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ANNUAL REPORT 2013
Fiscal year 2012, ended March 31, 2013
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
2013.10
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Corporate Philosophy
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.”
Sincerity—Being sincere with everyone.
Group Values
Challenge—Boldly taking challenges, continuously seeking change.
Creativity—Creating new value through unity and synergy.
Group Slogan
Creating for Tomorrow
Overview
Management Strategy
Operations
Governance &
Sustainability
Financial Section
Additional Information
Contents
Overview
Creating for Tomorrow
Business Confi guration
Consolidated Financial Highlights
Management Strategy
To Our Shareholders
Strategic Management Initiative
Interview with the President
Operations
At a Glance
Operating Segments
Chemicals
Fibers
Homes
Construction Materials
16
18
20
22
Electronics
Health Care
Critical Care
24
26
28
Research & Development
Governance & Sustainability
Corporate Governance
Corporate Social Responsibility
Directors, Corporate Auditors, Executive Offi cers
Financial Section
Contents
Consolidated Eleven-Year Summary
Management’s Discussion and Analysis
Risk Analysis
Consolidated Financial Statements
Notes to Consolidated Financial Statements
Report of Independent Auditors
Additional Information
Major Subsidiaries and Affi liates
Company Information
Investors Information
2
4
5
6
7
8
14
16
30
32
36
38
39
40
42
48
50
56
79
80
82
83
Disclaimer
The forecasts and estimates shown in this annual report are dependent on a variety of assumptions and economic
conditions. Plans and fi gures depicting the future do not imply a guarantee of actual outcome.
Asahi Kasei Annual Report 2013
1
The history of the Asahi Kasei Group is rooted in Japan’s
first ammonia production by chemical synthesis, which
formed the basis for our fibers business. We grew over
the years while constantly transforming our business
portfolio to meet the changing needs of the times. In the
1960s and 1970s, we began expanding operations in the
fields of petrochemicals, construction materials, and
homes. We then further diversified our business
portfolio by advancing into the fields of health care and
electronics, establishing our distinctive character as a
highly diversified chemical manufacturer.
In 2011, we launched our five-year strategic
management initiative “For Tomorrow 2015.” While
proactively expanding our world-leading businesses, we
are creating new value for society in businesses related
to the environment & energy, residential living, and
health care. We are “Creating for Tomorrow” based on
our Group Vision of enabling living in health and
comfort and harmony with the natural environment.
Creating for Tomorrow
FY 1995
Net sales
¥1,210.2 billion
History of business portfolio
transformation
(sales composition)
FY 1980
Net sales
¥800.1 billion
•Development and
expansion of housing business
•Start of pharmaceutical business
•Start of LSIs business
FY 1965
Net sales
¥112.9 billion
•Start of construction materials
and housing businesses
•Start of petrochemical business
•Start of medical devices business
FY 1950
Net sales
¥13.5 billion
•Start of synthetic rubber business
•Expansion into
synthetic fiber business
2
Asahi Kasei Annual Report 2013
Overview
Expansion of world-leading businesses
●
●
●
●
●
●
●
●
●
Acrylonitrile (AN)
Synthetic rubber for fuel-efficient tires (S-SBR)
Bemberg™ cupro fiber
Roica™ elastic polyurethane filament
Hipore™ Li-ion battery separator
LSIs
Sunfort™ photosensitive dry film
Planova™ virus removal filters
Hemodialysis
Critical Care
3.1%
Others
1.0%
Health Care
8.0%
Electronics
7.9%
Construction
Materials
3.1%
FY 2012
Net sales
¥1,666.6 billion
Chemicals
41.1%
Homes
29.2%
Fibers
6.6%
•Expansion into critical care business
Creating new value for society
Environment
&
Energy
Residential
Living
Health Care
Asahi Kasei Annual Report 2013
3
Business Confi guration
Asahi Kasei Group (as of March 31, 2013)
Holding company
Core operating companies
Asahi Kasei Corporation
Asahi Kasei
Chemicals
Asahi Kasei
Fibers
Asahi Kasei
Homes
Operating segments
Chemicals
Fibers
Homes
Asahi Kasei
Construction
Materials
Construction
Materials
Business sectors
Asahi Kasei
Microdevices
Asahi Kasei
E-materials
Asahi Kasei
Pharma
Asahi Kasei
Medical
ZOLL
Medical
Electronics
Health Care
Critical Care
Chemicals & Fibers
Homes &
Construction Materials
Electronics
Health Care
Employees
(consolidated)
Consolidated subsidiaries
Equity-method affi liates
28,363 people
126 companies
43 companies
Overseas subsidiaries
Manufacturing/R&D sites in Japan
95 companies in 19 countries
25 sites
Consolidated net sales*
(¥ billion)
¥1,666.6 billion
Consolidated operating income
(¥ billion)
¥92.0 billion
Others
Critical Care**
Health Care
Electronics
Construction
Materials
Homes
Fibers
Chemicals
Corporate expenses
and eliminations
Others
Critical Care**
Health Care
Electronics
Construction
Materials
Homes
Fibers
Chemicals
FY
Net sales
’08
’09
’10
’11
’12
1,521.2
1,392.2
1,555.9
1,573.2
1,666.6
FY
Operating income
’08
35.0
’09
57.6
’10
122.9
’11
104.3
’12
92.0
* Beginning with fi scal year 2011, the accounting policy for naphtha resale in the Chemicals segment was changed. This change is applied retroactively to net sales for fi scal
years 2008 through 2010.
** The “Critical Care” segment was added in fi scal 2012, in which results of ZOLL Medical Corporation are reported.
4
Asahi Kasei Annual Report 2013
Overview
Consolidated Financial Highlights
Asahi Kasei Corporation and consolidated subsidiaries
Overview of fi scal 2012 results
(cid:129) Net sales increased by 5.9% from a year ago to ¥1,666.6 billion, with strong performance in the Homes segment and
pharmaceutical products in the Health Care segment, as well as the addition of the Critical Care segment due to
consolidation of ZOLL Medical Corporation in April 2012.
(cid:129) Operating income decreased by 11.8% from a year ago to ¥92.0 billion with deteriorating market conditions in the
Electronics segment and monomer products in the Chemicals segment.
(cid:129) Total assets increased by ¥389.6 billion from a year ago to ¥1,800.2 billion with increased intangible assets due to the
acquisition of ZOLL Medical Corporation and an increase in investment securities largely due to higher fair market value.
(cid:129) Interest-bearing debt increased by ¥197.3 billion from a year ago to ¥381.4 billion due to borrowings, etc., to fi nance the
acquisition of ZOLL Medical Corporation.
Net income
(¥ billion)
¥53.7 billion
Total assets
(¥ billion)
¥1,800.2 billion
FY
Net income
ROE
’08
4.7
0.7%
’09
25.3
4.1%
’10
60.3
’11
55.8
’12
53.7
FY (end)
’08
’09
’10
’11
’12
Total assets
1,379.3
1,368.9
1,425.9
1,410.6
1,800.2
9.3%
8.1%
7.1%
ROA
0.3%
1.8%
4.3%
3.9%
3.3%
Net worth***
(¥ billion)
¥812.1 billion
Interest-bearing debt
(¥ billion)
¥381.4 billion
FY (end)
’08
’09
’10
’11
’12
FY (end)
Net worth***
603.8
633.3
663.6
706.8
812.1
Interest-bearing debt
Net worth/total assets
43.8%
46.3%
46.5%
50.1%
45.1%
D/E ratio
’08
315.6
0.52
’09
264.6
0.42
’10
253.9
0.38
’11
184.1
0.26
’12
381.4
0.47
Free cash fl ows
(¥ billion)
¥(152.5) billion
Net income per share
(¥)
¥38.43
FY
Free cash flows
’08
(66.9)
’09
69.1
’10
69.3
’11
51.8
’12
(152.5)
FY
Net income per share
’08
3.39
’09
’10
’11
’12
18.08
43.11
39.89
38.43
*** Net assets less minority interest.
Asahi Kasei Annual Report 2013
5
To Our Shareholders
Taketsugu Fujiwara, President (left), Ichiro Itoh, Chairman (right)
In accordance with our Group Mission of contributing to life
opportunities in emerging changes in the operating climate.
and living for people around the world, and our Group Vision
To achieve our objectives we will continue to concentrate
of enabling living in health and comfort and harmony with
management resources on the fi elds of the environment &
the natural environment, we are working to create new value
energy, residential living, and health care, “Creating for
for society, taking the lead in achieving solutions to the
Tomorrow” by swiftly adapting to changes in society with
world’s problems, as we fulfi ll our corporate social
measures that span across business units. We are also
responsibility through the pursuit of sustainable growth.
reinforcing our operational base through a group-wide effort
Although there remain risks of instability in the global
to improve our earnings structure.
economy due to the European sovereign debt crisis and
Although we can expect further changes in the business
slowing growth in emerging economies, the overall operating
climate, we will continue to contribute to society by acting
climate shows positive signs with the considerable weakening
with sincerity, taking challenges, and creating new value with
of the Japanese yen, the Nikkei stock average up, and fi rm
our Group Mission and Group Vision as our unchanging guide.
consumer spending thanks to the Japanese government’s
pro-growth policies, as well as revival of the US economy due
September 2013
to the shale gas revolution.
Under our fi ve-year strategic management initiative “For
Tomorrow 2015,” we are expanding world-leading businesses
and promoting businesses that create new value for society.
We are now focused on obtaining performance results from
Ichiro Itoh
Chairman
Taketsugu Fujiwara
President
the strategic actions taken, while fi nding new businesses
6
Asahi Kasei Annual Report 2013
Management Strategy
Strategic Management Initiative
“For Tomorrow 2015” (FY 2011–2015)
Leveraging our diversifi ed 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.”
Expansion of world-leading businesses
Creation of new value for society
Focused and proactive global development to
build market leadership in growing markets.
Chemicals:
Acrylonitrile (AN)
Synthetic rubber for fuel-effi cient tires (S-SBR)
Fibers:
Bemberg™ cupro fi ber,
Roica™ elastic polyurethane fi lament
Electronics:
Hipore™ lithium-ion battery separator, LSIs,
Sunfort™ photosensitive dry fi lm
Health Care:
Planova™ virus removal fi lters,
Hemodialysis
Meeting emerging social needs for “living in health and
comfort” and “harmony with the natural environment”
in the following three fi elds of focus through collabora-
tion 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-fi ber
fi ltration membranes, Neoma™ and Jupii™ phenolic foam insulation
panels, etc.)
Residential Living: Providing comfortable living to more cus-
tomers, more quickly
(Order-built homes, real-estate business, remodeling, Hebel™ auto-
claved 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 fi elds.
Financial targets
FY 2011– 2015
Long-term investment
¥1 trillion
New operations, M&A,
intermittent expansion of
existing businesses
¥450 billion
Investment in
existing businesses
¥550 billion
Progressing toward
¥200 billion of
operating income
after FY 2015
¥20000.00 b
¥200.0 billion
Operating income
¥122.9 billion
¥104.3 billion
¥92.0 billion
¥130.0 billion
(record high)
¥160.0 billion
FY
2010
2011
2012
2013 (forecast)
2015 (outlook)
Target
Asahi Kasei Annual Report 2013
7
Interview with the President
Actions taken for growth are bearing fruit,
we’re aiming for record-high operating
income in fi scal 2013
During the two years we’ve been implementing our “For Tomorrow
2015” strategic management initiative, the economic environment has
changed dramatically. Rather than causing us to change course, these
circumstances have only revalidated our basic strategy. We are
returning to growth from fi scal 2013 onward, with the strategic actions
taken thus far making solid contributions to operating income.
We will continue to accelerate actions for growth leveraging our
diverse operating portfolio and unmatched ability to adapt to changes.
Taketsugu Fujiwara, President
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
Your operating income target is ¥200 billion, but fi scal 2012 operating income was only
¥92.0 billion. What caused this?
Have you considered changing your plans?
One of your business strategies is “expansion of world-leading businesses.” How is it
progressing so far? What are you planning next?
How about your other business strategy, “creation of new value for society”?
What is the outlook for your overall health care sector, including synergy among critical
care, pharmaceuticals, and medical devices?
How do you see the effects of the Japanese government’s growth policies?
What is your outlook for fi scal 2013?
What is your dividend policy?
8
Asahi Kasei Annual Report 2013
Management Strategy
Q1
Your operating income target is ¥200 billion,
but fi scal 2012 operating income was only
¥92.0 billion. What caused this?
‘
The economic environment changed dramatically
after we formulated “For Tomorrow 2015,” and our
global businesses struggled. On the other hand, our
domestic businesses such as homes have thrived,
and we are growing in health care as an area of
strategic growth. We have also launched a project
to heighten earnings, and expect to return to
growth from fi scal 2013 onward.
In fi scal 2012, our global businesses such as monomer
products among chemicals and also electronics struggled due
to the strong yen through the fi rst three quarters, sluggish
overall global demand, and a slowdown in China and other
emerging economies. On the other hand, domestic businesses
performed well, with homes achieving record-high sales,
operating income, and orders for the second year in a row,
and solid growth continuing for new pharmaceuticals.
Meanwhile, critical care, which we entered with our April
2012 acquisition of ZOLL Medical Corporation, grew as
expected.
While the result was lower operating income on higher
sales, we made steady progress in sowing the seeds of future
growth in accordance with our basic strategy of “For
’
Tomorrow 2015.” We also launched a streamlining project to
obtain an improved profi t structure which will enhance our
ability to weather economic downturns. By gaining greater
effi ciency and productivity throughout the Asahi Kasei Group,
we are targeting cost reductions of at least ¥10 billion in fi scal
2013, increasing to at least ¥20 billion by fi scal 2015.
Q2
Have you considered changing your plans?
‘
We are not changing course, but further advancing
actions for growth that leverage our strengths. ’
Nothing that happened gives us any reason to change our
basic strategy, and we remain committed to achieving our
target of ¥200 billion in operating income. Nevertheless,
considering the situation in electronics where swift response
to changes in the market structure is required, and in
chemicals where recovery of demand in Asia is lagging, we
recognize that this is a challenging target to achieve. Reaching
this level of operating income will entail further leveraging of
our diverse operating portfolio and unmatched ability to
adapt to changes as we continue to accelerate actions under
our growth strategy.
Performance of homes business
Record-high results two years running, with growth centered on order-built homes
Product strengths
(cid:34)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)(cid:67)(cid:76)(cid:73)(cid:77)(cid:65)(cid:84)(cid:69)(cid:0)(cid:84)(cid:72)(cid:82)(cid:79)(cid:85)(cid:71)(cid:72)(cid:0)(cid:38)(cid:57)(cid:0)(cid:18)(cid:16)(cid:17)(cid:18)
(cid:115)(cid:0)(cid:40)(cid:73)(cid:71)(cid:72)(cid:13)(cid:69)(cid:78)(cid:68)(cid:0)(cid:85)(cid:82)(cid:66)(cid:65)(cid:78)(cid:0)(cid:72)(cid:79)(cid:77)(cid:69)(cid:83)(cid:0)
(cid:8)(cid:68)(cid:85)(cid:82)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:12)(cid:0)(cid:69)(cid:65)(cid:82)(cid:84)(cid:72)(cid:81)(cid:85)(cid:65)(cid:75)(cid:69)(cid:15)(cid:70)(cid:73)(cid:82)(cid:69)(cid:0)
(cid:82)(cid:69)(cid:83)(cid:73)(cid:83)(cid:84)(cid:65)(cid:78)(cid:67)(cid:69)(cid:9)
(cid:115)(cid:0)(cid:44)(cid:73)(cid:70)(cid:69)(cid:83)(cid:84)(cid:89)(cid:76)(cid:69)(cid:0)(cid:80)(cid:82)(cid:79)(cid:80)(cid:79)(cid:83)(cid:65)(cid:76)(cid:83)(cid:0)(cid:84)(cid:72)(cid:65)(cid:84)(cid:0)(cid:77)(cid:69)(cid:69)(cid:84)(cid:0)
(cid:69)(cid:77)(cid:69)(cid:82)(cid:71)(cid:73)(cid:78)(cid:71)(cid:0)(cid:83)(cid:79)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:78)(cid:69)(cid:69)(cid:68)(cid:83)
(cid:115)(cid:0)(cid:40)(cid:73)(cid:83)(cid:84)(cid:79)(cid:82)(cid:73)(cid:67)(cid:65)(cid:76)(cid:76)(cid:89)(cid:0)(cid:76)(cid:79)(cid:87)(cid:0)(cid:77)(cid:79)(cid:82)(cid:84)(cid:71)(cid:65)(cid:71)(cid:69)(cid:0)(cid:82)(cid:65)(cid:84)(cid:69)(cid:83)
(cid:115)(cid:0)(cid:37)(cid:88)(cid:80)(cid:65)(cid:78)(cid:68)(cid:69)(cid:68)(cid:0)(cid:77)(cid:79)(cid:82)(cid:84)(cid:71)(cid:65)(cid:71)(cid:69)(cid:0)(cid:84)(cid:65)(cid:88)(cid:0)(cid:68)(cid:69)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)
(cid:35)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:77)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84)(cid:0)(cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:65)(cid:67)(cid:13)
(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:70)(cid:84)(cid:69)(cid:82)(cid:0)(cid:67)(cid:79)(cid:78)(cid:83)(cid:85)(cid:77)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:84)(cid:65)(cid:88)(cid:0)
(cid:82)(cid:73)(cid:83)(cid:69)(cid:12)(cid:0)(cid:69)(cid:88)(cid:80)(cid:65)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:72)(cid:79)(cid:85)(cid:83)(cid:73)(cid:78)(cid:71)(cid:13)
(cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:69)(cid:88)(cid:84)(cid:69)(cid:78)(cid:68)(cid:0)
(cid:83)(cid:84)(cid:65)(cid:66)(cid:76)(cid:69)(cid:0)(cid:71)(cid:82)(cid:79)(cid:87)(cid:84)(cid:72)(cid:0)(cid:65)(cid:83)(cid:0)(cid:65)(cid:0)(cid:80)(cid:73)(cid:76)(cid:76)(cid:65)(cid:82)(cid:0)(cid:79)(cid:70)(cid:0)
(cid:69)(cid:65)(cid:82)(cid:78)(cid:73)(cid:78)(cid:71)(cid:83)
(¥ billion)
500
400
300
200
100
0
Remodeling
Real estate
Order-built homes
(cid:35)(cid:79)(cid:83)(cid:84)(cid:0)(cid:82)(cid:69)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)
(cid:79)(cid:82)(cid:68)(cid:69)(cid:82)(cid:13)(cid:66)(cid:85)(cid:73)(cid:76)(cid:84)(cid:0)(cid:72)(cid:79)(cid:77)(cid:69)(cid:83)(cid:12)(cid:0)
(cid:69)(cid:88)(cid:80)(cid:65)(cid:78)(cid:83)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)
(cid:72)(cid:79)(cid:85)(cid:83)(cid:73)(cid:78)(cid:71)(cid:13)(cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)
FY
2005
Net sales
404.5
Operating
income
28.2
2010
409.2
36.5
2011
452.0
46.3
2012
486.2
54.3
2013 (forecast)
526.0
60.0
Asahi Kasei Annual Report 2013
9
Q3
One of your business strategies is “expansion of
world-leading businesses.” How is it progressing
so far? What are you planning next?
‘
We have steadily advanced investments in line with
our strategy. Several new plants have started up,
and will contribute to earnings.
For acrylonitrile (AN), in which we have established the
leading position in Asia, we started commercial operation of a
new plant in Thailand in January 2013 and a new line in
Korea in February 2013, enhancing the cost competitiveness
of our production infrastructure. In Singapore, we started
commercial operation of the fi rst line of a new plant for
synthetic rubber for fuel-effi cient tires (S-SBR) in April 2013,
and are constructing a second line for start-up in the fi rst half
of 2015. We are also studying the construction of an
additional overseas plant for S-SBR as we proactively expand
production capacity to meet rapidly growing demand.
’
Nobeoka, Miyazaki, Japan, we are expanding our plant for
Bemberg™ cupro fi ber. We are also reinforcing our overseas
processing facilities for Hipore™ lithium-ion battery (LIB)
separator, with market growth forecasted in automotive
applications, and our second Chinese plant for Sunfort™
photosensitive dry fi lm will soon begin operation, meeting
growing demand in smartphone and tablet PC applications.
These measures for expansion of globally competitive
businesses in accordance with our strategy will begin
contributing to earnings in fi scal 2013.
Q4
How about your other business strategy,
“creation of new value for society”?
‘
We made a full-fl edged entry into the critical care
business. We are making concerted investments in
all three of our strategic fi elds, with an emphasis on
health care.
’
In November 2012 we started commercial operation of a
new plant in Thailand for spunbond nonwovens for
disposable diapers and other hygienic products, and in
Our strategic expansion in the health care sector took a major
step forward in April 2012 as we entered the critical care
business with our ¥183 billion acquisition of ZOLL Medical
Expansion of world-leading businesses
Acrylonitrile (AN)
Production sites
S-SBR (synthetic rubber for fuel-effi cient tires)
Four essential characteristics of fuel-effi cient tires
Korea
560,000 tons/year
Japan
Kawasaki
150,000 tons/year
Mizushima
300,000 tons/year
Middle East
200,000 tons/year
(under study)
Thailand
200,000 tons/year
fuel-
efficiency
continuous
polymerization
abrasion
resistance
good
wet grip
batch
polymerization
handling
stability
(cid:47)(cid:86)(cid:69)(cid:82)(cid:83)(cid:69)(cid:65)(cid:83)(cid:0)(cid:69)(cid:88)(cid:80)(cid:65)(cid:78)(cid:83)(cid:73)(cid:79)(cid:78)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)
Singapore:
1st line – 50,000 tons/year (started up in April 2013)
2nd line – 50,000 tons/year (start-up scheduled for first half 2015)
New plant at 2nd site overseas: under consideration
(cid:115)(cid:0)(cid:45)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:33)(cid:34)(cid:51)(cid:0)(cid:82)(cid:69)(cid:83)(cid:73)(cid:78)(cid:0)(cid:85)(cid:83)(cid:69)(cid:68)(cid:0)(cid:73)(cid:78)(cid:0)(cid:65)(cid:85)(cid:84)(cid:79)(cid:77)(cid:79)(cid:84)(cid:73)(cid:86)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:69)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:79)(cid:78)(cid:73)(cid:67)(cid:0)
(cid:65)(cid:80)(cid:80)(cid:76)(cid:73)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:12)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:65)(cid:67)(cid:82)(cid:89)(cid:76)(cid:73)(cid:67)(cid:0)(cid:70)(cid:73)(cid:66)(cid:69)(cid:82)(cid:0)(cid:85)(cid:83)(cid:69)(cid:68)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:77)(cid:79)(cid:73)(cid:83)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:65)(cid:66)(cid:83)(cid:79)(cid:82)(cid:66)(cid:73)(cid:78)(cid:71)(cid:15)(cid:72)(cid:69)(cid:65)(cid:84)(cid:0)
(cid:71)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:76)(cid:79)(cid:84)(cid:72)(cid:73)(cid:78)(cid:71)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:65)(cid:82)(cid:66)(cid:79)(cid:78)(cid:0)(cid:70)(cid:73)(cid:66)(cid:69)(cid:82)(cid:0)(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)
(cid:115)(cid:0)(cid:50)(cid:69)(cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:67)(cid:73)(cid:78)(cid:71)(cid:0)(cid:67)(cid:79)(cid:83)(cid:84)(cid:13)(cid:67)(cid:79)(cid:77)(cid:80)(cid:69)(cid:84)(cid:73)(cid:84)(cid:73)(cid:86)(cid:69)(cid:0)(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:70)(cid:82)(cid:65)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)
(cid:84)(cid:72)(cid:82)(cid:79)(cid:85)(cid:71)(cid:72)(cid:0)(cid:83)(cid:84)(cid:65)(cid:82)(cid:84)(cid:13)(cid:85)(cid:80)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:82)(cid:79)(cid:80)(cid:65)(cid:78)(cid:69)(cid:13)(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:84)(cid:0)(cid:73)(cid:78)(cid:0)(cid:52)(cid:72)(cid:65)(cid:73)(cid:76)(cid:65)(cid:78)(cid:68)
(cid:115)(cid:0)(cid:35)(cid:65)(cid:80)(cid:84)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:71)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:0)(cid:68)(cid:69)(cid:77)(cid:65)(cid:78)(cid:68)(cid:0)(cid:69)(cid:83)(cid:80)(cid:69)(cid:67)(cid:73)(cid:65)(cid:76)(cid:76)(cid:89)(cid:0)(cid:73)(cid:78)(cid:0)(cid:33)(cid:83)(cid:73)(cid:65)
(cid:115)(cid:0)(cid:45)(cid:65)(cid:84)(cid:69)(cid:82)(cid:73)(cid:65)(cid:76)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:84)(cid:82)(cid:69)(cid:65)(cid:68)(cid:0)(cid:79)(cid:70)(cid:0)(cid:70)(cid:85)(cid:69)(cid:76)(cid:13)(cid:69)(cid:70)(cid:70)(cid:73)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:0)(cid:84)(cid:73)(cid:82)(cid:69)(cid:83)
(cid:115)(cid:0)(cid:45)(cid:65)(cid:78)(cid:85)(cid:70)(cid:65)(cid:67)(cid:84)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:86)(cid:65)(cid:76)(cid:85)(cid:69)(cid:13)(cid:65)(cid:68)(cid:68)(cid:69)(cid:68)(cid:0)(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:83)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:0)(cid:65)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:69)(cid:68)(cid:0)
performance through continuous polymerization process
utilizing unique technology
(cid:115)(cid:0)(cid:37)(cid:88)(cid:80)(cid:65)(cid:78)(cid:68)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:86)(cid:69)(cid:82)(cid:83)(cid:69)(cid:65)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:77)(cid:69)(cid:69)(cid:84)(cid:0)(cid:71)(cid:82)(cid:79)(cid:87)(cid:73)(cid:78)(cid:71)(cid:0)(cid:68)(cid:69)(cid:77)(cid:65)(cid:78)(cid:68)(cid:0)(cid:68)(cid:85)(cid:69)(cid:0)(cid:84)(cid:79)(cid:0)(cid:76)(cid:65)(cid:66)(cid:69)(cid:76)(cid:73)(cid:78)(cid:71)(cid:0)
requirements
10 Asahi Kasei Annual Report 2013
Management Strategy
Corporation, a major US manufacturer of devices and systems
for acute critical care. ZOLL’s fastest-growing product, the
LifeVest™ wearable defi brillator on the market in the US and
Europe, is expanding at around 50% per year. In July 2013,
ZOLL’s Japanese subsidiary Asahi Kasei ZOLL Medical received
regulatory approval to market the LifeVest™ in Japan. In
pharmaceuticals, we are advancing a global Phase III clinical
study for Recomodulin™ anticoagulant, and in medical devices
we are reinforcing overseas operations for artifi cial kidneys.
In the fi eld of residential living, we constructed a
demonstration house called “HH2015” in Fuji, Shizuoka,
Japan, incorporating home health care systems and various
other products and technologies from both within the Asahi
Kasei Group and outside, and we are utilizing this venue to
evaluate their practicality and commercial prospects.
In the fi eld of the environment & energy, we are
constructing a second line for Neoma™ phenolic foam, which
boasts the world’s highest-level insulation performance for the
housing market. The ultraviolet light emitting diodes (UV
LEDs) under development by Crystal IS, Inc., which we
acquired in 2011, have achieved the world’s highest UV LED
output, and we are constructing a pilot line in preparation for
commercialization.
