ART-
123 for the treatment of DIC in sepsis, which was complet-
ed in 2010. Artisan Pharma’s shareholders subsequently
advanced discussions on the best approach for implemen-
tation of a Phase III clinical trial, reaching the conclusion that
it would be optimal for Asahi Kasei Pharma to acquire full
ownership and perform the clinical trial on its own in order to
facilitate the processes and procedures for the trial and
receive approval for ART-123 as swiftly as possible.
4) The acquisition date
November 4, 2011
5) Statutory form of business combination
Stock purchase for cash as consideration
6) Name of company after transaction
Artisan Pharma, Inc. (currently, Asahi Kasei Pharma America
Corp.)
7) Acquired voting right
Voting right before the acquisition
37.65%
Additional voting right acquired as of the acquisition date
62.35%
Voting right after the acquisition
100.00%
8) Major reasons for identifying the acquirer
Stock purchase for cash as consideration by Asahi Kasei
Pharma Corp. which is a wholly owned subsidiary of Asahi
Kasei Corp.
(b) The period of acquiree’s results included in the
consolidated financial statements
From January 1, 2012, to March 31, 2012
(c) Cost of acquisition and details
Stock purchase price
Acquisition related direct
cost
Purchase price
Millions of yen
¥ 5,661
34
¥5,695
Thousands of
U.S. dollars
$ 68,927
414
$69,341
All stocks held as of the acquisition date are remeasured to their
fair value at acquisition date.
(d) The difference between the purchase price and the sum
of carrying amounts of each investment
¥2,143 million (US$26,093 thousand)
The difference is recognized as gain on step acquisitions on the
consolidated statements of income.
(e) The amount of goodwill, measurement principle,
amortization method and useful life
1) Amount of goodwill
¥2,323 million (US$28,284 thousand)
2) Measurement principle
Goodwill is measured as the excess of the purchase price
over the fair value of identifiable assets acquired and liabili-
ties assumed.
3) Amortization method and useful life
Straight-line method over 10 years
Asahi Kasei Annual Report 2012
72
Notes to Consolidated Financial Statements
(f) Details of assets acquired and liabilities assumed as of the
acquisition date
Current assets
Noncurrent assets
Total assets
Current liabilities
Noncurrent liabilities
Total liabilities
Millions of yen
Thousands of
U.S. dollars
2012
¥198
5,774
5,973
46
2,323
¥ 2,369
2012
$2,411
70,303
72,726
560
28,284
$ 28,845
(g) Outline of contingent consideration stated on the share
purchase agreement and its accounting treatment in the
subsequent period
1) Nature of contingent consideration
The contingent consideration depends on the degree of
achievement of a specified milestone and others after the
acquisition date.
2) Accounting treatment in the subsequent period
In case additional consideration is paid, purchase price is
adjusted as if it was paid as of the acquisition date then the
amount of goodwill and its amortization expense are
changed accordingly.
(h) Amount of identifiable intangible assets other than
goodwill, its details and major weighted average useful
life
1) Purchase price allocated to intangible assets and its
major item
In process Research & Development ¥5,768 million
(US$70,230 thousand)
2) Major weighted average useful life
Intangible assets are amortized over their economic useful
lives.
Additional voting right acquired as of the acquisition date
93.27%
Voting right after the acquisition
100.00%
8) Reason for identifying the acquirer
Stock purchase for cash as consideration by Asahi Kasei
Corporation.
(b) The period of acquiree’s results included in consolidated
financial statements
From January 1, 2012 to March 31, 2012
(c) Cost of acquisition and its detail
Stock purchase price
Acquisition related direct
cost
Purchase price
Millions of yen
¥ 3,737
105
¥3,842
Thousands of
U.S. dollars
$ 45,501
1,278
$46,779
All stocks held as of the acquisition date are remeasured to their
fair value at acquisition date.
(d) The difference between the purchase price and the sum
of carrying amounts of each investment
¥134 million (US$1,632 thousand)
The difference is recognized as gain on step acquisitions on the
consolidated statements of income.
(e) The amount of goodwill, measurement principle,
amortization method and useful life
1) Amount of goodwill
¥1,882 million (US$22,915 thousand)
2) Measurement principle
Goodwill is measured as the excess of purchase price over
the fair value of identifiable assets acquired and liabilities
assumed.
3) Amortization method and useful life
Straight-line method over 10 years
(f) Details of assets acquired and liabilities assumed as of the
(i) Pro forma effects on the consolidated statements of
acquisition date
income assumed the business combination occurs at the
beginning of fiscal year and its measurement.
