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Asahi Kasei Report 2015
Creating for Tomorrow
2015旭化成e_c_1029初修正.indd 2
2015旭化成e_c_1029初修正.indd 2
2015/11/06 10:53
2015/11/06 10:53
Group
Mission
We, the Asahi Kasei Group,
contribute to life and living for people
around the world.
Group
Vision
Providing new value to society by enabling “living in health and
comfort” and “harmony with the natural environment.”
Group
Values
Sincerity—Being sincere with everyone.
Challenge—Boldly taking challenges, continuously seeking change.
Creativity—Creating new value through unity and synergy.
Group
Slogan
Creating for Tomorrow
Contents
2
3
4
10
12
14
15
20
To Our Stakeholders
Research & Development
Return to Shareholders and Share Information
Feature:
The Asahi Kasei Heritage of Diversifi cation
History of Providing Solutions for the
Challenges of Society
Financial and Non-Financial Highlights
Asahi Kasei Group Management and CSR
Interview with the President
CFO Interview
38
40
CSR
42
44
52
54
R&D at the Asahi Kasei Group
R&D in Three Fields of Focus and Main Sites
for R&D
CSR Dialogue
Responsible Care
Respect for Employee Individuality
Corporate Citizenship
Corporate Governance
Financial Section
22
Directors, Corporate Auditors, Executive Offi cers
24 Outside Directors
26
Corporate Governance
Operating Segments
30
32
34
36
Chemicals & Fibers
Homes & Construction Materials
Electronics
Health Care
57
58
Financial Section
Consolidated Eleven-Year Summary
60 Management’s Discussion and Analysis
66
68
Risk Analysis
Consolidated Financial Statements
Corporate Information
100 Major Subsidiaries and Affi liates
102
103
Company Information
Investors Information
Editorial policy
Organizational scope
For greater ease of understanding among our stakeholders,
since fi scal 2014 we are integrating information regarding
our business strategy and fi nancial performance, which had
been published in our Annual Report, with information
regarding our CSR activities, which had been published in
our CSR Report, in a single Asahi Kasei Report. We hope
that the Asahi Kasei Report will help you gain a clear per-
ception of the Asahi Kasei Group’s efforts toward sustain-
ability in society in addition to our management strategy,
business conditions, and management confi guration.
Period under review
The period under review is fi scal 2014 (April 2014 to
March 2015). Some qualitative information pertaining to
April to July 2015 has also been included.
The scope of the report is Asahi Kasei Corp. and its consoli-
dated subsidiaries, except with respect to Responsible Care,
in which case the scope is operations in Japan that imple-
ment the Asahi Kasei Group’s Responsible Care program.
Asahi Kasei’s four operating segments are Chemicals &
Fibers, Homes & Construction Materials, Electronics, and
Health Care. Unless otherwise specifi ed, the titles and posi-
tions of corporate offi cers and other personnel as shown in
this report are current as of August 2015.
Guidelines consulted
The Global Reporting Initiative’s Sustainability Reporting
Guidelines 3.1, ISO 26000, and other guidelines were con-
sulted during the preparation of this report.
Disclaimer
The forecasts and estimates shown in this 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 Report 2015
1
To Our Stakeholders
Thank you for reading the Asahi Kasei Report 2015. In 2014
ahead throughout all operations to achieve our targets.
we integrated the description of fi nancial information, which
With the start of a new management initiative from fi scal
had been published in our Annual Report, with the
2016, we will adopt a new corporate confi guration with the
description of our CSR activities, which had been published in
three business sectors of Material, Homes, and Health Care,
our CSR Report, in a single Asahi Kasei Report for greater
and concurrently the holding company Asahi Kasei Corp. will
ease of understanding by our various stakeholders. We hope
become an operating holding company. We believe that
that the Asahi Kasei Report will enhance your understanding
these changes will foster greater synergies among our
of the Asahi Kasei Group’s management strategy, business
different sectors, enabling us accelerate innovation. We are
operations, and fi nancial performance, as well as our
focused on increasing corporate value through the
contribution to the sustainability of society.
continuous growth of operations with strategic and effi cient
The Asahi Kasei Group is now executing “For Tomorrow
management across the Asahi Kasei Group.
2015,” a fi ve-year strategic management initiative ending in
Throughout these efforts, we will maintain proactive
fi scal 2015. In accordance with our Group Mission of
communication with our stakeholders to ensure transparency
contributing to life and living for people around the world,
through appropriate information disclosure. I would like to
and our Group Vision of enabling living in health and comfort
thank you for your continuous support.
and harmony with the natural environment, we are
expanding world-leading businesses and creating new value
August 2015
for society.
In fi scal 2014 we reached record highs for the second
consecutive year in net sales, operating income, ordinary
income, and net income, as investments for growth that we
made over the past few years bore fruit. Also, in the fi eld of
the Environment & Energy we decided to acquire the
US-based Polypore International, Inc. to strategically expand
our battery separator business. As we complete our “For
Tomorrow 2015” initiative in fi scal 2015, we will press fi rmly
2
Asahi Kasei Report 2015
Toshio Asano
President
Return to Shareholders and Share Information
We strive to continuously increase dividends through continuous earnings
growth, with a payout ratio of 30% as our basic standard.
Our basic policy is to strive to continuously increase dividends
with a payout ratio of 30% of net income as our basic standard,
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.
In accordance with this policy, the annual dividend for fi scal
2014 was increased by ¥2 per share from the previous year to
¥19 per share. We plan to increase the dividend for fi scal 2015 to
¥20 per share refl ecting forecasted consolidated fi nancial results.
We will continue to strive for greater corporate value, and
provide appropriate returns to our shareholders.
Comparison between stock price and TOPIX (April 2011 = 1)
(¥)
20
15
10
5
0
Dividends per share, payout ratio
20
(%)
40
19
35.1
36.4
17
14
14
25.5
11
26.4
25.1
23.5
’10
’11
’12
’13
’14
’15
plan
Dividends per share (left scale)
Payout ratio (right scale)
Average stock price in
FY2011: ¥501
Average stock price in
FY2012: ¥469
Average stock price in
FY2013: ¥712
Average stock price in
FY2014: ¥924
2.5
2.0
1.5
1.0
0.5.
April 2011
April 2012
April 2013
April 2014
Asahi Kasei stock price (left scale)
TOPIX (left scale)
Monthly total turnover (right scale)
Number of shareholders (at fi scal year end)
Shareholder distribution (at fi scal year end)
116,237
114,772
109,298
97,906
85,482
120,000
100,000
80,000
60,000
40,000
20,000
0
’10
’11
’12
’13
’14
FY
(FY)
’10
’11
’12
’13
’14
Treasury stock 0.3%
Japanese securities companies 1.4%
Other Japanese companies
4.4%
Japanese individuals and groups
22.5%
Japanese financial institutions
46.9%
Foreign investors
24.5%
41.1%
36.2%
16.7%
3.9%
1.7%
0.4%
Asahi Kasei Report 2015
3
30
20
10
0
FY
(1,000
shares)
240,000
180,000
120,000
60,000
0
Feature
The Asahi Kasei Heritage of
Diversifi cation
Since its founding in 1922, Asahi Kasei has proactively transformed its
business portfolio to meet the changing needs of the times. We showcase
three examples that highlight our heritage of taking on challenges and
creating value by diversifying operations.
1
Non-linear growth through
strategic M&A
In 2012 we acquired ZOLL Medical Corporation, a global leader in medical devices for
acute critical care, for US$2.2 billion (¥180 billion). While we had operated pharmaceutical
and medical device businesses, this acquisition marked our strategic entry into the fi eld of
critical care. Since that time ZOLL’s business growth—led by the LifeVest™ wearable
defi brillator and expansion of the Core defi brillator business—has remained strong, and in
fi scal 2014 our consolidated operating income in this business category turned positive
even after amortization of goodwill and other intangible assets. The LifeVest™ was
launched in Japan in April 2014, and further global growth is anticipated.
4
Asahi Kasei Report 2015
Richard A. Packer, CEO of ZOLL
Accelerating ZOLL’s growth
The third pillar of Health Care operations
LifeVest™ wearable defi brillator
Strategic entry into critical care
(cid:129) Will ZOLL, and particularly the
Toward greater growth
Under the “For Tomorrow 2015” stra-
tegic management initiative ending in
fi scal 2015, our main business strate-
gies are the expansion of world-leading
businesses and the creation of new
value for society in three fi elds of
focus, one of which is Health Care.
The initiative also provided for strategic
investment of ¥1 trillion over the
5-year period, including investment in
existing businesses, new businesses,
and M&A. The acquisition of ZOLL was
our fi rst large-scale investment.
This acquisition enabled us to reinforce
our earnings base in health care, an
area with clear prospects for growth
and less susceptible to fl uctuations in
the operating climate than the chemi-
cals or electronics businesses. When
our management was contemplating
M&A in health care, the search was
soon narrowed down to the fi eld of
acute critical care, and ZOLL was con-
sidered the best choice.
As this was the largest acquisition in
our history, the Board of Directors,
including the Outside Directors, thor-
oughly examined the acquisition from
every angle.
LifeVest™ product line, continue to
grow?
(cid:129) What synergies will there be with
our existing Health Care businesses?
(cid:129) Is the acquisition price fair?
(cid:129) Can we retain ZOLL’s talent?
(cid:129) Is there compatibility with our cor-
porate culture and our people?
Such deliberations led to the conclu-
sion that there was a need to expand
in new areas to enhance the compa-
ny’s ability to withstand increasingly
dramatic changes in the operating cli-
mate, and not just rely on the growth
of existing businesses alone. With the
growth of LifeVest™ foreseeable for at
least another four to fi ve years, and
prospects for further expansion as
other products enter a growth phase,
it was decided to proceed with the
acquisition.
ZOLL’s mission of saving people’s lives
is also a close fi t with our Group
Mission of contributing to life and liv-
ing for people around the world, and
nearly all of the senior leadership of
ZOLL have stayed with us and continue
to drive the global growth of
LifeVest™ and the other products.
We are also impressed with ZOLL’s
strong track record of clinical develop-
ment not only in the US but also in
countries around the world, and its
excellent capability in regulatory affairs
to obtain both product approval and
insurance reimbursement in the US
and other countries. We can quickly
establish a global platform for the
Health Care sector that utilizes ZOLL’s
know-how to obtain synergy with our
own established pharmaceutical and
medical device business, enabling even
further growth.
At various turning points throughout
our history, we expanded operations
and built foundations for further
growth by venturing into new fi elds of
business or licensing technology from
overseas. The Asahi Kasei heritage is to
repeatedly create new value through
sincerity, challenge, and creativity.
Diversifi cation has enabled us to
achieve record-high results, and as we
continue to grow we will maintain
fl exibility in our business portfolio, cre-
ating new value for tomorrow.
Outside Director’s Perspective
Staying on the offensive
With the acquisition of ZOLL, Asahi Kasei contributes even more to life and living for people
all around the world. Discussions at Board of Directors meetings initially focused on whether
the acquisition price was fair, but considering the rising needs for acute critical care devices in
the US and Europe, and considering that the CEO Mr. Packer and other key management per-
sonnel agreed to continue to manage the company, we concluded that the acquisition price
was fair. ZOLL has grown beyond our expectations. In fi scal 2014, three years after the acqui-
sition, consolidated operating income after amortization of goodwill and other intangible
assets turned positive. In a time of dramatic change, sitting on the fence is the riskiest thing
to do. I think it will continue to be necessary to aggressively seek new challenges.
Norio Ichino
Outside Director
Asahi Kasei Report 2015
5
Feature The Asahi Kasei Heritage of Diversifi cation
2
Continuously
evolving tradition
In June 2014 we began commercial operation of a new
production facility for Bemberg™ cupro fi ber in Nobeoka,
Miyazaki, Japan. The key factor behind the decision to build this
facility—an investment of some ¥3 billion in Japan’s fi rst new
fi ber production facility in 27 years—was strong demand growth
for use in Indian saris and other traditional garments. This would
not have been possible without the untiring effort of many
employees, including engineers who worked on technology and
applications development, and marketing personnel who broke
free from the conventions of simply selling yarn to create new
demand by working in close concert with the customers.
The birth and evolution of Bemberg™
Beauty and functionality in saris and innerwear
Tradition and innovation
Bemberg™ was always used mainly in
applications that made the most of its
superior comfort, such Japanese kimo-
nos, undergarments, and linings. With
the spread of low-cost synthetics,
however, demand for Bemberg™ lin-
ing fabric began declining in the
1990s. Indian saris and functional
innerwear were identifi ed as potential
fi elds of growing demand. The fi eld of
Indian saris was seen as a geographic
extension for material similar to that
sold for traditional garments in Japan,
while the fi eld of functional innerwear
was seen as one requiring innovative
application development in line with
evolving market needs. Nevertheless,
the requirements for moving into these
two fi elds were similar. In both cases
there was a need to move beyond the
conventional business model of simply
selling yarn; products would have to
be made in close concert with weav-
ing, dyeing, and processing compa-
nies, with technical guidance and
support in order to successfully devel-
op new markets.
Developing the sari market
When we began researching the mar-
ket for traditional garments, there was
some feeling that the westernization
of fashion might mean the market
prospects would be poor. Further
research revealed, however, that
although western casual clothing had
become popular among the youth, a
high proportion of Indian women rou-
tinely wear saris after marrying. In
addition, in the middle class and
above, it is not uncommon for people
to own twenty or thirty saris to wear
at weddings and other special occa-
sions. Such information, which would
not have been ascertained under the
conventional yarn-selling model,
enabled us to branch out into the sari
market with confi dence. In 2015,
India’s economic growth is adding fur-
ther impetus to the market for
Bemberg™ used in saris.
6
Asahi Kasei Report 2015
Bemberg™ lining materials
The key to success
Long gone are the days when one
could succeed by simply selling yarn.
We believe it is essential to be proac-
tively involved in the processing and
fi nishing processes to fully understand
customers’ needs; our job is to provide
solutions to them through our prod-
ucts. Bemberg™ is our oldest business,
so its evolution is especially symbolic
for us. We are also enjoying success in
the fi eld of functional innerwear that
emphasizes comfort, feeling cool in
the summer and warm in the winter.
Asahi Kasei has been an industry lead-
er in developing differentiated prod-
ucts with functionality and originality;
not just Bemberg™ but throughout
our product lineup. Our record-high
operating income in fi scal 2014 bears
out this strategy. We will continue on
our path of evolution, advancing the
creation of new value for society.
A sari made with Bemberg™
Outside Director’s Perspective
Building a presence by innovating together
with customers
For a fi ber manufacturer to build a global presence, It is necessary to be able to develop
products and technologies that competitors cannot match. I think one important way is to
innovate together with customers. That means cooperating with one another in a joint
effort to create new value. It is also important to have a technology platform that enables
the creation of high value-added products, to avoid being trapped in price competition
with commodity products. Both of these require close communication with customers. In
order to offer new materials and new functions, you fi rst need to have a clear understand-
ing of the customers’ strategies and market trends.
Kenyu Adachi
Outside Director
Asahi Kasei Report 2015
7
Feature The Asahi Kasei Heritage of Diversifi cation
new value3
Creating
The fi rst Hebel Haus™
(Kamata model home park)
In fi scal 2014 our homes business recorded sales of ¥551.8 billion, some 30%
of the total for the Asahi Kasei Group, and operating income of ¥59.2 billion,
some 40% of the total. From its start in unit homes only, the business has now
expanded to include multi-dwelling homes, remodeling, rental management,
and real estate development. The business began as an endeavor into
uncharted territory, without know-how or experience, using construction
materials that we developed as one of our three new businesses in the 1960s.
Hebel Haus™ to change lifestyles
Proposing a new kind of urban home
Lifestyle proposals
When we began our homes business in
1972, there were already many compa-
nies selling manufactured housing in
Japan. As a latecomer to the market,
we had to carefully study Japan’s hous-
ing situation and the characteristics of
the housing industry. In 1973 we began
developing the “two-generation home”
as the fi rst step along our path of differ-
entiation from the competition. The
two-generation home incorporated
many design features to accommodate
the different rhythms of life among fam-
ily members. For the fi rst time, we were
not simply selling homes based on their
physical characteristics, but offering
intangible value through lifestyle propos-
als that enhance customer satisfaction.
In 1982 we began selling the Hebel
Haus™ Cubic™ featuring a clean-cut
eave-free design to enable maximum
utilization of small urban plots of land,
and in 1986 we branched into 3-story
homes with the Hebel Haus™ Frex™ 3.
Business extended into the fi eld of multi-
dwelling homes with the 1983 launch of
the Hebel Maison™ series of high-quali-
ty urban apartment buildings. It was
during this period that we solidifi ed our
strategy of focusing on products specifi -
cally tailored to urban markets.
Hebel Haus™
Frex the Residence™
8
Asahi Kasei Report 2015
Hebel Maison™ Boriki™ for residents raising small children
Changing customer expectations
of 60 years of comfortable residency
with the home’s basic functions intact.