Creation of new value for society
FY 2011–2015
Long-term investment: ¥1 trillion
(cid:115)(cid:0)(cid:48)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:73)(cid:78)(cid:71)(cid:0)(cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:73)(cid:67)(cid:0)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:0)(cid:87)(cid:72)(cid:73)(cid:76)(cid:69)(cid:0)(cid:77)(cid:65)(cid:73)(cid:78)(cid:84)(cid:65)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:0)(cid:72)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)
(cid:115)(cid:0)(cid:45)(cid:65)(cid:75)(cid:73)(cid:78)(cid:71)(cid:0)(cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:0)(cid:85)(cid:83)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:99)(cid:18)(cid:21)(cid:16)(cid:0)(cid:66)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)(cid:0)(cid:82)(cid:69)(cid:77)(cid:65)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:78)(cid:69)(cid:87)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:12)(cid:0)(cid:45)(cid:6)(cid:33)(cid:12)(cid:0)
(cid:0)(cid:0)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:78)(cid:84)(cid:0)(cid:69)(cid:88)(cid:80)(cid:65)(cid:78)(cid:83)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:69)(cid:88)(cid:73)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:69)(cid:83)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:70)(cid:85)(cid:82)(cid:84)(cid:72)(cid:69)(cid:82)(cid:0)(cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:0)(cid:71)(cid:82)(cid:79)(cid:87)(cid:84)(cid:72)
(cid:36)(cid:69)(cid:67)(cid:73)(cid:83)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:65)(cid:68)(cid:79)(cid:80)(cid:84)(cid:69)(cid:68)(cid:0)(cid:68)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:38)(cid:57)(cid:0)(cid:18)(cid:16)(cid:17)(cid:17)– (cid:18)(cid:16)(cid:17)(cid:18)
(cid:115)(cid:0)(cid:33)(cid:67)(cid:81)(cid:85)(cid:73)(cid:83)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:58)(cid:47)(cid:44)(cid:44)(cid:0)
(cid:115)(cid:0)(cid:33)(cid:67)(cid:81)(cid:85)(cid:73)(cid:83)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:35)(cid:82)(cid:89)(cid:83)(cid:84)(cid:65)(cid:76)(cid:0)(cid:41)(cid:51)
(cid:115)(cid:0)(cid:35)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:73)(cid:76)(cid:79)(cid:84)(cid:0)(cid:76)(cid:73)(cid:78)(cid:69)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:53)(cid:54)(cid:0)(cid:44)(cid:37)(cid:36)(cid:83)
(cid:115)(cid:0)(cid:37)(cid:83)(cid:84)(cid:65)(cid:66)(cid:76)(cid:73)(cid:83)(cid:72)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:74)(cid:79)(cid:73)(cid:78)(cid:84)(cid:0)(cid:86)(cid:69)(cid:78)(cid:84)(cid:85)(cid:82)(cid:69)(cid:0)(cid:70)(cid:79)(cid:82)
(cid:0)(cid:0) (cid:76)(cid:73)(cid:84)(cid:72)(cid:73)(cid:85)(cid:77)(cid:0)(cid:73)(cid:79)(cid:78)(cid:0)(cid:67)(cid:65)(cid:80)(cid:65)(cid:67)(cid:73)(cid:84)(cid:79)(cid:82)(cid:83)(cid:0)(cid:8)(cid:44)(cid:41)(cid:35)(cid:83)(cid:9)
Total approx. ¥200 billion
(cid:46)(cid:69)(cid:87)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:12)(cid:0)(cid:45)(cid:6)(cid:33)(cid:12)
(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:78)(cid:84)(cid:0)(cid:69)(cid:88)(cid:80)(cid:65)(cid:78)(cid:83)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)
(cid:69)(cid:88)(cid:73)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:69)(cid:83)
(cid:99)(cid:20)(cid:21)(cid:16)(cid:0)(cid:66)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)
R
e
s
o
u
r
c
e
s
f
o
r
f
u
r
t
h
(cid:38)(cid:57)(cid:0)(cid:18)(cid:16)(cid:17)(cid:19)
(cid:79)(cid:78)(cid:87)(cid:65)(cid:82)(cid:68)(cid:83)
(cid:38)(cid:57)(cid:0)(cid:18)(cid:16)(cid:17)(cid:19)
(cid:79)(cid:78)(cid:87)(cid:65)(cid:82)(cid:68)(cid:83)
e
r
g
r
o
w
t
h
(cid:36)(cid:69)(cid:67)(cid:73)(cid:83)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:65)(cid:68)(cid:79)(cid:80)(cid:84)(cid:69)(cid:68)(cid:0)(cid:68)(cid:85)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:38)(cid:57)(cid:0)(cid:18)(cid:16)(cid:17)(cid:17)–(cid:18)(cid:16)(cid:17)(cid:18)
(cid:115)(cid:0)(cid:51)(cid:69)(cid:67)(cid:79)(cid:78)(cid:68)(cid:0)(cid:76)(cid:73)(cid:78)(cid:69)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:51)(cid:13)(cid:51)(cid:34)(cid:50)(cid:0)(cid:73)(cid:78)(cid:0)(cid:51)(cid:73)(cid:78)(cid:71)(cid:65)(cid:80)(cid:79)(cid:82)(cid:69)
(cid:115)(cid:0)(cid:35)(cid:65)(cid:80)(cid:65)(cid:67)(cid:73)(cid:84)(cid:89)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:73)(cid:78)(cid:83)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)
(cid:0)(cid:0)(cid:0)(cid:80)(cid:65)(cid:78)(cid:69)(cid:76)(cid:83)
(cid:115)(cid:0)(cid:35)(cid:65)(cid:80)(cid:65)(cid:67)(cid:73)(cid:84)(cid:89)(cid:0)(cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:34)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82)(cid:71)(cid:152)
Total approx. ¥200 billion
(cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:73)(cid:78)
(cid:69)(cid:88)(cid:73)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:0)(cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:69)(cid:83)
(cid:99)(cid:21)(cid:21)(cid:16)(cid:0)(cid:66)(cid:73)(cid:76)(cid:76)(cid:73)(cid:79)(cid:78)
Asahi Kasei Annual Report 2013
11
Q5
What is the outlook for your overall health care
sector, including synergy among critical care,
pharmaceuticals, and medical devices?
‘
Asahi Kasei has always fl exibly transformed its
business portfolio. We aim to develop health care as a
major pillar of business, with synergy among our
different health care operations.
In 2012 we established a Health Care Council to create
synergies among critical care, pharmaceuticals and medical
devices. The Council will serve as a forum for sharing know-
how on obtaining regulatory approval and networks of
contacts at medical institutions, as well as wide-ranging
discussions on other potential synergies including
combinations of technology accumulated in the Asahi Kasei
Group with technology of ZOLL. We plan to build up the
health care sector as the third major pillar of earnings
together with chemicals and homes.
’
Scale-up of Health Care sector
Scale-up of Health Care sector as a major pillar of business
(cid:115)(cid:0)(cid:37)(cid:88)(cid:80)(cid:65)(cid:78)(cid:83)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:44)(cid:73)(cid:70)(cid:69)(cid:54)(cid:69)(cid:83)(cid:84)(cid:152)(cid:0)
wearable defibrillator
(cid:115)(cid:0)(cid:51)(cid:89)(cid:78)(cid:69)(cid:82)(cid:71)(cid:89)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:73)(cid:78)(cid:0)(cid:40)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:0)
Care sector
Acquisition of ZOLL
Entry into critical care
businesses
(cid:44)(cid:65)(cid:85)(cid:78)(cid:67)(cid:72)(cid:0)(cid:79)(cid:70)(cid:0)(cid:52)(cid:69)(cid:82)(cid:73)(cid:66)(cid:79)(cid:78)(cid:69)(cid:152)(cid:0)
(cid:79)(cid:83)(cid:84)(cid:69)(cid:79)(cid:80)(cid:79)(cid:82)(cid:79)(cid:83)(cid:73)(cid:83)(cid:0)(cid:68)(cid:82)(cid:85)(cid:71)
Critical Care
¥52.1 billion
Health Care
Net sales
¥116.4 billion
¥119.5 billion
¥133.5 billion
Pharmaceuticals/
medical devices
FY
2010
2011
2012
2015 (forecast)
2020 (target)
12 Asahi Kasei Annual Report 2013
Management Strategy
Q6
How do you see the effects of the Japanese
government’s growth policies?
Q8
What is your dividend policy?
‘
We will obtain further growth by taking advantage of
the government’s strategy for recovery and growth. ’
The Japanese economy is on the path of recovery thanks to
correction of the overvalued yen and high expectations for the
Abe government’s aggressive monetary and fi scal policies.
I hope increased corporate earnings, higher household
income, and greater consumer spending will form a virtuous
circle that drives further economic growth. The “For
Tomorrow 2015” strategies we formulated in 2011 are in
perfect alignment with the new government policies. For
example, the government’s growth strategy, known as the
“third arrow” of economic policy, emphasizes health care and
energy—fi elds we identifi ed for the creation of new value for
society. Additional government measures such as deregulation
to foster greater competitiveness will provide further impetus
as we advance our strategy for growth.
Q7
What is your outlook for fi scal 2013?
‘
We will make a major advance toward our “For
Tomorrow 2015” goals this year, with recovering
demand, a weaker yen, new plants contributing to
earnings, and the effect of reduced operating costs.’
Chemicals will enjoy increased sales volumes due to full-
fl edged operation of new plants, and electronics enjoy a
recovery of sales volumes and the effect of the weaker yen.
Homes will record increased deliveries thanks to continuing
growth in orders, and pharmaceuticals will continue to see
increased sales of new drugs. We also expect cost reductions
of ¥10 billion or more from our streamlining project in
procurement, logistics, administration, etc. Taken together, we
are forecasting increased sales with operating income
reaching a record high of ¥130 billion.
’
‘
We aim to further enhance corporate value through
“For Tomorrow 2015,” with a basic standard for
payout ratio of 30%.
Our basic policy is to strive to continuously increase dividends
through continuous earnings growth while maintaining an
appropriate cash reserve based on consolidated fi nancial
results. Our cash reserve will be used as a source of funds
required to achieve future earnings growth by expanding
operations, both through investments in established
businesses and through strategic investments, including M&A,
and new business development expenditures in the
environment & energy, residential living, and health care as
fi elds of strategic focus under “For Tomorrow 2015.” The
annual dividend for fi scal 2012 was maintained from the
previous year at ¥14 per share, and we aim to maintain this
dividend for fi scal 2013 refl ecting forecasted consolidated
fi nancial results. We aim to continuously increase dividends by
expanding earnings under “For Tomorrow 2015,” with a basic
standard for payout ratio of 30%.
Dividends per share, payout ratio
(¥)
18
15
12
9
6
3
0
FY
Dividends per share,
left scale
(%)
300
150
120
90
60
30
0
’08
10
’09
10
’10
11
’11
14
’12
14
’13
14
(plan)
Payout ratio,
right scale
295.0% 55.3% 25.5% 35.1% 36.4% 25.4%
(forecast)
Asahi Kasei Annual Report 2013
13
At a Glance
Chemicals
Fibers
Homes
Construction Materials
P16
P18
P20
P22
Sales composition
41.1 %
Operating income composition*
22.4 %
Net sales (¥ billion)
6.6 %
3.9 %
29.2 %
53.0 %
3.1 %
3.9 %
¥684.6 billion
¥109.6 billion
¥486.2 billion
¥51.5 billion
FY
’10
’11
699.8
680.1
’12
684.6
FY
’10
’11
108.8
110.8
’12
109.6
FY
’10
’11
409.2
452.0
’12
486.2
FY
’10
47.4
’11
46.1
’12
51.5
Operating income (loss) (¥ billion)
¥22.9 billion
¥4.0 billion
¥54.3 billion
¥4.0 billion
FY
’10
64.4
’11
44.5
9.2%
6.5%
’12
22.9
3.3%
FY
’10
4.2
’11
3.1
’12
4.0
FY
’10
36.5
’11
46.3
’12
54.3
FY
’10
2.1
’11
1.8
’12
4.0
3.9%
2.8%
3.7%
8.9%
10.3%
11.2%
4.4%
4.0%
7.7%
Operating income
Operating margin
Operating income
Operating margin
Operating income
Operating margin
Operating income
Operating margin
Overview of FY 2012 results
Sales increased, but operating
income decreased. Terms of
trade for acrylonitrile and
other monomer products
deteriorated. Synthetic rubber
for fuel-effi cient tires performed
well, as did coating materials.
Sales decreased, but operating
income increased. Sales volume
of Bemberg™ cupro fi ber
increased, but Roica™ elastic
polyurethane fi lament
struggled in overseas markets.
Both sales and operating
income increased. Deliveries of
Hebel Haus™ unit homes and
Hebel Maison™ apartment
buildings increased. Real estate
operations and remodeling
operations performed well.
Both sales and operating
income increased. Sales of
Hebel™ autoclaved aerated
concrete (AAC) panels were
fi rm. Foundation systems and
insulation materials performed
well.
* Not including corporate expenses and eliminations.
** The “Critical Care” segment was added in fi scal 2012, in which results of ZOLL Medical Corporation are reported; subject to consolidation from April 27, 2012 to March 31, 2013.
*** Operating income before amortization of goodwill and other intangible assets, etc., related to acquisition of ZOLL Medical Corporation.
14 Asahi Kasei Annual Report 2013
Operations
Electronics
Health Care
Critical Care**
Others
P24
P26
P28
7.9 %
2.8 %
8.0 %
15.5 %
3.1 %
(3.6) %
1.0 %
2.1 %
¥131.1 billion
¥133.5 billion
¥52.1 billion
¥18.0 billion
FY
’10
’11
158.3
146.1
’12
131.1
FY
’10
’11
116.4
119.5
’12
133.5
FY
’10
—
’11
—
’12
52.1
FY
’10
16.0
’11
18.6
’12
18.0
¥2.8 billion
¥15.9 billion
¥(3.7) billion
¥2.2 billion
Gross operating income***
+7.3
Amortization of goodwill and
other intangible assets, etc.
(11.0)
FY
’10
14.3
’11
6.4
’12
2.8
FY
’10
7.0
’11
8.8
’12
15.9
FY
9.0%
4.4%
2.2%
6.1%
7.4%
11.9%
’10
—
—
’11
—
—
’12
(3.7)
—
FY
’10
1.7
’11
3.0
’12
2.2
10.7%
16.0%
12.2%
Operating income
Operating margin
Operating income
Operating margin
Operating loss
Operating margin
Operating income
Operating margin
Both sales and operating
income decreased with lower
shipment volumes and lower
sales price due to the generally
sluggish market.
Both sales and operating
income increased. Sales of
Teribone™ osteoporosis drug
grew smoothly. Sales of
therapeutic apheresis devices
were fi rm.
Operating income from
LifeVest™ wearable defi brillators
increased steadily. An operating
loss resulted as an effect of
amortization of goodwill and
other intangible assets, etc.,
amounting to ¥11.0 billion.
Asahi Kasei Annual Report 2013
15
Operating
Segments
No. 2
global share
No. 1
share in Asia
1
Acrylonitrile (AN)
2
Synthetic rubber for
fuel-effi cient tires (S-SBR)
Water-clarifi cation
membrane market
No. 1
share in US
No. 1
global share
3
Microza™ UF and MF
4
Ion-exchange membranes and
electrolysis systems
Chemicals
Major businesses/products
Chemicals and derivative products
Nitric acid, caustic soda, acrylonitrile (AN), styrene, adipic acid, methyl
methacrylate (MMA), acrylic resin
Polymer products
Stylac™-AS styrene-acrylonitrile, Stylac™-ABS acrylonitrile-butadiene-
styrene, Tenac™ polyacetal, Xyron™ modifi ed polyphenylene ether
(mPPE), Leona™ nylon 66, Suntec™ polyethylene (PE), synthetic
rubber and elastomer, polystyrene
Specialty products
Coating materials, latex, Ceolus™ microcrystalline cellulose, explosives,
explosion-bonded metal clad, Microza™ UF and MF membranes and
systems, ion-exchange membranes and electrolysis systems, Saran
Wrap™ cling fi lm, Ziploc™ storage bags, Frosch™ detergent, plastic
fi lm, sheet, and foam
16 Asahi Kasei Annual Report 2013
1
2
3
4
Sustained growth in demand for AN is forecasted in the main
applications of acrylonitrile-butadiene-styrene (ABS) resin and
acrylic fi ber. We are Asia’s leading AN producer, with a capacity
of 1.21 million tons per year at our four plants in Japan, Korea,
and Thailand. By continuing to expand competitive production
infrastructure utilizing our world-leading catalyst technology,
we aim to become the largest AN producer in the world.
S-SBR is an essential material for fuel-effi cient tires, a fi eld of
dramatic demand growth in recent years. Leveraging our tech-
nology which enables safety and lower fuel consumption, we
will capture demand growth by proactively expanding produc-
tion capacity in Singapore and other overseas locations.
Microza™ fi ltration modules containing unique hollow-fi ber
membranes are used to purify water and other liquids.
Demand continues to grow as a solution to water shortage
and contamination problems, and Microza™ microfi ltration
(MF) and ultrafi ltration (UF) systems have been adopted at over
1,000 facilities throughout the world.
Our ion-exchange membranes and membrane-process electrol-
ysis systems are used to produce caustic soda and chlorine by
electrolyzing brine. With advantages over the conventional
process including lower energy consumption and elimination of
the need to use harmful mercury, our world-leading membrane-
process technology has been adopted at over 100 plants in 19
countries around the world.
Operations
Yuji Kobayashi
President, Asahi Kasei Chemicals
We are pursuing global growth opportunities in fi elds
Highlights
(cid:129) Start of commercial operation of new plants for AN and MMA
In January 2013, PTT Asahi Chemical Co., Ltd., an affi liate of Asahi
Kasei Chemicals in Thailand (owned 48.5% by Asahi Kasei Chemicals,
48.5% by PTT Public Company Limited, and 3.0% by Marubeni),
began commercial operation of plants for AN and methyl methacrylate
(MMA). The new AN plant is the world’s fi rst propane-process plant,
which uses propane directly as feedstock, and the new MMA plant is
that make the most of our technological advantage and
an acetone cyanohydrin (ACH) process plant, which uses byproduct
optimizing our operational confi guration in line with
hydrogen cyanide from the AN plant as feedstock.
the changing management climate, with a focus on
The new operation in Thailand marks an important step in the
strategic expansion of our AN business, together with an expansion of
our plant in Korea in February 2013, and we are currently studying the
construction of an AN plant in the Middle East. We will remain
focused on maximizing earnings from AN as a world-leading business
by extending production infrastructure in locations with superior
feedstock availability and market access.
enabling “living in health and comfort” and “harmony
with the natural environment” throughout our broad
range of business operations.
“For Tomorrow 2015” Strategies
Through fl exible 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
(cid:129) AN: Constructing cost-competitive plants to meet global
demand growth, aiming for world No. 1 position
AN plant in Thailand
(cid:129) S-SBR: Proactive capacity expansion to meet strong demand
growth in the fuel-effi cient tire market
(cid:129) Completion of new plant for Saran Wrap™
A new plant for Saran Wrap™ in Suzuka, Mie, Japan, was completed
2. Business expansion in growing markets, particularly in Asia
in May 2012. With fi rm consumer recognition of its superior cling and
(cid:129) Performance plastics: Expanding established position in Asian
barrier performance, Saran Wrap™ has maintained the leading market
markets through enhanced application development capability
and global production infrastructure
share in Japan ever since its debut in 1960. Transition to the new plant
from the previous plant with a history of over 50 years facilitates
(cid:129) Water treatment/membrane business: Further reinforcing
greater productivity and more stringent quality control.
membrane business, expanding operations in China
(cid:129) Duranate™ HDI-based polyisocyanate: Expanding business in
the rapidly growing Chinese market
(cid:129) Health care materials: Major expansion of Ceolus™
microcrystalline cellulose in emerging markets, reinforcement
of acetonitrile supply infrastructure
3. Creation of new businesses and business fi elds as next
strategic pillars
New plant for Saran Wrap™ in Suzuka
(cid:129) Establishment and expansion of new businesses in promising
markets
4. Optimization of petrochemical operations in Japan for
stable profi tability
Major Projects under Construction
(cid:129) New S-SBR plant in Singapore
(cid:129) New acetonitrile plant in Korea
Asahi Kasei Annual Report 2013
17
Five plants
around the world
World’s only
product of its kind
1
Roica™ spandex
2
Bemberg™ cupro fi ber
A wide range of
innovative
functional
products
No. 1
domestic market share
in tire cord
Expanding use in air bags
3
Nonwovens
4
Leona™ nylon 66 fi lament
Fibers
Major businesses/products
Roica™ elastic polyurethane fi lament,
Bemberg™ cupro fi ber, Eltas™ spunbond,
Lamous™ artifi cial suede, and other nonwovens,
Leona™ nylon 66 fi lament
18 Asahi Kasei Annual Report 2013
1
2
3
4
With excellent stretch and recovery properties, Roica™ elastic polyurethane
fi lament (spandex/elastane) provides the advanced functionality to meet a
wide variety of customer needs. It is used for women’s stockings, sportswear,
diapers, and medical supporters. The global Roica™ supply network includes
manufacturing plants in Japan, Taiwan, China, Thailand and Germany.
Bemberg™ cupro is a regenerated cellulose fi ber made from cotton linter,
the short fi bers on cotton seeds. The world’s only manufacturer, we have
been producing Bemberg™ for over 80 years. Featuring a silk-like smooth
feel and attractive luster, it is used in applications ranging from high-quality
suit linings to outerwear, innerwear, sportswear, and beddings. The use of
Bemberg™ for traditional garments is growing in India and Pakistan.
A new plant for Eltas™ spunbond started up in Thailand in 2012 to meet
rising demand in diapers and other hygienic product applications, most
notably in Asia. In addition, we have wide range of other highly functional
nonwoven products made with advanced and innovative production tech-
nology. Precisé™ is a multifunctional nonwoven fabric with high barrier
effi ciency used in electronic applications. Bemliese™ is the world’s only
100% cellulose continuous-fi lament nonwoven. Lamous™ artifi cial suede
is used for upholstery and automotive interiors.
Leona™ nylon 66 fi lament featuring exceptional strength, light weight, and
heat resistance, is used as an industrial material, especially in automotive
applications. In recent years, its use has been expanding in automotive air-
bags and as reinforcement in aircraft tires. Demand for Leona™ fi lament
continues to grow in recognition of the high quality enabled by the ideal
manufacturing process of continuous polymerization and direct spinning.
Operations
Toshio Takanashi
President, Asahi Kasei Fibers
Highlights
(cid:129) Expansion of production capacity for Bemberg™
In April 2013 we began construction work to expand production
facilities for Bemberg™ cupro fi ber in Nobeoka, Miyazaki, Japan.
Featuring a smooth feel and moisture absorption/release,
Together with our customers, we are contributing to
life and living for people around the world by securing
Bemberg™ is increasingly used
for traditional garments and
functional innerwear, especially
in emerging countries. In order
the presence of our unique businesses with growth
to ensure the stable supply of
potential in world-leading fi elds.
“For Tomorrow 2015” Strategies
high quality Bemberg™ products
in line with further growth in the
global market, we will continue
to expand production capacity
while enhancing production
Enhancing the stable profi t base in our unique established
infrastructure.
businesses with expansion and growth in world-leading fi elds,
in accordance with the two perspectives of “harmony with the
natural environment” and “living in health and comfort.”
Creating new businesses and markets by enhancing basic
and applied technologies with technology collaboration both
inside and outside the company.
1. Roica™ elastic polyurethane fi lament
(cid:129) Establishment of the world-leading brand in fi elds where we
have superiority in quality and function, in collaboration with
customers
Bemberg™ cupro fi ber
(cid:129) Start-up of a new spunbond plant in Thailand
Our new spunbond plant in Thailand started operation in November
2012 to meet growing demand in the fi eld of hygienic products such
as disposable diapers in Asian countries. With production located in
close proximity to market demand, it enables swift response to
customer needs and stable supply to manufacturers of hygienic
products from Japan and other countries that are expanding output
(cid:129) Securing a presence in growing Asian markets and globally,
with the plant in Thailand as a key manufacturing base
in Asia.
2. Nonwovens
(cid:129) Spunbond: Earnings growth in Asia with polypropylene
spunbond for hygienic products produced at a new plant in
Thailand, expansion of Precisé™ spunbond nonwovens
(cid:129) Bemliese™ cupro cellulosic nonwoven: Securing stable
earnings in the IT fi eld in Asia, expansion in the medical and
cosmetics fi elds
(cid:129) Lamous™ artifi cial suede: Steady expansion in Japanese,
Europe, and US markets for car seat applications, development
of new applications in industrial fi elds
(cid:129) Eutec™ oil-water separation fi lter: Establishing niche market
leadership in oil-water separation, expansion in applications
with microfi ltration, as well as in the solid-liquid and gas-liquid
separation fi elds
3. Bemberg™ cupro fi ber
(cid:129) Expansion in Europe, China, and other overseas markets for
linings, outerwear, functional apparel, and traditional garments
(cid:129) Production processes innovation
4. Leona™ nylon 66 fi lament
(cid:129) Stable earnings in tire cord applications
(cid:129) Expansion in air-bag applications
Spunbond plant in Thailand
Asahi Kasei Annual Report 2013
19
Long Life Homes
Earthquake-resistance,
fi re-resistance, durability
Innovative
lifestyle
proposals
1
Hebel Haus™
2
Hebel Maison™
Building
consensus for
urban renewal
Sustaining
long-term
satisfaction
3
Atlas™ condominiums
4
Remodeling
Homes
Major businesses/products
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, Atlas™ condominiums,
Hebel Town™ housing developments, brokerage of used Hebel
Haus™ homes
Remodeling
Exterior wall refurbishing, reroofi ng, redesign, interior renovation, solar
panel installation
Financial and other services
Mortgage fi nancing, etc.
20 Asahi Kasei Annual Report 2013
1
2
3
4
Our “Long Life Homes” provide long-lasting safety, security, and
comfort for over 60 years, through a combination of Hebel™ auto-
claved aerated concrete (AAC) panels with our original steel-frame
structural systems. We offer order-built homes featuring outstand-
ing strength and durability which can withstand earthquake, fi re,
and typhoon.
Since pioneering the two-generation home, we have created a vari-
ety of new homes tailored to different needs that change over time,
such as homes with features for living with pets, and homes for a
family living with their parents and an unmarried sibling. We continue
to advance innovative proposals that meet urban lifestyle needs.
Our residential development business is centered on Atlas™ series
condominium buildings, with a focus on replacing older housing
complexes in urban areas with new condominiums together with
comprehensive plans for urban renewal, which requires accord for
rebuilding to be obtained among various stakeholders holding
ownership rights. The exceptional negotiating skills we have accu-
mulated through experience in the order-built homes business has
proved to be effective as we advance the process of consensus-
building and planning, providing full support for customers from
the fi rst step of consideration through fi nal completion.
Our remodeling services are focused on sustaining long-term satis-
faction for residents. In addition to maintenance-related work, we
provide innovative value-adding proposals for timely renovation to
adapt to lifestyle changes such as enlargement, remodeling, and
installation of solar panels.
Operations
Masahito Hirai
President, Asahi Kasei Homes
The order-built homes business will be expanded with
Highlights
(cid:129) Launch of innovative new Hebel Haus™
In August 2012 we launched a new Hebel Haus™ product with features
specifi cally designed for a family living with their parents and an
unmarried sibling. The new home builds on our established know-how
as a pioneer in homes for two-generation families, and we will continue
to leverage this know-how to advance additional new proposals for
homes with comfort which will be passed down for generations,
dominant competitiveness as the differentiated market
including features that provide new value by encouraging
leader in the fi eld of urban unit homes. Housing-related
communication between family members, and homes that provide a
operations will be developed as an array of businesses,
comfortable living environment for unmarried family members.
building and utilizing their own distinctive strengths.
“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 fulfi llment in living in a mature
urban setting.
1. Houses, apartments
(cid:129) Establishment of No. 1 position as a differentiated market
leader with new residential lifestyle proposals that meet
emerging social needs
(cid:129) Promotion of community-specifi c proposals to increase market
share, and reinforcing marketing capabilities in selected urban
areas of Japan
(cid:129) Expansion of multi-dwelling homes business
2. Real estate
New Hebel Haus™
Net Sales (Asahi Kasei Homes consolidated)
(¥ billion)
Others
Remodeling
Real estate–related
Order-built homes
Others
Pre-built homes
Order-built homes
1.6
52.5
82.9
1.9
46.3
70.6
72.7
29.9
75.3
32.1
79.3
27.8
88.7
23.7
307.3
282.3
302.1
339.6
367.3
389.0
(cid:129) Reinforcing condominium business based on obtaining accord
among owners regarding exchange of equivalent value
FY
Net sales
’08
’09
’10
’11
’12*
’13 (forecast)
409.9
389.7
409.2
452.0
486.2
526.0
(cid:129) Maximizing utilization of land value through brokerage-related
operations
(cid:129) Heightening capability to secure tenants
* Product categories are revised from FY 2012. A portion of sales previously
included in pre-built homes is now included in order-built homes. Otherwise, sales
in the previous pre-built homes category are now included in real estate–related.