Information is omitted due to immateriality. This note is not audit-
ed.
2. Crystal IS, Inc.
(a) Outline of business combination
1) Name of acquiree
Crystal IS, Inc.
2) Nature of the businesses
Development of high-quality aluminum nitride (AIN) sub-
strates, ultraviolet light emitting diodes (UV LEDs) and its
application
3) Main reasons for the acquisition
This acquisition makes the way for the Company’s entry into
the highly promising UV LED market and further develop-
ment in the field of energy-conserving devices by evolving
synergies between acquired outstanding technology for sin-
gle-crystal AIN substrates and its options for commercializa-
tion of the UV LEDs and the Company’s existing
technologies in electronic component.
4) The acquisition date
December 28, 2011
5) Statutory form of business combination
Stock purchase for cash as consideration
6) Name of company after transaction
Crystal IS, Inc.
7) Acquired voting right
Voting right before the acquisition
6.73%
Current assets
Noncurrent assets
Total assets
Current liabilities
Noncurrent liabilities
Total liabilities
Millions of yen
Thousands of
U.S. dollars
2012
¥135
3,065
3,200
47
1,194
¥ 1,240
2012
$1,644
37,319
38,963
572
14,538
$ 15,098
(g) Amount of identifiable intangible assets other than
goodwill, its details and major weighted average useful
life
1) Purchase price allocated to intangible assets and its
major item
Technology related asset and others
¥2,981 million (US$36,296 thousand)
2) Major weighted average useful life
20 years
(h) Pro forma effects on the consolidated statements of
income assumed the business combination occurs at the
beginning of fiscal year and its measurement.
Information is omitted due to immateriality. This note is not
audited.
Asahi Kasei Annual Report 2012
73
17. Asset retirement obligations
(a) Outline of asset retirement obligations
Due to commitments pertaining to restoration to original state
before vacating in accordance with land lease agreements such as
for offices, 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 obli-
gations are recorded in the consolidated balance sheet.
In accordance with building lease agreements such as for the
head offices, commitments pertaining to restoration to original state
before vacating are recognized as asset retirement obligations.
However, instead of recording them as the relevant asset retirement
obligations under liabilities, the amount of lease deposit that cannot
ultimately be expected to be collected was estimated in a reason-
able manner, and of that, the amount corresponding to the fiscal
year ended March 31, 2012, 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 fol-
lowing: expected term of use of 4 to 55 years, inflation rate of 0.0%
to 4.1%, and discount rate of 0.3% to 6.0%.
(c) Increase (decrease) in the total amount of asset retirement
obligations in the fiscal year ended March 31, 2012
Balance at beginning of year
Increase due to asset retirement obligations accrued
Adjustment due to passage of time
Decrease due to fulfillment of asset retirement obligations
Decrease due to foreign exchange fluctuation
Balance at end of year
Millions of yen
2012
¥ 3,828
148
151
(317)
(108)
2011
¥ 4,038
346
173
(420)
(310)
Thousands of
U.S. dollars
2012
$ 46,609
1,802
1,839
(3,860)
(1,315)
¥ 3,701
¥ 3,828
$ 45,063
For the amount of lease deposit, which will be written off for a
certain percentage at the end of the lease period, was charged to
expense rather than recording the Asset Retirement Obligation.
Increase (decrease) in those expensed amounts for the fiscal year
ended March 31, 2012 and 2011 are as follows:
Balance at beginning of year
Increase due to new lease agreements
Decrease due to the cancelation of existing lease agreements
Balance at end of year
18. Business segment information
(a) Overview of reportable segments
The Company is organized under a holding company configuration
with core operating companies performing operations in eight busi-
ness fields.
Separate financial 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:
Chemicals
The Company produces, processes and sells chemicals and deriv-
ative products (such as ammonia, nitric acid, caustic soda, acrylo-
nitrile, 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™ modified polyphenylene ether (mPPE), Leona™ polyamide
66, Suntec™ polyethylene, synthetic rubber, and polystyrene), spe-
cialty products (such as coating materials, latex, Ceolus™ micro-
crystalline cellulose, explosives, explosion-bonded metal clad,
Microza™ UF and MF membranes and systems, ion-exchange
membranes and electrolysis systems, Saran Wrap™ cling film,
Ziploc™ storage bags, and plastic films, 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 financing.