Meeting society’s challenges
While focusing on urban homes, we
promoted the Long Life Home product
concept of enabling long-term residence
with lasting comfort. While homes in the
West typically last for 70–80 years,
sometimes even 100 years or more, the
average service life of homes in Japan at
that time was only 27 years with wear-
and-tear exacerbated by wide fl uctua-
tions in temperature and humidity. By
combining excellent physical durability
for urban settings, including fi re resis-
tance and earthquake resistance, with a
systematic program of inspection and
maintenance, we achieved a service life
In the years following, we expanded
product development to include a wide
variety of additional functions. These
include unit homes with features to facil-
itate living with dogs and cats, apart-
ment buildings focused on residents
raising small children, apartment build-
ings with enhanced security features for
single women living alone, and apart-
ment buildings for seniors. We continue
to advance the development of products
that meet various customer needs for
enhanced security and comfort.
The housing business in advanced coun-
tries faces new challenges with the
declining and aging population together
with increasing concentration on urban
areas. We believe this presents new
opportunities to develop products that
embody innovative lifestyle proposals
that meet these challenges. While fur-
ther heightening the physical and struc-
tural performance of our homes, we will
focus on security and comfort features
that correspond to emerging changes,
and contribute to solutions to society’s
challenges.
Outside Director’s Perspective
Homes that provide new value to society
I think today’s society makes it hard for young people to raise children. Especially in urban
areas, the trend is toward nuclear families. Community connections have become more
sparse, and personal relationships looser than in the past. It is said that social isolation is one
factor in child abuse. Given this background, I fi nd it fascinating that Asahi Kasei has devel-
oped an apartment building that engenders interaction among residents raising young chil-
dren. By providing a venue for people sharing the same lifestyle and common challenges of
parenthood to live adjacently, this apartment building naturally fosters a feeling of connect-
edness and shared responsibility. This building is more than just a physical structure, it is truly
a solution that adds value to society.
Masumi Shiraishi
Outside Director
Asahi Kasei Report 2015
9
History of Providing Solutions for the Challenges of Society
The Asahi Kasei Group has consistently grown through the proactive transformation of its business
portfolio to meet the evolving needs of every age. We have constantly provided products and services that
form solutions to various environmental and social challenges. As society undergoes further changes, we
will continue to contribute to life and living for people around the world by Creating for Tomorrow.
1922–2015
From 1970
From 1950
In 1957 we began production of polystyrene, and
in 1959 entered the synthetic fi ber business.
These were followed by the three new businesses
of nylon fi ber, synthetic rubber, and construction
materials. In 1968 we began construction of a
petrochemical complex in the Mizushima area of
Kurashiki, Okayama, Japan, paving the way for
our full-scale development of petrochemical
operations. Our products during this period
supported improvements in the quality of life
during Japan’s high-growth period.
From 1922
Shitagau Noguchi
Shitagau Noguchi, the founder of Asahi Kasei,
succeeded in Japan’s fi rst industrial production of
ammonia by chemical synthesis in Nobeoka, Miyazaki,
in 1923 using technology licensed from Italy. The
ammonia was used in the production of Bemberg™
regenerated cellulose fi ber, part of a diverse range of
business operations that included chemical fertilizer
and viscose rayon. As industry modernized and the
economy of Japan achieved self-sustainable growth,
our operations made important contributions to the
stability of people’s lives.
In 1972 we entered the homes business with
the launch of the Hebel Haus™, and in 1974
we entered the medical device business with
hollow-fi ber membrane artifi cial kidneys.
Our entry into the electronics business
began with our launch of Hall elements
(magnetic sensors) in 1980 and start of LSI
manufacture in 1987. Our products
continued to help make life more
comfortable and convenient as society’s
needs diversifi ed.
The fi rst Hebel Haus™ (Kamata model home park)
Saran Wrap™ launched in Japan in 1960
Part of the ammonia plant completed in 1923
(Nobeoka, Miyazaki, Japan)
Hollow-fi ber membrane
artifi cial kidneys
LSIs
The Bemberg™ plant which started operation in 1931
(Nobeoka, Miyazaki, Japan)
Portfolio transformation
Fiscal 1940
Net sales
¥56 million
Naphtha cracker (Kurashiki, Okayama, Japan)
Fiscal 1960
Net sales
¥44.9 billion
Fibers
Chemicals
Foods
Fiscal 1980
Net sales
¥800.1 billion
Fibers
Chemicals
Homes
Construction Materials
Foods and Fermentation Chemistry
Establishing the basis for
modern life
Suffi ciency of daily necessities, improvement in quality of homes,
development of public infrastructure
(cid:129) Development of chemical industry and
(cid:129) Post-war recovery and modernization of industry
(cid:129) Stable economic growth
modern agriculture
(cid:129) Interbellum economic downturn and
World War II
10 Asahi Kasei Report 2015
(cid:129) Period of high economic growth
(cid:129) Economic bubble
From 2010
In 2011 we launched our “For Tomorrow
2015” management initiative focused on
the two business strategies of expanding
world-leading businesses and creating
new value for society. In 2012 we
entered the acute critical care business
by acquiring ZOLL Medical Corporation.
We continue to proactively expand and
develop operations.
From 1990
In 1992 we acquired Toyo Jozo Co., Ltd. to
reinforce pharmaceutical operations. From
1999, we executed a program to heighten
selectivity and focus in operations,
divesting our food business and closing
some fi ber businesses, achieving selective
diversifi cation. From 2000 onward, we also
established many overseas operations,
mainly in Asia, laying the foundation for
global management.
We are Creating for Tomorrow,
providing new value to society
by enabling living in health and
comfort and harmony with the
natural environment
Propane-process acrylonitrile (AN) plant in Thailand
Pharmaceutical products after the Toyo Jozo merger
The LifeVest™ wearable defi brillator
Asahi Kasei Electronics Materials (Suzhou) Co., Ltd., a
major manufacturing base for photosensitive dry fi lm
Fiscal 2014
Net sales
¥1,986.4 billion
Fiscal 2000
Net sales
¥1,269.4 billion
Fibers
Chemicals
Homes
Construction Materials
Fibers
Chemicals
Homes
Construction Materials
Electronics
Health Care
Others
Electronics
Health Care
Critical Care
Others
Increased comfort and convenience
Heightened environmental consciousness
(cid:129) Two decades of meager growth after collapse of bubble
(cid:129) Changing values after the Great East Japan Earthquake
(cid:129) Effect of global economic crisis
(cid:129) Emergence from period of slow economic growth
Asahi Kasei Report 2015
11
Financial and Non-Financial Highlights
Asahi Kasei Corporation and consolidated subsidiaries
Net sales1, 2
(¥ billion)
2,000
1,897.8
1,986.4
1,555.9
1,573.2
1,666.6
1,500
1,000
500
0
Operating income1
(¥ billion)
143.3
157.9
122.9
104.3
92.0
200
150
100
50
0
(50)
’10
’11
’12
’13
’14
FY
’10
’11
’12
’13
’14
FY
Chemicals
Fibers
Homes
Construction Materials
Electronics
Health Care
Critical Care3
Others
Chemicals
Health Care
Fibers
Critical Care3
Homes
Construction Materials
Electronics
Others
Corporate expenses and eliminations, etc.
Note: Amortization of goodwill, etc. related to acquisition of ZOLL is excluded from
Health Care and included in “Corporate expenses and eliminations, etc.”
Net income, ROE
(¥ billion)
120
Total assets, ROA
(%)
24
(¥ billion)
2,500
100
80
60
40
20
0
101.3
105.7
60.3
9.3
55.8
8.1
53.7
7.1
11.7
10.6
20
16
12
8
4
0
2,000
1,500
1,000
500
0
1,425.9
1,410.6
4.3
3.9
1,800.2
3.3
1,915.1
2,014.5
5.5
5.4
(%)
10
8
6
4
2
0
’10
’11
’12
’13
’14
FY
’10
’11
’12
’13
Net income (left scale)
ROE (right scale)
Total assets (left scale)
ROA (right scale)
’14
FY
(end)
Net worth,4 net worth/total assets
Interest-bearing debt, D/E ratio
46.5
50.1
663.6
706.8
45.1
812.1
47.7
912.7
53.7
1,082.7
(¥ billion)
1,800
1,500
1,200
900
600
300
0
(%)
60
(¥ billion)
400
381.4
50
40
30
20
10
0
253.9
0.38
300
200
100
0
303.9
269.0
184.1
0.47
0.26
0.33
0.25
’10
’11
’12
’13
Net worth (left scale)
Net worth/total assets (right scale)
’14
FY
(end)
’10
’11
’12
’13
’14
Interest-bearing debt (left scale)
D/E ratio (right scale)
(%)
0.8
0.6
0.4
0.2
0
FY
(end)
Free cash fl ows
(¥ billion)
150
69.3
51.8
100
50
0
(50)
(100)
(150)
(200)
(152.5)
140.4
37.1
Net income per share
72.48
75.62
43.11
39.89
38.43
(¥)
80
60
40
20
0
’10
’11
’12
’13
’14
FY
’10
’11
’12
’13
’14
FY
1 Beginning with fi scal 2014, the former Chemicals segment and the former Fibers segment are combined as a new Chemicals & Fibers segment, the former Homes segment and the former
Construction Materials segment are combined as a new Homes & Construction Materials segment, and the former Health Care segment and the former Critical Care segment are combined
as a new Health Care segment. For consistency, fi scal 2014 results are shown by business category classifi cation which corresponds to the former segment classifi cation.
2 Beginning with fi scal 2011, the accounting policy for naphtha resale in the Chemicals segment was changed. This change is applied retroactively to net sales for fi scal 2010.
3 The Critical Care segment, in which results of ZOLL Medical Corporation are reported, was added in fi scal 2012. Critical Care segment results were included beginning on April 27, 2012.
12 Asahi Kasei Report 2015
Overseas sales and overseas sales percentage
Domestic and overseas employees
(¥ billion)
800
600
400
200
0
449.3
28.9
421.5
26.8
485.2
29.1
673.3
608.7
32.1
33.9
’10
’11
’12
’13
’14
(%)
80
60
40
20
0
FY
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
25,016
25,409
28,363
29,127
30,313
’10
’11
’12
’13
’14
FY
(end)
Overseas sales (left scale)
Overseas sales percentage (right scale)
Overseas employees
Domestic employees
Capital expenditure
(¥ billion)
120
113.8
R&D expenses1
(¥ billion)
80
85.1
66.0
92.4
89.1
100
80
60
40
20
0
62.3
66.3
60
40
20
0
71.1
71.1
75.5
’10
’11
’12
’13
’14
FY
’10
’11
’12
’13
’14
FY
Chemicals
Health Care
Fibers
Critical Care3
Homes
Construction Materials
Electronics
Others
Corporate expenses and eliminations
Environmental and safety investment
Greenhouse gas emissions from production processes
(¥ billion)
(million tons CO2 equivalent)
5.59
5.20
4.26
3.80
3.90
6
5
4
3
2
1
0
6
5
4
3
2
1
0
5.26
5.05
4.11
4.17
4.06
’10
’11
’12
’13
’14
FY
’10
’11
’12
’13
’14
FY
Safety investment
Environmental investment
Carbon dioxide
Nitrous oxide
Methane
HFCs
PFCs
Sulfur hexafluoride
Number of women as managers5
Employees using parental leave6
410
370
454
317
344
500
400
300
200
100
0
500
400
300
200
100
0
405
430
454
468
457
’10
’11
’12
’13
’14
FY
’10
’11
’12
’13
’14
FY
Women
Men
4 Net assets less minority interests.
5 Results as of June 30 each year for personnel employed by Asahi Kasei Corp., Asahi Kasei Chemicals Corp., Asahi Kasei Fibers Corp., Asahi Kasei Homes Corp., Asahi Kasei Construction
Materials Corp., Asahi Kasei Microdevices Corp., Asahi Kasei E-materials Corp., Asahi Kasei Pharma Corp., and Asahi Kasei Medical Co., Ltd.
6 Results for personnel employed by Asahi Kasei Corp., Asahi Kasei Chemicals Corp., Asahi Kasei Fibers Corp., Asahi Kasei Homes Corp., Asahi Kasei Construction Materials Corp., Asahi Kasei
Microdevices Corp., Asahi Kasei E-materials Corp., Asahi Kasei Pharma Corp., and Asahi Kasei Medical Co., Ltd.
Asahi Kasei Report 2015
13
Asahi Kasei Group Management and CSR
We believe that corporate social responsibility (CSR) is achieved by addressing a wide range of social challenges
through the advancement of our diversifi ed businesses based on our Group Mission of contributing to life and living
for people around the world. Under our “For Tomorrow 2015” management initiative, we are now expanding
operations that provide new value to society by enabling living in health and comfort and harmony with the natural
environment in accordance with our Group Vision.
Living in health
and comfort
Creating for Tomorrow
The
community
Community
outreach
The
employee
Employee
fulfillment
The
environment
Environmental
protection
The
customer
Customer
satisfaction
Sustainable Increase
in Corporate Value
The
supplier
Fair business
dealings
The local
economy
Local economic
participation
The
shareholder
Shareholder
returns
Business
operations
Expansion of
world-leading
businesses
“For Tomorrow 2015”
strategic management initiative
CSR in Action
Creation of
new value
for society
CSR Fundamentals
Compliance, Responsible Care, Corporate Citizenship,
Respect for Employee Individuality
Group Mission
Contributing to life and living for people around the world
Harmony with
the natural
environment
CSR Fundamentals
Based on a clear understanding of the effects of our operations
on the global environment and local communities, our efforts
and actions related to CSR are focused on four CSR
Fundamentals: Compliance, Responsible Care, Corporate
Citizenship, and Respect for Employee Individuality.
CSR in Action
We believe that CSR is achieved by raising corporate value for our
various stakeholders through our business operations in accordance
with our Group Mission of contributing to life and living for people
around the world.
Structure and organization for CSR
In order to promote separate important activities regarding CSR
more effi ciently and decisively, we have fi ve committees under the
direct supervision of the holding company President as follows:
President of
holding company
Corporate Ethics Committee
(cid:115) (cid:48)(cid:82)(cid:69)(cid:80)(cid:65)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:34)(cid:65)(cid:83)(cid:73)(cid:67) (cid:48)(cid:79)(cid:76)(cid:73)(cid:67)(cid:89) (cid:65)(cid:78)(cid:68) (cid:35)(cid:79)(cid:68)(cid:69) (cid:79)(cid:70) (cid:35)(cid:79)(cid:78)(cid:68)(cid:85)(cid:67)(cid:84) (cid:70)(cid:79)(cid:82) (cid:67)(cid:79)(cid:82)(cid:80)(cid:79)(cid:82)(cid:65)(cid:84)(cid:69) (cid:69)(cid:84)(cid:72)(cid:73)(cid:67)(cid:83)
(cid:115) (cid:33)(cid:68)(cid:86)(cid:65)(cid:78)(cid:67)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:69)(cid:84)(cid:72)(cid:73)(cid:67)(cid:83) (cid:69)(cid:68)(cid:85)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:65)(cid:78)(cid:68) (cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69) (cid:72)(cid:79)(cid:84)(cid:76)(cid:73)(cid:78)(cid:69)
Responsible Care Committee
(cid:115) (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:79)(cid:70) (cid:80)(cid:76)(cid:65)(cid:78)(cid:83) (cid:65)(cid:78)(cid:68) (cid:82)(cid:69)(cid:83)(cid:85)(cid:76)(cid:84)(cid:83) (cid:73)(cid:78) (cid:82)(cid:69)(cid:71)(cid:65)(cid:82)(cid:68) (cid:84)(cid:79) (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:80)(cid:82)(cid:79)(cid:84)(cid:69)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)
(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84) (cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:12) (cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76) (cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:12) (cid:69)(cid:84)(cid:67)(cid:14)
Global Environment Committee
(cid:115) (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:65)(cid:78)(cid:68) (cid:65)(cid:68)(cid:79)(cid:80)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:71)(cid:82)(cid:79)(cid:85)(cid:80)(cid:13)(cid:87)(cid:73)(cid:68)(cid:69) (cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83) (cid:84)(cid:79) (cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:69)(cid:82) (cid:71)(cid:76)(cid:79)(cid:66)(cid:65)(cid:76) (cid:87)(cid:65)(cid:82)(cid:77)(cid:73)(cid:78)(cid:71)
Risk Management Committee
(cid:115) (cid:38)(cid:79)(cid:82)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:80)(cid:76)(cid:65)(cid:78)(cid:83) (cid:65)(cid:78)(cid:68) (cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83) (cid:84)(cid:79) (cid:82)(cid:69)(cid:83)(cid:80)(cid:79)(cid:78)(cid:68) (cid:84)(cid:79) (cid:65)(cid:67)(cid:84)(cid:85)(cid:65)(cid:76) (cid:79)(cid:82) (cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76) (cid:67)(cid:82)(cid:73)(cid:83)(cid:69)(cid:83)
Community Fellowship Committee
(cid:115) (cid:38)(cid:79)(cid:82)(cid:77)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:80)(cid:79)(cid:76)(cid:73)(cid:67)(cid:89)(cid:12) (cid:80)(cid:76)(cid:65)(cid:78)(cid:83)(cid:12) (cid:65)(cid:78)(cid:68) (cid:67)(cid:79)(cid:85)(cid:82)(cid:83)(cid:69)(cid:83) (cid:79)(cid:70) (cid:65)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:73)(cid:78) (cid:82)(cid:69)(cid:71)(cid:65)(cid:82)(cid:68) (cid:84)(cid:79) (cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:89)
(cid:70)(cid:69)(cid:76)(cid:76)(cid:79)(cid:87)(cid:83)(cid:72)(cid:73)(cid:80) (cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)
(as of July 1, 2015)
14 Asahi Kasei Report 2015
Interview with the President
In fi scal 2014 we achieved record-breaking consolidated
operating results for the second consecutive year. We’re now on
track to achieve our medium-term targets in fi scal 2015.