3. Expansion of housing-related operations
(cid:129) Expansion of remodeling and renovation work
(cid:129) Enhancement of the energy-conservation product lineup
Orders Received
(¥ billion)
FY
’08
’09
’10
’11
’12
’13 (forecast)
Orders received
291.1
306.9
354.5
371.9
412.4
426.0
Asahi Kasei Annual Report 2013
21
No. 1
World’s top-class
insulation performance
share in Japan
Thermal conductivity of
0.020 WmK
1
Hebel™ autoclaved aerated concrete
(AAC) panels
2
Neoma™ phenolic foam
insulation panels
Meeting various
changing needs
Undamaged
by major earthquakes
3
Eazet™ screw-tip piles
4
BasePack™ column base
attachment system
Construction
Materials
Major businesses/products
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
22 Asahi Kasei Annual Report 2013
1
2
3
4
Featuring light weight which enables easy installation as well as
excellent durability, thermal insulation, and fl ame resistance,
Hebel™ panels are used in various applications ranging from unit
homes to skyscrapers. Hebel™ panels have maintained the leading
position in Japan since their market launch in 1967, with continu-
ous R&D and quality improvements.
Neoma™ phenolic foam insulation panels featuring world-leading
insulation performance are used not only in construction applica-
tions but also for insulation in transportation vehicles. Further
demand growth is expected due to the Japanese government’s
announcement of a roadmap toward mandatory energy conserva-
tion standards for homes.
The Eazet™ piling system for small-scale construction enables
installation in confi ned spaces while generating little noise or
vibration and no soil for disposal. These advantages make Eazet™
suitable not only for home construction, but also increasingly for
the foundations of mobile phone masts, elevators, and escalators,
as well as for seismic retrofi tting of existing structures.
The BasePack™ column base attachment system enhances the
strength of steel-frame buildings by fi rmly attaching steel col-
umns to the concrete foundation. Its exceptional earthquake
resistance was demonstrated during the Great Hanshin
Earthquake of 1995 and Great East Japan Earthquake of 2011,
when no BasePack™ attachments suffered any damage.
Operations
Tomihiro Maeda
President,
Asahi Kasei Construction Materials
Highlights
(cid:129) Expansion of capacity for phenolic foam insulation panels
In April 2012, Asahi Kasei Construction Materials fi nalized a decision to
increase production capacity of Neoma™ high-performance phenolic
foam insulation panels and Jupii™ fl oor insulation panels developed
based on Neoma™ technology. The market for high-performance
insulation panels is anticipated to grow dramatically against a
We are focused on the development and provision of
background of heightened demand for energy conservation and better
products that provide safety, security, and comfort,
insulated homes, with renewed consumer interest in “smart” and “zero-
based on constant innovation in our core areas of AAC-
energy” homes as well as the Japanese government’s roadmap toward
related products, foundation systems, insulation mate-
mandatory energy conservation standards for homes in 2020. To meet
rials, and structural components.
“For Tomorrow 2015” Strategies
growing demand, Asahi Kasei Construction Materials will add a new
production line at its plant in Ibaraki, Japan. As 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
Pursuing business expansion in fi elds of competitive superiority
while transforming the business to be more solution oriented.
environments in architectural works.
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 confi guration
encompassing peripheral fi elds and including systems and combination
products based on the customer’s perspective.
1. AAC-related
Enhancing cost competitiveness with measures to gain further effi ciency
and maintain stable profi tability. 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 fi elds that make the most
of our product features, including mobile phone masts, transportation
infrastructure, and seismic retrofi tting, 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-effi cient 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.
Jupii™
Major Projects under Construction
(cid:129) Capacity expansion for phenolic foam insulation panels in Ibaraki, Japan
Asahi Kasei Annual Report 2013
23
No. 1
global share
No. 1
global share
1
Electronic compass
2
Hall elements and Hall ICs
No. 1
global share
A world leader
3
Hipore™ Li-ion battery separator
4
Sunfort™ photosensitive dry fi lm
Electronics
Major businesses/products
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™ photosensitive dry fi lm, glass fabric for printed wiring boards
24 Asahi Kasei Annual Report 2013
1
2
3
4
The electronic compass is a sensor which determines direction by
detecting the Earth’s magnetism. We started mass production of the
world’s fi rst 3-axis electronic compasses for mobile devices in 2003,
and our products are the de facto global standard in smartphones and
tablet PCs. As the world’s leading electronic compass manufacturer, we
continue to advance R&D for further product enhancement while
ensuring stable supply as the market grows.
Hall elements are high-precision magnetic sensors which provide an
output signal that is proportional to the intensity of the detected mag-
netic fi eld. Hall ICs, comprising a combination of Hall elements and sig-
nal processing circuits, are used in various applications including air
conditioner fans and mobile phone open/close detection switches. We
have a variety of products with added features to meet various needs.
Hipore™ is the world’s leading Li-ion battery (LIB) separator, a micropo-
rous membrane that insulates the electrodes electrically while allowing
lithium ions to pass through. Notable demand growth for Hipore™ is
forecasted in automotive applications, and we aim to achieve the global-
leading share in the automotive market with continuous technological
developments while enhancing our supply infrastructure both
domestically and globally.
Sunfort™ is one of the global leaders in the photosensitive dry fi lm
market, and widely used for the formation of circuit patterns on print-
ed wiring boards. We will continue to expand our overseas production
facilities to meet growing demand in the global electronics market,
while developing new grades that meet emerging needs for greater
performance and higher added value.
Operations
Makoto Konosu
President, Asahi Kasei Microdevices
Shigeki Takayama
President, Asahi Kasei E-materials
Making the most of our unique technology, we are
building our position as a leading supplier of electronic
components, continuing to develop and supply
category-leading products to the global market, and
expanding business as an electronic device manufacturer
that customers throughout the world can rely on.
We are focused on materials that lead to reduced envi-
ronmental 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 sustain-
able growth and prosperity, using chemical technology
for green electronic materials, enhancing the environ-
mental performance of electronic products.”
“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 the 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
exemplifi ed 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 fi elds including infrastructure, industrial, and
automotive, in addition to consumer electronics.
Highlights
(cid:129) Receipt of the Imperial Invention Prize for technology to
automatically adjust electronic compasses
In June 2012, a patent for technology to automatically adjust electronic
compasses was recognized with the 2012 Imperial Invention Prize, the
highest award to be presented at the 2012 National Commendation of
Invention by the Japan Institute of Invention and Innovation. Electronic
compasses measure geomagnetism to determine direction. This is used
for electronic map applications such as pedestrian navigation systems to
rotate the map to match the direction the users are facing. The award-
winning technology has been applied to a wide range of portable
devices, especially smartphones. The
Imperial Invention Prize recognized the
achievement which enables continuous and
accurate adjustment while the device is in
use, contributing to the expansion of the
smartphone market.
The award ceremony
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 gained as the market leader in consumer
electronics applications, we will proactively increase production
capacity and develop new membranes that match individual
customer needs to expand sales in rapidly emerging automotive
applications. We will also continue expanding production capacity
for Sunfort™ photosensitive dry fi lm in China to meet growing
demand, in accordance with our focus on expanding business in
growth markets based on our technological advantage.
(cid:129) Start-up of a Hipore™ slitting facility in China
In August 2012, we started commercial operation of a new slitting
facility in Suzhou, Jiangsu, China, for Hipore™ LIB separator. While
market growth continues in mainstream LIB applications for portable
devices such as smartphones and tablet PCs, signifi cant additional
growth is forecasted in electric vehicle applications. As the world’s
leading supplier of LIB separator, we will continue to expand capacity
proactively in line with demand
growth. At the same time, we will
continue to enhance our infrastructure
for overseas processing of master rolls
from Japan, ensuring stable and timely
supply to overseas LIB manufacturers.
Hipore™
Major Projects under Construction
(cid:129) New plant in China for Sunfort™ photosensitive dry fi lm
(cid:129) Capacity expansion for Hipore™ LIB separator in Miyazaki, Japan
Asahi Kasei Annual Report 2013
25
Gaining
leadership
in the fi eld of
locomotive syndrome
Going global
1
Teribone™ osteoporosis drug
2
Recomodulin™ anticoagulant
No. 1
share in Japan
No. 1
global share
3
APS™ polysulfone-membrane artifi cial kidneys
4
Planova™ virus removal fi lters
Health Care
Major businesses/products
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 artifi cial kidneys (dialyzers),
therapeutic apheresis devices, Planova™ virus removal fi lters,
Sepacell™ leukocyte reduction fi lters
26 Asahi Kasei Annual Report 2013
1
2
3
4
Subcutaneous injection formulation of Teribone™ for the indica-
tion of osteoporosis with high risk of fracture facilitates bone for-
mation with weekly administration. Since osteoporosis carries an
increased risk of a bone fracture that could result in confi nement
to bed, the effective treatment of osteoporosis is an important
social issue. By decreasing the risk of fracture, Teribone™ is mak-
ing a signifi cant contribution to osteoporosis therapy. A transder-
mal patch formulation is now under development.
Recomodulin™ anticoagulant for treatment of disseminated
intravascular coagulation is the world’s fi rst thrombomodulin
agent produced through genetic engineering. We are advancing
a global Phase III clinical trial to examine the safety and effi cacy of
this agent in patients with severe sepsis and coagulopathy.
APS™ polysulfone-membrane artifi cial kidneys, sold in over 70
countries, are used for the clinical purifi cation of blood as a sub-
stitute for normal kidney function. We are advancing further
product development to meet the different needs of various
patients, while expanding local production in cooperation with
other companies.
The world’s fi rst virus removal fi lter, Planova™ contributes to
enhanced safety in the production of plasma derivatives and bio-
pharmaceuticals throughout the world. As demand for Planova™
continues to grow with tighter regulations and the spread of bio-
similar drugs, we are extending marketing efforts in Asia, comple-
menting our main markets of the US and Europe.
Operations
Toshio Asano
President, Asahi Kasei Pharma
Yutaka Shibata
President, Asahi Kasei Medical
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.
Advanced medical technology provides expanded pos-
sibilities for preserving life and improving health. We
contribute to health care throughout the world by sup-
plying both therapeutic devices and products which
enhance safety in the production of pharmaceuticals.
“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 fi elds 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
fi eld of orthopedics, we are advancing the development of drugs related
to locomotive syndrome, including drugs for osteoporosis and
rheumatoid arthritis, in order to build a world-leading position in this
area. 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.
Highlights
(cid:129) Conclusion of Joint Sales Agreement on overactive bladder
therapeutic drug
In June 2013, Hisamitsu Pharmaceutical Co., Inc. and Asahi Kasei
Pharma Corp. began joint sales of NEOXY™ Tape, a transdermal
overactive bladder treatment medication (generic name: oxybutynin
hydrochloride transdermal therapeutic
formulation) for which Hisamitsu received
approval for manufacturing and marketing
in Japan, based on a Joint Sales Agreement
concluded between the two companies.
NEOXY™ Tape
Major Projects under Construction
(cid:129) New research complex in Pharmaceutical Research Center in Fuji,
Shizuoka, Japan
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 purifi cation
To meet forecasted growth in demand for artifi cial kidneys, we are
strengthening our hemodialysis business by developing new variations of
APS™ polysulfone-membrane artifi cial 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 fi eld.
2. Blood transfusion
We will continue to meet expanding global needs for our world leading
Sepacell™ leukocyte reduction fi lters by enhancing the product lineup
and reinforcing our supply capability.
3. Bioprocess products
As the manufacturer of Planova™, a hollow-fi ber membrane fi lter that
is the world’s leading virus removal fi lter for enhancing safety in the
production of biotherapeutics, we will maintain the stable supply of
high-quality products to meet growing demand.
(cid:129) Strengthening of strategic alliance with NxStage Medical
In May 2012, Asahi Kasei Medical and NxStage Medical, Inc. of the
US concluded an agreement to further strengthen their strategic
alliance in the fi eld of hemodialysis. As part of the reinforcement of
the strategic alliance, Asahi Kasei Medical has taken an ownership
stake in NxStage Medical. The two companies have been advancing
a project to expand capacity for assembly of dialyzers in Germany
utilizing Asahi Kasei Medical’s polysulfone hollow-fi ber membranes
and NxStage Medical’s assembly technology. Asahi Kasei Medical and
NxStage Medical will continue to examine additional opportunities to
expand their strategic alliance and build on their established
partnership.
Asahi Kasei Annual Report 2013
27
World’s only
product of its kind
Immense potential demand
No. 2
worldwide market share
Global market of
US$1.5 billion
1
LifeVest™ wearable defi brillator
2
Defi brillators
Market leading
intravascular temperature
management system
No. 1
software provider
to emergency medical
marketplace in US
3
Intravascular Temperature Management (IVTM™)—Thermogard XP™
4
RescueNet™ data solutions for
emergency services
Critical Care
Major businesses/products
Defi brillators
R Series™, X Series™ and other defi brillators, AED Plus™,
AED Pro™ and other automated external defi brillators
Wearable defi brillators
LifeVest™
Automated CPR
AutoPulse™
Temperature management system
Intravascular Temperature Management (IVTM™)—Thermogard XP™
Data solutions
RescueNet™ Software
28 Asahi Kasei Annual Report 2013
1
2
3
4
It is worn by patients at risk of sudden cardiac arrest, which is
responsible for more than 350,000 deaths every year in the US
alone. Over 100,000 patients have used LifeVest™ in the US
and Europe to date, and revenue is growing briskly, at some
50% per year.
These products have the leading share in the US, which accounts
for two-thirds of the global defi brillator market, and the No. 2
share worldwide. ZOLL continues to advance technological
innovation and heightened functionality in defi brillators as its core
business, with a broad product lineup including automated
external defi brillators (AEDs) for lay rescuers and defi brillators for
medical professionals.
A system to adjust body temperature using intravascular cathe-
ters, it is used at leading medical centers. It enables effective
management of body temperature with reduced workload for
nursing staff. Clinical studies to expand indications for use are
planned.
Software and data management systems for fi re and emergen-
cy medical services, enabling effi cient and integrated dispatch
of emergency vehicles, billing, management of patient infor-
mation, and many other functions. Used at over 1,500 organi-
zations.
Operations
Richard A. Packer
CEO, ZOLL Medical Corporation
Highlights
(cid:129) Establishment of Asahi Kasei ZOLL Medical in Japan
Asahi Kasei ZOLL Medical Corp. began operation in November
2012 as ZOLL’s subsidiary in Japan. While the bulk of ZOLL’s
business is currently in the US and Europe, it is expanding in Japan
and other parts of Asia. With its new subsidiary in Japan, ZOLL will
accelerate the growth of its business in the Japanese market with
Our fi rst year as part of the Asahi Kasei family was exciting.
We exceeded our targets on two important fronts, revenue
and profi t. We also continued to invest aggressively in our
future business growth, with strong support from the Asahi
Kasei group. Our joint vision of ZOLL becoming the world’s
undisputed leader in the fi eld of acute critical care is in the
early stages of realization. We are well on our way to
“Creating for Tomorrow” thanks to our shared value of
improving the lives of the global population.
products such as the ZOLL
AED Plus™ automated
external defi brillator,
Thermogard™ intravascular
temperature management
system, and LifeVest™
wearable defi brillator.
“For Tomorrow 2015” Strategies
In order to expand from a focus primarily on resuscitation to
the broader critical care market, we have two key areas of
concentration over the next several years.
1. Rapidly expand today’s businesses
(cid:129) Dramatically increase the LifeVest™ salesforce to bring this
one-of-a-kind product to more patients globally
(cid:129) Accelerate the clinical trial program for Intravascular
Temperature Management (IVTM™) in an effort to expand the
approved indications for use worldwide, including in Japan
where this type of technology was the fi rst to receive regulatory
approval in 2012
AED Plus™
(cid:129) Indications of growth
(cid:129) Launch of our X Series™ professional defi brillator in March
2012
(cid:129) Launching a new, fi rst-of-its-kind pediatric electrode with a
built-in sensor that displays depth and rate of chest
compressions during cardiopulmonary resuscitation (CPR) on
young children up to 8 years of age, in May 2013
(cid:129) The American Heart Association (AHA) issued an internationally
infl uential Consensus Statement in June 2013 emphasizing the
importance of improving CPR quality, including appropriate
depth and rate of compressions and other aspects that ZOLL’s
technologies have been providing for more than a decade.
(cid:129) Extend the reach of our core defi brillator and data segments to
include signifi cantly more international customers
Revenue from LifeVest™
(index based on FY 2010 as 100)
(cid:129) Support each product approval in Japan to ensure timely
market share gain
2. Leverage ZOLL’s strength in resuscitation to capture the
broader critical care market
(cid:129) Identify products, technologies and services that are synergistic
with our existing resuscitation platform, including those that
can predict or monitor symptoms of acute fatal risks, or treat
such high-risk patients
(cid:129) Expand geographically, with greater focus on areas outside the
US and Europe
400
300
200
100
0
FY*
Growing by some 50% per year
2010
2011
2012
2013 (forecast)
* Recalculated to fi scal years from April to March.
Asahi Kasei Annual Report 2013
29
Research & Development
The holding company and core operating companies of the Asahi Kasei Group each have their own R&D organization,
with the confi guration for key projects extending across different business units. R&D at the holding company is
focused on the creation of new businesses that will drive the future growth of the Asahi Kasei Group, whereas R&D at
the core operating companies is focused on heightening existing operations and expanding in peripheral areas.
Under our three strategic “For Tomorrow” projects to create new businesses in the fi elds of the environment &
energy, residential living, and health care, we are concentrating resources on R&D in a confi guration that extends
across different business units.
Breakdown of R&D expenses
R&D expenses (¥ billion)
Others 0.1%
Critical Care 5.5%
Corporate expenses
10.6%
Health Care
28.1%
FY 2012
¥71.1 billion
Electronics
24.8%
Construction
Materials
1.5%
Chemicals
22.4%
Fibers
3.9%
Homes
3.1%
R&D strategies
Holding Company
Group-wide strategic projects in the fi elds of the environment & energy,
residential living, and health care are established in the holding company,
with proactive investment of resources for R&D and the creation of new
businesses, including M&A and alliances with other companies.
In the environment & energy, we are advancing the development of
high-effi ciency, long-life ultraviolet light emitting diodes (UV LEDs) using
high-quality aluminum nitride (AlN) substrates, and the lithium ion
capacitor (LIC) as a next-generation energy storage device. In residential
living, we are advancing the development of new lifestyle proposals
through a demonstration house which incorporates the latest products
and services related to the environment and home health care. In health
care, we are advancing R&D in the fi eld of cell therapy and regenerative
medicine, including cell processing equipment for cancer treatment. In
addition, we are working on creating new businesses through synergy
between our established health care businesses and the critical care
businesses of ZOLL Medical Corporation.
Chemicals
Throughout the Chemicals segment, R&D focused on the environment,
resources, and energy is advanced to create new value for society
through the enhancement of our established core technologies and the
acquisition of new technologies.
In chemicals and derivative products, we are advancing the
verifi cation of two new process technologies to enable feedstock
diversifi cation: the “E-fl ex” process for highly effi cient production of
propylene using C2 fractions or bioethanol as feedstock, and the
“BB-fl ex” process to produce butadiene from butene. Studies on their
commercialization are in progress.
In polymer products, we are advancing the development of a
number of innovative products including polyamide with ultra-high heat
resistance, high rigidity, and excellent moldability using novel molecular
design; S-SBR for next-generation fuel-effi cient tires; modifi ed
30 Asahi Kasei Annual Report 2013
FY
R&D expenses
’08
60.8
’09
62.9
’10
62.3
’11
66.3
’12
71.1
polyphenylene ether (mPPE) expandable beads with high fl ame
retardance and high heat resistance; and a new resin having optically
isotropic properties in all directions.
Projects in specialty products include the development of LED
encapsulants based on our silicone modifi cation 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, with studies for
commercialization advancing. In the fi eld 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 at large-scale water
treatment facilities have been completed.
Fibers
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
fi lament, Bemberg™ cupro fi ber, Leona™ nylon 66 fi lament, and various
nonwovens. In addition, the creation of new cellulose-related business
and the development of new nonwovens and functional textiles are
advancing in accordance with the concepts of “living in health and
comfort” and“harmony with the natural environment.”
Homes
R&D is focused on enhancing core technologies. Shelter technology
brings greater safety and security through earthquake resistance, seismic
damping, base isolation, and fi re resistance; greater long-term usability
through physical durability/evaluation, systematic maintenance, and ease
of remodeling; enhanced livability through thermal insulation, air
circulation, and sound barrier; and enhanced ecology through energy
conservation and reduced CO2 emissions.
Lifestyle technology brings greater comfort, convenience, and
Operations
Pharmaceutical Product Pipeline (as of May 2013)
Code name, form, generic name
Classifi cations
Indication
Remarks
Approved
AK-120, oral, famciclovir
Antiviral
Herpes simplex
Additional indication
AK-156, injection, zoledronic acid
Bisphosphonate
Osteoporosis
New effi cacy, new dose; once-yearly
administration
AK-160, injection
AT-877, oral, fasudil hydrochloride
hydrate
Collagenase clostridium
histolyticum
Dupuytren’s contracture
New biologic
Rho-kinase inhibitor
Pulmonary arterial hypertension
Additional indication, new dosage
form
HC-58, injection, elcatonin
Calcitonin
Shoulder-hand syndrome
Additional indication
ART-123, injection, recombinant
thrombomodulin alpha
Recombinant human
thrombomodulin
Sepsis with coagulopathy
New biologic
AK106
Anti-infl ammatory
Rheumatoid arthritis
New chemical entity
Phase III
Phase II
Phase III
(overseas)
Phase II
(overseas)
Origin
Licensed
Licensed
Licensed
In-house
In-house
In-house
In-house
satisfaction. Evaluation/simulation technology is being enhanced to
enable customers to more intuitively appreciate the real-world effects of
variations and modifi cations, ensuring that the design of each home is
optimized to match each customer’s preferences.
electronics and automotive applications, and materials for solar cells are
currently under development, as are new materials which correspond to
leading technological trends for fi ner patterning in both semiconductors
and printed wiring boards.
Additional research is focused on the physiological and psychological
aspects of comfort, and how these can be utilized through technological
development to achieve greater energy effi ciency and environmental
compatibility in homes optimized for health and comfort.
Construction Materials
R&D guided by our vision of “the development and provision of products
that provide safety, security, and comfort” is focused on heightening
basic technology in our four businesses of AAC, phenolic foam insulation
materials, high-function foundation systems, and steel-frame structural
materials. We are also proactively advancing R&D to establish new
solution-oriented businesses by creating services and products in fi elds
peripheral to existing businesses, such as remodeling services for exterior
AAC walls and non-construction applications for steel-pipe piling systems.
Electronics
With a wealth of design assets and an organically integrated 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 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
Health Care
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 fi elds 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 established fi elds of hemodialysis, therapeutic apheresis,
leukocyte reduction, and virus removal, while also focusing on next-
generation fi elds of research including regenerative medicine utilizing
autohemotherapy.
Critical Care
Research and development in the Critical Care segment is continuing to
help save lives around the globe thanks to a multidisciplinary approach to
product design that includes substantial electrical, mechanical,
biomedical, and software engineering efforts. In addition to developing
next-generation product platforms, current research efforts include
advancing both therapeutic temperature management capabilities and
wearable defi brillator technology for treatment of critically ill patients, as
well as enhancing data management capabilities for customers. Staying
ahead of trends in resuscitation, patient care, and data has enabled this
business to transform ideas into products with features and benefi ts that
set them apart from the competition.
Highlight
Dr. Akira Yoshino awarded the
Global Energy Prize
In April 2013, Asahi Kasei Fellow Dr. Akira
Yoshino was chosen for the 2013 Global
Energy Prize in recognition of his invention
of the lithium-ion battery. The award
ceremony was held in St. Petersburg,
Russia, in June 2013.
The lithium-ion battery
In 1985, Dr. Yoshino invented the world’s fi rst lithium-ion battery (LIB)
using carbon as the negative electrode and lithium cobalt oxide as the
positive electrode. He also developed other technologies that were
essential for the successful commercialization of the LIB as a small,
lightweight rechargeable battery. Not only has the LIB facilitated
widespread adoption of many portable electronic devices such as mobile
phones and notebook computers, but it is also increasingly used in
electric vehicles as an environmentally friendly means of transportation.
AP/Afl o
Asahi Kasei Annual Report 2013
31
Corporate Governance
Basic Concept for Corporate Governance
We believe that constant effort to increase the effi ciency and
transparency of management is essential for continuous
enhancement of the corporate value of the Asahi Kasei Group.
One major reform for this purpose was the adoption of the
structure of a holding company and core operating companies,
since which time the Asahi Kasei Group has exercised corporate
governance for the Group based on the following two principles.
2) The Group Approval Authority Regulations are positioned as
the highest ranking among all the regulations governing the
overall Group for decision-making in executing business.
Authority is distributed to each organ of the holding company
and the core operating companies in accordance with the
degree of infl uence on management.
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.
In this context, corporate governance is further enhanced by
implementing various measures, including the election of multiple
Outside Directors and the institutionalization of an Internal Audit
Dept. We will continue to advance measures to heighten corporate
governance for the further enhancement of corporate value.
Structures Related to Management Decision-Making, Execution, and Oversight
Management Confi guration (as of June 27, 2013)
Holding company
Board of Corporate Auditors
Shareholders
Board of Directors
Group Advisory Committee
Chairman
President
Internal Audit Dept.
Strategic Management Council
(cid:35)(cid:51)(cid:50)(cid:0)(cid:35)(cid:79)(cid:85)(cid:78)(cid:67)(cid:73)(cid:76)
Group staff functions
(cid:115)(cid:0)(cid:51)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:73)(cid:67)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71)(cid:0)(cid:6)(cid:0)(cid:65)(cid:78)(cid:65)(cid:76)(cid:89)(cid:83)(cid:73)(cid:83)
(cid:115)(cid:0)(cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:6)(cid:0)(cid:82)(cid:73)(cid:83)(cid:75)(cid:0)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)
(cid:115)(cid:0)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:0)(cid:65)(cid:68)(cid:77)(cid:73)(cid:78)(cid:73)(cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)
New Business Development
Core operating
companies
Asahi Kasei
Chemicals
Asahi Kasei
Fibers
Asahi Kasei
Homes
Chemicals
Fibers, textiles
Housing
Asahi Kasei
Construction
Materials
Construction
materials
Asahi Kasei
Microdevices
Asahi Kasei
E-materials
Asahi Kasei
Pharma
Asahi Kasei
Medical
ZOLL
Medical
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
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.
32 Asahi Kasei Annual Report 2013
Governance &
Sustainability
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.
We employ an Executive Offi cer system, under which we have ten
Directors, including three Outside Directors, and fi fteen Executive
Offi cers, including six who concurrently serve as Director, as well
as a Corporate Auditor system, under which we have four
Corporate Auditors, including two Outside Corporate Auditors.
(as of June 27, 2013)
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.
Corporate Governance System
An outline of the corporate governance system of the Asahi Kasei
Group is as follows.
1) Asahi Kasei Corporation is a holding company and has elected
to take the form of a company with a Board of Corporate
Auditors.
2) Two Outside Directors were elected in June 2007 to enable
oversight of the management of the Asahi Kasei Group based
on their wealth of experience and broad range of insight, for
the further strengthening of the management oversight
function of the Board of Directors. Furthermore, an additional
Outside Director was installed in June 2008 and the Company
currently has three Outside Directors out of ten Directors.