Millions of yen
2012
¥ 1,619
37
(13)
¥ 1,643
2011
¥ 1,553
66
—
¥ 1,619
Thousands of
U.S. dollars
2012
$ 19,713
451
(158)
$ 20,005
Health Care
The Company manufactures and sells pharmaceuticals (such as
Recomodulin™, Elcitonin™, Flivas™, Toledomin™, and
Bredinin™), Lucica™ GA-L assay kits, L series enriched liquid
diets, APS™ polysulfone-membrane artificial kidneys, therapeutic
apheresis devices, Planova™ virus removal filters, and Sepacell™
leukocyte reduction filters.
Fibers
The Company produces, processes, and sells Roica™ elastic poly-
urethane filament, Bemberg™ cupro fiber, nonwoven fabrics (such
as Eltas™ spunbond and Lamous™ artificial suede), Leona™ nylon
66 filament, and polyester filament.
Electronics
The Company manufactures and sells Hipore™ Li-ion battery sepa-
rators, photomask pellicles, APR™ photosensitive resin and print-
ing plate making systems, Pimel™ photosensitive polyimide
precursor, Sunfort™ dry film photoresist, mixed-signal LSIs, Hall
elements, and glass fabric for printed wiring boards.
Construction Materials
The Company produces and sells Hebel™ autoclaved aerated con-
crete (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
Profit 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.
Asahi Kasei Annual Report 2012
74
Notes to Consolidated Financial Statements
(c) Information concerning net sales, income or loss, assets, and other items for each reportable segment
Millions of yen
2012
Sales:
External customers
¥ 680,112
¥ 451,965
¥ 119,483
¥ 110,849
¥ 146,113 ¥ 46,146 ¥ 1,554,668 ¥ 18,562
¥ 1,573,230
Chemicals
Homes
Health Care
Fibers
Electronics
Construction
Materials
Subtotal
Others
(Note 1)
Total
Intersegment
Total
Operating income
Assets
Other items
20,506
63
23
1,743
608
15,268
38,211
23,665
61,876
700,617
452,028
119,506
112,593
146,721
61,414
1,592,879
42,227
1,635,106
44,486
46,340
8,804
3,140
6,423
1,824
111,015
2,969
113,984
580,351
293,452
180,241
106,000
162,951
42,620
1,365,615
57,462
1,423,077
Depreciation (Note 2)
Amortization of goodwill
Investments in affiliates accounted
for using equity method
Increase in property, plant and
equipment, and intangible assets
29,215
4,794
10,892
6,445
20,911
2,419
435
34,413
—
—
657
260
—
39
3,825
2,020
—
—
74,676
1,131
852
47
75,528
1,179
40,518
17,519
58,037
39,080
6,272
10,678
5,697
13,429
1,631
76,787
786
77,572
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/staffing operations.
2. Amortization of goodwill is not included.
Millions of yen
2011
Sales:
External customers
¥ 699,801
¥ 409,224
¥ 116,387
¥ 108,761
¥ 158,337 ¥ 47,418 ¥ 1,539,928 ¥ 16,017
¥ 1,555,945
Chemicals
Homes
Health Care
Fibers
Electronics
Construction
Materials
Subtotal
Others
(Note 2)
Total
Intersegment
Total
Operating income
Assets
Other items
18,657
160
81
1,732
729
14,152
35,510
23,950
59,461
718,457
409,384
116,468
110,493
159,066
61,570
1,575,439
39,968
1,615,406
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 3)
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 affiliates 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
Notes: 1. As stated in change in accounting policy for naphtha resale transactions, a new accounting method was adopted from the fiscal year ended March 31, 2012. Due to the change, sales
to external customers in the Chemicals segment was restated retroactively.
2. The “Others” category is equivalent to the previous Services, Engineering and Others segment, including plant engineering and environmental engineering, research and analysis, and
employment agency/staffing operations.
3. Amortization of goodwill is not included.
Chemicals
Homes
Health Care
Fibers
Electronics
Construction
Materials
Subtotal
Others
(Note 1)
Total
Thousands of U.S. dollars
2012
Sales:
External customers
$ 8,280,920 $ 5,503,044 $ 1,454,803 $ 1,349,677 $ 1,779,045 $ 561,865 $ 18,929,356 $ 226,008 $ 19,155,363
Intersegment
Total
Operating income
Assets
Other items
249,677
767
280
21,222
7,403
185,900
465,250
288,141
753,391
8,530,586
5,503,811
1,455,083
1,370,912
1,786,448
747,766
19,394,606
514,148
19,908,754
541,653
564,227
107,196
38,232
78,205
22,209
1,351,699
36,150
1,387,849
7,066,249
3,573,018
2,194,582
1,290,637
1,984,062
518,933
16,627,481
699,647
17,327,128
Depreciation (Note 2)
355,717
58,371
132,619
78,473
254,609
29,453
909,241
10,374
919,615
Amortization of goodwill
Investments in affiliates accounted
for using equity method
Increase in property, plant and
equipment, and intangible assets
5,296
419,006
—
—
8,000
—
475
3,166
46,573
24,595
—
—
13,771
572
14,355
493,340
213,308
706,648
475,831
76,367
130,013
69,366
163,509
19,859
934,945
9,570
944,503
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/staffing operations.