Our business activities and investments for growth which we made over the
past few years blossomed in fi scal 2014, resulting in our best operating perfor-
mance ever. In fi scal 2015, with “For Tomorrow 2015” in its fi nal year, we are
focused on achieving our targets of ¥2 trillion in net sales and ¥160 billion in
operating income as we formulate our next medium-term management plan.
Toshio Asano
President
Q1 Could you describe your operating results in fi scal 2014 and outlook for
fi scal 2015?
Q2 How is progress under your “For Tomorrow 2015” medium-term
management initiative?
Q3 Please tell us about the Polypore acquisition.
Q4 What will the next medium-term management initiative look like?
Asahi Kasei Report 2015
15
Q1 Could you describe your operating results in fi scal 2014 and outlook
for fi scal 2015?
A1
We achieved our highest-
ever consolidated
operating results in fi scal
2014 for the second year
in a row, and are on track
to achieve new record
fi gures in fi scal 2015.
Although the US economy continued to recover and there were signs of
improvement in Europe during fi scal 2014, slower growth was seen in China,
and the global economy was still affected by some uncertainties. As for the
Japanese economy, in the latter part of the fi scal year Japanese economy con-
tinued on a path of gradual recovery with the weaker yen and lower oil prices
leading to improved corporate performance.
Due to the effect of the consumption tax increase, construction materials
operations and pharmaceuticals operations had lower volumes, but terms of
trade in chemicals operations improved as an effect of the continuing weaker
yen and lower oil prices. Performance in fi bers operations was fi rm with oper-
ating income exceeding ¥10 billion for the fi rst time. Performance in critical
care operations was strong with net sales exceeding ¥100 billion and consoli-
dated operating income turning positive even after amortization of goodwill
and other intangible assets. In sum, consolidated fi nancial results for fi scal
2014 increased from a year ago as we achieved record fi gures for the second
consecutive year in net sales, operating income, and net income.
Speaking of the outlook for fi scal 2015, consolidated operating results are
expected to increase from fi scal 2014. Though selling, general and administra-
tive expenses will increase with higher construction costs and material costs in
homes operations, and increased R&D expenses in pharmaceuticals operations,
we anticipate strong sales in electronic devices operations and critical care
operations. We expect to achieve record fi gures again in net sales, operating
income, and net income in fi scal 2015.
16 Asahi Kasei Report 2015
Q2
How is progress under your “For Tomorrow 2015” medium-term
management initiative?
A2
Strategic investments for
growth are contributing
to increased earnings. We
are determined to achieve
our targets under the
current medium-term
initiative.
We achieved record-high consolidated operating results in fi scal 2014 with net
sales of ¥1,986.4 billion and operating income of ¥157.9 billion. Under our
“For Tomorrow 2015” medium-term management initiative, we set fi nal
numerical targets as ¥2 trillion in net sales and ¥160 billion in operating
income. We are well on the path to achieve these targets as we are forecast-
ing net sales of ¥2 trillion and operating income of ¥164 billion in fi scal 2015.
As laid down in the current initiative, we proactively carried out several
capital investments in fi scal 2014. In our existing businesses, we increased pro-
duction capacity for spunbond nonwovens for hygienic applications and also
for Roica™ spandex in Thailand. We are now constructing a plant for plastic
compounds in the American South and a new manufacturing facility for the
anticoagulant Recomodulin™ in Fuji, Shizuoka, Japan. Furthermore, we have
decided to acquire the US-based Polypore International, Inc. to expand our
battery separator business.
In creating new value for society, last November we started commercial
production of high-output UVC LEDs in Fuji, and launched the sale of Optan™
UVC LEDs for analytical and instrumentation applications such as drinking
water quality inspection and control. It is anticipated that UVC LEDs will play a
growing role in a variety of disinfection applications for water, food, and air.
Meanwhile, in chemicals operations we have advanced plans to unify the
naphtha cracker facilities in Mizushima (Okayama, Japan) with Mitsubishi
Chemical, and carried out structural reforms to strengthen our petrochemical
operations in Japan. We continue to enhance the earnings ability of our chem-
icals operations by realigning our business portfolio, shifting the focus from
commodity products to high-performance and high-value added products.
In Fiscal 2015 we will not only reap the fruit of the investments for growth
made thus far, while continuing to advance our streamlining project for
improved profi t structure, but also complete our initiatives under “For
Tomorrow 2015” and lay the groundwork for the next medium-term strategy.
Net sales under “For Tomorrow 2015”
(¥ billion)
2,000
1,897.8
1,986.4
2,000.0
2,000.0
1,573.2
1,666.6
1,500
1,000
500
0
’11
’12
’13
’14
Operating income under “For Tomorrow 2015”
(¥ billion)
200
’15
latest forecast
’15
target
FY
143.3
157.9
164.0
160.0
104.3
920
150
100
50
0
’11
’12
’13
’14
’15
latest forecast
’15
target
FY
Asahi Kasei Report 2015
17
Q3 Please tell us about the Polypore acquisition.
By combining both com-
panies’ strengths, we will
achieve a new growth
strategy in battery sepa-
rators.
A3
In February 2015 we entered into a merger agreement to acquire battery sepa-
rator manufacturer Polypore International, Inc. Polypore has sophisticated
technology for polymer membranes, and an excellent global supply system for
its lithium-ion battery (LIB) separator and lead-acid battery separator business-
es, backed by outstanding R&D. Polypore’s two major product brands are
Celgard™ LIB separator with high future growth potential, and Daramic™
lead-acid battery separator that is mainly for automotive and industrial applica-
tions. Each business has an innovative portfolio of original products.
Having groomed our Hipore™ LIB separator business as a mainstay in elec-
tronic materials, we have outstanding opportunities to gain synergy among
these businesses. By combining Hipore™, Celgard™, and Daramic™ into a
single battery separator business, we can heighten our technological advan-
tage and achieve greater growth over medium and long term.
We will advance the development of new products based on the combined
technology of our companies, and develop a new growth strategy for the bat-
tery separator business to meet growing demand worldwide.
Polypore Overview
Battery Separator Business*
Net sales: $450 million Operating income: $87 million
(segment income before
corporate expenses)
Lithium-ion battery separator
Lead-acid battery separator
Net sales: $127 million
Net sales: $323 million
Applications
(cid:115) Mobile electronics
(cid:115) Power tools
(cid:115) Eco-friendly vehicles
(cid:115) Energy storage systems
Applications
(cid:115) Automobiles, trucks, and buses
(cid:115) Forklifts
(cid:115) Backup power
* Polypore’s Energy Storage segment results in 2014.
18 Asahi Kasei Report 2015
Q4 What will the next medium-term management initiative look like?
We will leverage our
strength in diversity as
we focus on the pursuit
of growth and profi tabili-
ty, and the creation of
new businesses.
A4
In formulating the next medium-term management initiative, while we are
considering where we want to be a decade hence, we are planning for the
3-year period from fi scal 2016 through fi scal 2018 to gain greater visibility. We
will leverage our strength in diversity, focusing on the pursuit of growth and
profi tability and the creation of new businesses.
Concurrently with the start of the new medium-term management plan in
April 2016, we will reorganize our business sectors into the Material sector,
the Homes sector, and the Health Care sector. This change will enhance our
competitiveness through the advancement and integration of “knowledge and
technology” and “human resources” within the Asahi Kasei Group, and fur-
ther accelerate growth by facilitating the creation of new businesses, height-
ening specialization, and enhancing effi ciency. At the same time we will merge
the current core operating companies of Asahi Kasei Chemicals, Asahi Kasei
Fibers, and Asahi Kasei E-materials with the holding company Asahi Kasei
Corp., which will become an operating holding company.
Under the new plan, each business sector will have a basic strategic assign-
ment. The assignment for the Material sector is increased profi tability, aiming
for an overall operating margin of over 8%. In the Homes sector, we want the
business to continue its stable growth while maintaining an operating margin
of over 10%. In the Health Care sector, the assignment is to aim for high
growth through expansion of business scale. Also, the common assignment
that applies across the whole Asahi Kasei Group is to deepen synergy among
the sectors and enhance our ability to create new businesses.
We will continue to emphasize the importance of compliance and safety
as fundamental to everything we do, and proceed towards achieving growth
through innovation, human resources development, and increased corporate
value.
Transformation of business sector and corporate confi guration (from April 2016)
Asahi Kasei Corp. — Operating holding company
(4 companies combined)
Operating function
Holding company function
Current
Asahi Kasei Corp.
Asahi Kasei
Chemicals
Asahi Kasei
Fibers
Asahi Kasei
E-materials
Asahi Kasei
Microdevices
Asahi Kasei
Homes
Asahi Kasei
Construction Materials
Asahi Kasei
Pharma
Asahi Kasei
Medical
ZOLL Medical
Material
Homes
Health Care
Asahi Kasei Report 2015
19
CFO Interview
We are striving for greater
corporate value with proactive
investments for growth and a
robust capital policy
Hideki Kobori
Representative Director
Primary Executive Offi cer
Q1
A1
What is your basic fi nancial strategy under “For Tomorrow 2015”?
We are focused on consistent generation of cash fl ow, with an appropriate balance between
investment for growth and shareholder returns.
Under our “For Tomorrow 2015” medium-term management ini-
tiative, we aim to consistently expand cash fl ow in two basic
ways. One is by enhancing profi tability through greater cost
competitiveness, enhanced product performance, and business
structure improvement, and the other is by improving capital effi -
ciency through intragroup fi nancing and appropriate control of
inventory levels. To obtain stable and low-cost fi nancing, we
employ various fund-raising methods such as borrowing from
banks, issuing bonds, and issuing commercial paper fl exibly and
dynamically in accordance with our fi nancial circumstances.
In addition, cash fl ow generated through our medium-term
initiative provides further resources to invest for growth as well
as to return to shareholders as dividends. We are careful to main-
tain an appropriate balance between the two.
Our investment for growth is mainly directed toward the
expansion of production facilities, R&D, and business alliances
including M&A. We strive to continuously increase dividends
through continuous earnings growth, with a payout of 30% as
our basic standard.
Investment for growth and shareholder returns
Consistently generating cash flow
Investment for growth
Shareholder returns
Investment for expansion
R&D
M&A and alliances
Aiming at continuous
dividends increase, with
basic standard for
payout ratio of 30%
Q2
A2
What is the outlook for your “For Tomorrow 2015” fi nancial targets?
We are largely on track to achieve our main fi nancial targets in fi scal 2015.
Our targets for fi scal 2015 as the fi nal year of our current
medium-term management initiative are ¥2 trillion in net sales,
¥160 billion in operating income, return on equity (ROE) of at least
10%, and return on invested capital (ROIC) of at least 7%.
We are forecasting the achievement of our targets for net
sales and operating income, and as shown in the following table
we expect to come very close to our targets for ROE and ROIC by
the end of this fi scal year. With regard to ROE, a metric that is
recently in focus, we recorded 11.7% in fi scal 2013 and 10.6% in
fi scal 2014, achieving over 10% two years in a row. The result in
fi scal 2013 is attributable to a temporary increase in net income as
we recorded signifi cant extraordinary income from compensation
for damage in pharmaceutical-related litigation. On the other
hand, the ROE of 10.6% in fi scal 2014 was achieved without any
special factors such as this, so we believe this indicates that our
basic strategies under “For Tomorrow 2015” have been fruitful.
20 Asahi Kasei Report 2015
We originally forecasted that our debt/equity ratio (D/E ratio)
would be 0.5 assuming the achievement of our net sales and
operating income targets, and execution of ¥1 trillion in strategic
investment as planned. Although we plan to achieve those targets
and, with the acquisition of Polypore, reach ¥1 trillion in strategic
investment, we currently forecast that the D/E ratio will be 0.4,
lower than originally thought. We will continue to hold a sound
fi nancial position as an important management consideration.
Primary fi nancial metrics
Dividends per share
Payout ratio
Net income per share (EPS)
Net income per total assets (ROA)
Net income per shareholders’
equity (ROE)*
Net income per shareholders’ equity
and interest-bearing debt (ROIC)*
D/E ratio*
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015 (planned)
¥14
35.1%
¥39.89
3.9%
8.1%
6.9%
0.26
¥14
36.4%
¥38.43
3.3%
7.1%
5.7%
0.47
¥17
23.5%
¥72.48
5.5%
11.7%
7.7%
0.33
¥19
25.1%
¥75.62
5.4%
10.6%
7.5%
0.25
¥20
26.4%
—
—
9.5%
6.5%
0.4
* Approximate fi gures for FY 2015. (ROIC and D/E ratio including expected impact of interest-bearing debt related to acquisition of Polypore)
Q3 What is your progress in investment for growth under “For Tomorrow 2015”? What will
your basic approach to investment for growth and shareholder returns be under the
next management plan?
A3
We expect to complete our current investment plan on schedule, and we intend to further
advance investment for growth and shareholder returns in our new management plan.
Some of the approximately ¥630 billion of investment for growth
made by fi scal 2014, both in existing businesses and non-linear
growth, are already steadily contributing to profi ts. We plan to fi nish
fi scal 2015 with some ¥110 billion of investment for growth in exist-
ing businesses in addition to the ¥260 billion to acquire Polypore.
We are planning on a 3-year term for our next medium-term
management initiative. While we have yet to determine concrete
Investment for growth under “For Tomorrow 2015”
numerical targets, we intend to maintain an appropriate balance
between further investment for growth and shareholder returns. As
part of our discussion on the optimum capital structure, we also hope
to fi nd different ways of returning profi ts to shareholders in addition
to dividends. We will continue to strive for greater corporate value
through proactive investments that will produce reliable returns.