3) The company has a Group Advisory Committee as an advisory
body to the Board of Directors, enabling the receipt of various
advice and recommendations of knowledgeable persons from
outside the Company for the benefi t of the overall
management of the Asahi Kasei Group.
4) The Internal Audit Dept. 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 the Internal
Audit Dept., so that all information regarding results of internal
audits in the Asahi Kasei Group are centralized at the Internal
Audit Dept.
To help ensure that Directors and Corporate Auditors may
perform their duties to the fullest extent, in accordance with
Article 426 Paragraph 1 of the Corporation Law our Articles of
Incorporation provide for the indemnifi cation of Directors
(including former Directors) and Corporate Auditors (including
former Corporate Auditors) from liability stipulated in Article 423
Paragraph 1 of the Corporation Law, through resolution of the
Board of Directors, within limitations set forth by law or ordinance.
5) In accordance with the audit policy adopted by the Board of
Corporate Auditors, each Corporate Auditor audits Directors in
the discharge of their duties by attending Board of Directors’
meetings and examining business performance. Corporate
Auditors of the Company and Corporate Auditors of the core
operating companies exchange information on a regular basis.
Our Corporate Auditors Offi ce has multiple dedicated
personnel who, independently from Directors, support the
Corporate Auditors in their duties.
6) PricewaterhouseCoopers Aarata performs fi nancial audits of
the Company and the core operating companies in accordance
with the Corporation Law and the Financial Instruments and
Exchange Act.
7) Company standards stipulate that as a general rule a Director is
not to concurrently serve as Director at four or more other
companies whose shares are stock-market listed.
8) The Company has a performance-linked remuneration system,
and remuneration of Directors is determined by the Board of
Directors within the range stipulated therein.
Given the above, the current corporate governance system of the
Asahi Kasei Group is considered to be optimum within the
formulation of a holding company/core operating company
confi guration and a company with a Board of Corporate Auditors.
Asahi Kasei Annual Report 2013
33
Outside Directors and Corporate Auditors
We have three Outside Directors and two Outside Corporate
Auditors. The function of Outside Directors is to confi rm that
management decisions are made appropriately from an
independent perspective based on their wealth of experience and
broad range of insight. The function of Outside Corporate
Auditors is to audit based on their wealth of experience, broad
range of insight, and specialized knowledge of corporate law,
fi nance, and accounting.
In the selection of candidates for election as Outside Director
and Outside Corporate Auditor, we investigate their
independence in accordance with the standards for “Independent
Director/Auditor” established by relevant fi nancial instruments
exchanges to confi rm if they have ever been employed by the
company, ever been an important counterparty, and ever been
employed by an important counterparty, and furthermore if they
have ever received a large amount of money or other property
from the company. We then make a comprehensive judgment as
to whether or not any confl ict with the interests of ordinary
shareholders would arise. The relevant fi nancial instruments
exchanges have been notifi ed that all of our Outside Directors
and Outside Corporate Auditors are designated as Independent
Director/Auditor.
Audits
The Internal Audit Dept. (15 personnel as of March 31, 2013) is a
corporate organ under the direct authority of the President of the
holding company. Each year, the Internal Audit Dept. prepares
plans for an internal audit in accordance with basic corporate
regulations for internal audits, obtains the President’s approval for
these plans, and then performs the internal audit.
In accordance with the audit policy adopted by the Board of
Corporate Auditors, each Corporate Auditor attends meetings of
the Board of Directors and audits Directors in the discharge of
their duties through examination of business performance. The
Corporate Auditors Offi ce provides staff to support Corporate
Auditors in their duties.
PricewaterhouseCoopers Aarata is contracted as the
Independent Auditors to perform fi nancial audits in accordance
with the Companies Act and Financial Instruments and Exchange
Act. Partners of the Independent Auditors designated to perform
the audit for fi scal 2012 were Mr. Keiichi Ohtsuka, Mr. Takahiro
Nakazawa, and Mr. Taisuke Shiino. The Independent Auditors form
a team of assistants for performance of the audit in accordance
with its audit plan. The team mainly comprises certifi ed public
accountants and junior accountants, and also includes certifi ed
information systems accountants and other specialist accountants.
The Internal Audit Dept., the Board of Corporate Auditors,
and the Corporate Auditors of core operating companies and
other subsidiaries regularly meet to confi rm the effectiveness of
internal governance systems for legal compliance and risk
management. The Board of Corporate Auditors provides counsel
to the Independent Auditors with respect to its audit plan, and
receives the results of the consolidated fi nancial audit of Asahi
Kasei each quarter and each fi scal year.
Adoption of Shareholder Rights Plan
The Asahi Kasei Group has established a basic corporate policy
concerning the nature of parties who would control the
company’s fi nancial and operational decisions. The adoption of a
Shareholder Rights Plan, comprising measures in response to large
acquisition of shares to prevent control of the company’s fi nancial
and operational decisions by inappropriate parties in light of this
basic corporate policy, was renewed at the Ordinary General
Meeting of Shareholders held in June 2011.
The purpose of the Shareholder Rights Plan is to secure and
heighten the company’s corporate value and the common interest
of shareholders in the event of a purchase of 20% or more of the
company’s shares, by ensuring necessary and suffi cient
information and time for shareholders to make proper judgment,
by obtaining an opportunity to negotiate with the purchasing
party, and otherwise. Please refer to the relevant news release at
www.asahi-kasei.co.jp/asahi/en/news/2011/e110511.html for
more details.
34 Asahi Kasei Annual Report 2013
Governance &
Sustainability
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.
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
Compliance Monitoring by the Corporate Ethics Committee
– 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.
Monitoring of compliance and oversight of education and training
for compliance throughout the Asahi Kasei Group are performed
by the Corporate Ethics Committee, which was formed in July
1998. Where shortcomings are discovered, the committee
formulates and implements measures for improvement.
The committee discusses the training programs implemented at
each group company, measures for prevention of sexual harassment,
environmental countermeasures, the state of compliance with laws
and regulations including personal information protection law, and
operation of the Compliance Hotline.
Risk Management
The Asahi Kasei Group has a Risk Management Committee under
its CSR Council to enhance the risk management system for
prevention of operational crises and minimization of the effects
should a crisis occur. Our Basic Risk Management Regulations,
which were established by the Board of Directors in March 2007
(effective April 1, 2007), provide clear guidelines to heighten the
capability and effectiveness for risk management and emergency
response throughout the Asahi Kasei Group.
In fi scal 2012, in the effort for preparedness for the possibility
of a major earthquake in the Greater Tokyo Metropolitan area, we
practiced setting up an emergency response headquarters. We
also decided where to transfer the emergency response
headquarters if it becomes impossible to use the head offi ce in
Tokyo, and reconsidered the role of the emergency response
headquarters to handle head offi ce functions for continuation of
operations in such a case.
At the outbreak of avian fl u (H7N9) in China, we increased
stocks of surgical masks and disinfectant for use by personnel in
China in the case of a pandemic, while informing personnel
stationed elsewhere overseas of proper precautions to take.
When riots in China and terrorism in Algeria occurred, we directly
contacted personnel stationed in relevant areas and posted
notices on the corporate intranet regarding business travel to
raise awareness of possible risks and proper precautions to take.
Asahi Kasei Annual Report 2013
35
Corporate Social Responsibility
As the world faces various environmental challenges such as global warming and the depletion of natural resources,
corporate enterprises are expected to not only achieve economic performance but also advance business activities that meet
society’s needs in a well-balanced manner.
We believe that corporate social responsibility (CSR) is achieved by heightening 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. Our efforts and actions related to CSR are focused on four CSR Fundamentals: Compliance,
Responsible Care*, Corporate Citizenship, and Respect for Employee Individuality.
* Responsible Care represents the commitment and initiative to secure and improve safety and environmental protection at every step of the product life-cycle
through the individual determination and responsibility of each fi rm producing and handling chemical products.
CSR at the Asahi Kasei Group
Contributing to life and living for people around the world
Group Mission
CSR in Action
Group Vision
Providing new value to society by enabling “living in health and comfort” and
“harmony with the natural environment”
Business strategy under the “For Tomorrow 2015” strategic management initiative
(cid:129) Expansion of world-leading businesses (cid:129) Creation of new value for society
Performing business activities which enable “living in health and comfort” and “harmony with the natural environment”
is CSR in Action.
CSR Fundamentals
Compliance
Responsible Care
Corporate Citizenship
Respect for Employee
Individuality
Based on clear understanding of the effects of our operation on the global environment and local communities,
our efforts and actions related to CSR are focused on four CSR Fundamentals.
Framework for Advancement
President of
holding company
Corporate Ethics Committee
(cid:115)(cid:0)(cid:48)(cid:82)(cid:69)(cid:80)(cid:65)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:34)(cid:65)(cid:83)(cid:73)(cid:67)(cid:0)(cid:48)(cid:79)(cid:76)(cid:73)(cid:67)(cid:89)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:35)(cid:79)(cid:68)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:35)(cid:79)(cid:78)(cid:68)(cid:85)(cid:67)(cid:84)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:67)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69)(cid:0)(cid:69)(cid:84)(cid:72)(cid:73)(cid:67)(cid:83)
(cid:115)(cid:0)(cid:33)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:79)(cid:70)(cid:0)(cid:69)(cid:84)(cid:72)(cid:73)(cid:67)(cid:83)(cid:0)(cid:69)(cid:68)(cid:85)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:72)(cid:79)(cid:84)(cid:76)(cid:73)(cid:78)(cid:69)
Responsible Care Committee
CSR Council
(cid:115)(cid:0)(cid:36)(cid:69)(cid:76)(cid:73)(cid:66)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:83)(cid:0)(cid:73)(cid:78)(cid:0)(cid:82)(cid:69)(cid:71)(cid:65)(cid:82)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:0)(cid:80)(cid:82)(cid:79)(cid:84)(cid:69)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:0)(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:12)(cid:0)
(cid:0)(cid:0)(cid:0)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:0)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:12)(cid:0)(cid:69)(cid:84)(cid:67)(cid:14)
(cid:115)(cid:0)(cid:38)(cid:79)(cid:82)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:85)(cid:78)(cid:73)(cid:70)(cid:73)(cid:69)(cid:68)(cid:0)(cid:80)(cid:79)(cid:76)(cid:73)(cid:67)(cid:89)(cid:0)
and action plans
(cid:115)(cid:0)(cid:39)(cid:85)(cid:73)(cid:68)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:79)(cid:85)(cid:78)(cid:83)(cid:69)(cid:76)(cid:0)(cid:70)(cid:79)(cid:82)(cid:0)(cid:84)(cid:72)(cid:69)(cid:0)
subordinate committees
(cid:115)(cid:0)(cid:48)(cid:82)(cid:69)(cid:80)(cid:65)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:35)(cid:51)(cid:50)(cid:0)(cid:50)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84)(cid:83)
(cid:115)(cid:0)(cid:45)(cid:79)(cid:78)(cid:73)(cid:84)(cid:79)(cid:82)(cid:73)(cid:78)(cid:71)(cid:0)(cid:79)(cid:70)(cid:0)(cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84)(cid:0)
evaluation
(cid:115)(cid:0)(cid:36)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:85)(cid:82)(cid:69)(cid:0)(cid:79)(cid:70)(cid:0)(cid:35)(cid:51)(cid:50)(cid:0)(cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)
in concert with Corporate
Communications and Investor
Relations
(cid:39)(cid:76)(cid:79)(cid:66)(cid:65)(cid:76)(cid:0)(cid:37)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)
(cid:115)(cid:0)(cid:36)(cid:69)(cid:76)(cid:73)(cid:66)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:65)(cid:68)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:71)(cid:82)(cid:79)(cid:85)(cid:80)(cid:13)(cid:87)(cid:73)(cid:68)(cid:69)(cid:0)(cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:82)(cid:0)(cid:71)(cid:76)(cid:79)(cid:66)(cid:65)(cid:76)(cid:0)(cid:87)(cid:65)(cid:82)(cid:77)(cid:73)(cid:78)(cid:71)
(cid:45)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84)(cid:0)(cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)
(cid:115)(cid:0)(cid:37)(cid:88)(cid:65)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:80)(cid:82)(cid:73)(cid:79)(cid:82)(cid:0)(cid:84)(cid:79)(cid:0)(cid:65)(cid:76)(cid:76)(cid:0)(cid:65)(cid:67)(cid:82)(cid:79)(cid:83)(cid:83)(cid:13)(cid:84)(cid:72)(cid:69)(cid:13)(cid:66)(cid:79)(cid:65)(cid:82)(cid:68)(cid:0)(cid:80)(cid:82)(cid:73)(cid:67)(cid:69)(cid:0)(cid:82)(cid:69)(cid:86)(cid:73)(cid:83)(cid:73)(cid:79)(cid:78)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:67)(cid:79)(cid:78)(cid:70)(cid:73)(cid:82)(cid:77)(cid:0)(cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)
(cid:0)(cid:0)(cid:0)(cid:33)(cid:78)(cid:84)(cid:73)(cid:77)(cid:79)(cid:78)(cid:79)(cid:80)(cid:79)(cid:76)(cid:89)(cid:0)(cid:44)(cid:65)(cid:87)
(cid:37)(cid:88)(cid:80)(cid:79)(cid:82)(cid:84)(cid:0)(cid:35)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)
(cid:115)(cid:0)(cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:0)(cid:87)(cid:73)(cid:84)(cid:72)(cid:0)(cid:69)(cid:88)(cid:80)(cid:79)(cid:82)(cid:84)(cid:13)(cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68)(cid:0)(cid:82)(cid:69)(cid:71)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)
(cid:50)(cid:73)(cid:83)(cid:75)(cid:0)(cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)
(cid:115)(cid:0)(cid:38)(cid:79)(cid:82)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:0)(cid:84)(cid:79)(cid:0)(cid:82)(cid:69)(cid:83)(cid:80)(cid:79)(cid:78)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:65)(cid:67)(cid:84)(cid:85)(cid:65)(cid:76)(cid:0)(cid:79)(cid:82)(cid:0)(cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:0)(cid:67)(cid:82)(cid:73)(cid:83)(cid:69)(cid:83)
(cid:35)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:89)(cid:0)(cid:38)(cid:69)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83)(cid:72)(cid:73)(cid:80)(cid:0)(cid:35)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)
(cid:115)(cid:0)(cid:38)(cid:79)(cid:82)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:79)(cid:70)(cid:0)(cid:80)(cid:79)(cid:76)(cid:73)(cid:67)(cid:89)(cid:12)(cid:0)(cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:12)(cid:0)(cid:65)(cid:78)(cid:68)(cid:0)(cid:67)(cid:79)(cid:85)(cid:82)(cid:83)(cid:69)(cid:83)(cid:0)(cid:79)(cid:70)(cid:0)(cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:0)(cid:73)(cid:78)(cid:0)(cid:82)(cid:69)(cid:71)(cid:65)(cid:82)(cid:68)(cid:0)(cid:84)(cid:79)(cid:0)(cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:89)(cid:0)(cid:70)(cid:69)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83)(cid:72)(cid:73)(cid:80)(cid:0)(cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)
36 Asahi Kasei Annual Report 2013
Governance &
Sustainability
Responsible Care
Responsible Care at the Asahi Kasei Group is not limited to
chemicals-related operations but encompasses operations in all
fi elds, comprising the six pillars of environmental protection,
product safety, operational safety, workplace safety & hygiene,
health maintenance, and community outreach. One notable
example of a measure implemented related to global warming is
the construction of our fi rst power plant designed to use mainly
biomass as fuel. The new plant started operation in Nobeoka,
Miyazaki, Japan, in August 2012, and is expected to reduce CO2
emissions by 170 thousand tons per year by using scrap wood
from construction sites in the region as biomass fuel.
Corporate Citizenship
We are committed to advancing in harmony with society from a
global perspective through fair information disclosure and
proactive employment of management resources for corporate
responsibility and citizenship. For example, we conduct school
visits to promote understanding and heighten interest in science
and technology among elementary, junior high, and high school
students. Our personnel visit schools to give explanations and
demonstrations of science and technology and on environmental
issues. In addition, we participated in an afforestation program in
the Horqin Desert of Inner Mongolia, China, planting 8,300 trees
in 2012 as part of an effort to heighten people’s awareness for
the preservation of natural forest and water environments.
Respect for Employee Individuality
Opening Ceremony of the new biomass power plant
The site of afforestation in Inner Mongolia
The Asahi Kasei Group considers fulfi lling and satisfying working
conditions and workplace culture, in which personnel feel
motivated to achieve and take pride in their career, to be a key to
business performance. The Human Resources Principles
established in 2006 are a distillation of the values and beliefs held
in common by all employees, a key aspect of a corporate culture
where personal growth and corporate development are mutually
reinforcing. We encourage personnel to reevaluate their working
habits from the perspective of balancing work and family life. For
example, we adopted a system for paid holidays to be used in
two-hour units, allowing personnel to utilize paid leave more
fl exibly. Furthermore, to increase the utilization of parental leave
by male personnel, we simplifi ed the necessary procedures and
arranged for their supervisors encourage such utilization.
Human Resources Principles
Corporate
Commitment
The basic commitment to human resources is to provide the venue for a dynamic
and fulfi lling career as a part of a lively and growing corporate group
Basic
Expectations
Expectations of
Leaders
• Enterprise and growth through challenge and change
• Integrity and responsibility in action
• Respect for diversity
• Building the team, heightening performance and achievement
• Going beyond conventional boundaries, in thought and action
• Contributing to mutual development and growth
Asahi Kasei Annual Report 2013
37
Directors, Corporate Auditors, Executive Offi cers
(As of June 27, 2013)
Ichiro Itoh
Chairman &
Representative Director
Taketsugu Fujiwara
Hideki Kobori
Hiroshi Kobayashi
President & Representative Director
Presidential Executive Offi cer
Director
Senior Executive Offi cer
Director
Senior Executive Offi cer
Masafumi Nakao
Hiroshi Sawayama
Yoshihiro Wada
Director
Lead Executive Offi cer
Director
Lead Executive Offi cer
Director
Lead Executive Offi cer
Yukiharu Kodama
Norio Ichino
Masumi Shiraishi
Outside Director
Outside Director
Outside Director
Toshiyuki Kawasaki
Corporate Auditor
Ryo Matsui
Senior Executive Offi cer
Makoto Konosu
Executive Offi cer
Naoki Okada
Executive Offi cer
Hajime Nagahara
Corporate Auditor
Yuji Mizuno
Senior Executive Offi cer
Kazuo Tezuka
Outside Corporate Auditor
Shinichiro Nei
Lead Executive Offi cer
Koji Kobayashi
Outside Corporate Auditor
Masahito Hirai
Executive Offi cer
Yuji Kobayashi
Executive Offi cer
Toshio Asano
Executive Offi cer
Shoichiro Tonomura
Executive Offi cer
38 Asahi Kasei Annual Report 2013
Financial Section
Financial Section
Contents
Consolidated Eleven-Year Summary
Management’s Discussion and Analysis
Risk Analysis
Consolidated Financial Statements
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
1. Major policies for preparing the consolidated fi nancial statements
2. Signifi cant accounting policies
3. Changes in signifi cant accounting policies
4. Notes to Consolidated Balance Sheets
5. Notes to Consolidated Statements of Income
6. Notes to Consolidated Statements of Comprehensive Income
7. Notes to Consolidated Statements of Changes in Net Assets
8. Note to Consolidated Statements of Cash Flows
9. Leases
10. Financial instruments
11. Marketable securities and investment securities
12. Derivative fi nancial instruments
13. Provision for retirement benefi ts
14. Taxes
15. Business combinations
16. Asset retirement obligations
17. Business segment information
18. Information on related parties
19. Per share information
20. Borrowings
Report of Independent Auditors
Asahi Kasei Annual Report 2013
40
42
48
50
52
53
54
55
56
56
56
57
58
59
60
61
62
62
63
67
68
70
71
72
73
74
77
77
78
79
39
Consolidated Eleven-Year Summary
Asahi Kasei Corporation and Consolidated Subsidiaries
For the years ended March 31
2013b
2012
2011c,d
2010c,e
2009c,e
Net sales
Chemicals
Life & Living
Chemical and Chemical-related
¥1,666,640
¥ 1,573,230
¥ 1,555,945
¥ 1,392,212
¥ 1,521,178
684,582
680,112
699,801
580,709
657,393
—
—
—
—
—
—
—
—
—
—
Homes
486,182
451,965
409,224
389,728
409,882
Housing and Construction Materials
—
—
—
—
—
Health Care
Fibers
Electronics
Construction Materials
Critical Care
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
133,450
109,613
131,148
51,504
52,131
18,031
119,483
110,849
146,113
46,146
116,387
108,761
158,337
47,418
113,207
101,201
142,700
47,024
—
—
—
18,562
1,181,429
1,151,705
485,211
421,525
91,960
95,125
82,302
53,712
117,515
38.43
113,785
80,050
71,120
14.00
104,258
107,567
94,866
55,766
62,561
39.89
85,124
78,440
66,269
14.00
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
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
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
126,725
79,436
60,849
10.00
2013
2012
2011
2010
2009
¥1,800,170
¥ 1,410,568
¥ 1,425,879
¥ 1,368,892
¥ 1,379,337
309,677
461,581
263,704
812,080
581.05
45.1
28,363
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
a. Net assets less minority interest. Through the year ended March 31, 2006, fi gures for shareholders’ equity shown.
b. Beginning with the year ended March 31, 2013, Critical Care was added as a new segment in which results of ZOLL Medical Corporation of the US and its subsidiaries are reported.
c. 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.
d. In the year ended March 31, 2011, the Services, Engineering and Others segment was replaced with the Others category. Figures under the previous classifi cation are shown on
the same line.
e. 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
31, 2009, are recalculated to refl ect these intersegment transfers.
(cid:129) The Pharma segment was renamed the Health Care segment, and the Electronics Materials & Devices segment was renamed the Electronics segment. Figures under the
previous classifi cations are shown on the same line.
(cid:129) Electronic materials operations were transferred from the Chemicals segment and from corporate expenses to the Electronics segment.
(cid:129) Leona™ nylon 66 fi lament operations were transferred from the Chemicals segment to the Fibers segment.
f. In the year ended March 31, 2008, the Life & Living segment was combined with the Chemicals segment.
40 Asahi Kasei Annual Report 2013
Financial Section
2009c
2008c,f
2007
2006g
2005
2004h
Millions of yen, except where noted
2003h
2003
¥ 1,521,178
¥ 1,663,778
¥ 1,623,791
¥ 1,498,620
¥ 1,377,697
¥ 1,253,534
¥ 1,193,614
¥ 1,193,614
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
409,882
386,227
405,695
404,539
375,755
361,273
320,553
—
—
—
—
—
—
—
—
383,654
119,619
102,176
91,721
60,927
111,232
114,072
113,267
55,732
104,474
106,639
112,094
60,818
105,842
89,704
102,859
56,512
103,933
104,261
93,025
59,908
105,965
101,514
82,484
60,622
105,463
110,551
71,579
63,101
—
—
—
—
—
—
—
27,297
1,127,213
393,965
34,959
32,500
19,031
4,745
37,024
1,176,441
487,337
127,656
120,456
105,599
69,945
28,881
1,195,751
428,040
127,801
126,507
114,883
68,575
26,821
1,125,454
373,166
108,726
104,166
94,481
59,668
24,228
1,067,893
309,804
115,809
112,876
91,141
56,454
28,156
1,011,366
242,168
60,932
53,643
54,820
27,672
44,786
981,064
212,550
61,555
50,389
(100,869)
(100,869)
(66,791)
(66,791)
—
—
105,463
110,551
71,579
—
—
44,786
981,064
212,550
61,555
50,389
—
—
—
—
—
—
—
3.39
126,725
79,436
60,849
10.00
50.01
82,911
73,983
56,170
13.00
49.00
84,413
71,646
52,426
12.00
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
2009
2008
2007
2006
2005
2004
2003
2003
¥ 1,379,337
¥ 1,425,367
¥ 1,459,922
¥ 1,376,044
¥ 1,270,057
¥ 1,249,206
¥ 1,212,374
¥ 1,212,374
273,539
441,271
218,477
603,846
431.77
43.8
24,244
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
g. In the year ended March 31, 2006, Leona™ nylon 66 fi lament operations were transferred from the Fibers segment to the Chemicals segment.
h. In the year ended March 31, 2004, business categories were aligned with the core operating companies in the holding company confi guration adopted on October 1, 2003.
(cid:129) The “fabricated home products” segment of the Chemical and Chemical-related sector is separated to an independent Life & Living segment. The remainder of the Chemical
and Chemical-related sector is reclassifi ed as the Chemicals segment.
(cid:129) The Housing and Construction Materials sector is separated into the Homes segment and the Construction Materials segment.
(cid:129) The Fibers and Textiles sector is renamed the Fibers segment.
(cid:129) With the divestment of liquors operations, the Liquors, Services and Others sector is renamed the Services, Engineering and Others segment.
For comparison purposes, results for the year ended March 31, 2003, are recalculated in accordance with the revised categories.
Asahi Kasei Annual Report 2013
41
Management’s Discussion and Analysis
Fiscal year 2012 (April 1, 2012 – March 31, 2013)
Operating Environment
Although there were signs of economic recovery in the US and
Non-operating income and expenses,
ordinary income
Net non-operating income was ¥3.2 billion, a ¥0.1 billion
other countries, the overall operating climate remained
decline from the ¥3.3 billion net non-operating income of a
challenging during the fi scal year as the global economy was
year earlier. While the previous year’s foreign exchange loss
impacted by the European sovereign debt crisis and slowing
transitioned to foreign exchange gains and insurance income
growth in China and other emerging economies. For the
increased, equity in earnings of affi liates transitioned to equity
Japanese economy, expectations of recovery rose with domestic
in losses of affi liates and costs associated with idle portion of
demand underpinned by fi rm consumer spending and with
facilities increased. As a result, ordinary income decreased by
conditions for exports improving due to the depreciation of
¥12.4 billion (11.6%) to ¥95.1 billion.
the exchange value of the yen since the end of 2012.
Overview of Consolidated Results
Extraordinary income and loss
Extraordinary loss of ¥13.2 billion included ¥6.4 billion in
business structure improvement expenses, a ¥4.0 billion loss
Net sales, operating income
Consolidated net sales for the fi scal year increased by ¥93.4
on disposal of noncurrent assets, and ¥2.1 billion in
impairment loss. The net extraordinary loss of ¥12.8 billion
billion (5.9%) to ¥1,666.6 billion. Overseas sales increased,
was ¥0.1 billion higher than a year ago.
largely due to the addition of the Critical Care segment, by
¥63.7 billion (15.1%) to ¥485.2 billion, and increased by 2.3
percentage points as a portion of consolidated net sales from
Net income
With ordinary income of ¥95.1 billion and the net
26.8% to 29.1%. Domestic sales increased by ¥29.7 billion
extraordinary loss of ¥12.8 billion, income before income
(2.6%) to ¥1,181.4 billion with strong performance in the
taxes and minority interests was ¥82.3 billion. Income tax
Homes segment.
expense was ¥28.4 billion (current income taxes of ¥27.9
Operating income decreased by ¥12.3 billion (11.8%) to
billion combined with a deferred income tax obligation of
¥92.0 billion. As a percentage of net sales, cost of sales
¥0.5 billion). Minority interests in income of consolidated
decreased by 0.6 percentage points to 74.4%. SG&A
subsidiaries were ¥0.2 billion. As a result, net income
increased by ¥45.2 billion, increasing as a percentage of net
decreased by ¥2.1 billion (3.7%) to ¥53.7 billion, and net
sales by 1.7 percentage points to 20.1% despite the increase
income per share decreased by ¥1.46 to ¥38.43 from the
in sales. Operating margin decreased by 1.1 percentage points
¥39.89 of a year earlier.
to 5.5%.