2. Amortization of goodwill is not included.
Asahi Kasei Annual Report 2012
75
(d) Reconciliation of differences between total amounts of reportable segments and amounts appearing in the consolidated
financial 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
2012
2011
¥ 1,592,879
42,227
(61,876)
¥ 1,573,230
¥ 1,575,439
39,968
(59,461)
¥ 1,555,945
Millions of yen
2012
¥ 111,015
2,969
690
(10,416)
¥ 104,258
2011
¥ 128,444
1,706
708
(7,932)
¥ 122,927
*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 assets on consolidated balance sheets
Millions of yen
2012
2011
¥ 1,365,615
57,462
(206,324)
193,814
¥ 1,410,568
¥ 1,314,126
49,268
(167,618)
230,103
¥ 1,425,879
Thousands of
U.S. dollars
2012
$ 19,394,606
514,148
(753,391)
$ 19,155,363
Thousands of
U.S. dollars
2012
$ 1,351,699
36,150
8,401
(126,823)
$ 1,269,427
Thousands of
U.S. dollars
2012
$ 16,627,481
699,647
(2,512,164)
2,359,844
$ 17,174,820
* Corporate assets include assets of the parent company and those of a financial 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
financial 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
2012
2011
2012
2012
2011
2012
2012
2011
2012
2012
2011
2012
Depreciation (Note 2)
¥ 74,676 ¥ 80,181 $ 909,241
¥852
¥862 $10,374 ¥ 2,912
¥3,049 $ 35,456 ¥ 78,440 ¥ 84,092
$955,071
Amortization of goodwill
Investments in associates
accounted for using equity
method
Increase in property, plant
and equipment, and
intangible assets
1,131
1,073 13,771
47
—
572
—
—
—
1,179
1,073
14,355
40,518
43,450 493,340
17,519
15,975 213,308
—
—
—
58,037
59,425
706,648
¥ 76,787 ¥ 62,524 $ 934,945
¥786
¥981 $9,570 ¥ 7,551
¥2,509 $ 91,940 ¥ 85,124 ¥ 66,014 $ 1,036,454
Notes: 1. Adjustments include elimination of intersegment transactions and corporate expenses, etc.
2. Amortization of goodwill is not included.
(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
Millions of yen
Japan
China
2012
Other
regions
Total
Japan
China
2011
Other
regions
Thousands of U.S. dollars
2012
Total
Japan
China
Other regions
Total
¥1,151,705
¥151,286
¥270,238
¥1,573,230
¥1,106,656
¥169,637
¥279,652
¥1,555,945
$14,022,951
$1,842,031
$3,290,369
$19,155,363
Note: As stated in change in accounting policy for naphtha resale transactions, a new accounting method was adopted from the fiscal year ended March 31, 2012. Due to the change, net sales
generated from Japan in the fiscal year ended March 31, 2011, was restated retroactively.
2) Property, plant and equipment
Geographic information is not shown because over 90% of the amount of property, plant and equipment on the consolidated bal-
ance 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.
Asahi Kasei Annual Report 2012
76
Notes to Consolidated Financial Statements
19. Information on related parties
Related party transactions
Transactions between consolidated subsidiaries of the company submitting the consolidated financial statements and related parties
Subsidiaries, affiliates, etc. of the company submitting the consolidated financial 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
¥17,163 million in 2012, ¥15,002 million in 2011
Transaction amount
—
Item
—
Balance at end of year
An affiliated 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,
2012 and 2011, 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 interests
Net assets allocated to capital stock
Yen
U.S. dollars
2012
¥ 505.72
¥39.89
2011
¥ 474.59
¥43.11
2012
$6.16
$0.49
Millions of yen
2012
2011
Thousands of
U.S. dollars
2012
¥719,285
¥675,602
$ 8,757,884
12,439
(12,439)
12,036
(12,036)
151,455
(151,455)
¥706,846
¥663,566
$ 8,606,429
Number of shares of capital stock outstanding at fiscal year end used in calculation of
net assets per share (thousand)
1,397,691
1,398,196
1,397,691
(b) Net income per share
Net income
Amount not allocated to capital stock
Net income allocated to capital stock
Weighted-average number of shares of capital stock (thousand)
Millions of yen
2012
2011
Thousands of
U.S. dollars
2012
¥55,766
¥60,288
$678,997
—
—
—
¥55,766
1,397,872
¥60,288
1,398,311
$678,997
1,397,872
As the Company had no dilutive securities at March 31, 2012 and 2011, the Company does not disclose diluted net income per share
for the years ended March 31, 2012 and 2011.