FY 2011–FY 2014
(cid:115) Acquisition of Crystal IS
(cid:115) Acquisition of Crystal IS
(cid:115) (cid:33)(cid:67)(cid:81)(cid:85)(cid:73)(cid:83)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:58)(cid:47)(cid:44)(cid:44)
(cid:115) (cid:33)(cid:67)(cid:81)(cid:85)(cid:73)(cid:83)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:58)(cid:47)(cid:44)(cid:44)
(cid:115) (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:79)(cid:70) (cid:73)(cid:78)(cid:73)(cid:84)(cid:73)(cid:65)(cid:76)
(cid:115) (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:79)(cid:70) (cid:73)(cid:78)(cid:73)(cid:84)(cid:73)(cid:65)(cid:76)
(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84) (cid:70)(cid:79)(cid:82) (cid:53)(cid:54)(cid:35) (cid:44)(cid:37)(cid:36)(cid:83)
(cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84) (cid:70)(cid:79)(cid:82) (cid:53)(cid:54)(cid:35) (cid:44)(cid:37)(cid:36)(cid:83)
Total approx. ¥200 billion
FY 2015 plan
Acquisition of Polypore
Approx. ¥260 billion
Non-linear growth
¥460 billion
Existing
businesses
¥540 billion
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
plan
FY 2015 budget
Approx. ¥110 billion
FY 2011
(cid:115) (cid:35)(cid:65)(cid:80)(cid:65)(cid:67)(cid:73)(cid:84)(cid:89) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69) (cid:70)(cid:79)(cid:82) (cid:51)(cid:13)(cid:51)(cid:34)(cid:50) (cid:73)(cid:78) (cid:51)(cid:73)(cid:78)(cid:71)(cid:65)(cid:80)(cid:79)(cid:82)(cid:69)
(cid:115) (cid:35)(cid:65)(cid:80)(cid:65)(cid:67)(cid:73)(cid:84)(cid:89) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69) (cid:70)(cid:79)(cid:82) (cid:65)(cid:67)(cid:69)(cid:84)(cid:79)(cid:78)(cid:73)(cid:84)(cid:82)(cid:73)(cid:76)(cid:69) (cid:73)(cid:78) (cid:43)(cid:79)(cid:82)(cid:69)(cid:65)
(cid:115) (cid:35)(cid:65)(cid:80)(cid:65)(cid:67)(cid:73)(cid:84)(cid:89) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69) (cid:70)(cid:79)(cid:82) (cid:73)(cid:78)(cid:83)(cid:85)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78) (cid:80)(cid:65)(cid:78)(cid:69)(cid:76)(cid:83)
(cid:115) (cid:50)(cid:69)(cid:83)(cid:69)(cid:65)(cid:82)(cid:67)(cid:72) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:88) (cid:70)(cid:79)(cid:82) (cid:80)(cid:72)(cid:65)(cid:82)(cid:77)(cid:65)(cid:67)(cid:69)(cid:85)(cid:84)(cid:73)(cid:67)(cid:65)(cid:76)(cid:83)
FY 2012
(cid:115) (cid:33)(cid:67)(cid:81)(cid:85)(cid:73)(cid:83)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:83)(cid:65)(cid:76)(cid:69)(cid:83) (cid:82)(cid:73)(cid:71)(cid:72)(cid:84)(cid:83) (cid:70)(cid:79)(cid:82) (cid:79)(cid:86)(cid:69)(cid:82)(cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)
(cid:66)(cid:76)(cid:65)(cid:68)(cid:68)(cid:69)(cid:82) (cid:84)(cid:72)(cid:69)(cid:82)(cid:65)(cid:80)(cid:69)(cid:85)(cid:84)(cid:73)(cid:67) (cid:68)(cid:82)(cid:85)(cid:71)
(cid:115) (cid:35)(cid:65)(cid:80)(cid:65)(cid:67)(cid:73)(cid:84)(cid:89) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69) (cid:70)(cid:79)(cid:82) (cid:34)(cid:69)(cid:77)(cid:66)(cid:69)(cid:82)(cid:71)
(cid:115) (cid:47)(cid:86)(cid:69)(cid:82)(cid:83)(cid:69)(cid:65)(cid:83) (cid:69)(cid:88)(cid:80)(cid:65)(cid:78)(cid:83)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:40)(cid:73)(cid:80)(cid:79)(cid:82)(cid:69)
FY 2013
(cid:115) (cid:33)(cid:67)(cid:81)(cid:85)(cid:73)(cid:83)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:70)(cid:85)(cid:76)(cid:76) (cid:79)(cid:87)(cid:78)(cid:69)(cid:82)(cid:83)(cid:72)(cid:73)(cid:80) (cid:79)(cid:70) (cid:52)(cid:69)(cid:78)(cid:65)(cid:67) (cid:42)(cid:54) (cid:73)(cid:78) (cid:35)(cid:72)(cid:73)(cid:78)(cid:65)
(cid:115) (cid:35)(cid:65)(cid:80)(cid:65)(cid:67)(cid:73)(cid:84)(cid:89) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69) (cid:70)(cid:79)(cid:82) (cid:80)(cid:79)(cid:76)(cid:89)(cid:67)(cid:65)(cid:82)(cid:66)(cid:79)(cid:78)(cid:65)(cid:84)(cid:69) (cid:68)(cid:73)(cid:79)(cid:76)
(cid:8)(cid:78)(cid:69)(cid:87) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84) (cid:73)(cid:78) (cid:35)(cid:72)(cid:73)(cid:78)(cid:65)(cid:9)
(cid:115) (cid:47)(cid:86)(cid:69)(cid:82)(cid:83)(cid:69)(cid:65)(cid:83) (cid:69)(cid:88)(cid:80)(cid:65)(cid:78)(cid:83)(cid:73)(cid:79)(cid:78) (cid:79)(cid:70) (cid:40)(cid:73)(cid:80)(cid:79)(cid:82)(cid:69)
FY 2014
(cid:115) (cid:35)(cid:65)(cid:80)(cid:65)(cid:67)(cid:73)(cid:84)(cid:89) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69) (cid:70)(cid:79)(cid:82) (cid:83)(cid:80)(cid:85)(cid:78)(cid:66)(cid:79)(cid:78)(cid:68) (cid:73)(cid:78) (cid:52)(cid:72)(cid:65)(cid:73)(cid:76)(cid:65)(cid:78)(cid:68)
(cid:115) (cid:35)(cid:65)(cid:80)(cid:65)(cid:67)(cid:73)(cid:84)(cid:89) (cid:73)(cid:78)(cid:67)(cid:82)(cid:69)(cid:65)(cid:83)(cid:69) (cid:70)(cid:79)(cid:82) (cid:50)(cid:79)(cid:73)(cid:67)(cid:65) (cid:73)(cid:78) (cid:52)(cid:72)(cid:65)(cid:73)(cid:76)(cid:65)(cid:78)(cid:68)
(cid:115) (cid:46)(cid:69)(cid:87) (cid:80)(cid:76)(cid:65)(cid:83)(cid:84)(cid:73)(cid:67) (cid:67)(cid:79)(cid:77)(cid:80)(cid:79)(cid:85)(cid:78)(cid:68) (cid:80)(cid:76)(cid:65)(cid:78)(cid:84) (cid:73)(cid:78) (cid:53)(cid:51)
(cid:115) (cid:46)(cid:69)(cid:87) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78) (cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89) (cid:70)(cid:79)(cid:82) (cid:84)(cid:72)(cid:69) (cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)
(cid:73)(cid:78)(cid:71)(cid:82)(cid:69)(cid:68)(cid:73)(cid:69)(cid:78)(cid:84) (cid:79)(cid:70) (cid:50)(cid:69)(cid:67)(cid:79)(cid:77)(cid:79)(cid:68)(cid:85)(cid:76)(cid:73)(cid:78)
Asahi Kasei Report 2015
21
Directors, Corporate Auditors, Executive Offi cers
(As of June 26, 2015)
The Board of Directors
Directors
From left (seated)
Ichiro Itoh
Chairman & Director
From left (standing)
Masumi Shiraishi
Outside Director
Hideki Kobori
Representative Director
Primary Executive Offi cer
Yuji Kobayashi
Representative Director
Primary Executive Offi cer
Corporate Auditors and
Executive Offi cers
Hajime Nagahara
Corporate Auditor
Shinsuke Kido
Corporate Auditor
Koji Kobayashi
Outside Corporate Auditor
Akio Makabe
Outside Corporate Auditor
Tetsuo Ito
Outside Corporate Auditor
Katsuhiko Yamazoe
Senior Executive Offi cer
Masafumi Nakao
Senior Executive Offi cer
22 Asahi Kasei Report 2015
Toshio Asano
President & Representative Director
Presidential Executive Offi cer
Masahito Hirai
Hiroshi Kobayashi
Representative Director
Vice-Presidential Executive Offi cer
Director
Senior Executive Offi cer
Norio Ichino
Outside Director
Kenyu Adachi
Outside Director
Shinichiro Nei
Lead Executive Offi cer
Yoshihiro Wada
Lead Executive Offi cer
Shuichi Sakamoto
Lead Executive Offi cer
Naoki Okada
Executive Offi cer
Atsushi Nakamura
Executive Offi cer
Yasushi Asano
Lead Executive Offi cer
Nobuyuki Kakizawa
Executive Offi cer
Takeshi Himeno
Executive Offi cer
Asahi Kasei Report 2015
23
Outside Directors
24 Asahi Kasei Report 2015
A 90-year history of taking
challenges
Norio Ichino
1964: Joined Tokyo Gas Co., Ltd.
2003: President and Representative Director, Tokyo Gas Co., Ltd.
2007: Director and Chairman of the Board, Tokyo Gas Co., Ltd.
2010: Director and Executive Advisor, Tokyo Gas Co., Ltd.
2014: Special Advisor, Tokyo Gas Co., Ltd.
Valuing diversity to
engender growth
Masumi Shiraishi
1989: Joined NLI Research Institute
2001: Head Researcher, NLI Research Institute
2006: Professor, Department of Economics, Toyo University
2007: Professor, Faculty of Policy Studies, Kansai University
Dialog with investors for
strategy of growth
Kenyu Adachi
1977: Joined Ministry of International Trade and Industry
2007: Director-General, Trade and Economic Cooperation Bureau
2008: Deputy Vice-Minister of Economy, Trade and Industry
2010: Director-General, Economic and Industrial Policy Bureau
2011: Vice-Minister of Economy, Trade and Industry
2013: Retired from Ministry of Economy, Trade and Industry
Asahi Kasei’s extension from its roots in fi bers and chemicals
into the fi elds of housing, electronics, and health care is the
result of the company’s 90-year history of taking challenges.
Asahi Kasei has always tackled new fi elds of business in line
with the changing needs of the times, using its technology to
overcome risks.
The company has made many bold decisions since I
became an Outside Director, including the acquisition of
ZOLL, the unifi cation of naphtha crackers in Mizushima, and
the acquisition of Polypore. It is said that only those who
adapt will survive. I think Asahi Kasei exemplifi es that. This
company has repeatedly transformed itself to match changes
in the environment.
The current medium-term management initiative “For
Tomorrow 2015” provided for ¥1 trillion in strategic invest-
ment for growth. The ZOLL acquisition is an illustrative exam-
ple of such strategic investment. The fi eld of acute critical
care is one in which growth is forecasted, notably in the US
and Europe, while Asahi Kasei’s own established businesses
in pharmaceuticals and medical devices have some relation-
ship with the fi eld of critical care. This is characteristic of how
Asahi Kasei expands into a new fi eld. There is a conscious
effort to gain synergy through affi nity with established busi-
ness.
Having such a broad range of operations requires the
company to focus on human resources development. To
enable Asahi Kasei to continue to succeed in its diverse oper-
ations, I will offer advice and counsel on the development of
management personnel who will be the company’s future
leaders.
I am impressed with Asahi Kasei’s bright and positive company
atmosphere, with everyone called “san” from the Chairman all
the way down to newly hired employees. This is partly due to
the company’s emphasis on valuing employee individuality, but
I think also because the company understands the need for a
diverse workforce to engender further business growth. I sense
that Asahi Kasei seeks to maintain an environment where peo-
ple with different backgrounds can apply their abilities to the
fullest. When only people with similar backgrounds gather
together, it becomes hard to fl exibly adapt to changes. I believe
that valuing the diversity of the workforce directly leads to
greater success in the management of a diverse range of oper-
ations, enhancing the company’s ability to adapt to changes in
the environment.
Asahi Kasei has long been a leader in giving women
opportunities to advance their careers, establishing an Equal
Opportunity Offi ce (now Diversity Promotion Group) in 1993.
For women to get ahead in today’s society, simply having vari-
ous provisions for support is not enough. It also requires
women themselves to raise their ambitions. I hope that while
Asahi Kasei continues to enhance various provisions to enable
women to continue working long-term, more and more
women will aim for major achievements in their work while
utilizing these provisions. Men will also increasingly need to
change their way of working, for instance by taking a more
active role in raising children. I hope to help both men and
women gain a better appreciation for one another’s ways of
balancing work and private life, creating a workplace where all
personnel fi nd it easier to continue working for a long time.
The purpose of dialog with shareholders and investors is to
enhance the company’s ability to achieve sustainable growth
and to heighten corporate value over the medium to long
term. In essence that is what Japan’s Corporate Governance
Code, which applies from June 2015, is aiming for. That is
why dialog with investors should focus on how the company
is going to earn profi ts over the medium to long term, and
how the company will use those profi ts to enable further
growth through innovation.
ROE is an important concept for creating profi ts. Since
different standards apply to different fi elds of business, it may
be diffi cult to set a single uniform ROE target. Even so, I feel
that increasing ROE leads to higher share prices, so it is
important for the company to consciously work to raise ROE.
The company’s profi ts also provide the resources for inno-
vation that leads to future growth. After providing appropri-
ate dividends, the company needs to retain suffi cient
resources for capital expenditure and R&D that will enable
further growth. In any case the discussion would be about
the company’s growth strategy, and this is where Asahi Kasei
should focus its dialog. In various communications with both
individual shareholders and institutional investors, the focus
should not only be on the company’s short-term results and
fi nancial condition. The company should present non-fi nancial
information and material that enables investors to understand
the process through which future value is created. If the com-
pany makes this stance clear I think investors will appreciate it,
leading to a positive cycle of long-term investment.
Asahi Kasei Report 2015
25
Corporate Governance
Basic concept for corporate governance
We believe that constant effort to increase the effi ciency and
transparency of management is essential for the continuous
enhancement of the corporate value of the Asahi Kasei Group.
The Asahi Kasei Group has exercised corporate governance
based on the following two principles.
1) Based on the structure of a holding company and core
operating companies, the core operating companies are
responsible for business execution and the holding company is
responsible for oversight.
2) The Group Approval Authority Regulations are positioned as
the highest ranking among 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.
We have further enhanced corporate governance through the
successive implementation of various measures, including the
election of multiple Outside Directors and the institutionalization
of an Internal Audit Dept.
We recognize that appropriate allocation of management
resources and greater synergies among different sectors are
essential for the further growth of the Asahi Kasei Group. At the
start of the next medium-term management initiative from fi scal
2016, we will combine Asahi Kasei Corp. with current
consolidated subsidiaries of Asahi Kasei Chemicals, Asahi Kasei
Fibers, and Asahi Kasei E-materials, forming an operating holding
company. While the new operating holding company will have
the function of overseeing the whole Asahi Kasei Group,
transparency in management will be maintained with clear
separation of management execution and oversight functions
within the operating holding company.
In order to achieve sustainable growth and increase
corporate value over the mid- to long-term, the objective of
Japan’s Corporate Governance Code, we will continue to pursue
the optimum governance confi guration in accordance with
changes in the management environment.
Structures related to management decision-making, execution, and oversight (as of June 26, 2015)
Holding company
Board of Corporate Auditors
Shareholders
Board of Directors
Group Advisory Committee
Chairman
President
Internal Audit Dept.
Strategic Management Council
Group staff functions
(cid:115) (cid:51)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:73)(cid:67) (cid:80)(cid:76)(cid:65)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71) (cid:6) (cid:65)(cid:78)(cid:65)(cid:76)(cid:89)(cid:83)(cid:73)(cid:83)
(cid:115) (cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69) (cid:6) (cid:82)(cid:73)(cid:83)(cid:75) (cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)
(cid:115) (cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83) (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)
Corporate Research & 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
26 Asahi Kasei Report 2015
Board of Directors
Oversees group management, and deliberates and decides on
basic group policy and strategy, and on substantive proposals by
the Strategic Management Council. The Chairman of the holding
company chairs meetings of the Board of Directors. Meets once
or twice per month.
Strategic Management Council
Deliberates and decides on substantive matters relating to the
operation of the holding company and of the group. Its decisions
are made by the President of the holding company, who chairs
meetings of the council, after deliberation by the attending
constituent members. Meets twice per month.
Group Advisory Committee
The advisory body to the holding company’s Board of Directors.
Meets twice per year.
Board of Corporate Auditors
Comprises fi ve Corporate Auditors, three of whom are Outside
Corporate governance system
Corporate Auditors. Corporate Auditors exchange views,
deliberate, and decide on substantive matters relating to
auditing. Meets at least once per quarter.
We employ an Executive Offi cer system, under which we have
nine Directors, including three Outside Directors, and fi fteen
Executive Offi cers, including fi ve who concurrently serve as
Director, as well as a Corporate Auditor system, under which we
have fi ve Corporate Auditors, including three Outside Corporate
Auditors (as of June 26, 2015).
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.
An outline of the corporate governance system of the Asahi
Kasei Group is as follows. Asahi Kasei Corporation is a holding
company and has elected to take the form of a company with a
Board of Corporate Auditors.
1) 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 nine Directors. Of
the fi ve Corporate Auditors, three are Outside Corporate
Auditors.
4) 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.
5) 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.
2) 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.
3) The Internal Audit Dept. serves as the corporate organ for
6) 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.
7) Remuneration of Directors is provided in accordance with a
performance-linked remuneration system determined by the
Board of Directors.
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.
Asahi Kasei Report 2015
27
Outside Directors and Corporate Auditors
We have three Outside Directors and three 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.
Although we do not have specifi c standards for judging the
independence of Outside Directors and Corporate Auditors, 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, 2015) 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.
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.
28 Asahi Kasei Report 2015
Information Disclosure Policy
The Asahi Kasei Group has established an Information Disclosure
Policy, enhancing the management and disclosure of corporate
information to obtain greater corporate value. Corporate
regulations for information disclosure based on this policy were
adopted on July 1, 2008. The basic principles of the Information
Disclosure Policy are shown below.
• With our Group Mission of “contributing to life and living for
people around the world,” we hold “progressing in concert
with society, and honoring the laws and standards of society as
a good corporate citizen” as a Guiding Precept. “Ensuring
transparency” is a fundamental element of our Corporate
Ethics – Basic Policy. We proactively engage in information
disclosure and communication based on these basic concepts.
• Corporate information is disclosed fairly, impartially, accurately,
and as swiftly as possible to stakeholders such as customers,
suppliers, shareholders, investors, employees, and local
communities, and to the general public.
• In our communication with stakeholders and with the general
public, we strive for dialog which fosters a relationship of trust,
promoting greater understanding of the Asahi Kasei Group
and its operations, to increase brand strength and heighten
corporate value.
Compliance monitoring by the Corporate Ethics Committee
Monitoring of compliance and oversight of education and
training for compliance throughout the Asahi Kasei Group are
performed by the Corporate Ethics Committee, which was
formed in July 1998. Where shortcomings are discovered, the
committee formulates and implements measures for
improvement.
The committee discusses the training programs implemented
at each group company, measures for prevention of sexual
harassment, environmental countermeasures, the state of
compliance with laws and regulations including personal
information protection law, and operation of the Compliance
Hotline.