Net Sales,
Overseas Sales Ratio
Operating Income,
Operating Margin
(¥ billion)
2,000
(%)
40
(¥ billion)
150
1,500
1,000
500
0
30
20
10
120
90
60
30
0
0
(%)
15
12
9
6
3
0
SG&A, SG&A Ratio
Net Income,
Net Income per Share
(¥ billion)
400
(%)
40
(¥ billion)
80
300
200
100
0
30
60
20
40
10
20
0
0
(¥)
60
45
30
15
0
FY ’08
’09
’10
’11
’12
FY
’08
’09
’10
’11
’12
FY
’08
’09
’10
’11
’12
FY
’08
’09
’10
’11
’12
Net sales, left scale
Operating income, left scale
SG&A, left scale
Net income, left scale
Overseas sales ratio, right scale
Operating margin, right scale
SG&A ratio, right scale
Net income per share, right scale
42 Asahi Kasei Annual Report 2013
Financial Section
Results by Operating Segment
Homes
Sales increased by ¥34.2 billion (7.6%) from a year ago to
The Asahi Kasei Group’s operations are described by major
¥486.2 billion, and operating income increased by ¥7.9 billion
business classifi cation: seven reportable segments of
(17.1%) to ¥54.3 billion. Orders for order-built homes
Chemicals, Homes, Health Care, Fibers, Electronics,
increased by ¥40.5 billion to ¥412.4 billion.
Construction Materials, and Critical Care, together with an
Operating income from order-built homes increased as
“Others” category. Critical Care is a new segment added
deliveries of both Hebel Haus™ unit homes and Hebel
beginning with the fi rst quarter of fi scal 2012, in which results
Maison™ apartment buildings increased. Operating income
of ZOLL Medical Corporation of the US and its subsidiaries
from real estate–related operations rose as deliveries of
(hereinafter “ZOLL”), acquired on April 26, 2012, US Eastern
condominiums increased and rental management performed
time, are reported.
Chemicals
Sales increased by ¥4.5 billion (0.7%) from a year ago to
¥684.6 billion, and operating income decreased by ¥21.6
billion (48.5%) to ¥22.9 billion.
well. Operating income from remodeling operations rose with
increased orders for solar panel installation and other
renovation work.
Health Care
Sales increased by ¥14.0 billion (11.7%) from a year ago to
Operating income from chemicals and derivative products
¥133.5 billion, and operating income increased by ¥7.1 billion
decreased as terms of trade for monomer products such as
(81.0%) to ¥15.9 billion.
acrylonitrile deteriorated with higher feedstock prices and low
Although pharmaceuticals operations were impacted by
sales prices due to continuing weak demand in China and
reduced reimbursement prices and higher R&D expenses,
other Asian countries. Although synthetic rubber for fuel-
operating income increased with solid sales growth of
effi cient tires performed well, operating income from polymer
Teribone™ osteoporosis drug and Recomodulin™
products decreased with high feedstock prices impacting
recombinant thrombomodulin.
products such as polyethylene. Operating income from
Although sales of therapeutic apheresis devices remained
specialty products increased as coating materials and
fi rm, operating income from devices-related operations
functional chemicals for pharmaceutical manufacture
decreased as APS™ polysulfone-membrane artifi cial kidneys
performed well.
were impacted by intensifi ed competition and reduced
reimbursement prices.
Chemicals segment operating income
increases/decreases
Homes segment operating income
increases/decreases
Health Care segment operating
income increases/decreases
Sales prices
+2.7
Sales volume
+9.1
54.3
46.3
Operating costs
and others
-3.9
(¥ billion)
50
44.5
40
30
20
10
Sales volume
-5.3
Foreign
exchange
+5.7
Sales prices
-11.6
22.9
Operating costs
and others
-10.4
(¥ billion)
60
50
40
30
20
10
0
FY
’11
’12
0
FY
’11
’12
(¥ billion)
30
25
20
15
10
5
0
FY
8.8
’11
Sales volume
+16.2
Foreign
exchange
+0.1
Sales prices
-3.0
15.9
Operating costs
and others
-6.2
’12
Asahi Kasei Annual Report 2013
43
Fibers
Sales decreased by ¥1.2 billion (1.1%) from a year ago to
Construction Materials
Sales increased by ¥5.4 billion (11.6%) from a year ago to
¥109.6 billion, but operating income increased by ¥0.9 billion
¥51.5 billion, and operating income increased by ¥2.1 billion
(28.4%) to ¥4.0 billion.
(117.2%) to ¥4.0 billion.
Although Roica™ elastic polyurethane fi lament struggled
Sales of Hebel™ autoclaved aerated concrete panels
in overseas markets, operating income in fi bers increased as
remained fi rm. Shipments of Neoma™ high-performance
Bemberg™ regenerated cellulose performed well in markets
phenolic foam insulation panels and other insulation materials
for outerwear and ethnic garments, and nonwovens remained
increased. In foundation systems, new applications expanded
fi rm.
Electronics
Sales decreased by ¥15.0 billion (10.2%) from a year ago to
¥131.1 billion, and operating income decreased by ¥3.6 billion
(56.0%) to ¥2.8 billion.
Although sales of mixed-signal LSIs for smartphones were
smoothly for Eazet™ and ATT Column™ piling systems for
small-scale construction. Sales of structural materials
increased. Operating income increased throughout the
segment.
Critical Care
Sales were ¥52.1 billion, and an operating loss of ¥3.7 billion
fi rm, operating income in electronic devices decreased as an
was recorded.
effect of a general deterioration in the operating climate. In
Operating income from LifeVest™ wearable defi brillators
electronic materials, although sales of high-end products
increased steadily, while defi brillators for professional use and
expanded in each product category, operating income
other products performed well. An operating loss resulted as
decreased due to generally sluggish growth in shipment
an effect of amortization of goodwill and other intangible
volumes and decreased sales prices for Hipore™ Li-ion battery
assets, etc., amounting to ¥11.0 billion.
separator and other products.
Fibers segment operating income
increases/decreases
Electronics segment operating income
increases/decreases
Construction Materials segment
operating income increases/decreases
(¥ billion)
5
4
3
2
1
(¥ billion)
8
6.4
Operating costs
and others
+1.1
4.0
3.1
Foreign
exchange
+0.8
Sales
volume
-0.9
Sales
prices
-0.2
4
0
-4
Operating costs
and others
+6.3
2.8
Sales volume
-4.0
Foreign
exchange
+1.4
Sales prices
-7.3
(¥ billion)
5
4
3
2
1
Operating costs
and others
+1.2
4.0
Sales prices
+0.3
Sales volume
+0.7
1.8
0
FY
’11
’12
-8
FY
’11
’12
0
FY
’11
’12
44 Asahi Kasei Annual Report 2013
Financial Section
Others
Sales decreased by ¥0.5 billion (2.9%) from a year ago to
Current liabilities increased by ¥153.3 billion (34.1%) to
¥602.9 billion, mainly as a result of a ¥55.0 billion increase in
¥18.0 billion, and operating income decreased by ¥0.8 billion
commercial paper and a ¥38.6 billion increase in short-term
(26.1%) to ¥2.2 billion.
loans payable.
Liquidity and Capital Resources
Financial position
Total assets at fi scal year end were ¥1,800.2 billion, ¥389.6
Noncurrent liabilities increased by ¥131.2 billion (54.3%)
to ¥372.9 billion, mainly as a result of a ¥84.2 billion increase
in long-term loans payable.
Interest-bearing debt increased by ¥197.3 billion to
¥381.4 billion.
billion (27.6%) higher than a year earlier.
Net assets increased by ¥105.2 billion (14.6%) from
Current assets increased by ¥97.7 billion (13.5%) to
¥719.3 billion to ¥824.5 billion. Net income was ¥53.7 billion,
¥819.5 billion, mainly as notes and accounts receivable–trade
foreign currency translation adjustments increased by ¥44.8
increased by ¥40.2 billion, inventories increased by ¥30.5
billion, and net unrealized gain on other securities increased
billion, and cash and deposits increased by ¥6.6 billion.
by ¥22.5 billion, while dividend payments were ¥19.6 billion.
Noncurrent assets increased by ¥291.9 billion (42.4%)
As a result, net worth per share increased by ¥75.33 to
to ¥980.7 billion, notably with a ¥210.2 billion increase in
¥581.05, net worth/total assets decreased from 50.1% to
intangible assets and a ¥47.4 billion increase in investment
45.1%, and debt-to equity ratio increased by 0.21 to 0.47.
securities largely due to higher fair market value.
Critical Care segment operating income
increases/decreases
Others operating income
increases/decreases
(¥ billion)
5
0
-5
FY
’11
Operating costs and others
-3.7
-3.7
’12
(¥ billion)
4
3
3.0
2
1
0
FY
’11
2.2
Sales volume
-0.8
Operating costs
and others
-0.0
Total Assets, Net Worth
(¥ billion)
2,000
1,500
1,000
500
0
’12
FY
’08
’09
’10
’11
’12
Total assets
Net worth
Asahi Kasei Annual Report 2013
45
Capital expenditure
Capital expenditure (capex) was primarily for new and
expanded production plant and equipment in long-term
growth fi elds. Investments were also made for rationalization,
labor-saving, maintenance, and IT systems to bring greater
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.
A total of ¥113.8 billion was invested during the fi scal
year for the expansion of businesses with competitive
superiority, particular in the Chemicals, Health Care, and
Electronics segments, as well as for modifi cation and
rationalization.
Notable capex by operating segment was as follows.
Chemicals
Capacity expansion for Saran Wrap™, capacity expansion for
acrylonitrile, construction of facilities for biomass power
generation, rationalization of facilities in Mizushima, other
rationalization, labor-saving, and maintenance.
Homes
Leases, rationalization, labor-saving, and maintenance.
Health Care
Acquisition of rights to distribute overactive bladder
therapeutic drug, rationalization, labor-saving, and
maintenance.
Totals for the year
(¥ million)
Compared to
previous year (%)
Fibers
Construction of facilities for spunbond, rationalization, labor-
Chemicals
Homes
Health Care
Fibers
Electronics
Construction Materials
Critical Care
Others
Combined
47,290
9,527
14,275
6,833
17,011
2,186
5,416
1,140
103,677
Corporate assets and eliminations
10,108
Consolidated
113,785
121.0
151.9
133.7
119.9
126.7
134.0
—
145.0
133.7
133.9
133.7
saving, and maintenance.
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.
Critical Care
Rationalization, labor-saving, and maintenance.
Others
Rationalization, labor-saving, and maintenance.
Corporate assets
R&D equipment, IT systems, and maintenance.
Net Worth to Total Assets
Interest-Bearing Debt,
D/E Ratio
Capex, Depreciation
and Amortization
(%)
60
50
40
30
20
10
0
(¥ billion)
400
300
200
100
0
0.8
0.6
0.4
0.2
0.0
(¥ billion)
150
120
90
60
30
0
FY
’08
’09
’10
’11
’12
FY
’08
’09
’10
’11
’12
FY
’08
’09
’10
’11
’12
Interest-bearing debt, left scale
Capex
D/E ratio, right scale
Depreciation and amortization
46 Asahi Kasei Annual Report 2013
Financial Section
Cash fl ows
Free cash fl ows* were a negative ¥152.5 billion, as cash used,
Cash fl ows from fi nancing activities
Cash used included ¥19.6 billion for dividend payments.
principally for acquisition of ZOLL, exceeded cash generated,
A ¥189.2 billion increase in loans payable, bonds payable,
principally from income before income taxes and minority
and commercial paper was associated with the acquisition of
interests and from depreciation and amortization. Cash fl ows
ZOLL. Net cash provided by fi nancing activities was ¥166.2
from fi nancing activities were a net ¥166.2 billion generated,
billion, ¥257.3 billion more than a year earlier.
principally due to increased borrowings associated with the
acquisition of ZOLL. As a result, cash and cash equivalents at
fi scal year end were ¥104.0 billion, ¥7.7 billion more than a
year earlier.
Cash fl ows from operating activities
Cash used included ¥21.8 billion for increase in inventories
and ¥22.2 billion for income taxes paid. Income before
income taxes and minority interests generated ¥82.3 billion
and depreciation and amortization generated ¥80.0 billion.
Net cash provided by operating activities was ¥126.0 billion,
¥15.3 billion less than a year earlier.
Cash fl ows from investing activities
Cash used included ¥88.2 billion for purchase of property,
plant and equipment for continuing expansion of
competitively superior operations and enhancement of
overall competitiveness, ¥15.8 billion for purchase of
intangible assets, and ¥174.5 billion for purchase of shares in
subsidiaries resulting in change in scope of consolidation
related to the acquisition of ZOLL. Net cash used in investing
activities was ¥278.5 billion, ¥189.0 billion more than a year
earlier.
* Total of net cash provided by (used in) operating activities and net
cash provided by (used in) investment activities.
Financial Policy
We aim to increase free cash fl ows with increased earnings
through enhanced cost effi ciency, greater product
competitiveness, and business structure improvements, and
with greater capital effi ciency through utilization of group
fi nance and maintenance of optimum inventory levels.
A wide range of fund-raising methods including bank
borrowings, bonds, and commercial paper will be utilized
dynamically in accordance with the fi nancial circumstances of
the Asahi Kasei Group in order to obtain stable fi nancing at
low cost.
These resources will be used to fund strategic
investments 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 fi elds of the environment &
energy, residential living, and health care, as well as dividends
for shareholders.
Advancing these measures will enable us to further
enhance corporate value and provide an appropriate return
to shareholders while maintaining discipline for a sound
fi nancial constitution.
Free Cash Flows
(¥ billion)
80
40
0
(40)
(80)
(120)
(160)
Cash Flows
(¥ billion)
200
100
0
(100)
(200)
(300)
FY
’08
’09
’10
’11
’12
FY
’08
’09
’10
’11
’12
Net cash provided by operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities
Asahi Kasei Annual Report 2013
47
Risk Analysis
Operating risks and non-operating risks which may materially infl uence investor decisions are described
below. The management maintains awareness of the possibility that these scenarios may emerge and, to
the fullest possible extent, implements measures to avoid their emergence and to minimize their impact
on corporate performance in the event that they do emerge.
The description of risks given here includes elements which may emerge in the future, but as it is
based on current evaluations at the time of preparation of this report, it does not include risks which could
not be foreseen.
Crude oil and naphtha prices
Housing-related tax policy, interest rate fl uctuation
Operating costs in operations based on petrochemicals are
Operations in the Homes segment are affected by Japanese
affected by prices for crude oil and naphtha. If crude oil
tax policies as they relate to home acquisition and by
and naphtha prices rise, selling prices for products derived
fl uctuations in Japanese interest rates. Changes in Japanese
from these feedstocks must be increased in a timely
tax policy, including consumption taxes, or fl uctuations in
manner to maintain suffi cient price spreads. Price spreads
Japanese interest rates may result in diminished housing
may diminish, thereby affecting our consolidated
demand, thereby affecting our consolidated performance
performance and fi nancial condition.
and fi nancial condition.
Exchange rate fl uctuation
Profi tability of electronics-related businesses
Operations based overseas maintain accounts in the local
The electronics industry is characterized by sharp market
currency where they operate. The yen value of items
cycles. The profi tability of electronics-related businesses
carried in these accounts is affected by the rate of
may decline signifi cantly in a relatively short time, thereby
exchange at the time of conversion to yen. Although
affecting our consolidated performance and fi nancial
measures such as currency exchange hedges are utilized
condition. Because products in this fi eld rapidly become
to minimize the short-term effects of exchange rate
obsolete, the timely development and commercialization of
fl uctuations, such fl uctuations may exceed the foreseeable
leading-edge devices and materials is required. New
range over the short to long term, thereby affecting our
product development may be delayed, or demand
consolidated performance and fi nancial condition.
fl uctuations may exceed expectations, thereby affecting
our consolidated performance and fi nancial condition.
Overseas operations
Pharmaceutical, medical device, and critical device
Overseas operations may face a variety of risks which
businesses
cannot be foreseen, including the existence or emergence
of economically unfavorable circumstances due to legal
Pharmaceutical, medical device, and critical care device
and regulatory changes, vulnerability of infrastructure,
businesses may be signifi cantly affected by government
diffi culty in hiring/retaining qualifi ed employees, or other
measures regarding health care or other changes in
factors, and social or political instability due to terrorism,
government policy in various countries. Unforeseeable side
war, or other factors. Overseas operations may be impaired
effects or complications may emerge, signifi cantly affecting
by such scenarios, thereby affecting our consolidated
these businesses. Product approval may be withdrawn as a
performance and business plans.
result of reexamination, and that competition may intensify
48 Asahi Kasei Annual Report 2013
Financial Section
as a result of the market entry of generics. For products
Business and capital alliances
under development, regulatory approval may be prolonged
or fail to be obtained, market demand may be lower than
Acquisitions, business alliances, and capital alliances may
expected, and reimbursement prices may be lower than
bear lower results or less synergy than anticipated due to
expected. Such scenarios may affect our consolidated
deterioration of the operating environment, thereby
performance and fi nancial condition.
affecting our consolidated performance and fi nancial
Industrial accidents and natural disasters
loss for goodwill, etc., thereby affecting our consolidated
performance and fi nancial condition.
condition. Poor performance at companies in which we
have invested may require the recording of an impairment
The occurrence of a signifi cant industrial accident or
natural disaster at a plant or elsewhere may result in a loss
of public trust, the emergence of costs associated with
accident response, including compensation, and
opportunity loss due to plant shutdown caused by damage
to plant facilities, supply chain disruptions which impede
raw materials procurement, etc., thereby affecting our
consolidated performance and fi nancial condition.
Intellectual property, product liability, and legal
regulation
An unfavorable ruling may emerge in a dispute relating to
intellectual property, a product defect resulting in a large-
scale recall and compensation whose costs exceed
insurance coverage may emerge, and detrimental legal and
regulatory changes may emerge in any country where we
operate. Such scenarios may affect our consolidated
performance and fi nancial condition.
Irrecoverable credits
Credits extended to customers may become irrecoverable
to an unforeseeable extent, necessitating additional losses
or allowances to be recorded in fi nancial accounts, and
thereby affecting our consolidated performance and
fi nancial condition.
Asahi Kasei Annual Report 2013
49
Consolidated Balance Sheets
Asahi Kasei Corporation and Consolidated Subsidiaries
March 31, 2013 and 2012
ASSETS
Current assets:
Cash and deposits (Notes 8 and 10)
Notes and accounts receivable–trade (Note 4(e))
Short-term investment securities (Notes 8, 10 and 11)
Merchandise and fi nished goods
Work in progress
Raw materials and supplies
Deferred tax assets (Note 14)
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment
Buildings and structures (Note 4(b), (d))
Accumulated depreciation
Buildings and structures, net
Millions of yen
Thousands of
U.S. dollars (Note 1)
2013
2012
2013
¥109,513
306,222
124
145,470
100,513
63,695
21,945
73,619
(1,631)
819,469
¥102,875
266,056
360
138,133
87,450
53,623
19,454
54,835
(1,017)
721,770
428,616
(241,191)
187,425
410,057
(235,060)
174,997
$1,164,908
3,257,334
1,319
1,547,389
1,069,173
677,534
233,433
783,098
(17,349)
8,716,828
4,559,260
(2,565,589)
1,993,671
13,148,718
Machinery, equipment and vehicles (Note 4(b), (d))
1,236,111
1,203,905
Accumulated depreciation
(1,082,480)
(1,075,668)
(11,514,520)
Machinery, equipment and vehicles, net
153,631
128,237
1,634,198
Land (Note 4(d))
Lease assets (Note 9)
Accumulated depreciation
Lease assets, net
Construction in progress
Other (Note 4(b), (d))
Accumulated depreciation
Other, net
Subtotal
Intangible assets
Goodwill (Note 15(d))
Other
Subtotal
Investments and other assets
58,176
13,980
(7,173)
6,806
41,482
129,716
(115,656)
14,060
461,581
55,667
11,694
(4,804)
6,890
37,787
122,426
(109,884)
12,542
416,119
618,828
148,708
(76,300)
72,397
441,251
1,379,811
(1,230,252)
149,559
4,909,914
134,303
121,114
255,417
8,502
36,687
45,189
1,428,603
1,288,310
2,716,913
Investment securities (Notes 4(a), 10 and 11)
224,903
177,513
2,392,331
Long-term loans receivable (Note 10)
Deferred tax assets (Note 14)
Other
Allowance for doubtful accounts
Subtotal
5,248
8,487
25,311
(245)
5,559
18,965
25,692
(240)
55,824
90,278
269,237
(2,606)
263,704
227,489
2,805,063
Total noncurrent assets
980,702
688,798
10,431,890
Total assets
¥1,800,170
¥1,410,568
$19,148,708
The accompanying notes are an integral part of these statements.
50 Asahi Kasei Annual Report 2013
LIABILITIES AND NET ASSETS
Liabilities:
Current liabilities:
Notes and accounts payable–trade (Notes 4(e) and 10)
Short-term loans payable (Notes 4(b), 10 and 20)
Commercial paper (Notes 10 and 20)
Current portion of bonds payable (Notes 10 and 20)
Lease obligations (Notes 9, 10 and 20)
Accrued expenses
Income taxes payable (Note 10)
Advances received
Provision for periodic repairs
Provision for product warranties
Provision for removal cost of property, plant and equipment
Asset retirement obligations (Note 16)
Other (Note 4(e))
Total current liabilities
Noncurrent liabilities:
Bonds payable (Notes 10 and 20)
Long-term loans payable (Notes 4(b), 10 and 20)
Lease obligations (Notes 9, 10 and 20)
Deferred tax liabilities (Note 14)
Provision for retirement benefi ts (Note 13)
Provision for directors’ retirement benefi ts
Provision for periodic repairs
Provision for removal cost of property, plant and equipment
Asset retirement obligations (Note 16)
Long-term guarantee deposits (Note 10)
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 7(b)(ii))
Treasury stock
(2013—5,016,645 shares, 2012—4,925,730 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 4(c) and 9)
Financial Section
Millions of yen
Thousands of
U.S. dollars (Note 1)
2013
2012
2013
¥172,630
113,043
70,000
5,000
2,415
91,646
13,978
61,953
2,359
2,143
1,910
722
65,064
602,864
40,000
146,929
4,051
39,985
107,776
767
4,255
2,960
2,834
18,396
4,902
372,855
975,719
103,389
79,403
553,557
(2,431)
733,918
62,622
(900)
16,440
78,162
12,371
824,451
¥143,194
$1,836,294
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
1,202,457
744,602
53,186
25,689
974,854
148,686
659,004
25,093
22,795
20,317
7,680
692,097
6,412,765
425,487
1,562,908
43,091
425,327
106,277
1,146,431
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
8,159
45,261
31,486
30,146
195,681
52,143
3,966,121
10,378,885
1,099,766
844,623
5,888,278
(25,859)
7,806,808
666,121
(9,573)
174,875
831,422
131,592
8,769,822
Total liabilities and net assets
¥1,800,170
¥1,410,568
$19,148,708
The accompanying notes are an integral part of these statements.
Asahi Kasei Annual Report 2013
51
Consolidated Statements of Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2013 and 2012
Net sales (Note 17)
Cost of sales (Note 5(b))
Gross profi t
Selling, general and administrative expenses (Note 5(a))
Operating income (Note 17)
Non-operating income:
Interest income
Dividends income
Equity in earnings of affi liates
Foreign exchange gains
Insurance income
Other
Total non-operating income
Non-operating expenses:
Interest expense
Equity in losses of affi liates
Foreign exchange loss
Costs associated with idle portion of facilities
Other
Total non-operating expenses
Ordinary income
Extraordinary income:
Gain on sales of investment securities
Gain on sales of noncurrent assets (Note 5(c))
Gain on step acquisitions
Total extraordinary income
Extraordinary loss:
Loss on valuation of investment securities
Loss on disposal of noncurrent assets (Note 5(d))
Impairment loss (Note 5(e))
Environmental expenses (Note 5(f))
Loss on disaster (Note 5(g))
Business structure improvement expenses (Note 5(h))
Total extraordinary loss
Income before income taxes and minority interests
Income taxes (Note 14) — current
— deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income
The accompanying notes are an integral part of these statements.
52 Asahi Kasei Annual Report 2013
Millions of yen
Thousands of
U.S. dollars (Note 1)
2013
2012
2013
¥1,666,640
¥1,573,230
$17,728,327
1,239,452
1,178,968
13,184,257
427,188
335,228
91,960
1,301
2,949
—
4,285
1,661
3,623
13,821
3,339
166
—
2,190
4,961
10,656
95,125
81
247
—
328
511
4,011
2,069
206
—
6,355
13,151
82,302
27,873
526
28,399
53,903
191
394,261
290,003
104,258
1,434
2,744
669
—
648
5,323
10,817
2,685
—
162
306
4,354
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
4,544,070
3,565,876
978,194
13,839
31,369
—
45,580
17,668
38,538
147,016
35,517
1,766
—
23,295
52,771
113,350
1,011,860
862
2,627
—
3,489
5,436
42,666
22,008
2,191
—
67,599
139,889
875,460
296,490
5,595
302,085
573,375
2,032
¥53,712
¥55,766
$571,343
Consolidated Statements of Comprehensive Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2013 and 2012
Financial Section
Millions of yen
Income before minority interests
Other comprehensive income
Net increase in unrealized gain on other securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of affi liates accounted for
using equity method
Total other comprehensive income (Note 6)
Comprehensive income (Note 6)
Comprehensive income attributable to:
Owners of the Parent
Minority interests
The accompanying notes are an integral part of these statements.
2013
¥53,903
22,383
786
34,595
5,848
63,612
117,515
116,505
¥1,010
2012
¥56,885
10,553
(1,594)
(1,029)
(2,255)
5,676
62,561
61,597
¥963
Thousands of
U.S. dollars (Note 1)
2013
$573,375
238,092
8,361
367,993
62,206
676,651
1,250,027
1,239,283
$10,744
Asahi Kasei Annual Report 2013
53
Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2013 and 2012
Shareholders’ equity
Accumulated other comprehensive income
Millions of yen
Capital
stock
Capital
surplus
Retained
earnings
(Note 7(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, 2012
¥103,389
¥79,404
¥516,401
¥(2,388)
¥696,805
¥40,148
¥(1,734)
¥(28,374)
¥10,040
¥12,439
¥719,285
Changes during the fi scal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
(19,567)
53,712
(0)
(49)
6
Change of scope of consolidation
(8)
(19,567)
53,712
(49)
6
(8)
3,020
3,020
Effect of change in the reporting
period of consolidated subsidiaries
and affi liates
Net changes of items other than
shareholders’ equity
Total changes of items
during the period
—
(0)
37,156
(43)
37,113
22,474
834
44,814
68,122
(68)
105,167
22,474
834
44,814
68,122
(68)
68,054
Balance at March 31, 2013
¥103,389
¥79,403
¥553,557
¥(2,431)
¥733,918
¥62,622
¥(900)
¥16,440
¥78,162
¥12,371
¥824,451
Shareholders’ equity
Accumulated other comprehensive income
Millions of yen
Capital
stock
Capital
surplus
Retained
earnings
(Note 7(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 fi scal 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 affi liates
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
Thousands of U.S. dollars (Note 1)
Capital
stock
Capital
surplus
Retained
earnings
(Note 7(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, 2012
$1,099,766 $844,634 $5,493,043 $(25,402) $7,412,031
$427,061 $(18,445) $(301,819) $106,797 $132,316 $7,651,154
Changes during the fi scal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
(208,137)
571,343
(4)
Change of scope of consolidation
(85)
(208,137)
571,343
(521)
60
(85)
(521)
64
32,124
32,124
Effect of change in the reporting
period of consolidated subsidiaries
and affi liates
Net changes of items other than
shareholders’ equity
Total changes of items
during the period
—
(4)
395,235
(457)
394,777
239,060
8,871
476,694
724,625
(723) 1,118,679
239,060
8,871
476,694
724,625
(723)
723,902
Balance at March 31, 2013
$1,099,766 $844,623 $5,888,278 $(25,859) $7,806,808
$666,121
$(9,573) $174,875 $831,422 $131,592 $8,769,822
The accompanying notes are an integral part of these statements.