Asahi Kasei Annual Report 2012
77
21. Borrowings
(a) Bonds payable at March 31, 2012 and 2011, comprised the following:
Unsecured 1.90% Euro yen bonds due in 2013
Unsecured 1.46% yen bonds due in 2019
Note 1) The current portion of bonds payable is recorded under current liabilities on the consolidated balance sheets.
2) In the case of floating interest rates, the rate at the end of March is shown.
3) The aggregate annual maturities of long-term debt after March 31, 2012, are as follows:
Year ending March 31
2013
2014
2015
2016
2017 and thereafter
(b) Loans payable at March 31, 2012 and 2011 are comprised of the following:
Short-term loans payable with interest rate 0.70%
Current portion of long-term loans payable with interest rate 0.91%
Current portion of lease obligations with interest rate 2.10%
Long-term loans payable (except portion due within one year) with interest rate 1.13%
Lease obligations (except portion due within one year) with interest rate 1.81%
Commercial paper with interest rate 0.11% (due within one year)
Millions of yen
2012
¥5,000
20,000
2011
¥5,000
20,000
Thousands of
U.S. dollars
2012
$60,879
243,516
¥ 25,000
¥ 25,000
$ 304,395
Millions of yen
¥—
5,000
—
—
20,000
¥ 25,000
Millions of yen
2012
¥44,751
29,739
2,207
62,710
4,707
15,000
2011
¥76,611
32,278
1,522
91,722
3,802
23,000
Thousands of
U.S. dollars
$—
60,879
—
—
243,516
$ 304,395
Thousands of
U.S. dollars
2012
$544,880
362,097
26,872
763,546
57,312
182,637
Note 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, 2013, are as follows:
¥ 159,114
¥ 228,935
$ 1,937,343
Year ending March 31
2014
2015
2016
2017
2018 and thereafter
Long-term loans payable
Lease obligations
Millions of yen
¥ 23,071
6,862
2,197
4,212
¥ 25,860
Thousands of
U.S. dollars
$ 280,908
83,550
26,750
51,285
$ 314,867
Millions of yen
¥ 2,039
1,365
923
370
¥10
Thousands of
U.S. dollars
$ 24,826
16,620
11,238
4,505
$122
3) The timing of repayments for the loan payables from Japan Science and Technology Agency have yet to be determined as they begin after the development success is certified. Thus,
the related aggregate annual maturities for these long-term loans payable after March 31, 2012, are not included in the above.
Asahi Kasei Annual Report 2012
78
Notes to Consolidated Financial Statements
(d) Other
From the fiscal year ending March 31, 2013, the result of the
acquired business is disclosed in a new segment by the name of
“Critical Care”.
2. Borrowing for the acquisition of ZOLL
The parent company entered into the following loan agreement on
April 9, 2012 per the resolution of the board of the meeting on
February 23, 2012 and executed the borrowing on April 25, 2012
as follows:
I) Borrower: Asahi Kasei Corporation
II) Lenders : Sumitomo Mitsui Banking Corporation, Mizuho
Corporate Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
The Norinchukin Bank, Sumitomo Mitsui Trust Bank, Limited,
UBS AG, Tokyo Branch
III) Nature of loan: Loan facility agreement (syndicate loan) in US$
and yen
IV) Amount: US$500 million and ¥144,500 million
V) Purpose of the loan
(1) Financing the consideration payable for shares in ZOLL
(2) Financing the purchase of the authorized and unissued
shares of ZOLL pursuant to the option granted to Its man-
agement and employees and others under the Merger
Agreement
(3) Financing the consideration payable to minority shareholders
of ZOLL in the process of the merger
(4) Financing agreed fees, costs and other expenses associat-
ed with the transaction
VI) Interest rate: Base rate plus spread
VII) Drawdown date: April 25, 2012
VIII) Term: October 25, 2012
IX) Pledge: Not applicable
X) Guarantee: Not applicable
XI) Financial covenant: Applicable
22. Subsequent events
1. Acquisition of ZOLL Medical Corporation
On March 12, 2012, the parent company made an agreement with
a major US critical care medical device maker, ZOLL Medical
Corporation (headquarters: Massachusetts, US; CEO: Richard A.