Risk management
The Asahi Kasei Group has a Risk Management Committee to
enhance the risk management system to prevent operational
crises and to minimize the effects of any crisis which may 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 2014, we reinforced familiarity with the emergency
contact system to employ in the event of a disaster at each major
operating location. We also held a series of internal meetings
and interviews to confi rm that the management of personal
information is implemented properly to prevent any
inappropriate disclosure. Additionally, in May 2015 we adopted a
system to effi ciently confi rm the well-being of personnel
stationed overseas and travelling on business overseas if an
emergency situation should occur where they are located.
Asahi Kasei Report 2015
29
Operating Segments
Chemicals & Fibers
The roots of our Chemicals & Fibers segment trace back to ammonia
synthesis technology, and Bemberg™ regenerated cellulose fi ber pro-
duced using the ammonia. This segment has the longest history and
largest scale within the Asahi Kasei Group. As we continue to globally
expand various businesses in this segment, we are advancing a trans-
formation to higher added value that meets the needs of the times.
Sales composition
Operating income composition
48.6%
37.4%
Fiscal 2014
Fiscal 2014
Financial highlights
Fiscal year
Net sales
Operating income
*Not including corporate
expenses and eliminations.
(¥ billion)
2014
954.6
64.6
2013
912.5
47.4
Please refer to page 61 for segment performance information.
Fibers business
Yuji Kobayashi
Representative Director,
Primary Executive Offi cer
Executive Offi cer for Chemicals & Fibers
business sector
Highlights
Chemicals business
Groundbreaking ceremony for the second plant
for plastic compounds in the US
In September 2014 Asahi Kasei Chemicals held a groundbreak-
ing ceremony in Alabama for its second US plant for plastic
compounds. The expansion of compounding operations is a crit-
ical element in the strategic growth of its engineering plastics
business, and construction of the new plant will enable the
company to increase supply to meet customer needs in the
Southern US, where demand growth is most notable. Asahi
Kasei Chemicals will continue to develop high-quality and high-
performance products in accordance with market needs, while
studying ways to further expand its supply infrastructure.
Completion of new production facility for Bemberg™
Asahi Kasei Fibers completed the addition of new production
facility for Bemberg™ cupro fi ber at its plant in Nobeoka,
Miyazaki, Japan, and commercial operation of the new facility
began in June 2014. With the completion of the new facility,
production capacity for Bemberg™ increased by some 10%.
Bemberg™ is widely used for the lining of high-quality suits, as
well as a wide range of other applications such as outerwear,
innerwear, bedding, and sportswear. Sales of Bemberg™ have
increased notably in the fi elds of functional innerwear and
Indian traditional garments, and further demand growth is fore-
casted in emerging markets.
Asahi Kasei Chemicals President Yuji Kobayashi (right) receives
the State Seal of Alabama
New production facility for Bemberg™
30 Asahi Kasei Report 2015
Asahi Kasei Chemicals
Yuji Kobayashi
President & Representative
Director
Asahi Kasei Chemicals Corp.
Asahi Kasei Fibers
Toshio Takanashi
President & Representative
Director
Asahi Kasei Fibers Corp.
Q
A
Please tell us about your plans for the future and solution-polymerized
styrene-butadiene rubber (S-SBR) for high-performance fuel-effi cient
tires in particular.
Sales of S-SBR are growing fi rmly. We are now transforming our busi-
ness to achieve a high-earnings operational structure.
S-SBR is synthetic rubber used in the tire
tread of high-performance fuel-effi cient
tires. The global market for tire rubber
that enables better fuel-effi ciency is grow-
ing with tightening environmental regula-
tions, and especially rapid growth is
forecasted in Asia. Our domestic plants in
Kawasaki and Oita continued full opera-
tion during fi scal 2014. The 1st line at our
new plant in Singapore rose to full opera-
tion in the second half of the year in line
with increasing sales, and the 2nd line
started up in May 2015. Our continuous
polymerization process technology enables
the production of S-SBR that provides
both safety and fuel effi ciency while main-
taining high abrasion resistance. We will
continue to meet expanding demand by
developing products that further enhance
performance. For our next increase in
S-SBR production capacity, we are current-
ly studying the construction of another
overseas plant following Singapore.
Asahi Kasei Chemicals is transforming
itself into a high-earnings company by
advancing structural reforms to strengthen
our petrochemical operations in Japan and
shifting our focus to high-performance
and high value-added products. We will
continue to proactively invest abroad in
synthetic rubber and engineering resins for
automotive applications, and globally
expand our high value-added operations
utilizing our original technologies in paint
materials, water fi ltration membranes, and
ion-exchange membranes.
S-SBR plant in Singapore
Q
A
Please tell us about the situation of each product and your plans to
invest for growth.
We achieved record-high fi nancial performance in fi scal 2014. Aiming
for further increased income, we will continue to invest for growth.
currently have capacity expansions for both
spunbond and Roica™ under construction
in Thailand. We have also decided to
increase capacity for Bemliese™ as demand
growth continues in skincare applications
such as facial masks, and to increase capac-
ity for Leona™ nylon 66 fi lament for auto-
motive airbags.
We achieved record-high operating income
in fi scal 2014 benefi tting from a weaker
yen and fi rm sales of Bemliese™ continu-
ous-fi lament cellulose nonwoven fabric for
facial masks, Lamous™ artifi cial suede for
automotive upholstery, and Roica™ elastic
polyurethane fi lament. While sales of
Bemberg™ cupro fi ber for ethnic garments
increased, performance was impacted by
increased depreciation expenses for a new
production facility which started up in
Nobeoka, Miyazaki, Japan, in June 2014.
While we are forecasting increased
operating income in fi scal 2015, room for
growth is limited as production and sales of
each product are currently near full capaci-
ty. To meet growing demand in hygienic
applications such as disposable diapers, we
Asahi Kasei Report 2015
31
Homes & Construction Materials
Products and services in this segment, centered on Hebel Haus™ unit
homes and their main material Hebel™ AAC panels, enable innovative
lifestyles in urban settings as well as safety, security, and comfort.
Housing-related operations include rental management, real estate,
and remodeling. In construction materials, new applications are being
developed for thermal insulation products.
Sales composition
Operating income composition
30.7%
36.5%
Fiscal 2014
Fiscal 2014
Financial highlights
Fiscal year
Net sales
Operating income
*Not including corporate
expenses and eliminations.
(¥ billion)
2014
603.8
63.0
2013
589.4
68.5
Please refer to page 61 for segment performance information.
Masahito Hirai
Representative Director, Vice-Presidential
Executive Offi cer
Executive Offi cer for Homes & Construction
Materials business sector
Highlights
Housing business
SeiRReS™ seismic vibration control system
Asahi Kasei Homes developed a new seismic vibration control
system called SeiRReS™ for heavy-frame steel structures.
Employing an oil damper device to provide excellent perfor-
mance absorbing seismic vibration of both large and small mag-
nitudes, the SeiRReS™ system has been included as standard
equipment in Hebel Haus™ Frex™ three-story homes since May
2015. This not only provides safety for residents when a major
earthquake occurs, but also prevents damage to the building
from repeated aftershocks.
First overseas plant of Asahi Kasei Homes
In March 2015, a decision was made to establish a joint LLC in
Vietnam among Asahi Kasei Jyuko Co., Ltd. (wholly owned sub-
sidiary of Asahi Kasei Homes), Sun Steel Co., Ltd., and Daiwa
Kouki Co., Ltd. The new company in Vietnam will construct a
plant to manufacture various steel-frame members other than
the main structural frame. The new plant will not only ensure
stable supply of high-quality components of Hebel Haus™ and
Hebel Maison™ buildings, but also enable further cost reduc-
tions. Future expansion of the plant will also enable sale to
external customers.
Groundbreaking ceremony in Vietnam in May 2015
SeiRRes™ seismic damping system
32 Asahi Kasei Report 2015
Asahi Kasei Homes
Q
A
How are your order-built homes business and other businesses
performing?
Due to increased costs for materials, etc., we are seeing increased sales
with decreased operating income.
Eisuke Ikeda
President & Representative
Director
Asahi Kasei Homes Corp.
Having received very strong orders in the
previous fi scal year, our order-built homes
business made full use of its construction
capability to increase deliveries in fi scal
2014, especially of Hebel Maison™ apart-
ment buildings, enabling sales growth.
Operating income nevertheless decreased
due to higher costs, including the cost of
materials and construction costs. Efforts to
maintain leadership in urban markets
included the introduction of the new
SeiRReS™ seismic damping system for
Hebel Haus™ Frex™ heavy-frame three-
story homes, and new orders for the year
reached a new record high.
In housing-related businesses, remod-
eling faced a challenging market as
demand for waterproofi ng, repainting,
and equipment installation declined in
reaction to the surge in demand prior to
the consumption tax increase. Real estate,
however, performed well as the rental
management business grew in line with
increased deliveries of Hebel Maison™
apartment buildings.
Hebel Haus™ Frex the Residence™
Asahi Kasei Construction Materials
Q
A
Please describe your fi scal 2014 results and fi scal 2015 outlook.
Business conditions remained diffi cult in fi scal 2014 due to the dent in
demand following the consumption tax increase, as well as increased
depreciation expenses for a new production line. In fi scal 2015 we are
aiming for increased sales and operating income.
Tomihiro Maeda
President & Representative
Director
Asahi Kasei Construction
Materials Corp.
The impact of the April 2014 consumption
tax increase was felt throughout Japan’s
construction industry, with the total fl oor
space of building starts declining by 9%.
We nevertheless recorded increased ship-
ments of Hebel™ autoclaved aerated con-
crete (AAC) panels by targeting large
construction projects. Sales of Neoma™
high-performance phenolic form insulation
panels decreased in reaction to the surge in
demand prior to the consumption tax
increase. Depreciation expenses increased
with the start-up of a new production line
for Neoma™ panels which will enable us to
meet growing demand as an effect of gov-
ernment policies to reduce energy con-
sumption. Construction materials
operations overall recorded decreased sales
and decreased operating income as a
result.
While we do not expect the market to
change substantially in fi scal 2015, we plan
to achieve growth in sales and operating
income by enhancing the marketing of
insulation materials, expanding applications
for foundation systems, and enhancing the
cost-competitiveness and stable supply of
AAC panels. We are especially expanding
new applications for Neoma™ panels.
Neoma™ phenolic foam insulation panels
Asahi Kasei Report 2015
33
Electronics
Our Electronics segment includes high-function products for fi elds
ranging from consumer electronics to infrastructure, industrial, and
automotive applications. The electronic devices business provides key
components for mobile IT such as electronic compasses and other LSIs,
and sensing devices such as magnetic sensors, current sensors, and
infrared sensors. The electronic materials business provides lithium-ion
battery (LIB) separators, photosensitive dry fi lm for printed wiring
boards, and many other products for the electronics industry.
Sales composition
Operating income composition
8.3%
7.7%
Fiscal 2014
Fiscal 2014
Hideki Kobori
Representative Director, Primary Executive
Offi cer
Executive Offi cer for Electronics business sector
Financial highlights
Fiscal year
Net sales
Operating income
*Not including corporate
expenses and eliminations.
(¥ billion)
2014
150.4
14.3
2013
145.0
14.2
Please refer to page 61 for segment performance information.
Highlights
Electronic devices business
Velvet Sound™ audio devices
In May 2014, high-end audio equipment manufacturers began
adopting audio devices with Velvet Sound™ technology from
Asahi Kasei Microdevices. This original technology is used in
next-generation audio LSIs to faithfully reproduce high-
resolution audio sound sources with an ambiance and realism
that cannot be obtained with audio CDs. Asahi Kasei
Microdevices will continue to develop advanced Velvet Sound™
products for the high-end audio market based on its philosophy
of enabling discerning customers to attain high-quality audio
through innovative technology.
34 Asahi Kasei Report 2015
Asahi Kasei Microdevices
Satoru Tamura
President & Representative
Director
Asahi Kasei Microdevices Corp.
Q
A
In fi scal 2014, your sales grew but operating income decreased. How are
the electronic compass and other products performing?
The business benefi tted from the weaker yen, and sales of electronic
devices for smartphones increased. Operating income decreased, how-
ever, due to temporary factors related to structural reforms.
Having both silicon semiconductor tech-
nology and compound semiconductor
technology enables us to develop original
and unique devices. Under a changing
market climate in fi scal 2014 sales of crys-
tal oscillator ICs decreased, but sales of
other electronic devices for smartphones
increased and business benefi tted from a
favorable exchange rate, resulting in
increased sales. Although we have worked
to reduce costs, operating income
decreased as an effect of a devaluation of
inventories in relation to structural
improvement of the power management
device business.
In fi scal 2015, we foresee a challeng-
ing market for crystal oscillator ICs con-
tinuing while the electronic compass
market matures. We plan to increase sales
and operating income by changing the
product mix with a higher proportion of
audio devices and camera modules for
smartphones. In addition to our mainstay
consumer electronics applications, we will
achieve further growth over the medium-
to-long term with greater focus on auto-
motive, industrial equipment and
infrastructure applications.
LSIs
Asahi Kasei E-materials
Q
A
Although increased competition caused price declines, you achieved
increased sales and operating income. How is each product performing?
In addition to the positive impact of the weaker yen, sales of high-per-
formance products grew.
Shigeki Takayama
President & Representative
Director
Asahi Kasei E-materials Corp.
The market in fi scal 2014 was mainly driv-
en by smartphones, and demand for LIBs
and semiconductor packaging maintained
fi rm growth. Our products for consumer
electronics cover a wide range from com-
modity to high-end products, and sales
growth is centered on high-end products
in each category. Although prices for
Hipore™ LIB separators declined due to
increased competition, we achieved overall
growth in sales and operating income with
the effect of the weaker yen and cost
reduction efforts.
We forecast industry-wide growth in
fi scal 2015 centered on consumer elec-
tronics. While we expect that sales prices
will continue to fall, we plan to increase
sales and operating income through fur-
ther volume growth in high-end products
and additional cost reductions. Future
Hipore™ demand will increasingly come
from automotive applications such as elec-
tric vehicles and hybrid-electric vehicles,
together with energy storage applications.
We are advancing technology and product
development to enable business expansion
in these fi elds.
Hipore™ LIB separator
Asahi Kasei Report 2015
35
Health Care
Toshio Asano
President & Representative Director,
Presidential Executive Offi cer
Executive Offi cer for Health Care business
sector
Highlights
We are focused on the fi eld of orthopedics as our speciality in pharma-
ceuticals, while our medical device business provides blood purifi ca-
tion, blood transfusion, and bioprocess products based on leading
technology for membrane separation and selective adsorption. In 2012
these were joined by ZOLL’s business in acute critical care devices. By
achieving synergies within the sector, we are expanding Health Care as
a new major pillar of the Asahi Kasei Group.
Sales composition
Operating income composition
13.1%
17.8%
Fiscal 2014
Fiscal 2014
Financial highlights
Fiscal year
Net sales
Operating income
*Not including corporate
expenses and eliminations.
(¥ billion)
2014
257.1
30.8
2013
232.4
26.7
Please refer to page 61 for segment performance information.
Pharmaceuticals business
Critical Care business
New manufacturing facility for Recomodulin™
In May 2014 Asahi Kasei Pharma decided to construct a new
manufacturing facility in Fuji, Shizuoka, Japan, for recombinant
thrombomodulin alpha, the active ingredient of Recomodulin™
anticoagulant intravenous infusion. Developed by Asahi Kasei
Pharma and marketed in Japan since 2008, Recomodulin™ is a
thrombomodulin agent for the treatment of disseminated intra-
vascular coagulation (DIC). It improves the symptoms of DIC
with a new mechanism of controlling blood coagulation. Asahi
Kasei Pharma currently produces the active ingredient of
Recomodulin™ at its Fuji Pharmaceuticals Plant. The addition of
the new manufacturing facility will enable the company to
enhance its ability to assure reliable supply of the product.
Expansion of product portfolio through M&A
ZOLL made three business acquisitions in fi scal 2014 to further
build its product lineup in the fi eld of acute critical care. In
October an agreement was reached to acquire the respiratory
care product business of US-based Impact Instrumentation, Inc.,
and in November an agreement was reached to acquire the
InnerCool™ temperature management business of Netherlands-
based Royal Philips. These were followed in December with an
agreement to acquire US-based Advanced Circulatory Systems,
Inc., which specializes in technology to non-invasively increase
circulation during cardiopulmonary resuscitation. These acquisi-
tions broaden ZOLL’s product offerings with additional technolo-
gies designed to improve outcomes from cardiac arrest and
other critical conditions, as part of its commitment to offer the
most comprehensive portfolio of products for acute events
where rapid medical intervention is needed.
36 Asahi Kasei Report 2015
New additions to the acute critical care portfolio
Asahi Kasei Pharma
Q
Please tell us how the pharmaceuticals business is performing, especially sales
of Teribone™ osteoporosis drug and Recomodulin™ anticoagulant.
A
Sales and operating income decreased in fi scal 2014, mainly as an effect of
reduced reimbursement prices and the consumption tax increase.