54 Asahi Kasei Annual Report 2013
(19,567)
53,712
(49)
6
(8)
3,020
(208,137)
571,343
(521)
60
(85)
32,124
Consolidated Statements of Cash Flows
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2013 and 2012
Cash fl ows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill
(Decrease) increase in provision for periodic repairs
Decrease in provision for product warranties
Decrease in provision for removal cost of property,
plant and equipment
Increase (decrease) in provision for retirement benefi ts
Interest and dividend income
Interest expense
Equity in losses (earnings) of affi liates
Gain on sales of investment securities
Loss on valuation of investment securities
Gain on sale of property, plant and equipment
Loss on disposal of noncurrent assets
Gain on step acquisition
(Increase) decrease in notes and accounts receivable–trade
Increase in inventories
Increase in notes and accounts payable–trade
(Decrease) increase in accrued expenses
Increase (decrease) in advances received
Other, net
Subtotal
Interest and dividend income, received
Interest expense paid
Income taxes paid
Net cash provided by operating activities
Cash fl ows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares in subsidiaries resulting in change in scope
of consolidation (Note 8(b))
Additional purchase of investments in consolidated subsidiaries
Payments for transfer of business
Payments of loans receivable
Collection of loans receivable
Other, net
Net cash used in investing activities
Cash fl ows from fi nancing activities:
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from issuance of commercial paper
Redemptions of commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds 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 provided by (used in) fi nancing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting from changes in scope
of consolidation
Effect of change in the reporting period of consolidated subsidiaries and affi liates
Cash and cash equivalents at end of year (Note 8(a))
The accompanying notes are an integral part of these statements.
Financial Section
Millions of yen
Thousands of
U.S. dollars (Note 1)
2013
2012
2013
¥82,302
80,050
2,069
6,989
(231)
(1,408)
(171)
(1,152)
1,469
(4,251)
3,339
166
(81)
511
(247)
4,011
—
(21,385)
(21,758)
21,423
(6,783)
10,090
(8,893)
146,059
5,744
(3,556)
(22,240)
126,008
(5,977)
13,820
(88,194)
548
(15,789)
(3,161)
650
(174,472)
(1,333)
(282)
(11,476)
9,417
(2,267)
(278,518)
282,368
(248,073)
203,000
(148,000)
114,083
(34,185)
20,000
(2,539)
(50)
6
(19,567)
(667)
(131)
166,244
(853)
12,881
96,351
102
(5,327)
¥104,008
¥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)
(823)
(40,096)
134,450
1,528
469
¥96,351
$875,460
851,505
22,008
74,343
(2,457)
(14,977)
(1,819)
(12,254)
15,626
(45,219)
35,517
1,766
(862)
5,436
(2,627)
42,666
—
(227,476)
(231,443)
227,880
(72,152)
107,329
(94,596)
1,553,654
61,100
(37,826)
(236,571)
1,340,368
(63,578)
147,006
(938,134)
5,829
(167,950)
(33,624)
6,914
(1,855,888)
(14,179)
(3,000)
(122,072)
100,170
(24,114)
(2,962,642)
3,003,595
(2,638,794)
2,159,345
(1,574,301)
1,213,520
(363,632)
212,743
(27,008)
(532)
64
(208,137)
(7,095)
(1,393)
1,768,365
(9,074)
137,017
1,024,902
1,085
(56,664)
$1,106,350
Asahi Kasei Annual Report 2013
55
Notes to Consolidated Financial Statements
Asahi Kasei Corporation and Consolidated Subsidiaries
1. Major policies for preparing the consolidated fi nancial statements
The consolidated fi nancial statements, which are fi led with the prime
minister of Japan as required by the Financial Instruments and
Exchange Act in Japan, are prepared in accordance with accounting
principles generally accepted in Japan, which are different in certain
respects from the application and disclosure requirements of
International Financial Reporting Standards. The accompanying con-
solidated fi nancial statements are a translation of those fi led with the
prime minister of Japan and incorporate certain modifi cations to
enhance foreign readers’ understanding of the consolidated fi nancial
statements. In addition, the notes to the consolidated fi nancial state-
ments include certain fi nancial information which is not required
under the disclosure regulations in Japan, but is presented herein as
additional information.
The U.S. dollar amounts presented in the consolidated fi nancial
statements are included solely for the convenience of readers. These
translations should not be construed as representations that the
Japanese yen amounts actually represent, or have been or could be
converted into U.S. dollars. As the amounts shown in U.S. dollars are
for convenience only, and are not intended to be computed in accor-
dance with generally accepted translation procedures, the approxi-
mate current exchange rate of ¥94=US$1 prevailing on March 31,
2013, has been used.
Consolidation and investments in affi liated companies
The consolidated fi nancial statements consist of the accounts of the
parent company and 126 subsidiaries (105 subsidiaries at March 31,
2012, hereinafter collectively referred to as the “Company”) which,
with minor exceptions due to immateriality, are all majority and wholly
owned companies, including 9 core operating companies (Asahi Kasei
Chemicals Corp., Asahi Kasei Homes Corp., Asahi Kasei Pharma Corp.,
Asahi Kasei Medical Co., Ltd., Asahi Kasei Fibers Corp., Asahi Kasei
Microdevices Corp., Asahi Kasei E-materials Corp., Asahi Kasei
Construction Materials Corp. and ZOLL Medical Corporation), and
Tong Suh Petrochemical Corp. Ltd. (Korea). Material inter-company
transactions and accounts have been eliminated.
2. Signifi cant accounting policies
(a) Cash and cash equivalents
For cash fl ow statement purposes, cash and cash equivalents include
all highly liquid investments, generally with original maturities of three
months or less, which are readily convertible to known amounts of
cash, and therefore present an insignifi cant risk of changes in value
due to changes in interest rates.
(b) Inventories
Inventories held for sale in the ordinary course of business are stated
at the lower of cost or net realizable value. Residential lots and dwell-
ings for sale are stated at specifi cally identifi ed costs.
(c) Noncurrent assets and depreciation/amortization
Property, plant and equipment (except for lease assets) are stated at
cost. Signifi cant renewals and improvements are capitalized at cost,
while maintenance and repairs are charged to income as incurred.
Depreciation is provided for under the declining-balance method for
property, plant and equipment, except for buildings which are depreci-
ated using the straight-line method, at rates based on estimated use-
ful lives of the assets, principally ranging from 5 to 60 years for
buildings and from 4 to 22 years for machinery and equipment and
vehicles.
Intangible fi xed assets (except for lease assets), including software
for internal use, are mainly amortized using the straight-line method
over the estimated useful lives of the assets. The estimated useful life
of software for internal use is mainly 5 years.
Lease assets (fi nancing lease transactions without title transfer) are
depreciated/amortized on a straight-line basis over the period of the
lease with no residual value. For fi nancing lease transactions without
title transfer whose transaction date is before March 31, 2008, the
previous method of accounting for lease transactions continues to be
applied, with periodic lease charges for fi nancing leases being charged
to income as incurred.
56 Asahi Kasei Annual Report 2013
Investments in unconsolidated subsidiaries and 20% to 50%
owned companies in which the Company exercises signifi cant infl u-
ence are accounted for, with minor exceptions due to immateriality,
using the equity method of accounting. There were 43 such unconsol-
idated subsidiaries and 20% to 50% owned companies to which the
equity method is applied at March 31, 2013 (46 at March 31, 2012),
including Asahi Kasei Metals Ltd., Asahi Kasei Geotechnologies Co.,
Ltd. and Asahi Organic Chemicals Industry Co., Ltd.
Certain subsidiaries’ results are reported in the consolidated fi nan-
cial statements using a fi scal year ending December 31. Material dif-
ferences in inter-company transactions and accounts arising from the
use of different fi scal year-ends are appropriately adjusted for through
consolidation procedures.
Among the consolidated subsidiaries whose closing date was
December 31 until the fi scal year ended March 31, 2012, accounting
treatment for 20 companies was changed from the conventional
method of applying appropriate accounting adjustments to refl ect
their signifi cant transactions which occur between December 31 and
March 31. Beginning with the fi scal year ended March 31, 2013,
those 20 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 statements of
changes in net assets and, as an adjustment to cash and cash equiva-
lents at the beginning of the fi scal year, in the consolidated statements
of cash fl ows as “effect of change in the reporting period of consoli-
dated subsidiaries and affi liates.”
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 combina-
tions which took place before April 1, 2010, are amortized using the
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.
(d) Signifi cant allowances
i) Allowance for doubtful accounts
Estimates of the unrecoverable portion of receivables, generally
based on historical rates and for specifi c receivables of particular
concern based on individual estimates of recoverability, are recog-
nized as allowance for doubtful accounts.
ii) Provision for periodic repairs
The portion of foreseeable periodic repair expenses deemed to
correspond to normal wear and tear of plant and equipment as of
the closing date of the consolidated fi scal period is recognized as
provision for periodic repairs.
iii) Provision for product warranties
Estimates of product warranty expenses based on historical rates
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 benefi ts
Provision for retirement benefi ts represent the estimated present
value of projected benefi t obligations in excess of the fair value of
the plan assets. Unrecognized actuarial gains/losses, resulting from
variances between actual results and economic estimates or actu-
arial 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.
Financial Section
vi) Provision for directors’ retirement benefi ts
Provision is made for lump-sum indemnities to directors and cor-
porate auditors equal to the estimated liability calculated under
the internal rules of the Company.
(e) Signifi cant revenue and expense recognition
i) Construction activities that are realizable as of current
fi scal year end
The percentage-of-completion method (progress of work is esti-
mated using the percentage of costs incurred to the total project-
ed costs) is applied.
ii) Other construction activities
The completed-contract method is used.
(f) Financial instruments
i) Securities
Securities are classifi ed into four categories: trading securities,
held-to-maturity debt securities, equity securities of unconsolidat-
ed subsidiaries and affi liates, and other securities. At March 31,
2013 and 2012, the Company did not have trading securities or
held-to-maturity debt securities.
Equity securities of unconsolidated subsidiaries and affi liates
are accounted for, with minor exceptions due to 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 signifi cant decline in the realizable
value is assessed to be other than temporary, the cost of other
securities is devalued by the impaired amount and is charged to
income. Realized gains and losses are determined using the aver-
age cost method and are refl ected in the consolidated income
statements.
3. Changes in signifi cant accounting policies
(a) Accounting standards issued but not yet applied
Accounting standard for retirement benefi ts
The Accounting Standards Board of Japan (ASBJ) issued ASBJ
Statement No. 26, “Accounting Standard for Retirement Benefi ts”
and ASBJ Guidance No. 25, “Guidance on Accounting Standard for
Retirement Benefi ts,” replacing the Accounting Standard for
Retirement Benefi ts that had been issued by the Business Accounting
Council in 1998 and other related guidance. Under these revised
accounting standards, the accounting treatment of unrecognized
actuarial gain or loss and prior service cost, calculation method of
retirement benefi t obligations and service cost and method of disclo-
sures were mainly revised. These revisions were made considering the
viewpoint of enhancing fi nancial reporting and the international con-
vergence of accounting standards. The Company will apply the revised
accounting standard from the end of the fi scal year ending March 31,
2014, with the exception of the amendment of the calculation meth-
od for present value of retirement benefi t obligations and current ser-
vice costs which will be applied from the beginning of the fi scal year
ending March 31, 2015. The effect of the adoption of this revised
accounting standard is now under assessment at the time of prepara-
tion of the accompanying consolidated fi nancial statements.
(b) Change in presentation
Consolidated statements of income
In the fi scal year ended March 31, 2013, “insurance income,” which
had previously been included in “others” under non-operating income,
and “costs associated with idle portion of facilities,” which had previ-
ously been included in “others” under non-operating expenses, exceeded
10% of total of non-operating income and total non-operating
expenses, respectively, and are reported separately. The consolidated
statements of income for the fi scal year ended March 31, 2012, have been
ii) Derivative fi nancial 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 instru-
ments. Gains or losses arising from changes in fair value of these
qualifying hedges are deferred as “Deferred gains or 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 payables
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.
The Company has elected to fi le its return under the consolidated
tax fi ling system in Japan. The consumption tax system in Japan is
designed so that all goods and services are taxed at a fl at rate of 5%
unless otherwise specifi ed. Assets, liabilities, and profi t and loss
accounts are stated net of consumption tax.
(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 expenses of
same are translated into Japanese yen at the average exchange rate
for the fi scal year. Shareholders’ equity of foreign subsidiaries is trans-
lated into Japanese yen at the historical exchange rates. The transla-
tion differences in Japanese yen amounts arising from the use of
different rates are recognized as foreign currency translation adjust-
ments 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 component of net
assets in the consolidated balance sheets.
reclassifi ed accordingly, resulting in “others” under non-operating income
being ¥648 million lower than previously reported, refl ecting the separa-
tion of ¥648 million as “insurance income,” and “others” under non-
operating expenses being ¥306 million lower than previously reported,
refl ecting the separation of ¥306 million as “costs associated with idle
portion of facilities.”
“Gain on reversal of provision for noncurrent assets removal
cost” under non-operating income and “donation” under non-
operating expenses, which were reported separately in the fi scal
year ended March 31, 2012, are now less than 10% of total of non-
operating income and total non-operating expenses, respectively, and
are therefore included in “others” in the fi scal year ended March 31,
2013. The consolidated statements of income for the fi scal year ended
March 31, 2012, have been reclassifi ed accordingly, resulting in
¥2,236 million which had been reported as “gain on reversal of
provision for noncurrent assets removal cost” now being included in
“others” under non-operating income, and ¥979 million which had
been reported as “donation” now being included in “others” under
non-operating expenses.
(c) Change in accounting policy which is diffi cult to
distinguish between a change in an accounting policy
and a change in an accounting estimate
In accordance with an amendment to the Corporation Tax Act, the
parent company and its consolidated subsidiaries located in Japan
changed the method of depreciation of property, plant and equipment
acquired on or after April 1, 2012. This change took effect beginning
with the fi scal year ended March 31, 2013. Consequently, operating
income, ordinary income, and income before income taxes in the fi scal
year ended March 31, 2013, are each ¥1,743 million higher than they
would have been using the previous method of depreciation.
Asahi Kasei Annual Report 2013
57
4. Notes to Consolidated Balance Sheets
(a) Investment securities
Among investment securities, shares of unconsolidated subsidiaries and affi liates as of March 31, 2013 and 2012, amounted to ¥73,807 million
(US$785,097 thousand) and ¥64,099 million, respectively. Included in those amounts are investments in joint ventures of ¥37,669 million
(US$400,691 thousand) and ¥31,415 million, respectively.
(b) Pledged assets and secured debt
A summary of assets pledged as collateral and secured debt as of March 31, 2013 and 2012, 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
2013
¥183
4
—
¥187
¥6
309
¥315
2012
¥251
7
0
¥258
¥107
315
¥423
Thousands of
U.S. dollars
2013
$1,947
43
—
$1,989
$64
3,287
$3,351
Besides the above, investment securities pledged to suppliers as transaction guarantees at March 31, 2013 and 2012, were ¥44 million (US$468
thousand) and ¥40 million, respectively.
(c) Contingent liabilities
Contingent liabilities at March 31, 2013 and 2012, 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
2013
¥37,542
486
236
17,341
11
¥55,616
2012
¥33,464
491
114
17,163
17
¥51,249
Thousands of
U.S. dollars
2013
$399,340
5,170
2,510
184,459
117
$591,597
The parent company and certain of its subsidiaries and affi liates are defendants in several pending lawsuits. However, based upon the infor-
mation currently available to both the Company and its legal counsel, management of the Company believes that any damages from such law-
suits will not have a material impact to the Company’s consolidated fi nancial 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, 2013 and 2012, were
¥9,349 million (US$99,447 thousand) and ¥7,631 million, respectively. The breakdown of reduced-value entries as of March 31, 2013 and 2012,
is as follows:
Buildings and structures
Machinery, equipment and vehicles
Land
Other
Millions of yen
2013
¥3,298
5,664
230
157
¥9,349
2012
¥3,134
4,103
230
164
¥7,631
Thousands of
U.S. dollars
2013
$35,081
60,249
2,447
1,670
$99,447
(e) Notes maturing on March 31, 2013
Although fi nancial institutions in Japan were closed on March 31, 2013 and 2012, and notes maturing on those dates were actually settled on
the following business days, April 1, 2013, and April 2, 2012, those were accounted for as if settled on March 31, 2013 and 2012.
The breakdown of those notes at March 31, 2013 and 2012, were as follows:
Millions of yen
2013
¥3,117
1,793
¥529
2012
¥3,443
1,807
¥372
Thousands of
U.S. dollars
2013
$33,156
19,072
$5,627
Notes and accounts receivable–trade
Notes and accounts payable–trade
Current liabilities–other
58 Asahi Kasei Annual Report 2013
Financial Section
5. Notes to Consolidated Statements of Income
(a) Selling, general and administrative expenses
Major components of selling, general and administrative expenses are as follows:
Freight and storage
Salaries and benefi ts
Research and development*
Millions of yen
2013
¥32,832
119,917
¥53,364
2012
¥33,435
101,863
¥48,537
Thousands of
U.S. dollars
2013
$349,239
1,275,577
$567,642
* The aggregate amounts of research and development expenses included in manufacturing costs and selling, general and administrative expenses for the years ended March 31, 2013 and
2012, were ¥71,120 million (US$756,515 thousand) and ¥66,269 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. Losses on devaluation of inven-
tories for the years ended March 31, 2013 and 2012, were 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
2013
¥173
2012
¥983
Millions of yen
2013
¥107
45
¥94
2012
¥261
101
¥132
Thousands of
U.S. dollars
2013
$1,840
Thousands of
U.S. dollars
2013
$1,138
479
$1,000
(d) Loss on disposal of noncurrent assets
Loss on disposal of noncurrent assets for the years ended March 31, 2013 and 2012, 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 loss
Impairment losses for the years ended March 31, 2013 and 2012, were as follows:
Use
Asset class
Location
Idle assets
Land
Patents for light shaping diffuser, etc.
Patents
Production facility for textiles
Production facility for semiconductors
Production facility for polystyrene
Machinery and
equipment, etc.
Buildings,
machinery and
equipment, etc.
Machinery and
equipment, etc.
Izunokuni,
Shizuoka, etc.
Fuji, Shizuoka
Amakusa, Kumamoto
Tateyama, Chiba
Ichihara, Chiba
Production facility for fi ne-pattern devices Machinery and
equipment, etc.
Hyuga, Miyazaki
Production facility for electrolytic cell frame Buildings, etc.
Nobeoka, Miyazaki
Others
Production facility for glass fabric
Production facility for microcrystalline
cellulose
Production facility for resin molding
Structures, etc.
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Izunokuni, Shizuoka,
etc.
Moriyama, Shiga
Nobeoka, Miyazaki
Kawasaki, Kanagawa
2013
¥512
486
413
270
242
166
159
453
—
—
¥—
Millions of yen
2012
¥127
—
—
1,120
—
77
—
—
3,761
137
¥119
Thousands of
U.S. dollars
2013
$5,446
5,170
4,393
2,872
2,574
1,766
1,691
4,819
—
—
$—
Grouping of operating assets is based on managerial accounting categories, with consideration given to production process, geographic loca-
tion, and domain of authority for making investment decisions. Idle assets are recorded separately in each fi xed assets class.
With respect to patents for light shaping diffuser, etc., and part of others, the book value was reduced to the recoverable amount due to dis-
appearance of prospects for future use, and with respect to production facilities as shown in the above table, the book value was reduced to the
recoverable amount due to diminished profi tability. The recoverable amount is stated as value for future usage, which is calculated based on dis-
counted future cash fl ow with applicable discount rate of 6% as of March 31, 2013 and 2012.
Asahi Kasei Annual Report 2013
59
For idle land of which the market value has signifi cantly decreased, the book value is reduced to the recoverable amount. The recoverable
amount is measured at the net selling price primarily based on the value appraised by real estate appraisers. The resulting extraordinary losses for
production facilities for semiconductors and polystyrene, and part of others, were recorded under business structure improvement expenses for
the year ended March 31, 2013. The resulting extraordinary losses for production facilities for glass fabric and semiconductors 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, 2013 and 2012, 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 fi xed assets
Additional payment of retirement benefi ts due to application of early retirement, etc. (*1)
Loss on disposal and devaluation of inventory and others (*1,2)
Millions of yen
2013
¥—
—
—
¥—
2012
¥423
58
546
¥1,027
Millions of yen
2013
¥634
2,812
2,910
¥6,355
2012
¥4,881
258
3,315
¥8,454
Thousands of
U.S. dollars
2013
$—
—
—
$—
Thousands of
U.S. dollars
2013
$6,744
29,912
30,954
$67,599
(*1) “Additional payment of retirement benefi ts due to application of early retirement, etc.” which was included in “loss on disposal and devaluation of inventory and others” in the fi scal year
ended March 31, 2012, is reported separately in the fi scal year ended March 31, 2013, due to increased signifi cance. Figures for the fi scal year ended March 31, 2012, have been reclassifi ed
accordingly, resulting in ¥258 million which had been included as “loss on disposal and devaluation of inventory and others” now being reported as “additional payment of retirement
benefi ts due to application of early retirement, etc.”
(*2) “Loss on restructuring of group companies,” which was reported separately in the fi scal year ended March 31, 2012, is included in “loss on disposal and devaluation of inventory and
others” in the fi scal year ended March 31, 2013, due to decreased signifi cance. Figures for the fi scal year ended March 31, 2012, have been reclassifi ed accordingly, resulting in ¥1,883
million which had been reported as “loss on restructuring of group companies” now being included in “loss on disposal and devaluation of inventory and others.”
6. 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 fi scal year
Recycling adjustment
Pre-tax effect
Tax effect
Net increase in unrealized gain on other securities
Deferred gains or losses on hedges
Changes during the fi scal year
Recycling adjustment
Adjustment of assets acquisition costs
Pre-tax effect
Tax effect
Deferred gains or losses on hedges
Foreign currency translation adjustment
Changes during the fi scal year
Pre-tax effect
Tax effect
Foreign currency translation adjustment
Share of other comprehensive income of affi liates accounted for using equity method
Changes during the fi scal year
Recycling adjustment
Share of other comprehensive income of affi liates accounted for using equity method
Total other comprehensive income
60 Asahi Kasei Annual Report 2013
Millions of yen
2013
2012
¥34,229
486
34,715
(12,332)
22,383
(2,449)
125
3,321
997
(211)
786
34,495
34,495
100
34,595
5,847
2
5,848
¥63,612
¥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
2013
$364,100
5,170
369,269
(131,178)
238,092
(26,050)
1,330
35,326
10,605
(2,244)
8,361
366,929
366,929
1,064
367,993
62,196
21
62,206
$676,651
Financial Section
7. Notes to Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2013
(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, 2012
Increase in
number of shares
during the fi scal year
Decrease in
number of shares
during the fi scal year
Number of
shares as of
March 31, 2013
Thousands of shares
1,402,616
1,402,616
4,926
4,926
—
—
103
103
—
—
12
12
1,402,616
1,402,616
5,017
5,017
Notes: 1. The increase of 103 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 12 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 9, 2012.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥9,784 million (US$104,074 thousand)
¥7.00 (US$0.07)
March 31, 2012
June 6, 2012
2) The following was resolved by the Board of Directors on November 1, 2012.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥9,784 million (US$104,074 thousand)
¥7.00 (US$0.07)
September 30, 2012
December 3, 2012
ii) Dividends for which the date of record falls within the fi scal year under review but the payment date occurs in
the following fi scal year
The following was resolved by the Board of Directors on May 9, 2013.
Dividends for common stock
Total dividends
Source of dividends
Dividend per share
Date of record
Payment date
¥9,783 million (US$104,063 thousand)
Retained earnings
¥7.00 (US$0.07)
March 31, 2013
June 5, 2013
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 fi scal year
Decrease in
number of shares
during the fi scal 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
¥6.00
March 31, 2011
June 7, 2011
Asahi Kasei Annual Report 2013
61
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
¥7.00
September 30, 2011
December 1, 2011
ii) Dividends for which the date of record falls within the fi scal year under review but the payment date occurs in
the following fi scal year
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
Retained earnings
¥7.00
March 31, 2012
June 6, 2012
8. Note to Consolidated Statements of Cash Flows
(a) Cash and cash equivalents
Reconciliation of cash and cash equivalents on the consolidated statements of cash fl ows to the amounts disclosed on the consolidated balance
sheets at March 31, 2013 and 2012, 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
Millions of yen
2013
¥109,513
(5,629)
124
¥104,008
2012
¥102,875
(6,884)
360
¥96,351
Thousands of
U.S. dollars
2013
$1,164,908
(59,877)
1,319
$1,106,350
(b) Assets and liabilities of newly consolidated subsidiaries through acquisition of shares
Assets and liabilities of acquired companies (ZOLL Medical Corporation and its subsidiaries) and net cash outfl ow for such acquisition is as follows:
Current assets
Noncurrent assets
Goodwill
Current liabilities
Noncurrent liabilities
Acquisition cost of shares
Cash and cash equivalents
Net cash used for acquisition
9. Leases
Millions of yen
2013
¥26,833
75,336
113,439
(7,998)
(26,910)
180,700
(6,351)
¥174,349
Thousands of
U.S. dollars
2013
$285,427
801,362
1,206,670
(85,076)
(286,246)
1,922,136
(67,557)
$1,854,579
(a) Financing lease transactions
Financing lease transactions without title transfer
i) Components of lease assets are as follows:
1) Property, plant and equipment: Mainly model homes (buildings and structures) for housing operations.
2) Intangible fi xed assets: Software
ii) Depreciation of lease assets:
As stated in Note 2. Signifi cant accounting policies (c) Noncurrent assets and depreciation/amortization. The fi nancing lease transactions with-
out title transfer which occurred prior to March 31, 2008, are accounted for on a basis similar to an operating lease. If such lease transactions
accounted for as an operating lease had been accounted for as a fi nancing lease, the cost and related accumulated amortization, computed
using the straight-line method over the term of the lease, at March 31, 2013 and 2012, would have been as follows:
Machinery, equipment and vehicles
Property, plant and equipment, other
Intangible fi xed assets, other
62 Asahi Kasei Annual Report 2013
Millions of yen
2013
Accumulated
depreciation/
amortization
¥82
86
33
¥201
Net amount
¥37
7
5
¥49
Cost
¥119
94
38
¥250
Financial Section
Millions of yen
2012
Accumulated
depreciation/
amortization
¥89
253
163
¥505
Thousands of U.S. dollars
2013
Accumulated
depreciation/
amortization
$872
915
351
$2,138
Net amount
¥53
47
19
¥119
Net amount
$394
74
53
$521
Cost
¥143
300
182
¥625
Cost
$1,266
1,000
404
$2,659
Machinery, equipment and vehicles
Property, plant and equipment, other
Intangible fi xed assets, other
Machinery, equipment and vehicles
Property, plant and equipment, other
Intangible fi xed assets, other
The future lease payments under the Company’s fi nancing leases at March 31, 2013 and 2012, including amounts representing interest, were
as follows:
Due within one year
Due after one year
Millions of yen
2013
¥23
26
¥49
2012
¥70
49
¥119
Thousands of
U.S. dollars
2013
$245
277
$521
Lease charges were ¥64 million (US$681 thousand) and ¥359 million for the years ended March 31, 2013 and 2012, respectively. The amortiza-
tion amounts of the leased assets, computed using the straight-line method over the term of the leases and no residual value, were ¥64 million (US$681
thousand) and ¥359 million for the years ended March 31, 2013 and 2012, 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, 2013 and 2012, were as follows:
Due within one year
Due after one year
10. Financial instruments
(a) Overview of fi nancial instruments
i) Policy related to fi nancial instruments
The Company raises long-term funds as required mainly for its
planned capital expenditures by borrowing from banks, borrowing
from life insurance companies, issuing bonds, etc. A portion of the
surplus funds is invested only in highly stable fi nancial assets.
Short-term working funds are raised by bank borrowings, issuance
of commercial paper, etc. Derivative transactions are mainly
entered into for the purpose of reducing risks related to assets and
liabilities which are exposed to risks of fl uctuations of exchange
rate and interest rate. Derivatives are not traded for speculative
purposes.
ii) Components of fi nancial instruments, their risks and risk
management structure
As operating receivables, notes and accounts receivable–trade, are
exposed to credit risk of customers. As the business of the
Company spans a wide range of fi elds, operating receivables are
not excessively concentrated on specifi c customers, but each
group company monitors and manages the credit condition for
each customer.