Packer; listed in the US on NASDAQ: ZOLL; hereinafter “ZOLL”)
regarding its acquisition of ZOLL by a tender offer through a sub-
sidiary in the US and a subsequent merger with cash as consider-
ation. All procedures related to this acquisition were completed on
April 26, US Eastern time and ZOLL became a wholly owned sub-
sidiary.
(a) Purpose of this acquisition
I) By utilizing the know-how and the resources built up through
the Company’s established pharmaceutical and medical device
businesses, it will be possible to accelerate the expansion of
ZOLL’s business in Japan and Asia, and also contribute to the
reinforcement of the competitiveness of ZOLL’s products.
II) Having ZOLL’s globally strong platform in critical care will enable
the Company to obtain additional investment opportunities for
further growth.
III) Through sharing information on customer needs with the
Company’s established medical device business and through
joint marketing, etc., the Company will be able to obtain oppor-
tunities for global business expansion and to deal with new
therapeutic fields.
(b) Profile of ZOLL
I) Company name: ZOLL Medical Corporation
II) Year of incorporation: 1980
III) Headquarters: Massachusetts, US
IV) CEO: Richard A. Packer
V) Sales (US GAAP): US$523.7 million (fiscal 2011)
VI) Operating income (US GAAP): US$48.2 million (fiscal 2011)
VII) Number of employees: 1,908 (as of October 2, 2011)
VIII) Main business locations: US, Germany
(c) Outline of this acquisition
I)
Implementer of the tender offer
A special purpose company (SPC) established under a US sub-
sidiary of the parent company.
II) Object of this acquisition
ZOLL Medical Corporation
III) Type of shares purchased
Common shares
IV) Purchase price
US$93 per share
V) Purchase period
Initial period: From March 26 to April 20, 2012, US Eastern time
Subsequent offering period: From April 23 to April 25, 2012, US
Eastern time
VI) Change in ownership ratio of ZOLL’s shares as a result of this
acquisition
Ownership ratio prior to this acquisition: 0%
Ownership ratio after this tender offer and this acquisition: 100%
VII) Funds required for this acquisition
US$2.21 billion
The amount shown is that required to purchase the total num-
ber of ZOLL’s outstanding shares and to make payments relat-
ed to stock options and restricted shares.
Report of Independent Auditors
Asahi Kasei Annual Report 2012
79
Asahi Kasei Annual Report 2012
80
Major Subsidiaries and Affiliates
As of April 1, 2012
Company
Main products/business line
Paid-in capital
(million)
Equity
interest (%)
Chemicals Segment
Asahi Kasei Chemicals Corp.*
Asahi Kasei Pax Corp.*
Chemicals
Packaging products and solutions
Asahi Kasei Finechem Co., Ltd.*
Specialty chemicals
Asahi Kasei Home Products Corp.*
Cling film, other household products
Asahi Kasei Metals Ltd.
Aluminum paste
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 fiber
Japan Elastomer Co., Ltd.*
Synthetic rubber
Sundic Inc.
Biaxially oriented polystyrene sheet
Wacker Asahikasei Silicone Co., Ltd.
Silicone
Kayaku Japan Co., Ltd.
PS Japan Corp.*
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.*
Sale of purging compound
Tong Suh Petrochemical Corp., Ltd.*
Acrylonitrile, sodium cyanide
Asahi Kasei Chemicals Korea Co., Ltd.
Sale of adipic acid
Asahi Kasei Performance Chemicals Corp.*
High-performance HDI-based polyisocyanate
Asahi Kasei Microza (Hangzhou) Co., Ltd.*
Industrial filtration membranes and systems
Asahikasei Plastics (Shanghai) Co., Ltd.
Sale of performance resin
Asahi Kasei Plastics (Hong Kong) 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 Synthetic Rubber Singapore Pte. Ltd. Synthetic rubber
Asahi Kasei Plastics Singapore Pte. Ltd.*
Performance resin
Polyxylenol Singapore Pte. Ltd.*
PPE powder
Asahikasei Plastics (Thailand) Co., Ltd.