In fi scal 2014, pharmaceutical products excluding
new drugs were impacted by reduced reimburse-
ment prices. Teribone™ and Recomodulin™,
which had maintained steady growth since their
market launch, failed to reach their sales targets
as they were impacted by a reaction to the surge
in demand prior to the consumption tax increase.
Sales of Flivas™ agent for treatment of
benign prostatic hyperplasia are expected to
decline in fi scal 2015 due to competition from
generics. We plan to increase sales of Teribone™
and Recomodulin™ by enhancing the business
structure and reinforcing our marketing functions
with greater focus on analysis of real-world clini-
cal needs. We also anticipate the launch of sales
of Xiafl ex™ injection for Dupuytren’s contracture.
R&D expenditures
are expected to
increase as we enrich
our pipeline for new
drugs.
Teribone™ osteoporosis drug
Asahi Kasei Medical
Q
In fi scal 2014 you achieved growth in sales and operating income. How is each
product performing?
A
While results were supported by the weaker yen, sales of Planova™ virus
removal fi lters and other products were fi rm.
In fi scal 2014, sales of dialysis products in Japan
were affected by decreased reimbursement pric-
es, but sales in the US and China were fi rm. Sales
increased for Planova™ virus removal fi lters,
which are used to enhance safety in the produc-
tion process for biotherapeutic products such as
biopharmaceuticals and plasma derivatives.
Business overall benefi tted from the weaker yen
which contributed to the sales and operating
income increase. In March 2015 we decided to
construct a new plant for the spinning of hollow-
fi ber membranes for Planova™ BioEX fi lters in
Oita, Japan, to meet growing demand as higher
protein concentra-
tions become more
common in the
manufacturing pro-
cess of biothera-
peutic products.
Planova™ BioEX virus removal
fi lter
Kazuyoshi Hori
President &
Representative Director
Asahi Kasei Pharma
Corp.
Yutaka Shibata
President &
Representative Director
Asahi Kasei Medical Co.,
Ltd.
ZOLL
Q
A
You continue to post strong growth. Can you describe your business situation?
Led by growth of the Core defi brillator business, and the LifeVest™ wearable
defi brillator, we are increasing both revenue and income.
Richard A. Packer
CEO
ZOLL Medical Corporation
We joined the Asahi Kasei Group in April
2012. We supply medical devices for acute
critical care in the US and around the world.
Our business achieved positive income on a
consolidated basis after amortization of good-
will and other intangible assets in only three
years. Our growth is led by the LifeVest™ in
the US, while our business in defi brillators for
use by medical professionals continues to
grow worldwide as well. The LifeVest™ is a
wearable defi brillator for patients at high risk
of sudden cardiac arrest. Service providing the
LifeVest™ in Japan began in April 2014.
We are proactively increasing SG&A in
order to reinforce sales activity, and results
have grown even faster than planned when
we joined Asahi Kasei. We will continue to
actively pursue M&A opportunities to aug-
ment our portfolio with innovative products in
the fi eld of acute
critical care that
will enable us to
grow further and
help save even
more lives world-
wide.
LifeVest™ wearable defi brillator
Asahi Kasei Report 2015
37
R&D at the Asahi Kasei Group
Ever since our founding, Asahi Kasei has always met the world’s needs by creating businesses based on tech-
nology. We will continue to create new businesses that contribute to life and living for people around the world.
Interview with Asahi Kasei’s
head of R&D
Masafumi Nakao
Senior Executive Offi cer
General Manager
Corporate Research & Development
Q1
What are Asahi Kasei’s
core technologies?
Asahi Kasei’s strength is the manage-
ment of a diverse group of businesses
created with a wide range of technolo-
gies. At the root is chemical technolo-
gy, which gave rise to various other
technological developments over the
course of our history, resulting in our
many core technologies today. For
rials. Membrane technology and fi bers
technology are utilized to create high-
value added products for water treat-
ment and health care. The development
of distinctive business in the fi eld of thin-
fi lm semiconductors was enabled by
many technologies related to materials.
Such developments have fostered a
pioneering spirit among our technical
personnel, which is itself a technology
asset and a key element of Asahi
example, catalyst/process technology
Kasei’s heritage.
supports the production of many mate-
Core technologies
New
businesses
Chemicals
Electronics
Major core technologies
Catalyst/process
Polymer design/synthesis
Fibers (polymerization/spinning)
Membranes/phase separation
Electrochemistry
Organic synthesis/biology
Computer science
Compound semiconductors/
thin films
Microfabrication/processing
Mixed-signal circuit design
Software algorithms
Organic/inorganic materials
Analysis/simulation
Homes
Fibers
Health Care
Construction
Materials
Q2
What is your R&D
strategy?
The economic climate and social fabric
have been undergoing dramatic chang-
es in recent years. While the shale gas
revolution impacts issues of energy and
the environment, information technolo-
gy continues to advance, and Japan’s
population continues to age and
decline. It will be diffi cult to adapt if we
simply continue along the same path.
Our “For Tomorrow 2015” medium-
term management initiative focuses on
the two strategies of expanding world-
leading businesses and creating new
value for society. In the latter, we are
concentrating on the three fi elds of the
Environment & Energy, Residential
Living, and Health Care. An important
mission for R&D is to draw together
technologies and business platforms
throughout the Asahi Kasei Group to
create new businesses in these three
fi elds.
While R&D directly related to estab-
lished businesses is performed by each
core operating company, an Energy &
Environment R&D Center, Healthcare
R&D Center, and Residential Synergy
Initiative—established within Corporate
38 Asahi Kasei Report 2015
Research & Development—advance
R&D from a medium-to-long term per-
spective. In addition to in-house R&D,
we are working in concert with outside
organizations and seeking to acquire
innovative new technologies.
Q3
How about your IP
strategy?
The business strategy, intellectual prop-
erty (IP) strategy, and R&D strategy for
the creation of new business are inte-
grated as one. IP activities for estab-
lished businesses are advanced in direct
connection with the management of
Q4
Please tell about the
UVC-LED, a fruit of “For
Tomorrow 2015.”
UVC is the shorter wavelength range
of ultraviolet (UV) light. UVC light has a
powerful disinfection and sterilization
effect, and can also trigger chemical
actions. Many companies are compet-
ing to develop light-emitting diodes
(LEDs) that emit light in the UVC range,
but volume production of practical
products has not been achieved yet.
The UVC-LED developed by Asahi
Kasei, based on an aluminum nitride
(AlN) substrate, has gained attention
with its world-leading output perfor-
operations to gain business advantage
mance and high reliability.
focus—the environment and energy,
residential living, and health care.
Based on the know-how in com-
pound semiconductors gained through
our businesses in magnetic sensors and
infrared sensors, we saw great poten-
tial for UVC-LEDs based on AlN sub-
strates. In 2010 we made an
investment in US venture Crystal IS, Inc.
(CIS) which had outstanding AlN tech-
nology, and dispatched engineers to
CIS to begin joint research. In 2011 we
acquired full ownership of CIS and pro-
ceeded with a close-knit joint develop-
ment project with our engineers in
Japan. In 2014 these efforts resulted in
the market launch of the Optan™
UVC-LED for analytical and instrumen-
by the steady acquisition of IP rights
Mercury-vapor lamps are generally
tation applications.
from R&D results.
The IP strategy for each operation
is aligned with the relevant business
characteristics. Equal emphasis placed
used as UV light sources, but they are
bulky, take time to warm up, have a
short service life, and moreover pose
environmental risks when disposed of.
on both the quality and the quantity of
UVC-LEDs not only overcome all of
patents, and strategic licensing is per-
formed to heighten the contribution of
IP rights to our business operations.
these shortcomings, but hold promise
to enable transformational new appli-
cations in all three of our fi elds of
We are now working to develop
the global market for UVC-LEDs in
water disinfection applications in both
industrial and residential settings, with
evaluation in progress by several equip-
ment manufacturers.
UVC-LED wavelength range
Gamma rays
X-rays
Ultraviolet light
Visible light
Infrared light
Radio waves
Optan™ UVC-LED
0.01
100
400
780
106
(nm)
UV-C
UV-B
UV-A
100
280
315
400 (nm)
Asahi Kasei Report 2015
39
R&D in Three Fields of Focus and Main Sites for R&D
We are working to create new value for society in the three fi elds of the Environment & Energy, Residential
Living, and Health Care with endeavors spanning across the Asahi Kasei Group. An overview of our efforts and
our main sites for R&D are described here.
Environment & Energy
Demonstrating new technology for diversifi cation of petrochemical feed-
stocks, and environmentally friendly process technology
E-fl ex, BB-fl ex, DRC process to produce diphenyl carbonate (DPC)
Developing new materials that contribute to vehicle weight reduction and fuel saving
Engineering resin with ultra-high heat resistance, high rigidity, and excellent moldability;
solution-polymerized styrene-butadiene rubber (S-SBR) for next-generation high-
performance fuel-effi cient tires
Developing light emitting devices with superior sterilization performance
while reducing energy use
Developing new battery materials and high-performance lithium-ion battery
separators for consumer electronics and automotive applications
Residential Living
Making innovative urban lifestyle proposals; developing
residential features for seniors
“HH2015” demonstration house to create new businesses, Hebel
Village™ apartment buildings for seniors
Developing new fi ber materials focusing on comfort
(coolness, warmth, functionality, adaptability) and health
A-cubic™, functional fi bers, various nonwovens
Note: A-cubic™ is the guiding vision of R&D at Asahi Kasei Fibers to apply innovative
leading-edge technology to the science of comfort and health, developing inspiring
new products.
Health Care
Addressing unmet needs in the orthopedic fi eld, especially locomotive syndrome
Pharmaceutical pipeline (as of July 31, 2015)
Development stage
Code name, form, generic name
Classifi cations
Indication
Remarks
Origin
Phase III
AK-156, injection, zoledronic acid
Bisphosphonate
Osteoporosis
New effi cacy, new dose;
once-yearly administration
Licensed
Phase II
HC-58, injection, elcatonin
Calcitonin
Shoulder-hand syndrome
Additional indication
In-house
Phase III
(overseas)
Phase II
(overseas)
ART-123, injection, recombinant
thrombomodulin alpha
Recombinant human
thrombomodulin
Severe sepsis with
coagulopathy
New biologic
In-house
HE-69, mizoribine
Immunosuppressant
Lupus nephritis,
nephrotic syndrome
Additional indication
In-house
AK106
Anti-infl ammatory
Rheumatoid arthritis
New chemical entity
In-house
Researching leading-edge medical technologies including regenerative medicine using autotransfusion
Developing new therapies, technologies, and solutions to enhance the quality of care for sudden cardiac arrest
40 Asahi Kasei Report 2015
Main sites for R&D
Kawasaki Innovation Center (Kawasaki Works, Kanagawa, Japan)
Technology development for chemical products
completed in 2012
Developments include technology for catalysts, polymer design, interface control,
and environmental systems, as well as next-generation S-SBR.
New Integrated Research Complex (Asahi Kasei Fuji site, Shizuoka, Japan)
R&D for new electronics businesses
completed in 2009
R&D is performed in electronic and optical materials and in the fi eld of the Environment
& Energy, with an emphasis on the creation of new businesses. The approach to R&D
emphasizes the combination of established core technologies with emerging
technologies, yielding a high level synthesis of new technology, with results obtained
more quickly, in direct contact with markets and users.
Housing R&D Center (Asahi Kasei Fuji site, Shizuoka, Japan)
Development of new housing products
completed in 2007
R&D is focused on adding value by further heightening structural performance in
accordance with the “Long Life Home” concept of high-value added homes. New
technology is proactively adopted to meet emerging needs for harmony with the
environment and resource circulation.
Fibers Technology and R&D Center (Moriyama, Shiga, Japan)
R&D for new fi ber materials
completed in 2008
The core polymer, manufacturing, textile, and evaluation technologies are advanced, new
technologies are created. Within the Center, the R&D Lab for Applied Product develops
products for functional apparel focusing on comfort and health functions, as well as new
products that contribute to the environment, energy effi ciency, and safety in the fi elds of
electronics, automobiles, and medical care.
Research Complex (Pharmaceuticals Research Center, Ohito, Shizuoka, Japan)
R&D for new drugs
completed in 2012
Equipped with advanced experimental apparatus and facilities for greater functional-
ity, the complex brings the synthetic and medicinal chemistry research group and
pharmacology research group together in a single facility for closer coordination, and
incorporates many design elements to facilitate interaction and communication
among researchers, and raise the effi ciency of research.
Medical Material Laboratory (Nobeoka, Miyazaki, Japan)
R&D for medical materials
completed in 2011
All material-related research functions of Asahi Kasei Medical are consolidated in the
laboratory, with shared technologies for phase separation, structure control, and
chemical modifi cation integrated and advanced. Next-generation dialysis membranes,
adsorption media, and virus removal membranes are developed, and technology for
biocompatibility evaluation, biological evaluation, and physicochemical evaluation are
advanced, as well as analytical technology.
ZOLL Medical Corporation (USA)
R&D for acute critical care devices
acquired in 2012
ZOLL’s acute critical care devices are developed with reliable operation and function in
mind. Resuscitation products are also designed in accordance with the “Chain of
Survival” guiding principles set forth by the American Heart Association. Product fea-
tures include easy and essential recording of data throughout the course of treatment.
Asahi Kasei Report 2015
41
CSR Dialogue
Focusing on employee health as a key to growth
Employees are important stakeholders for any company, and as such the health of employees is a key focus of
management. Professor Koji Mori, M.D. (pictured right) of the University of Occupational and Environmental
Health Japan discusses the Asahi Kasei Group’s effort for employee health with Asahi Kasei’s chief industrial
physician Dr. Ichirou Oyama, M.D. (pictured left).
A company-wide effort
Oyama Asahi Kasei has an ongoing initia-
tive for the health of employees as part of
its Responsible Care (RC) program, a fun-
damental element of Corporate Social
Responsibility (CSR). Even before the con-
cept of RC was introduced, the company
had proactively focused on employee
health at its production sites. Since the
adoption of RC, there has been a company-
wide effort led by Corporate ESH & QA.
In recent years the effort centers on
preventing lifestyle-related diseases, pre-
venting falls with physical fi tness tests and
exercise guidance, and surveys of employ-
ee stress and workplace stress with follow-
up and improvements.
Mori I see that the Asahi Kasei Group
implements RC throughout all its diverse
operations. You seem to have been provid-
ing uniform health support services for
employees for quite some time, and your
network of industrial physicians seems
advanced.
Oyama We are now arranging an area-
based system to provide care by industrial
physicians to all employees in every part of
Japan. We are also enhancing the health
maintenance infrastructure to provide
health guidance by videoconference, to
electronically manage results of annual
checkups and other health data, and to
ensure that employee health records are
seamlessly handed over when an employee
is transferred to a different location.
Exercising while seated
At the Sepacell Plant of Asahi Kasei Medical MT
Corp. in Oita, Japan, the manufacture of Sepacell™
leukocyte reduction fi lters requires workers to spend
long periods of time seated in the cleanroom to per-
form evaluation, visual inspection, and control oper-
ations. Although this led to many instances of stiff
shoulders, eyestrain, etc., it was impractical to hold
conventional exercise sessions in the cleanroom. In
2014, with the support of on-site health manage-
ment staff, employees developed a small-group
exercise routine that is done while seated.
42 Asahi Kasei Report 2015
Mori The health of employees has recently
come to be seen as a critical factor in cor-
porate management. It is recognized that
productivity suffers unless employees are
healthy and happy in their work. But the
measures taken are often simplistic, such
as installing a fi tness room, which can give
a temporary lift but fail to have a lasting
effect.
I feel that Asahi Kasei has built up a fi rm
foundation over time as part of its RC pro-
gram, and does a good job of supporting
employee health. You have even established
a system to evaluate the health manage-
ment activities at each site. I think this is an
excellent way to heighten the motivation of
the health maintenance personnel.
Oyama I think that Asahi Kasei’s general
culture of caring for its people is a big
plus—this makes it easy for people to
understand our health management
efforts. While employees themselves gen-
erally appreciate the importance of health
maintenance, there is wide variation. We
are working to raise overall awareness
among employees of the need to look
after their own health more responsibly.
Mori Efforts to maintain employee health
have come to be seen as a long-term
investment for companies, with upper
management taking a keen interest in
employment and productivity of employ-
ees. How is it at Asahi Kasei?
Oyama The Asahi Kasei Group Vision
includes the ideal of enabling living in
health and comfort. We can hardly achieve
this if our own employees are not healthy. I
believe the management appreciates this,
and is earnestly supporting our health
management efforts.
Tailoring the approach to
suit different regions, work-
places, and individuals
Mori As a global enterprise with operations
around the world, how does Asahi Kasei
provide health maintenance services to
employees overseas? Rather than extending
the same system you have in Japan to other
countries, I think you need to establish a
system that suits the situation in each coun-
try. That requires the expertise of on-site
specialists. How do you deal with this?
Oyama Our main focus so far has been on
providing health management services to
Japanese personnel stationed on overseas
assignments. We have established locally
tailored health management systems for
national employees at some overseas sites,
and are now studying how to expand this
to more locations.