Investment securities are exposed to the risk of fl uctuations in
market price, but they are mainly equity securities of companies
with which the Company has business relationships. These
Millions of yen
2013
¥5,036
3,426
¥8,462
2012
¥4,975
5,147
¥10,121
Thousands of
U.S. dollars
2013
$53,569
36,443
$90,012
securities are held for the purpose of maintaining the business
relationships. Fair value is periodically evaluated, and the fi nancial
condition of the issuing company is monitored.
As operating liabilities, notes and accounts payable–trade,
generally have a payment term of 1 year or less.
Variable interest-rate borrowings are exposed to the risk of
interest-rate fl uctuations, but derivatives (interest-rate and curren-
cy swaps, interest-rate swaps) are used as hedges to fi x interest
expenses for a portion of long-term variable interest-rate borrow-
ings.
Operating receivables and operating liabilities include those
denominated in currencies other than Japanese yen, and are thus
exposed to the risk of exchange-rate fl uctuations. In order to mini-
mize the effects of short-term exchange-rate fl uctuations, the
Company hedges with derivative transactions (forward exchange
contracts), in principle, within the range of the underlying receiv-
ables and liabilities amount.
Derivative transactions are exposed to the credit risk of trans-
acting fi nancial institutions, but the credit condition of those
fi nancial 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.
Asahi Kasei Annual Report 2013
63
Borrowings are exposed to liquidity risk, but the parent compa-
iii) Supplementary explanation of fair value of fi nancial
ny specifi es standards for required on-hand funds based on the
Company’s funding plans, prepares and revises plans for cash
receipts and disbursements as appropriate, and enters into com-
mitment-line agreements with transacting fi nancial institutions to
manage such risk.
Loan securitization in the housing business is exposed to the
risk of interest-rate fl uctuations between the time of origination of
housing loans and the time of execution of their securitization, but
derivative transactions (interest-rate swaps) are entered into to
reduce such risk.
instruments
The fair value of fi nancial instruments is based on their quoted
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 Note 12
“Derivative fi nancial instruments” is not itself an indication of the
market risk of the derivative transactions.
(b) Fair value of fi nancial instruments
Amounts carried on the consolidated balance sheets, their fair values, and the differences between them as of March 31, 2013 and 2012, are as
shown below.
Financial instruments whose fair values are deemed extremely diffi cult to determine are not included in this table (See Notes 2), 3) and 4) below).
Cash and deposits
Notes and accounts receivable–trade
Allowance for doubtful accounts (*1)
Investment securities
Other securities
Long-term loans receivable
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 deposits
Total liabilities
Derivative fi nancial instruments (*2)
Cash and deposits
Notes and accounts receivable–trade
Allowance for doubtful accounts (*1)
Investment securities
Other securities
Long-term loans receivable
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 deposits
Total liabilities
Carrying
amount
¥109,513
306,222
(1,538)
304,684
144,149
6,103
564,449
172,630
78,725
70,000
13,978
45,000
181,248
6,466
6,335
574,382
¥(1,787)
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
Millions of yen
2013
Fair value
¥109,513
304,684
144,149
6,124
564,470
172,630
78,725
70,000
13,978
46,458
184,293
6,489
6,323
578,896
¥(1,787)
Millions of yen
2012
Fair value
¥102,875
265,118
105,130
7,097
480,220
143,194
44,751
15,000
8,380
25,953
93,901
6,915
6,006
344,100
Derivative fi nancial instruments (*2)
¥(2,822)
¥(2,822)
64 Asahi Kasei Annual Report 2013
Difference
¥—
—
—
21
21
—
—
—
—
(1,458)
(3,045)
(23)
13
(4,514)
¥—
Difference
¥—
—
—
558
558
—
—
—
—
(953)
(1,959)
(1)
102
(2,811)
¥—
Financial Section
Thousands of U.S. dollars
2013
Fair value
$1,164,908
3,240,974
1,533,337
65,142
6,004,361
1,836,294
837,411
744,602
148,686
494,181
1,960,355
69,025
67,259
6,157,813
Carrying
amount
$1,164,908
3,257,334
(16,360)
3,240,974
1,533,337
64,919
6,004,138
1,836,294
837,411
744,602
148,686
478,672
1,927,965
68,780
67,386
6,109,797
Cash and deposits
Notes and accounts receivable–trade
Allowance for doubtful accounts (*1)
Investment securities
Other securities
Long-term loans receivable
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 deposits
Total liabilities
Derivative fi nancial instruments (*2)
$(19,009)
$(19,009)
Difference
$—
—
—
223
223
—
—
—
—
(15,509)
(32,390)
(245)
138
(48,016)
$—
(*1) This reduction represents specifi c allowance for doubtful accounts related to notes and
accounts receivable–trade.
(*2) The amounts represent net amount of assets and liabilities resulting 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 fi nancial instruments; securities and
derivative fi nancial instruments
i) Assets
1) Cash and deposits, notes and accounts receivable–trade
As their fair value approximates book value due to their short maturity, the
corresponding book value amount is used as fair value.
2) Investment securities
The stock exchange prices are used to determine fair value of these traded
stocks. Refer to the Note 11 “Marketable securities and investment securities” for
information on securities classifi ed holding purpose.
3) Long-term loans receivable
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 refl ect 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, 2013 and 2012, amounted to
Note 5)
¥34,319 million (US$365,057 thousand) and ¥29,739 million, respectively. Their
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 refl ect 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 deposits
In case where the deposit period can be estimated, the fair value of long-term
guarantee deposits is determined using a discounted cashfl ow over that period.
iii) Derivative transactions
Refer to the Note 12 “Derivative fi nancial instruments.”
For equity investments in nonpublic companies, with a carrying amount as of March
31, 2013 and 2012, amounting to ¥80,878 million (US$860,313 thousand) and
¥72,743 million, respectively, fair value is not included in investment securities, as no
quoted market price is available and it is deemed extremely diffi cult to determine fair
value due to the impossibility of estimating future cash fl ows.
For long-term loans payable, the fair value having a carrying amount as of March
31, 2012, amounting to ¥507 million, is not included as no quoted market price
is available and it is deemed extremely diffi cult to determine fair value due to the
impossibility of estimating future cash fl ows.
For long-term guarantee deposits, the fair value of a portion having a carrying
amount as of March 31, 2013 and 2012, amounting to ¥12,060 million (US$128,284
thousand) and ¥12,178 million, respectively, is not included as no quoted market
price is available and it is deemed extremely diffi cult to determine fair value due to
the impossibility of estimating future cash fl ows.
For monetary credits and securities with maturity, amount scheduled for redemption
subsequent to the closing date.
Millions of yen
2013
Note 2)
Note 3)
Note 4)
Due within one year
Due after one year,
within fi ve years
Due after fi ve years,
within ten years
Due after more than
ten years
Cash and deposits
Notes and accounts receivable–trade
Short-term investment securities and investment securities
available-for-sale securities with contractual maturity
(Japanese government and municipal bonds)
Long-term loans receivable
¥109,513
306,222
—
854
¥416,589
¥—
—
—
5,181
¥5,181
¥—
—
—
67
¥67
¥—
—
—
—
¥—
Asahi Kasei Annual Report 2013
65
Millions of yen
2012
Due within one year
Due after one year,
within fi ve years
Due after fi ve years,
within ten years
Due after more than
ten years
Cash and deposits
Notes and accounts receivable–trade
Short-term investment securities and investment securities
available-for-sale securities with contractual maturity
(Japanese government and municipal bonds)
Long-term loans receivable
¥102,875
266,056
2
979
¥369,913
¥—
—
—
5,344
¥5,344
¥—
—
—
215
¥215
¥—
—
—
—
¥—
Cash and deposits
Notes and accounts receivable–trade
Short-term investment securities and investment securities
available-for-sale securities with contractual maturity
(Japanese government and municipal bonds)
Long-term loans receivable
Thousands of U.S. dollars
2013
Due after one year,
within fi ve years
Due after fi ve years,
within ten years
Due after more than
ten years
Due within one year
$1,164,908
3,257,334
$—
—
—
9,084
$4,431,326
—
55,111
$55,111
$—
—
—
713
$713
$—
—
—
—
$—
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.
Short-term
loans payable
¥78,725
—
—
—
—
¥—
Short-term
loans payable
¥44,751
—
—
—
—
¥—
Short-term
loans payable
$837,411
—
—
—
—
$—
Millions of yen
2013
Commercial paper
Bonds payable
Long-term loans payable
¥70,000
—
—
—
—
¥—
¥5,000
—
—
—
20,000
¥20,000
Millions of yen
2012
¥34,319
18,747
30,217
27,470
16,288
¥54,208
Commercial paper
Bonds payable
Long-term loans payable
¥15,000
—
—
—
—
¥—
¥—
5,000
—
—
—
¥20,000
¥29,739
23,071
6,862
2,197
4,212
¥25,860
Thousands of U.S. dollars
2013
Commercial paper
Bonds payable
Long-term loans payable
$744,602
—
—
—
—
$—
$53,186
—
—
—
212,743
$212,743
$365,057
199,415
321,423
292,203
173,258
$576,620
Lease
obligations
¥2,415
1,778
1,342
800
119
¥13
Lease
obligations
¥2,207
2,039
1,365
923
370
¥10
Lease
obligations
$25,689
18,913
14,275
8,510
1,266
$138
Year ending March 31
2014
2015
2016
2017
2018
2019 and thereafter
Year ending March 31
2013
2014
2015
2016
2017
2018 and thereafter
Year ending March 31
2014
2015
2016
2017
2018
2019 and thereafter
66 Asahi Kasei Annual Report 2013
Financial Section
11. 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 classi-
fi ed as other securities for which fair values are available at March 31, 2013 and 2012, are as follows:
Securities with unrealized gains:
Equity securities
Securities with unrealized losses:
Equity securities
Carrying
amount
Millions of yen
2013
Cost
Unrealized gains
(losses)
¥133,234
¥34,656
¥98,578
10,915
¥144,149
12,489
¥47,145
(1,573)
¥97,005
Note) For equity investment in nonpublic companies, with a carrying amount of ¥80,878 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 diffi cult to determine fair value.
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 diffi cult to determine fair value.
Securities with unrealized gains:
Equity securities
Securities with unrealized losses:
Equity securities
Thousands of U.S. dollars
2013
Carrying
amount
Cost
Unrealized gains
(losses)
$1,417,232
$368,642
$1,048,591
116,105
$1,533,337
132,848
$501,489
(16,732)
$1,031,858
Note) For equity investment in nonpublic companies, with a carrying amount of US$860,313 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 diffi cult to determine fair value.
(b) The realized gains and losses on the sale of other securities during the years ended March 31, 2013 and 2012, are as follows:
Selling amount
Gain on sales of securities
Loss on sales of securities
Millions of yen
2013
¥617
81
¥—
2012
¥541
191
¥—
Thousands of
U.S. dollars
2013
$6,563
862
$—
(c) Loss on other devaluation of investment securities whose fair values are readily determinable for the years ended March
31, 2013 and 2012, was ¥511 million (US$5,436 thousand) and ¥1,898 million, respectively.
Asahi Kasei Annual Report 2013
67
12. Derivative fi nancial instruments
(a) Derivative fi nancial instruments for which hedge accounting is not applied
i) Foreign exchange forward contracts
Classifi cation
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profi t (loss) from valuation
Millions of yen
2013
Off-market
transactions
Foreign exchange forward contracts
Selling
U.S. dollar
Euro
Thai baht
Singapore dollar
Buying
U.S. dollar
¥16,869
5,627
744
—
1,828
¥25,068
¥—
—
—
—
—
¥—
¥(498)
(36)
(71)
—
(10)
¥(615)
¥(498)
(36)
(71)
—
(10)
¥(615)
Millions of yen
2012
Classifi cation
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profi t (loss) from valuation
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)
Thousands of U.S. dollars
2013
Classifi cation
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profi t (loss) from valuation
Off-market
transactions
Foreign exchange forward contracts
Selling
U.S. dollar
Euro
Thai baht
Singapore dollar
Buying
U.S. dollar
$179,438
59,855
7,914
—
19,445
$266,652
$—
—
—
—
—
$—
(b) Derivative fi nancial instruments for which hedge accounting is applied
i) Foreign exchange forward contracts
Classifi cation
Items
Hedged assets/liabilities
Amount of contract
$(5,297)
(383)
(755)
—
(106)
$(6,542)
Millions of yen
2013
Amount of contract
over 1 year
Foreign exchange forward contracts
Selling
Principle-
based
accounting
U.S. dollar
Euro
U.S. dollar
Buying
U.S. dollar
Accounts receivable–trade
Accounts receivable–trade
Investment securities
Accounts payable–trade
¥8,870
145
—
827
¥9,841
¥382
—
—
—
¥382
$(5,297)
(383)
(755)
—
(106)
$(6,542)
Fair value
¥(1,200)
(1)
—
29
¥(1,172)
68 Asahi Kasei Annual Report 2013
Financial Section
Classifi cation
Items
Hedged assets/liabilities
Amount of contract
Millions of yen
2012
Amount of contract
over 1 year
Foreign exchange forward contracts
Selling
Principle-
based
accounting
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
Classifi cation
Items
Hedged assets/liabilities
Amount of contract
Thousands of U.S. dollars
2013
Amount of contract
over 1 year
Foreign exchange forward contracts
Selling
Principle-
based
accounting
U.S. dollar
Euro
U.S. dollar
Buying
U.S. dollar
Accounts receivable–trade
Accounts receivable–trade
Investment securities
Accounts payable–trade
$94,352
1,542
—
8,797
$104,680
$4,063
—
—
—
$4,063
ii) Interest-rate swaps, and interest-rate and currency swaps
Fair value
¥(390)
(1)
(1,804)
2
¥(2,192)
Fair value
$(12,765)
(11)
—
308
$(12,467)
Classifi cation
Special treatment
for interest-rate
swaps
Special treatment
for interest-rate
and currency
swaps
Classifi cation
Special treatment
for interest-rate
swaps
Special treatment
for interest-rate
and currency
swaps
Items
Hedged assets/liabilities
Amount of contract
Millions of yen
2013
Amount of contract
over 1 year
Fair value
Interest-rate swaps
Pay fi xed/receive fl oating
Interest-rate and currency swaps
U.S. dollar receive fi xed/
Long-term loans payable
¥96,306
¥84,756
(*)
Japanese yen pay fl oating
Bonds payable
U.S. dollar receive fl oating/
Thai baht pay fi xed
Long-term loans payable
5,000
650
—
325
¥101,956
¥85,081
(*)
(*)
—
Items
Hedged assets/liabilities
Amount of contract
Millions of yen
2012
Amount of contract
over 1 year
Fair value
Interest-rate swaps
Pay fi xed/receive fl oating
Interest-rate and currency swaps
U.S. dollar receive fi xed/
Long-term loans payable
¥27,044
¥16,304
Japanese yen pay fl oating
Bonds payable
5,000
5,000
U.S. dollar receive fl oating/
Thai baht pay fi xed
Long-term loans payable
747
¥32,791
498
¥21,802
(*)
(*)
(*)
—
Asahi Kasei Annual Report 2013
69
Classifi cation
Special treatment
for interest-rate
swaps
Special treatment
for interest-rate
and currency
swaps
Items
Hedged assets/liabilities
Amount of contract
Thousands of U.S. dollars
2013
Amount of contract
over 1 year
Fair value
Interest-rate swaps
Pay fi xed/receive fl oating
Interest-rate and currency swaps
U.S. dollar receive fi xed/
Long-term loans payable
$1,024,423
$901,564
(*)
Japanese yen pay fl oating
Bonds payable
53,186
—
U.S. dollar receive fl oating/
Thai baht pay fi xed
Long-term loans payable
6,914
3,457
$1,084,523
$905,021
(*)
(*)
—
(*) 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.
13. Provision for retirement benefi ts
Upon terminating employment, employees of the parent company and its major subsidiaries in Japan are entitled, under most circumstances, to
lump-sum severance indemnities and/or pension payments determined by reference mainly to their current basic rate of pay and length of ser-
vice. Additional benefi ts may be granted to employees depending on the conditions under which termination of employment occurs. Certain for-
eign subsidiaries have defi ned benefi t pension plans or defi ned contribution plans.
The obligation for these severance indemnity benefi ts is provided for through accruals, contributory funded defi ned benefi t pension plans,
contributory funded defi ned benefi t enterprise pension plans and non-contributory funded tax-qualifi ed pension plans.
Information on provision for retirement benefi ts at March 31, 2013 and 2012, was as follows:
(a) Projected benefi t obligations
(b) Fair value of plan assets
(c) Unfunded benefi t obligations [(a)+(b)]
(d) Unrecognized actuarial gains/losses
(e) Unrecognized prior service costs
(f) Amount shown on balance sheet [(c)+(d)+(e)]
(g) Prepaid pension cost
(h) Provision for retirement benefi ts [(f)-(g)]
Millions of yen
2013
¥(331,038)
177,112
(153,927)
50,634
94
(103,199)
4,577
¥(107,776)
2012
¥(311,561)
161,838
(149,723)
49,107
(1,309)
(101,925)
4,353
¥(106,277)
Thousands of
U.S. dollars
2013
$(3,521,306)
1,883,970
(1,637,347)
538,602
1,000
(1,097,745)
48,686
$(1,146,431)
Note: The fi gures in the above table do not include additional benefi t payables amounting to ¥2,747 million (US$29,220 thousand) and ¥93 million at March 31, 2013 and 2012, respectively.
The amounts were recorded as part of current liabilities on the consolidated balance sheets at March 31, 2013 and 2012.
Periodic retirement benefi t expenses for employees for the years ended March 31, 2013 and 2012, include the following components:
Service cost*
Interest cost
Expected return on plan assets
Amortization of unrecognized actuarial gains/losses
Amortization of unrecognized prior service costs
Retirement benefi t expenses
Millions of yen
2013
¥9,858
6,116
(3,993)
5,297
(1,403)
¥15,875
2012
¥9,744
6,312
(4,060)
4,760
(1,380)
¥15,376
Thousands of
U.S. dollars
2013
$104,861
65,057
(42,474)
56,345
(14,924)
$168,865
Note: In addition to the above costs, additional benefi ts amounting to ¥3,180 million (US$33,826 thousand) and ¥340 million for the years ended March 31, 2013 and 2012, respectively, and
contributions to the defi ned contribution plans amounting to ¥414 million (US$4,404 thousand) for the year ended March 31, 2013, were charged to income.
* Not including contributions made by employees.
The assumptions used in calculation of the above information are as follows:
Discount rate
Expected rate of return on plan assets
Method of attributing the projected benefi ts to periods of employee service
Amortization of unrecognized prior service costs
Amortization of unrecognized actuarial gains/losses
2013
2012
Mainly 1.4%
Mainly 2.5%
Straight-line basis
Mainly 10 years
Mainly 10 years
Mainly 2.0%
Mainly 2.5%
Straight-line basis
Mainly 10 years
Mainly 10 years
70 Asahi Kasei Annual Report 2013
Financial Section
14. Taxes
Income taxes applicable to the parent company and subsidiaries in Japan include (1) corporation tax, (2) enterprise tax, and (3) inhabitants tax.
Signifi cant components of the deferred tax assets and liabilities at March 31, 2013 and 2012, were as follows:
Deferred tax assets:
Provision for retirement benefi ts
Tax loss carry forwards
Accrued bonuses
Impairment loss
Unrealized gain on noncurrent assets and others
Depreciation
Loss on disposal of noncurrent assets
Experiment and research expenses
Provision for periodic repairs
Unrealized loss on investment securities
Accrued enterprise tax
Asset retirement obligations
Provision for product warranties
Devaluation of inventories
Allowance for doubtful accounts
Environmental expenses
Deferred gains or losses on hedges
Other
Subtotal deferred tax assets
Less: Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized gain on other securities
Identifi ed intangible assets during business combination
Deferred gain on property, plant and equipment
Depreciation—overseas subsidiaries
Accelerated depreciation
Other
Total deferred tax liabilities
Millions of yen
2013
2012
¥38,003
21,444
8,027
3,873
3,825
3,543
2,859
2,825
2,710
2,308
1,455
1,315
1,298
1,220
990
538
456
9,736
106,426
(29,072)
77,354
(36,645)
(29,763)
(10,952)
(3,606)
(240)
(5,749)
(86,956)
¥37,608
16,377
8,272
4,104
4,233
1,964
3,434
919
2,989
3,411
1,368
1,415
889
1,022
341
662
834
6,979
96,821
(24,557)
72,263
(24,168)
(3,698)
(11,862)
(775)
(249)
(4,495)
(45,247)
Thousands of
U.S. dollars
2013
$404,244
228,103
85,385
41,198
40,687
37,687
30,412
30,050
28,827
24,551
15,477
13,988
13,807
12,977
10,531
5,723
4,851
103,563
1,132,071
(309,244)
822,827
(389,799)
(316,594)
(116,498)
(38,358)
(2,553)
(61,153)
(924,965)
Net deferred tax assets (liabilities)
¥(9,602)
¥27,017
$(102,138)
Net deferred tax assets (liabilities) at March 31, 2013 and 2012, 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—other
Non-current liabilities—deferred tax liabilities
Millions of yen
2013
¥21,945
8,487
(49)
¥(39,985)
2012
¥19,454
18,965
—
¥(11,402)
Thousands of
U.S. dollars
2013
$233,433
90,278
(521)
$(425,327)
Asahi Kasei Annual Report 2013
71
Reconciliation of the differences between the statutory tax rate and the effective income tax rate for the years ended March 31, 2013 and
2012, was as follows:
Statutory tax rate
2013
38.0%
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
R&D expenses deductible from income taxes
Amortization of goodwill and negative goodwill
Equity in earnings of unconsolidated subsidiaries
and affi liates
Undistributed earnings of foreign subsidiaries
Difference of tax rates for foreign subsidiaries
Valuation allowance
Decrease in deferred tax asset due to the change
in statutory tax rate
0.7
0.6
(5.5)
2.8
(0.2)
1.0
(1.0)
(1.8)
—
Non-deductible expenses and non-taxable income
Equalization of inhabitants taxes
R&D expenses deductible from income taxes
Amortization of goodwill and negative goodwill
Equity in earnings of unconsolidated subsidiaries
and affi liates
Undistributed earnings of foreign subsidiaries
Difference of tax rates for foreign subsidiaries
Valuation allowance
Decrease in deferred tax asset due to the change
in statutory tax rate
Other
Effective income tax rate
(0.1)
34.5%
Other
Effective income tax rate
2012
40.7%
1.5
0.5
(6.3)
0.2
(0.3)
(0.5)
(3.2)
1.4
5.7
0.4
40.0%
15. Business combinations
Business combination accounted for by the purchase method was
as follows:
ZOLL Medical Corporation
(a) Outline of business combination
1) Name of acquiree
ZOLL Medical Corporation
2) Nature of the businesses
Manufacture and sale of critical care medical devices
3) Main reasons for the acquisition
I) By utilizing the know-how and the resources built up
through the Company’s established pharmaceutical and
medical device businesses, it is 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
enables 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 is able to obtain oppor-
tunities for global business expansion and to deal with new
therapeutic fi elds.
4) The acquisition date
April 26, 2012
5) Statutory form of business combination
Stock purchase for cash as consideration
6) Name of company after transaction
ZOLL Medical Corporation
7) Acquired voting right
Voting right before the acquisition 0%
Voting right after the acquisition 100%
8) Basic means of materializing the acquisition
Stock purchase for cash as consideration by a special purpose
subsidiary of the Company
(b) The period of acquiree’s results included in the
consolidated fi nancial statements
From April 27, 2012 to March 31, 2013
(c) Cost of acquisition and details
Stock purchase price
Acquisition related direct
cost
Purchase price
Millions of yen
Thousands of
U.S. dollars
¥179,573
$1,910,148
1,128
11,999
¥180,700
$1,922,136
(d) The amount of goodwill, measurement principle,
amortization method and useful life
1) Amount of goodwill
¥113,439 million (US$1,206,670 thousand)
2) Measurement principle
Goodwill is measured as the excess of the purchase price over
the fair value of identifi able assets acquired and liabilities
assumed.
3) Amortization method and useful life
Straight-line method over 20 years
(e) 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
¥26,833
75,336
102,169
7,998
26,910
¥34,908
Thousands of
U.S. dollars
$285,427
801,362
1,086,789
85,076
286,246
$371,322
72 Asahi Kasei Annual Report 2013
Financial Section
(f) Amount of identifi able intangible assets other than
2) Major weighted average useful life
goodwill, its details and major weighted average useful life
1) Purchase price allocated to intangible assets and its
major items
Technology-related assets
Trademarks
Customer-related assets
Millions of yen
¥40,189
14,614
¥10,100
Thousands of
U.S. dollars
$427,497
155,452
$107,435
Technology-related assets
Trademarks
Customer-related assets
Total
17 years
20 years
19 years
18 years
(g) Pro forma effects on the consolidated statements of
income assumed the business combination occurs at the
beginning of fi scal year and its measurement.
Information is omitted due to immateriality. This note is not sub-
ject to audit.
16. 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 offi ces, and
due to commitments to dismantle leased buildings upon termination of lease period, etc., in accordance with lease agreements for model home
parks, relevant asset retirement obligations are recorded in the consolidated balance sheets.
In accordance with building lease agreements such as for the head offi ces, commitments pertaining to restoration to original state before
vacating are recognized as asset retirement obligations. However, instead of recording them as the relevant asset retirement obligations under lia-
bilities, the amount of lease deposit that cannot ultimately be expected to be collected was estimated in a reasonable manner, and of that, the
amount corresponding to the fi scal year ended March 31, 2013, was recorded under operating expenses.
(b) Method of calculating the amount of relevant asset retirement obligations
The calculation of asset retirement obligations is based on the following: expected term of use of 4 to 55 years, infl ation rate of 0.0% to 4.1%,
and discount rate of 0.2% to 5.1%.
(c) Increase (decrease) in the total amount of asset retirement obligations in the fi scal year ended March 31, 2013
Balance at beginning of year
Increase due to asset retirement obligations accrued
Adjustment due to passage of time
Decrease due to accounting estimates*
Decrease due to fulfi llment of asset retirement obligations
Increase (decrease) due to foreign exchange fl uctuation
Balance at end of year
Millions of yen
2013
¥3,701
126
124
(349)
(379)
334
¥3,556
2012
¥3,828
148
151
—
(317)
(108)
¥3,701
Thousands of
U.S. dollars
2013
$39,368
1,340
1,319
(3,712)
(4,031)
3,553
$37,826
* A ¥349 million (US$3,712 thousand) decrease in asset retirement obligations was made in the fi scal year ended March 31, 2013, as it became clear that the cost of asset retirement will be less
than originally estimated at the time of asset acquisition.
The amount of lease deposit which will be written off for a certain percentage at the end of the lease period is charged to expense rather
than recording the asset retirement obligation. Increase (decrease) in those expensed amounts for the fi scal year ended March 31, 2013 and
2012, were 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
Millions of yen
2013
¥1,643
56
(70)
¥1,629
2012
¥1,619
37
(13)
¥1,643
Thousands of
U.S. dollars
2013
$17,477
596
(745)
$17,328
Asahi Kasei Annual Report 2013
73
17. Business segment information
(a) Overview of reportable segments
The Company is organized under a holding company confi guration with
core operating companies performing operations in nine business fi elds.
Separate fi nancial information is available in these nine units, and
the Board of Directors carries out periodic review to allocate manage-
ment resources and evaluate business performance.
The nine units are combined into seven reportable segments of
Chemicals, Homes, Health Care, Fibers, Electronics, Construction
Materials, and Critical Care through application of Paragraph 13 of
“Accounting Standard for Disclosures about Segments of an
Enterprise and Related Information.”
The “Critical Care” segment is newly added during the fi rst quar-
ter of fi scal 2012, as the result of completion of the acquisition of
ZOLL Medical Corporation and its subsidiaries on April 26, 2012 (US
Eastern standard time).