Coloring and compounding of performance resin
3,000
490
325
250
250
132
100
100
160
1,000
1,500
1,050
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
62.1
32.0** 100.0
21.7** 100.0
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
US$
US$
US$
1.0
KRW 237,642
KRW 1,500
CNY
CNY
CNY
US$
CNY
US$
US$
US$
US$
THB
149
69
18
2.6
50
32.0
85
46.0
35.0
140
100.0
100.0
100.0
100.0
100.0
100.0
100.0
51.0
50.0
100.0
100.0
70.0
100.0
48.5
25.7
100.0
PTT Asahi Chemical Co., Ltd.
PT Nippisun Indonesia
Acrylonitrile, methyl methacrylate
Coloring and compounding of styrenic resin
Asahi Kasei Plastics Europe SA/NV*
Sale of compounded performance resin
THB 14,246
US$
A
6.3
5.0
Homes Segment
Asahi Kasei Homes Corp.*
Asahi Kasei Fudousan Residence Corp.*
Asahi Kasei Jyuko Co., Ltd.*
Asahi Kasei Mortgage Corp.*
Asahi Kasei Reform Co., Ltd.*
Housing
Real estate development, brokerage,
and related business
Steel frames
Financial services
Home maintenance and remodeling
Asahi Kasei Home Construction Corp.*
Construction of homes
Health Care Segment
Asahi Kasei Pharma Corp.*
Asahi Kasei Medical Co., Ltd.*
Med-Tech Inc.*
Pharmaceuticals
Hemodialyzers, therapeutic apheresis devices, other
medical devices and related systems
Medical devices
Asahi Kasei Pharma America Corp.
Clinical trials for new drugs, sale of pharmaceuticals
Asahi Kasei Bioprocess, Inc.*
Bioprocess equipment and systems
Asahi Kasei Medical America Inc.*
Sale of medical devices, medical systems
¥
¥
¥
¥
¥
¥
¥
¥
¥
US$
US$
US$
Asahi Kasei Medical Trading (Korea) Co., Ltd.*
Sale of medical devices, medical systems
KRW 1,000
Asahi Kasei Medical (Hangzhou) Co., Ltd.*
Hemodialyzers; sale of medical devices
Asahi Kasei Medical Trading (Taiwan) Co. Ltd.*
Asahi Kasei Medical Europe GmbH*
* Consolidated subsidiary
** Including capital reserve
Sale of medical devices, medical systems
Sale of medical devices, medical systems
CNY
NT$
A
165
5
12
3,250
100.0
3,200
100.0
2,820
1,000
250
100
100.0
100.0
100.0
100.0
3,000
100.0
3,000
100.0
140
89.9
30.0
0.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Company
Asahi Kasei Bioprocess Europe SA/NV*
Asahi Pharma Spain, SL
Main products/business line
Sale of virus removal filters
Pharmaceuticals
Asahi Kasei Medical Trading Ltd. Sti.
Sale of medical devices, medical systems
Fibers Segment
Asahi Kasei Fibers Corp.*
Kyokuyo Sangyo Co., Ltd.*
Fibers, textiles
Processing of fibers and textiles
DuPont-Asahi Flash Spun Products Co., Ltd.
Flash spun products
Asahi Kasei Spandex America, Inc.*
Hangzhou Asahikasei Spandex Co., Ltd.*
Spandex
Spandex
Hangzhou Asahikasei Textiles Co., Ltd.*
Warp-knit spandex textiles
Formosa Asahi Spandex Co., Ltd.
Spandex
Asahi Chemical (HK) Ltd.*
Promotion and marketing of fibers and textiles
Asahi Kasei Spunbond (Thailand) Co., Ltd.
Spunbond nonwovens
Thai Asahi Kasei Spandex Co., Ltd.*
Asahi Kasei Spandex Europe GmbH*
Spandex
Spandex
Asahi Kasei Fibers Italy SRL*
Sale of cupro cellulosic fiber
Asahi Kasei Fibers Deutschland GmbH
Sale of artificial suede
Electronics Segment
Asahi Kasei Microdevices Corp.*
Asahi Kasei E-materials Corp.*
Asahi Kasei Epoxy Co., Ltd.*
Electronic devices
Electronic materials
Epoxy resin
Asahi Kasei Power Devices Corp.*
Power management semiconductors
Asahi Kasei Microsystems Co., Ltd.*
LSIs
Asahi-Schwebel Co., Ltd.*
Asahi Kasei Electronics Co., Ltd.*
AKM Semiconductor, Inc.*
Glass fabric
Hall elements
Sale of LSIs
Asahi Kasei Annual Report 2012
81
Paid-in capital
(million)
A
A
0.5
0.1
Equity
interest (%)
100.0
100.0
YTL
0.1
100.0
¥
¥
¥
US$
CNY
CNY
NT$
HK$
THB
THB
A
A
A
¥
¥
¥
¥
¥
¥
¥
US$
3,000
80
450
100.0
100.0
50.0
55.3** 100.0
154
78
1,003
100.0
82.5
50.0
65
100.0
900**
1,350
90.0
60.0
19.6** 100.0
3.0
0.3
100.0
100.0
3,000
3,000
300
100
50
50
50
2.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Asahi Kasei E-materials Korea Inc.