Mori I think communication with the
national personnel must be an important
issue. You also need to give heed to the
issue of diversity, and support maternal
care. I feel that Asahi Kasei has very
advanced systems in this regard. But as the
population’s longevity increases you will
need to support the long-term health of
employees. You need an individual-focused
approach that applies to both men and
women at any age.
Oyama We are working to bring greater
individual focus to our health management
system through direct personal support
and counseling, while enhancing personnel
provisions such as leave-of-absence. For
example, we have a system to enable
employees returning from a health-related
absence to work only limited hours. They
can gradually increase their working hours
as they continue to recover. This is particu-
larly effective in preventing recurrence of
mental health–related problems.
We also analyze both the stress level of
individuals and the stress level at each
workplace, enabling comprehensive mea-
sures for improvement to be implemented.
In concert with the employees’ health
Supporting a healthy diet for Thai employees
Asahikasei Plastics (Thailand) Co., Ltd. is proactively par-
ticipating in a workplace health promotion program led
by the Thai Health Promotion Foundation. They focused
on the company cafeteria, where workers have at least
two meals a day. After a survey of calorie intake, a mul-
tifaceted program was launched including employee
education and the development of menu items empha-
sizing vegetables, with fl avorings and seasonings
screened to ensure that employees found them likeable.
Results included not only decreased obesity among the
workforce, but also reduced joint pain and other gener-
al indications of improved overall health.
insurance association we have begun ana-
lyzing data for each workplace, combining
information on accident and sickness ben-
efi ts, health insurance claims, results of
annual checkups, and stress surveys.
Mori That sounds interesting. You should
be able to fi nd positive examples from the
data that you can replicate throughout the
company.
Koji Mori, M.D.
Professor, Institute of Industrial Ecological Sciences
Director, Occupational Health Training Center
University of Occupational and Environmental
Health Japan
Having gained experience as an industrial physi-
cian, Dr. Mori is now mainly involved in research
related to industrial hygiene practices and the
training of industrial physicians. Based on his
broad range of insight, he provides advice and
counsel on health-related issues to many com-
panies. As a respected specialist in the fi eld of
industrial hygiene, Dr. Mori also serves on gov-
ernment commissions and as an offi cer in many
academic societies.
Oyama The health management staff will
have a big part to play in the sharing of
information across different organizations,
and the lateral extension of positive exam-
ples. As we gain greater visibility of the
data while increasing communication
among health management staff at differ-
ent locations, I think we will fi nd many
positive examples to share regarding haz-
ardous operations, lifestyle-related diseas-
es, antismoking campaigns, and workplace
invigoration.
Mori It sounds like Asahi Kasei’s health
management effort is really moving in the
right direction. In general, when a worker’s
productivity is diminished due to poor
health, a company discounts the lost pro-
ductivity as an economic loss. We need to
move beyond this way of thinking. Rather,
we should consider resources directed
toward employee health as a positive
investment. This includes long-term invest-
ments in ways such as preventing health
problems from occurring or letting ill work-
ers focus on their therapy, and short-term
investments to deal with day-to-day health
complaints.
Health care measures used to be
focused on each individual disease, with an
emphasis on early diagnosis and treatment.
Then we began paying more attention to
prevention. Now we talk about elevating
the overall level of healthiness.
Oyama Asahi Kasei is also working from
the perspective of prevention. As part of our
effort to prevent falls we are providing exer-
cise guidance throughout entire workplaces,
not only for employees who are at high risk.
Our mental health measures include analysis
of the contributing causes, with results
refl ected in training materials. We also ana-
lyze the stress level of workplaces, and
implement improvements.
The objective of our health manage-
ment effort is to foster healthy workplaces
and to enable healthy and fulfi lling working
careers, ultimately contributing to produc-
tive activity by reducing worker time lost
due to health problems. To achieve this, the
industrial health staff is working in close
coordination with each workplace every day.
Mori I expect you will be successful.
Asahi Kasei Report 2015
43
Responsible Care
Safety is a fundamental prerequisite for the continuation of operations as a corporate member of society. To ensure that
every aspect of safety is maintained, the Asahi Kasei Group implements a Responsible Care (RC) program comprising the
six pillars of operational safety, workplace safety and hygiene, environmental protection, health maintenance, product
safety, and community outreach.
Message from the Executive for RC
The spirit of RC is autonomy, responsibility, and open disclosure. At the Asahi Kasei Group, we go
beyond mere compliance with laws and regulations as we operate our businesses with due
consideration for all matters related to the environment, health, and safety. In July 2014, we added a
new RC principle: “Efforts are made to design and develop products which contribute to the
sustainability of the global environment, and to disseminate such products worldwide.” With our
Global Environment Action Committee, we are further deepening and expediting our efforts to
achieve a low-carbon and recycling-oriented society, to protect water resources, and to coexist in
harmony with nature. We are integrating global environmental measures together with business
activities to fulfi ll our social responsibility in accordance with our Group Vision of enabling harmony
with the natural environment. In addition, we advanced a wide range of RC efforts including training
and education at all organizational levels. In certain areas where we can perform better, we are
redoubling our efforts to raise results in line with our commitment to prevent accidents and disasters,
maintain product safety, and promote employee health, for complete achievement of all RC objectives.
Hiroshi Kobayashi
Director
Senior Executive Offi cer
Asahi Kasei Corp.
Responsible Care at Asahi Kasei
RC 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, together with measures to gain greater public trust through disclosure and communication. RC was
conceived in Canada in 1985, and was strengthened on a global scale with the establishment of the International
Council of Chemical Associations (ICCA) in 1990. In 1995, the chemical industry in Japan began implementing RC with the
establishment of the Japan Responsible Care Council (JRCC*). Asahi Kasei was among the founding members of the
JRCC, and played a leading role in the expansion and development of RC in Japan.
RC at the Asahi Kasei Group is not limited to chemicals-related operations but encompasses operations in all fi elds,
including fi bers, homes, construction materials, electronics, and health care.
* JRCC: Operated as the Japan Chemical Industry Association’s RC Committee since April 2011.
RC at the Asahi Kasei Group
Asahi Kasei Group RC Principles
Environmental
Protection
Community
Outreach
Fibers
Chemicals
Operational
Safety
Electronics
Asahi Kasei
Group
Health
Care
Product
Safety
Construction
Materials
Homes
Health
Maintenance
Workplace
Safety and
Hygiene
Throughout the product life cycle from R&D to disposal, utmost consideration is given to
environmental preservation, product safety, operational safety, and workplace hygiene
and health as preeminent management tasks in all operations worldwide.
(cid:129) Environmental preservation is achieved by ameliorating the environmental burden of
operations while giving full consideration to the environment in the development of
new technologies and products.
(cid:129) Efforts are made to design and develop products which contribute to the sustainability
of the global environment, and to disseminate such products worldwide.
(cid:129) Product safety is ensured by evaluating the safety of products and providing safety
information.
(cid:129) The safety of personnel and members of the community is secured through endeavors to
maintain stable operation and improve technologies for safety and disaster prevention.
(cid:129) Workplace accidents are prevented through improvements to the workplace
environment and plant modifi cations to achieve inherent safety.
(cid:129) Maintenance and promotion of employee health is supported by efforts to achieve a
comfortable workplace environment.
In addition to maintaining legal compliance, continuous improvement is pursued through
attainment of self-imposed targets based on results of risk assessment. Public understanding
and trust is gained through proactive communication and information disclosure.
July 7, 2014
RC Management System
The effi ciency and effectiveness of Asahi Kasei Group RC is main-
tained in accordance with our Group RC Management Guidelines
and other internal standards, with the President of the holding com-
pany serving as chair of our RC Committee. Continuous reevalua-
tion and improvement are systematically pursued with
“plan-do-check-act” (PDCA) cycles—for the Asahi Kasei Group as a
whole, within each core operating company and Region,* and with-
in individual plants and facilities.
Certifi ed compliance with internationally standardized manage-
ment systems is obtained for the RC Management System of the
Asahi Kasei Group. We have obtained ISO 14001 environmental
management system certifi cation for environmental protection and
ISO 9001 quality management system certifi cation for product safe-
ty. An Occupational Health & Safety Management System (OHSMS)
is adopted for workplace safety, hygiene, and health.
* A site or group of sites consisting of several plants and facilities of various core
operating companies. Each Region General Manager is responsible for the
unifi ed implementation of RC in the respective Region.
44 Asahi Kasei Report 2015
For more information, please refer to the Asahi Kasei Group CSR Website.
http://www.asahi-kasei.co.jp/asahi/en/csr/
RC objectives and results
FY 2014 RC Objectives
FY 2014 Results
Enhance RC compliance
Improved
Advance RC education and training
Enhance RC at affi liates
Enhance dialog with the public
Avoid all polluting accidents and minor incidents
Promote recycling-oriented society:
RC training course for section managers and assistant chiefs revised
Supplement for assistant chiefs created Follow-up enhanced
Expanded range of affi liates implementing RC
RC at affi liated enhanced thought instructions and support by
core operating companies
RC reports of 3 core operating companies and 8 plant complex
sites were used in community outreach
No polluting accidents, 4 intermediate incidents
• Final disposal of 0.3% or less of generated industrial waste
Goal not reached with fi nal disposal rate of 0.4%
• Recycling rate of at least 87%
Curtail greenhouse gas (GHG) emissions:
Goal reached with recycling rate of 89%
• Reduce CO2 emissions in Japan by 25% from FY 2005 level
23.6% reduction from FY 2005 level
• Reduce CO2 emissions in Japan and overseas by 2% from FY
2010 level
11.8% reduction from FY 2010 level
• Reduce GHG emissions in Japan by 30% from FY 2005 level
31.1% reduction from FY 2005 level
★★★Complete ★★Satisfactory ★Unsatisfactory
FY 2015 RC Objectives
Attainment
★★★ Review RC framework
Enhance RC compliance
★★ Advance RC education and training
★★ Enhance RC at affi liates
★★★ Enhance dialog with the public
★
★★
Avoid all polluting accidents and minor incidents
Promote recycling-oriented society:
• Maintain rate of fi nal disposal at 0.3% of generated
industrial waste or less
• Maintain recycling rate of at least 89%
• Reduce CO2 emissions in Japan by 24.7% from FY 2005
level
★★★
• Reduce CO2 emissions in Japan and overseas by 5% from
FY 2010 level
• Reduce GHG emissions in Japan by 31.8% from FY 2005
level
• LCA/CO2 contribution ratio1 of 7.5
Protect water resources:
• Water resource contribution ratio2 of 6.8
Control emissions of chemical substances:
• Control emissions of PRTR-specifi ed substances
• Control emissions of air and water pollutants
Preserve biodiversity when procuring biological resources
Advance CSR procurement
Avoid all industrial accidents
Monitor for hazards of fi re, explosion, and leaks; implement
remediation
Prevent abnormal reactions, confi rm interlock functions on-site
LCA/CO2 contribution ratio of 7.5
• Achieve LCA/CO2 contribution ratio of 7.9
Water resource contribution ratio of 7.2
Release of PRTR-specifi ed substances and emission of VOCs
reduced by 91% and 87%, respectively, from FY 2000 level
Investigated impact of our business activities on biodiversity,
including use of new materials; no problem found
Implemented CSR procurement
No industrial accidents
Review performed at time of on-site confi rmation for preventing
abnormal reactions; training of managers performed
Confi rmed progress in preparing technical documents for
preventing abnormal reactions and securing interlock functions
★★★
★★★
• Water resource contribution ratio of 7.5
Control emissions of chemical substances:
• Control emissions of PRTR specifi ed substances
• Control emissions of air and water pollutants
★★★ Promote preservation of biodiversity at each site
★★★ Advance CSR procurement
★★★ Avoid all industrial accidents
★★★ Continuously monitor for hazards of fi re, explosion, and
leaks; perform training of managers
★★★ • Continue ongoing review to prevent abnormal reactions
and confi rm interlock functions
Enhance emergency response systems
Emergency drills performed in coordination between head offi ce
and each site
★★★
Review earthquake response and enhance emergency
response systems
Confi rm seismic resistance of high-pressure gas facilities and
formulate plans
Control changes to equipment and operating conditions
Monitor for items in need of replacement and uninspected items,
implement remediation:
• Implement seismic retrofi tting for specifi c buildings as planned
for FY 2014
• Completion of the evaluation of seismic capacity for non-specifi c
buildings and implement retrofi tting as planned for FY 2014
Control confi rmed at RC Audits, etc.
Ongoing review with new perspectives
Completed according to the plan
Evaluation completed on schedule
Avoid all workplace injuries:
• Achieve frequency rate3 of 0.1 or less
• Achieve severity rate4 of 0.005 or less
Deepen utilization of OHSMS:
• Reduce latent risks at workplaces
• Enhance internal audits
• Make the effects of OHSMS more visible
• Ensure thorough compliance with safe working standards
Avoid all accidents in “caught in/between” category:
• No lost-workday injury due to “caught in/between” accidents
0.20
0.005
Review of risk assessment confi rmed at audit
Improvement confi rmed at audit with reference to internal audit
records
Confi rmed at audit with reference to risk level changes
Compliance records confi rmed at audit
Zero lost-workday injuries (one in FY 2013); continued
comprehensive equipment inspection at plants
Satisfactory improvement confi rmed in audit with reference to
check sheets at each site
Self-evaluation results and safety management guidance at each
site confi rmed at audit
Confi rmed issues at audit with reference to work management
records
Proportion of personnel health warning signs generally
unchanged, BMI and ratio of employees who smoke gradually
decreasing
Physical fi tness tests performed as part of fall prevention
program, follow-up implemented
Stress survey and follow-up implemented
Enhance safety management guidance of on-site contractors:
• Enhance safety management structure as the contracting
manufacturer
• Enhance safety management of on-site contractors
Reinforce management of safety on equipment work:
• Enhance implementation of safety management standards
Promote health maintenance and improvement among personnel:
• Promote the prevention of and countermeasures to lifestyle-
related diseases
• Prevent falls
Promote countermeasures to mental health issues and enhance
support system:
• Implement company-wide stress survey, utilize its results, and
perform follow-up
Develop the health management system
• Resolve critical tasks at each site with lateral extension
• Establish the health management system at affi liates and
independent plants
Avoid serious product safety incidents
Enhance management of chemical substances:
• Promote compliance with laws and regulations on
management of chemical substances in Japan and overseas
• Encourage JIPS activities
• Promote JAMP tools
Held internal meetings and interviews on health management
activities
Specialist industrial physicians supporting affi liates and
independent plants
No product safety incidents
★★★
• Resolve critical tasks at each site with lateral extension
• Establish the health management system at affi liates and
independent plants
★★★ Avoid serious product safety incidents
Compliance maintained and system enhanced
Continued risk assessment and public disclosure of safety
documents.
Provided and received information via MSDSplus and AIS,
cooperated with dissemination of JAMP-IT
★★★
Enhance management of chemical substances:
• Promote compliance with laws and regulations on
management of chemical substances in Japan and overseas
• Encourage JIPS activities
• Promote JAMP tools
Number of people our health care business contributed to:
• 32% increase from FY 2010 level
Number of residents in Hebel Haus™ homes:
• 14% increase from FY 2010 level
24% increase from FY 2010 level
16% increase from FY 2010 level
★★
★★★
Number of people our health care business contributed to:
• 40% increase from FY 2010 level
Number of residents in Hebel Haus™ homes:
• 20% increase from FY 2010 level
1 LCA is used to determine the amount of reduction in CO2 emissions enabled by Asahi Kasei products and technologies in comparison with conventional products and technologies. The ratio is calculated by dividing this
amount by the global CO2 emissions of the entire Asahi Kasei Group.
2 The water resource contribution ratio is calculated by adding up the total quantity of water clarifi ed and recycled using Asahi Kasei fi ltration technology and dividing this by the quantity of the Asahi Kasei Group’s water intake.
3 Number of accidental deaths and injuries resulting in the loss of one or more workdays, per million man-hours worked.
4 Lost workdays, severity-weighted, per thousand man-hours worked.
Asahi Kasei Report 2015
45
★★★ Control changes to equipment and operating conditions
★★★ Monitor for items in need of replacement and uninspected
items, implement remediation:
★★★
★★★
★★
• Advance seismic retrofi tting of specifi c and non-specifi c
buildings
Avoid all workplace injuries:
• Achieve frequency rate of 0.1 or less
• Achieve severity rate of 0.005 or less
Deepen utilization of OHSMS:
• Reduce latent risks at workplaces
★★★
• Enhance internal audits
• Make the effects of OHSMS more visible
• Ensure thorough compliance with safe working standards
Avoid all accidents in “caught in/between” category:
• No lost-workday injury due to “caught in/between”
★★★
accidents
Avoid fi re, explosion, chemical injury, poisoning, etc. related
to chemical substances
• Zero lost-workday injuries related to chemical substances
Prevent injuries during working hours unrelated to operating
procedures and during commuting
• Prevent lost-workday injury related to stairways
Enhance safety management guidance of on-site contractors:
• Enhance safety management structure as the contracting
manufacturer
• Enhance safety management of on-site contractors
Reinforce management of safety on equipment work:
• Enhance implementation of safety management standards
Promote health maintenance and improvement among personnel:
• Promote the prevention of and countermeasures to
lifestyle-related diseases
Prevent falls
• Implement company-wide stress survey, utilize its results,
and perform follow-up
★★★
★★★
★★★
★★★
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Environmental protection
The Asahi Kasei Group’s environmental protection measures include efforts for the achievement of a low-carbon
society, the establishment of a recycling-oriented society, and the preservation of biodiversity. As our operations
involve the use of large volumes of chemical substances, we implement measures under our ISO14001 environ-
mental management system to prevent pollution-causing accidents.