Main products of the seven reportable segments are as follows:
Chemicals
The Company produces, processes, and sells chemicals and derivative
products (such as nitric acid, caustic soda, acrylonitrile, styrene, adipic
acid, methyl methacrylate (MMA), and acrylic resin), polymer products
(such as Stylac™-AS styrene-acrylonitrile, Stylac™-ABS acrylonitrile-
butadiene-styrene, Tenac™ polyacetal, Xyron™ modifi ed polyphenyl-
ene ether (mPPE), Leona™ polyamide 66, Suntec™ polyethylene,
synthetic rubber, and polystyrene), and specialty products (such as
coating materials, latex, Ceolus™ microcrystalline cellulose, explosives,
explosion-bonded metal clad, Microza™ UF and MF membranes and
systems, ion-exchange membranes and electrolysis systems, Saran
Wrap™ cling fi lm, Ziploc™ storage bags, and plastic fi lms, sheets, and
foams).
Homes
The Company constructs Hebel Haus™ unit homes and Hebel Maison™
apartments, and operates real estate business (such as management
of Hebel Maison™ rental units, Atlas™ condominiums, Hebel Town™
housing developments, and brokerage of used Hebel Haus™ homes),
remodeling business (such as exterior wall refurbishing, reroofi ng,
redesign, interior renovation, and solar panel installation), and fi nan-
cial and other services (such as mortgage fi nancing, etc.).
Health Care
The Company manufactures and sells pharmaceuticals (such as
Teribone™, Recomodulin™, Elcitonin™, Flivas™, Toledomin™, and
Bredinin™), Lucica™ GA-L assay kits, L-series enriched liquid diets,
APS™ polysulfone-membrane artifi cial kidneys, therapeutic apheresis
devices, Planova™ virus removal fi lters, and Sepacell™ leukocyte
reduction fi lters.
Fibers
The Company produces, processes, and sells Roica™ elastic polyure-
thane fi lament, Bemberg™ cupro fi ber, nonwoven fabrics (such as
Eltas™ spunbond and Lamous™ artifi cial suede), and Leona™ nylon
66 fi lament.
Electronics
The Company manufactures and sells Hipore™ Li-ion battery separa-
tors, photomask pellicles, APR™ photosensitive resin and printing
plate making systems, photosensitive polyimide precursor, Sunfort™
dry fi lm photoresist, mixed-signal LSIs, Hall elements, and glass fabric
for printed wiring boards.
Construction Materials
The Company produces and sells Hebel™ and Hebel Powerboard™
autoclaved aerated concrete (AAC) panels, Neoma™ and Jupii™ phe-
nolic foam insulation panels, Eazet™, ATT Column™, and other piling
systems, and BasePack™ column base attachment systems.
Critical Care
The Company manufactures and sells defi brillators for medical profes-
sionals, LifeVest™ wearable defi brillators, ZOLL AED Plus™ automated
external defi brillators, and IVTM—Thermogard XP™ intravascular tem-
perature management systems.
(b) Methods to determine net sales, income or loss, assets,
and other items by reportable business segment
Profi t by reportable business segment is stated on an operating
income basis. Intersegment net sales and transfers are based on the
values of transactions undertaken between third parties.
(c) Information concerning net sales, income or loss, assets, and other items for each reportable segment
Millions of yen
2013
Chemicals
Homes
Health Care
Fibers
Electronics
Construction
Materials
Critical Care
(Note 1)
Subtotal
Others
(Note 2)
Total
Sales:
External customers
¥684,582 ¥486,182 ¥133,450 ¥109,613 ¥131,148
¥51,504
¥52,131 ¥1,648,610
¥18,031 ¥1,666,640
Intersegment
Total
20,678
215
66
1,794
420
15,948
—
39,120
23,967
63,088
705,260
486,397
133,516
111,406
131,569
67,451
52,131
1,687,730
41,998
1,729,728
Operating income (loss)
22,925
54,266
15,932
4,030
2,824
3,962
(3,667)
100,272
2,195
102,467
Assets
Other items
650,519
304,675
183,836
115,584
167,723
46,804
240,318
1,709,460
59,240
1,768,700
Depreciation (Note 3)
29,993
5,266
10,493
6,099
15,003
2,271
436
41,313
—
—
1,005
—
12
42
4,667
2,489
—
—
6,933
5,337
76,058
6,790
934
199
76,992
6,989
—
48,512
16,643
65,154
Amortization of goodwill
Investments in affi liates accounted
for using equity method
Increase in property, plant and
equipment, and intangible assets
¥47,290
¥9,527
¥14,275
¥6,833
¥17,011
¥2,186
¥5,416
¥102,538
¥1,140
¥103,677
Notes: 1. The “Critical Care” segment is newly added during the fi rst quarter of fi scal 2012, as the result of completion of the acquisition of ZOLL Medical Corporation and its subsidiaries on
April 26, 2012 (US Eastern standard time).
2. The “Others” category is equivalent to the former Services, Engineering and Others segment, including plant engineering and environmental engineering, research and analysis, and
employment agency/staffi ng operations.
3. Amortization of goodwill is not included.
74 Asahi Kasei Annual Report 2013
Financial Section
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
Depreciation (Note 2)
Amortization of goodwill
Investments in affi liates accounted
for using equity method
Increase in property, plant and
equipment, and intangible assets
20,506
63
23
1,743
608
15,268
38,211
700,617
452,028
119,506
112,593
146,721
61,414
1,592,879
44,486
46,340
8,804
3,140
6,423
1,824
111,015
23,665
42,227
2,969
61,876
1,635,106
113,984
580,351
293,452
180,241
106,000
162,951
42,620
1,365,615
57,462
1,423,077
29,215
435
34,413
4,794
10,892
6,445
20,911
2,419
—
—
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/staffi ng operations.
2. Amortization of goodwill is not included.
Thousands of U.S. dollars
2013
Chemicals
Homes
Health Care
Fibers
Electronics
Construction
Materials
Critical Care
(Note 1)
Subtotal
Others
(Note 2)
Total
Sales:
External customers
$7,282,013 $5,171,599 $1,419,530 $1,165,972 $1,395,043 $547,857 $554,526 $17,536,539 $191,799 $17,728,327
Intersegment
Total
219,955
2,287
702
19,083
4,468
169,642
—
416,126 254,941
671,078
7,501,968 5,173,886 1,420,232 1,185,044 1,399,521
717,488
554,526
17,952,665 446,740
18,399,404
Operating income (loss)
243,857
577,236
169,471
42,868
30,039
42,144
(39,006)
1,066,610
23,349
1,089,959
Assets
Other items
6,919,679 3,240,879 1,955,494 1,229,486 1,784,097
497,862 2,556,303
18,183,810 630,146
18,813,956
Depreciation (Note 3)
319,041
56,015
111,616
64,876
159,589
24,157
73,747
809,042
4,638
439,453
—
—
10,690
—
128
447
49,644
26,476
—
—
56,771
72,226
9,935
2,117
818,977
74,343
—
516,030 177,034
693,054
Amortization of goodwill
Investments in affi liates accounted
for using equity method
Increase in property, plant and
equipment, and intangible assets
$503,032 $101,340 $151,846
$72,684 $180,949
$23,253
$57,611
$1,090,714 $12,126
$1,102,829
Notes: 1. The “Critical Care” segment is newly added during the fi rst quarter of fi scal 2012, as the result of completion of the acquisition of ZOLL Medical Corporation and its subsidiaries on
April 26, 2012 (US Eastern standard time).
2. The “Others” category is equivalent to the former Services, Engineering and Others segment, including plant engineering and environmental engineering, research and analysis, and
employment agency/staffi ng operations.
3. Amortization of goodwill is not included.
(d) Reconciliation of differences between total amounts of reportable segments and amounts appearing in the consolidated
fi nancial statements (adjustment of difference)
Sales
Total of reporting segments
Net sales in “Others” category
Elimination of intersegment transactions
Net sales on consolidated statements of income
Operating income
Total of reporting segments
Operating income in “Others” category
Elimination of intersegment transactions
Corporate expenses, etc.*
Operating income on consolidated statements of income
Millions of yen
2013
2012
¥1,687,730
41,998
(63,088)
¥1,666,640
¥1,592,879
42,227
(61,876)
¥1,573,230
Millions of yen
2013
¥100,272
2,195
1,469
(11,975)
¥91,960
2012
¥111,015
2,969
690
(10,416)
¥104,258
Thousands of
U.S. dollars
2013
$17,952,665
446,740
(671,078)
$17,728,327
Thousands of
U.S. dollars
2013
$1,066,610
23,349
15,626
(127,380)
$978,194
* Corporate expenses, etc. include corporate revenue, basic research expense, and group management expense, etc. which are not allocated to reporting segments.
Asahi Kasei Annual Report 2013
75
Assets
Total of reporting segments
Assets in “Others” category
Elimination of intersegment transactions
Corporate assets*
Total assets on consolidated balance sheets
Millions of yen
2013
2012
¥1,709,460
59,240
(200,347)
231,817
¥1,800,170
¥1,365,615
57,462
(206,324)
193,814
¥1,410,568
Thousands of
U.S. dollars
2013
$18,183,810
630,146
(2,131,124)
2,465,876
$19,148,708
* Corporate assets include assets of the parent company—surplus operating funds (cash and deposits), long-term investment capital (investment securities, etc.), and land, etc.
Total of reportable segments
Others
Adjustments (Note 1)
Amounts from consolidated
fi nancial statements
Millions of yen
Thousands of
U.S. dollars
Millions of yen
Thousands
of U.S.
dollars
Millions of yen
Thousands
of U.S.
dollars
Millions of yen
Thousands
of U.S.
dollars
Other items
2013
2012
2013
2013
2012
2013
2013
2012
2013
2013
2012
2013
Depreciation (Note 2)
¥76,058 ¥74,676
$809,042
¥934
¥852
$9,935
¥3,058 ¥2,912
$32,528
¥80,050 ¥78,440
$851,505
Amortization of goodwill
Investments in affi liates
accounted for using equity
method
Increase in property, plant
and equipment, and
intangible assets
6,790
1,131
72,226
199
47
2,117
48,512 40,518
516,030
16,643 17,519
177,034
—
—
—
—
—
6,989
1,179
74,343
— 65,154 58,037
693,054
¥102,538 ¥76,787 $1,090,714
¥1,140
¥786
$12,126 ¥10,108 ¥7,551 $107,520 ¥113,785 ¥85,124 $1,210,350
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
Japan
China
2013
Other
regions
Total
Japan
China
2012
Other
regions
Millions of yen
Thousands of U.S. dollars
2013
Total
Japan
China
Other regions
Total
¥1,181,429 ¥155,570
¥329,641 ¥1,666,640 ¥1,151,705
¥151,286
¥270,238
¥1,573,230
$12,567,057 $1,654,824 $3,506,446
$17,728,327
2) Property, plant and equipment
Millions of yen
2013
Other regions
Japan
Total
Japan
Thousands of U.S. dollars
2013
Other regions
Total
¥369,481
¥92,100
¥461,581
$3,930,231
$979,683
$4,909,914
Geographic information for the year ended March 31, 2012, is not shown because over 90% of the amount of property, plant and equip-
ment on the consolidated balance sheets was 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 consolidated
statements of income.
76 Asahi Kasei Annual Report 2013
Financial Section
18. Information on related parties
Related party transactions
Transactions between consolidated subsidiaries of the company submitting the consolidated fi nancial statements and related parties
Subsidiaries, affi liates, etc. of the company submitting the consolidated fi nancial statements
An affi liated company
PTT Asahi Chemical Co., Ltd.
Rayong, Thailand
14,246 million Thai baht
Chemicals
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
Guarantee for completion of manufacturing facilities
Nature of transaction
¥17,341 million in the year ended March 31, 2013,
¥17,163 million in the year ended March 31, 2012
—
—
Amount name
Balance at end of year
Transaction amount
19. Per share information
Basic and diluted net assets per share and net income per share for the years ended March 31, 2013 and 2012, were 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
2013
¥581.05
¥38.43
2012
¥505.72
¥39.89
Millions of yen
2013
2012
U.S. dollars
2013
$6.18
$0.41
Thousands of
U.S. dollars
2013
¥824,451
¥719,285
$8,769,822
12,371
(12,371)
12,439
(12,439)
131,592
(131,592)
¥812,080
¥706,846
$8,638,230
Number of shares of capital stock outstanding at fi scal year end used in calculation of
net assets per share (thousand)
1,397,600
1,397,691
1,397,600
(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
2013
¥53,712
—
2012
¥55,766
—
¥53,712
¥55,766
1,397,651
1,397,872
Thousands of
U.S. dollars
2013
$571,343
—
$571,343
1,397,651
As the Company had no dilutive securities at March 31, 2013 and 2012, the Company does not disclose diluted net income per share for the
years ended March 31, 2013 and 2012.
Asahi Kasei Annual Report 2013
77
20. Borrowings
(a) Bonds payable at March 31, 2013 and 2012, comprised the following:
Unsecured 1.90% Euro yen bonds due in 2013
(of which, current portion of bonds)
Unsecured 1.46% yen bonds due in 2019
Unsecured 0.30% yen bonds due in 2017
Total
(of which, current portion of bonds)
Note 1) The current portion of bonds payable is recorded under current liabilities on the consolidated balance sheets.
2) In the case of fl oating interest rates, the rate at the end of March is shown.
3) The aggregate annual maturities of long-term debt after March 31, 2013, are as follows:
Year ending March 31
2014
2015
2016
2017
2018
2019 and thereafter
(b) Loans payable at March 31, 2013 and 2012, comprised the following:
Millions of yen
2013
¥5,000
(¥5,000)
20,000
20,000
¥45,000
(¥5,000)
2012
¥5,000
(¥—)
20,000
—
¥25,000
(¥—)
Millions of yen
¥5,000
—
—
—
20,000
20,000
¥45,000
Millions of yen
Short-term loans payable with interest rate 0.52%
Current portion of long-term loans payable with interest rate 1.71%
Current portion of lease obligations with interest rate 1.94%
2013
¥78,725
34,319
2,415
Long-term loans payable (except portion due within one year) with interest rate 0.77%
146,929
Lease obligations (except portion due within one year) with interest rate 1.50%
Commercial paper with interest rate 0.10% (due within one year)
4,051
70,000
¥336,439
2012
¥44,751
29,739
2,207
62,710
4,707
15,000
¥159,114
Thousands of
U.S. dollars
2013
$53,186
($53,186)
212,743
212,743
$478,672
($53,186)
Thousands of
U.S. dollars
$53,186
—
—
—
212,743
212,743
$478,672
Thousands of
U.S. dollars
2013
$837,411
365,057
25,689
1,562,908
43,091
744,602
$3,578,758
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, 2014, are as follows:
Long-term loans payable
Lease obligations
Year ending March 31
Millions of yen
2015
2016
2017
2018
2019 and thereafter
¥18,747
30,217
27,470
16,288
¥54,208
Thousands of
U.S. dollars
$199,415
321,423
292,203
173,258
$576,620
Millions of yen
¥1,778
1,342
800
119
¥13
Thousands of
U.S. dollars
$18,913
14,275
8,510
1,266
$138
78 Asahi Kasei Annual Report 2013
Report of Independent Auditors
Financial Section
Asahi Kasei Annual Report 2013
79
Major Subsidiaries and Affi liates
As of April 1, 2013
Main products/business line
Chemicals
Packaging products and solutions
Specialty chemicals
Cling fi lm, other household products
Aluminum paste
Sale of civil engineering materials
Shotgun cartridges
Water treatment equipment, environmental chemicals
Processed plastic products
Synthetic rubber
Polystyrene
Biaxially oriented polystyrene sheet
Silicone
Industrial explosives
Coloring and compounding of performance resin
Compounded performance resin operations
Sale of purging compound
Acrylonitrile, sodium cyanide
Sale of adipic acid
High-performance HDI-based polyisocyanate
Polyacetal
Industrial fi ltration membranes and systems
Sale of performance resin
Sale of performance resin
Sale of performance resin
Company
Chemicals Segment
Asahi Kasei Chemicals Corp.*
Asahi Kasei Pax Corp.*
Asahi Kasei Finechem Co., Ltd.*
Asahi Kasei Home Products Corp.*
Asahi Kasei Metals Ltd.*
Asahi Kasei Geotechnologies Co., Ltd.
Asahi SKB Co., Ltd.
Asahi Kasei Clean Chemical Co., Ltd.
Asahi Kasei Technoplus Co., Ltd.*
Japan Elastomer Co., Ltd.*
PS Japan Corp.*
Sundic Inc.
Wacker Asahikasei Silicone Co., Ltd.
Kayaku Japan Co., Ltd.
Asahi Kasei Plastics North America, Inc.*
Asahikasei Plastics (America) Inc.*
Sun Plastech Inc.*
Tong Suh Petrochemical Corp., Ltd.*
Asahi Kasei Chemicals Korea Co., Ltd.
Asahi Kasei Performance Chemicals Corp.*
Asahi Kasei POM (Zhangjiagang) Co., Ltd.***
Asahi Kasei Microza (Hangzhou) Co., Ltd.*
Asahikasei Plastics (Shanghai) Co., Ltd.
Asahi Kasei Plastics (Guangzhou) Co., Ltd.
Asahi Kasei Plastics (Hong Kong) Co., Ltd.
Asahikasei (Suzhou) Plastics Compound Co., Ltd. Coloring and compounding of performance resin
Asahi Kasei Synthetic Rubber Singapore Pte. Ltd.* Synthetic rubber
Performance resin
Asahi Kasei Plastics Singapore Pte. Ltd.*
PPE powder
Polyxylenol Singapore Pte. Ltd.*
Coloring and compounding of performance resin
Asahikasei Plastics (Thailand) Co., Ltd.
Acrylonitrile, methyl methacrylate
PTT Asahi Chemical Co., Ltd.
Asahi Kasei Plastics Europe SA/NV*
Sale of compounded performance resin
Fibers Segment
Asahi Kasei Fibers Corp.*
Asahi Kasei Intertextiles Corp.*, ****
DuPont-Asahi Flash Spun Products Co., Ltd.
Hangzhou Asahikasei Spandex Co., Ltd.*
Hangzhou Asahikasei Textiles Co., Ltd.*
Formosa Asahi Spandex Co., Ltd.
Asahi Chemical (HK) Ltd.*
Asahi Kasei Spunbond (Thailand) Co., Ltd.*
Thai Asahi Kasei Spandex Co., Ltd.*
Asahi Kasei Spandex Europe GmbH*
Asahi Kasei Fibers Italy SRL*
Asahi Kasei Fibers Deutschland GmbH
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.*
Asahi Kasei Home Construction Corp.*
Asahi Kasei Chintai Support Corp.*
Fibers, textiles
Processing of fi bers and textiles
Flash spun products
Spandex
Warp-knit spandex textiles
Spandex
Promotion and marketing of fi bers and textiles
Spunbond nonwovens
Spandex
Spandex
Sale of cupro cellulosic fi ber
Sale of artifi cial suede
Housing
¥
Real eatate development, brokerage, and related business ¥
¥
Steel frames
¥
Financial services
¥
Home maintenance and remodeling
¥
Construction of homes
¥
Apartment rental insurance
Paid-in capital
(million)
Equity
interest (%)
3,000
490
325
250
250
132
100
100
160
1,000
5,000
1,500
1,050
60
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
US$
US$
US$
1
KRW 237,642
KRW 1,500
149
CNY
125
CNY
69
CNY
18
CNY
10
US$
2.6
US$
50
CNY
125
US$
46
US$
35
US$
THB
140
THB 14,246
A
5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.4
75.0
62.1
50.0
50.0
50.0
21.7 ** 100.0
17.8 ** 100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
51.0
100.0
100.0
70.0
100.0
48.5
100.0
¥
¥
¥
CNY
CNY
NT$
HK$
THB
THB
A
A
A
3,000
80
450
154
78
1,003
65
900
1,350
100.0
100.0
50.0
100.0
82.5
50.0
100.0
90.0
60.0
19.6 ** 100.0
100.0
100.0
3
0.3
3,250
3,200
2,820
1,000
250
100
50
100.0
100.0
100.0
100.0
100.0
100.0
100.0
* Consolidated subsidiary
** Including capital reserve
*** As of August 2013
**** As of October 2013
80 Asahi Kasei Annual Report 2013
Additional Information
Additional Information
Paid-in capital
(million)
Equity
interest (%)
¥
¥
¥
3,000
200
50
¥
3,000
¥
3,000
¥
300
¥
50
¥
50
50
¥
KRW 7,962
2.9
US$
820
KRW
181
CNY
143
CNY
14
CNY
10
NT$
1
NT$
49
NT$
326
NT$
387
NT$
A
3.0
A
3.4
0.3
£
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
80.6
51.0
50.0
100.0
100.0
100.0
3,000
3,000
140
100.0
¥
100.0
¥
100.0
¥
49** 100.0
US$
100.0
30
US$
100.0
0.5
US$
100.0
KRW 1,000
100.0
165
CNY
100.0
NT$
5
A
100.0
17.8
A
100.0
0.5
A
100.0
0.1
100.0
0.1
YTL
US$
¥
1,723 ** 100.0
100.0
10
Construction materials
Installation of piles
Exterior wall panel installation
Electronic devices
Electronic materials
Epoxy resin
LSIs
Glass fabric
Hall elements
Energy and electronic materials
Sale of LSIs
Electronic devices marketing and technical support
Electronic devices marketing and technical support
Electronic devices marketing and technical support
Sale of pellicles
Photosensitive dry fi lm
Glass fabric
Glass fabric
Electronic devices marketing and technical support
Sale of photopolymer, printing-plate making systems
Sale of photopolymer, printing-plate making systems
Pharmaceuticals
Medical devices, medical systems
Medical devices
Clinical trials for new drugs, sale of pharmaceuticals
Bioprocess equipment and systems
Sale of medical devices, medical systems
Sale of medical devices, medical systems
Hemodialyzers; sale of medical devices
Sale of medical devices, medical systems
Sale of medical devices, medical systems
Sale of virus removal fi lters
Pharmaceuticals
Sale of medical devices, medical systems
Critical care devices and systems
Sale of critical care devices in Japan
Main products/business line
Company
Construction Materials Segment
Asahi Kasei Construction Materials Corp.*
Asahi Kasei Foundation Systems Corp.*
Asahi Kasei Extech Corp.*
Electronics Segment
Asahi Kasei Microdevices Corp.*
Asahi Kasei E-materials Corp.*
Asahi Kasei Epoxy Co., Ltd.*
Asahi Kasei Microsystems Co., Ltd.*
Asahi-Schwebel Co., Ltd.*
Asahi Kasei Electronics Co., Ltd.*
Asahi Kasei E-materials Korea Inc.*
AKM Semiconductor, Inc.*
Asahi Kasei Microdevices Korea Corp.
Asahi Kasei Electronics Materials (Suzhou) Co., Ltd.* Photosensitive dry fi lm
Asahi Kasei Electronics Materials (Changshu) Co., Ltd. Photosensitive dry fi lm
Asahi Kasei Microdevices (Shanghai) Co., Ltd.
Asahi Kasei Microdevices Taiwan Corp.
Asahi Kasei EMD Taiwan Corp.
Asahi Kasei Wah Lee Hi-Tech Corp.*
Asahi-Schwebel (Taiwan) Co., Ltd.*
Nittobo Asco Glass Fiber Co., Ltd.
Asahi Kasei Microdevices Europe SAS
Asahi Photoproducts (Europe) SA/NV*
Asahi Photoproducts (UK) Ltd.*
Health Care Segment
Asahi Kasei Pharma Corp.*
Asahi Kasei Medical Co., Ltd.*
Med-Tech Inc.*
Asahi Kasei Pharma America Corp.*
Asahi Kasei Bioprocess, Inc.*
Asahi Kasei Medical America Inc.*
Asahi Kasei Medical Trading (Korea) Co., Ltd.*
Asahi Kasei Medical (Hangzhou) Co., Ltd.*
Asahi Kasei Medical Trading (Taiwan) Co., Ltd.*
Asahi Kasei Medical Europe GmbH*
Asahi Kasei Bioprocess Europe SA/NV*
Asahi Pharma Spain, SL
Asahi Kasei Medical Trading Ltd. Sti.*
Critical Care Segment
ZOLL Medical Corporation*
Asahi Kasei ZOLL Medical 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.
Asahi Organic Chemicals Industry Co., Ltd.
Asahi Kasei America, Inc.*
Asahi Kasei Holdings US, Inc.*
Crystal IS, Inc.*
Asahi Kasei (China) Co., Ltd.*
Asahi Kasei India Pvt. Ltd.
¥
Information and analysis
¥
Plant, equipment, process engineering
¥
Sale of Asahi Kasei products
¥
Sale of Asahi Kasei products
¥
Employment agency, consulting
¥
Computer software, IT systems
¥
Synthetic resin, fabricated plastic products
US$
Business support services
Holding company of ZOLL
US$
Development of aluminum nitride substrates and UV LEDs US$
CNY
Investment and business support services
INR
Business support services
1,000
400
98
94
80
800
5,000
0.1
100.0
100.0
100.0
100.0
100.0
49.0
30.1
100.0
1,723 ** 100.0
31.9** 100.0
100.0
275
100.0
45
* Consolidated subsidiary
** Including capital reserve
Asahi Kasei Annual Report 2013
81
Company Information
Corporate Profi le (as of March 31, 2013)
Company Name
Asahi Kasei Corporation
Date of Establishment
May 21, 1931
Paid-in Capital
¥103,389 million
Employees
28,363 (consolidated)
1,138 (non-consolidated)
Asahi Kasei Group Offi ces
Asahi Kasei Corporation
Core Operating Companies
Tokyo Head Offi ce
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3000
Fax: +81-3-3296-3161
Osaka Head Offi ce
3-3-23 Nakanoshima, Kita-ku
Osaka 530-8205 Japan
Phone: +81-6-7636-3111
Fax: +81-6-7636-3077
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
Beijing Offi ce
Room 1407
New China Insurance Tower
No.12 Jian Guo Men Wai Avenue
Chao Yang District
Beijing 100022 China
Phone: +86-10-6569-3939
Fax: +86-10-6569-3938
Asahi Kasei America, Inc.
535 Madison Avenue, 33rd Floor
New York, NY 10022 USA
Phone: +1-212-371-9900
Fax: +1-212-371-9050
Asahi Kasei India Pvt. Ltd.
The Capital 801C, Plot No.C70, G Block,
Bandra Kurla Complex, Bandra (East),
Mumbai 400051 India
Phone: +91-22-6710-3962
82 Asahi Kasei Annual Report 2013
Asahi Kasei Chemicals
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3200
Asahi Kasei Fibers
3-3-23 Nakanoshima, Kita-ku
Osaka 530-8205 Japan
Phone: +81-6-7636-3500
Asahi Kasei Homes
1-24-1 Nishi-shinjuku, Shinjuku-ku
Tokyo 160-8345 Japan
Phone: +81-3-3344-7111
Asahi Kasei Construction Materials
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3500
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 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
ZOLL Medical Corporation
269 Mill Rd., Chelmsford,
MA 01824-4105 USA
Phone: +1-978-421-9655
Investors Information
(As of March 31, 2013)
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.
Independent Auditors
PricewaterhouseCoopers Aarata
Number of Shareholders 109,298
Additional Information
Largest Shareholders
% of equity*
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.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Sumitomo Life Insurance Co.
* Percentage of equity ownership after exclusion of treasury stock.
5.71
5.22
4.27
3.63
2.53
1.98
1.47
1.45
1.45
1.40
Distribution by Type of Shareholder
Distribution by Number of Shares Held
Japanese financial institutions
43.89%
Foreign investors
27.43%
Japanese individuals and groups 22.52%
Other Japanese companies
4.19%
Japanese securities companies
1.61%
Treasury stock
0.36%
Less than 1,000
0.28%
1,000–9,999
11.85%
10,000–99,999
7.09%
100,000 or more
80.78%
Stock Chart
Share price
(¥)
800
600
400
200
0
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,
affi liated companies, or third parties granting rights to Asahi Kasei Corporation or affi liated companies.
Asahi Kasei Annual Report 2013
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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
2013.10
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