Energy and electronic materials
KRW 5,500
100.0
Asahi Kasei Microdevices Korea Corp.
Electronic devices marketing and technical support
Asahi Kasei Electronics Materials (Suzhou) Co., Ltd.* Dry film 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.*
Sale of pellicles
Dry film photoresist
Asahi-Schwebel (Taiwan) Co., Ltd.*
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.*
Sale of photopolymer, printing-plate making systems
Construction Materials Segment
Asahi Kasei Construction Materials Corp.*
Construction materials
Asahi Kasei Foundation Systems Corp.*
Installation of piles
Asahi Kasei Extech Corp.*
Others
Asahi Research Center Co., Ltd.*
Asahi Kasei Engineering Corp.*
Asahi Kasei Trading Co., Ltd.*
Asahi Kasei Commerce Co., Ltd.*
Asahi Kasei Amidas Co., Ltd.*
AJS Inc.
Exterior wall panel installation
Information and analysis
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
KRW
CNY
CNY
NT$
NT$
NT$
NT$
A
A
£
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
820
181
14
10
1.0
49
326
3.0
3.4
0.3
3,000
200
50
1,000
400
98
94
80
800
5,000
100.0
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
49.0
30.1
Asahi Kasei America, Inc.*
Crystal IS, Inc.
Asahi Kasei Business Management
(Shanghai) Co., Ltd.
* Consolidated subsidiary
** Including capital reserve
Business support services
Development of aluminum nitride substrates
and UV LEDs
Business support services
US$
US$
US$
0.1
100.0
28.4** 100.0
3
100.0
Asahi Kasei Annual Report 2012
82
Company Information
Corporate Profile (as of March 31, 2012)
Company Name
Asahi Kasei Corporation
Date of Establishment
May 21, 1931
Paid-in Capital
¥103,388,521,767
Employees
25,409 (consolidated)
1,102 (non-consolidated)
Asahi Kasei Group Offices
Asahi Kasei Corporation
Core Operating Companies
Tokyo Head Office
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3000
Fax: +81-3-3296-3161
Osaka Head Office
3-3-23 Nakanoshima, Kita-ku
Osaka 530-8205 Japan
Phone: +81-6-7636-3111
Fax: +81-6-7636-3077
Beijing Office
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 (China) 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
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 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
ZOLL Medical Corporation
269 Mill Rd., Chelmsford,
MA 01824-4105 USA
Phone: +1-978-421-9655
Asahi Kasei Annual Report 2012
Investors Information
83
(As of March 31, 2012)
Largest Shareholders
% of equity*
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 Mitsui Trust Bank, Ltd.
4-5-33 Kitahama, Chuo-ku
Osaka 541-8639 Japan
(As of April 1, 2012)
Master Trust Bank of Japan, Ltd. (trust account)
Nippon Life Insurance Co.
Japan Trustee Services Bank, Ltd. (trust account)
Asahi Kasei Group Employee Stockholding Assn.
Sumitomo Mitsui Banking Corp.
SSBT OD05 Omnibus Account Treaty Clients
The Chase Manhattan Bank, N.A. London Secs
Lending Omnibus Account
Mizuho Corporate Bank, Ltd.
Independent Auditors
PricewaterhouseCoopers Aarata
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Number of Shareholders 114,772
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
44.69%
Foreign investors
25.52%
Less than 1,000
0.29%
Japanese individuals and groups 23.49%
1,000–9,999
12.51%
Other Japanese companies
4.37%
10,000–99,999
7.36%
Japanese securities companies
1.93%
100,000 or more
79.84%
Stock Chart
Share price
(¥)
600
400
200
0
5.48
5.22
4.55
3.44
2.53
2.04
1.91
1.45
1.45
1.40
Volume
(thousand shares)
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
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In this annual report, the TM symbol indicates a trademark or registered trademark of Asahi Kasei Corporation,
affiliated companies, or third parties granting rights to Asahi Kasei Corporation or affiliated companies.
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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
2012.09