Overview of environmental impacts
The diagram below describes the environmental impacts of business
activities at Asahi Kasei Group plants. As in our Group Vision of
“harmony with the natural environment,” the Asahi Kasei Group
considers environmental preservation to be one of the most impor-
tant tasks. Our major focuses are on 1) prevention of global warm-
ing, 2) promotion of a recycling-oriented society, 3) management of
chemical substances, and 4) preservation of biodiversity. For preven-
tion of global warming, we have established new indexes and tar-
gets to curtail greenhouse gas emissions to be achieved by fi scal
2020. Regarding promotion of a recycling-oriented society, we
achieved zero emissions of industrial wastes in fi scal 2010 and are
working to maintain this. Furthermore, as a chemical company, we
are working to promote safe handling of chemical substances and
actively provide safety information. We are also making efforts to
reduce the impact of our business activities on biodiversity.
Quantitative indicators and targets to curtail
global warming
In June 2012, we established our Global Environment Committee to
oversee an expanded scope of activities related to global warming.
At its second meeting, the Global Environment Committee formu-
lated a policy on environmental initiatives that apply to the entire
Asahi Kasei Group. Quantitative indicators and targets were revised
in order to clearly visualize and confi rm ongoing progress of these
environmental initiatives.
Asahi Kasei Group main environmental impacts (FY 2014)
Water
272 million m3
Asahi Kasei Group plants
Energy
5.4×1016 J
Including hydroelectric power
(converted in accordance with Japan’s
Act on the Rational Use of Energy)
INPUT
Materials
Including 4.21 million tons
PRTR-specified
substances
OUTPUT
Atmospheric emissions
Release to soil
SOx:
NOx:
Soot and dust:
PRTR-specified substances:
5,700 tons
3,700 tons
180 tons
360 tons
1,300 tons
Regulated VOCs:
Greenhouse gas emissions:
4.06 million tons CO2 equivalent
Effluent water
Volume:
COD of effluent:
Nitrogen:
Phosphorus:
PRTR-specified substances:
210 million m3
810 tons
5,900 tons
32 tons
78 tons
PRTR-specified substances:
0 tons
Industrial waste
Effluent waste:
388,000 tons
Of which, landfilled: 1,500 tons
Products
The Asahi Kasei Group’s global environmental policy
1 Contributing to a low-carbon
society
4 Achieving harmony with
nature
2 Preserving water resources
3 Promoting a recycling-
oriented society
5 Overseas locations (factories)
6 Supply chain
Contributing to a low-carbon society
As a participant in the Commitment to a Low Carbon Society
launched in April 2013 by the Japan Chemical Industry Association
and Nippon Keidanren, the Asahi Kasei Group is implementing
activities in line with this commitment. We will also pursue activities
under global indicators and targets set for our overseas manufactur-
ing sites as well.
The Asahi Kasei Group’s activities for building a low-
carbon society
1. Reducing greenhouse gas (GHG) emissions of the Asahi Kasei Group
(1) CO2 and GHG emissions in Japan
(2) Global CO2 emissions
(3) Scope 3 emissions*
2. Helping reduce CO2 emissions throughout the entire lifecycle of
products
3. Making international contributions
4. Developing innovative new technologies
* Scope 3 emissions:
Greenhouse gases emitted indirectly by a company throughout its supply chain.
46 Asahi Kasei Report 2015
The Asahi Kasei Group’s environmental initiative framework
Global Environment
Committee
This committee deliberates and adopts group-wide environmental measures. It is chaired by the holding company Executive for RC, vice-
chaired by the General Manager of Corporate Research & Development, and has the Executives for the Environment of the core operating
companies as members. It meets twice per year.
Global Environment
Action Committee
This committee is chaired by the General Manager of Corporate ESH & QA, and has the RC Promoters of the core operating companies
and Corporate Research & Development as members. Based on decisions of the Global Environment Committee, it develops concrete
measures. It meets twice per year.
LCA Committee
This committee consists of the chair from the holding company and members from the core operating companies and from Corporate
Research & Development. It promotes life cycle assessment (LCA) throughout the Asahi Kasei Group and performs LCA for the Group’s
products and technologies, including those under development. It meets fi ve to six times per year, and reports results of its activities to the
Global Environment Committee.
Reducing GHG emissions from production processes
The Asahi Kasei Group’s GHG emissions from production processes in
fi scal 2014 were equivalent to 4.06 million tons of CO2, which repre-
sents a reduction of 31% compared to the 5.92 million tons from our
baseline year of fi scal 2005. Signifi cant factors that contributed to this
reduction include the suspension of ammonia and benzene production,
and the start of biomass power generation. Compared to the emissions
level in 1990, the index year set under the Kyoto Protocol, we continue
to maintain a reduction of GHG emissions by more than 50%, most
notably through the development of technology for thermal decompo-
sition of nitrous oxide (N2O) byproduct.
Refer to “Financial and non-fi nancial highlights” on page13.
Scope 3 emissions
The domestic Japanese portion of Scope 3 emissions over time
has been calculated for all operations except Asahi Kasei Pharma,
yielding data on 99% of such emissions for the entire Asahi
Kasei Group.
Life cycle assessment of reduced CO2 emission
Although CO2 is generated during the manufacture of materials and
intermediate products in the Asahi Kasei Group, there are also many
examples of products which contribute to reduced CO2 emissions dur-
ing use. LCA calculation takes such contribution into account and
determines the amount of CO2 reduction achieved over the product life
cycle. By expanding sales of such products and commercializing new
products and technologies that enable signifi cant reduction of CO2
emission based on LCA, we contribute to the overall reduction of
greenhouse gas emission throughout the supply chain.
Global warming conscious products
In April 2012, we formulated guidelines on global warming con-
scious products. Having formulated a similar set of guidelines in
2003 for eco-friendly products, the Asahi Kasei Group decided to
formulate a new set of guidelines for global warming conscious
products given recent demand both in Japan and overseas.
In accordance with these guidelines, we have certifi ed the prod-
ucts in the following chart as global warming conscious products.
Scope 3 emissions in Japan
(Million tons CO2 equivalent)
8
7.20 7.22 7.00 6.82
6.90
6.70
6.03
5.91
5.63
5.67
21.4%
7
6
5
4
3
2
1
0
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
FY
Purchased products and services
Capital goods
Fuel and energy related activities not included in Scope 1 or Scope 2
Upstream transport/distribution
Waste emitted from businesses
Business travel
Employees’ commuting
Upstream leased assets
Use of sold products
End-of-life disposal of sold products
Our Scope 3 emissions have steadily declined from fi scal 2005 to fi s-
cal 2014, with some fl uctuation due to the global fi nancial crisis,
and in fi scal 2014 they were some 21% lower than in fi scal 2005.
This reduction can be attributed to the launch and growing
sales of Hebel Haus™ products with power generation, effi ciency,
and conservation functions which reduced Category 11 emissions
(use of sold products), and to the reduced use of fossil resources
and fossil fuels which reduced Category 12 emissions (end-of-life
disposal of sold products).
List of global warming conscious products
Rank
Product name
A
A
A
A
A
A
B
B
B
B
B
B
B
C
C
C
Hall ICs and Hall elements for DC motors used in air
conditioners
Ion-exchange membrane electrolysis system for caustic soda
Synthetic rubber for fuel-effi cient tires
Phosgene-free polycarbonate production process
Fusion™ 3D knitted fabric for energy saving humidifi er
fi lters
Hebel Haus™ with power generating, effi ciency, and
conservation functions
Hebel Haus™ with next-generation insulation
Hipore™ lithium-ion battery separator for electric and
hybrid electric vehicles
Neoma™ phenolic foam insulation panels for homes
Heat-absorbing stretch fi ber for cool-feeling innerwear
Sunfort™ photosensitive dry fi lm
Hebel Haus™ two-generation homes
Asaclean™ plastic molding machine purging agent
Renovation to add solar panels
Polymer membrane for fuel cells
Renovation to improve window insulation
Rank A: LCA/CO2 reduction of at least 500,000 t-CO2/y
Rank B: LCA/CO2 reduction of at least 100,000 t-CO2/y
Rank C: LCA/CO2 reduction of at least 10,000 t-CO2/y
Asahi Kasei Report 2015
47
Preservation of biodiversity
Basic policy
To ensure the sustainable utilization of living resources, due consid-
eration is given to reducing the impact of our business activities on
biodiversity, and we have established guidelines for the preservation
of biodiversity. Based on these guidelines, the Asahi Kasei Group
began examining the impact of our business activities on biodiver-
sity. In order to promote business activity with due concern for bio-
diversity, we are working to raise awareness among personnel by
various means including our RC education program.
Notable actions in fi scal 2014
Through the examination of the impact of our business activities on
biodiversity, we came to realize the extreme importance of biological
resources and ecosystem services for our operations. In any case of
ecosystem services being newly used or a change in use of biologi-
cal resources, we confi rm that no problem will be caused. Our
plants and offi ces are undertaking a variety of initiatives to preserve
biodiversity in each location.
Promoting a recycling-oriented society
The Asahi Kasei Group is working to reduce the amount of
industrial waste for fi nal disposal through the “3-Rs” of reduc-
tion, reuse, and recycling in order to help build a recycling-
oriented society.
In fi scal 2014, we adopted targets of a fi nal disposal rate of
0.3% or less and a recycling rate of 87% or more of the total
amount of industrial waste generated. Although we achieved a
recycling rate of 89%, we missed our target fi nal disposal rate by
achieving 0.4%. We are working to gain further improvements
through increased separation and greater selectivity in disposal
contractors.
Waste containing PCBs* is stored under strict control in
stainless steel vessels. Plans for disposal are advancing, including
for waste with minimal amounts of PCBs.
We enhanced our management of off-site treatment of
industrial waste by expanding the use of electronic manifests.
We also performed periodic on-site inspections of consigned
fi rms to ensure that proper disposal is performed in accordance
with sound systems of control.
* PCBs (polychlorinated biphenyls) are persistent and pose a risk to the living
environment and human health. Their manufacture and use is essentially
prohibited in Japan.
Flow of industrial waste, FY 2014*
(thousand tons)
On-site treatment
Off-site treatment
Waste generated
388.0 (100%)
Recycling
115.0 (29.5%)
Volume reduction by
incineration, dehydration, etc
36.0 (9.3%)
On-site landfill
0.0 (0.0%)
Effluent waste
237.0 (61.1%)
Recycling
232.0 (59.6%)
Volume reduction by
incineration, dehydration, etc
4.1 (1.1%)
Final disposal
1.5 (0.4%)
Reduction of chemical substances
The Asahi Kasei Group makes an effort to reduce the release of
chemical substances. These chemicals include substances specifi ed
in the PRTR* Law, and other substances which we have voluntarily
designated for reduction. Priority for reduction is based on the
degree of hazardousness and amount of release.
* Excluding industrial waste generated at the construction sites of Asahi Kasei Homes.
* PRTR: Pollutant release and transfer register. Under the PRTR Law, releases to the
environment and off-site transfers of specifi c hazardous chemical substances
must be monitored and recorded for each production facility and operating site.
Results are reported to the government, which publishes aggregate results.
Releases of PRTR-specifi ed substances
Atmospheric emissions of VOCs*
（Tons）
5,000
4,890
1,000
500
0
680
680
480
490
440
（Tons）
12,000
10,000
10,400
8,000
6,000
4,000
2,000
0
2,800
2,500
1,300
1,300
1,300
‘00
‘10
‘11
‘12
‘13
‘14
FY
‘00
‘10
‘11
‘12
‘13
‘14
FY
to the atmosphere
to water
Note:
• No release to soil
• The number of PRTR-specifi ed substances was changed due to a regulatory
revision in FY2010.
* VOC: Volatile organic compound. Although the term generally applies to any
organic compound which is in gaseous state at the time of release, regulations
for the control of their release exclude methane and some fl uorocarbons which
do not form oxidants.
48 Asahi Kasei Report 2015
Operational safety
To achieve safe operations, it is essential to build highly safe plants based on process hazard assessment prior to con-
struction, to perform sound plant maintenance, and to operate facilities in a stable and safe manner. The Asahi Kasei
Group avoids industrial accidents through risk assessments prior to the construction of new plants, periodic inspec-
tions of existing plants performed by auditors specialized in fi re and explosion prevention, process reviews from the
perspective of preventing abnormal reactions and ensuring interlock functions, and process reviews corresponding to
the age of facilities.
Management of operational safety
Our ongoing, autonomous program to ensure operational safety
includes safety assessment and hazard identifi cation in accordance
with a basic safety management policy, and specifi c plans are imple-
mented on both annual and multi-year cycles.
Safe, stable plant operation
Given our diverse range of operations that include chemicals &
fi bers, homes & construction materials, electronics, and health care,
the Asahi Kasei Group has plants with a wide variety of different
characteristics. No single approach to safety would be appropriate
for all plants.
We employ a systematic process to tailor the safety effort to
each plant’s specifi c requirements. This includes the use of PDCA
cycles to ensure the appropriateness of the maintenance standards
for each individual unit of equipment.
Training for operational safety
At our petrochemical sites in Mizushima and Kawasaki, the Asahi
Operation Academy (AOA) serves as the training center to cultivate
the skills necessary to operate petrochemical plants. AOA teaches
the principles and structures of equipment, heightening the ability
to identify the cause of equipment failure and respond to it.
Miniature plants and simulators are used at AOA to provide hands-
on experience with controls and instrumentation.
Workplace safety
The effort to prevent workplace accidents is integrated in a comprehensive OHSMS* program that combines
conventional safety initiatives—such as tidiness/orderliness/cleanliness, reporting of near-accidents and potential
hazards, hazard prediction analysis, safety patrols, and case studies—with risk assessments and a prevention-
oriented plan-do-check-act (PDCA) system.
* Occupational Health and Safety Management System. A standardized management system used to confi rm that continuous improvement is being applied to measures to
minimize the risks of workplace injuries and to prevent the emergence of future risks.
Occurrence of workplace injuries
Of the 10 lost-workday injuries that occurred during fi scal 2014,
none were in the “caught in/between” category, which we had
strived to eliminate. Although this was a signifi cant achievement
considering that 17% of lost-workday injuries were in this catego-
ry from fi scal 2004 to 2013, we continue to reduce the risk of
accidents in the “caught in/between” category by eliminating
sources of danger and enhancing safeguards. In fi scal 2012, we
began an ongoing program of comprehensive plant inspections
that incorporates fresh perspectives from outside experts and from
our personnel of different sites and different core operating com-
panies. We also formulated a set of guidelines on machinery safety
in accordance with ISO12100* and in fi scal 2014 began machin-
ery risk assessments by designers when building new equipment
or modifying existing equipment, with deliberation among related
parties as part of the equipment inspection. The 3 categories of
fall on the same level, fall from height, and traffi c accident
accounted for 80% of all lost-workday injuries in fi scal 2014. To
prevent these common accidents that could occur even in non-
factory workplaces such as sales offi ces or headquarters, we are
promoting safety activities in all workplaces and renewing our
emphasis on a culture of safety.
* ISO12100 specifi es principles for achieving safety in machinery design and
principles of risk assessment and risk reduction.
Incidence of lost-workday injury by event category,
FY 2014 in Japan
Incidence of lost-workday injury by event category,
FY 2004–2013 in Japan
Fall on same level 20%
Fall from height
10%
Contact with
high-temperature
substance/object
20%
Traffic accident 50%
Total
10 cases
Traffic
accident 14%
Others
8%
Hit by flying/
falling
object
2%
Contact with
high-temperature
substance/
object
4%
Explosion
or rupture 4%
Fire
1%
Caught in/
between machinery
17%
Caught in
something else
3%
Fall on
same level 19%
Total
123 cases
Fall from height 13%
Kickback/overexertion 12%
Asahi Kasei Report 2015
49
Frequency rate*
(%)
1.2
1.0
0.8
0.6
0.4
0.2
0.0
1.05
0.88
0.36
0.98
0.72
0.21
0.94
0.82
0.40
1.0
0.85
0.16
1.06
0.76
0.20
Severity rate*
(%)
0.20
0.169
0.153
0.12
0.12
0.08
0.10
0.10
0.17
0.09
0.09
0.05
0.005
0.04
0.013
0.005
0.16
0.12
0.08
0.04
0.00
‘10
‘11
‘12
‘13
‘14
FY
‘10
‘11
‘12
‘13
‘14
FY
Asahi Kasei Group
Chemical industry, Japan
Manufacturing industries, Japan
Asahi Kasei Group
Chemical industry, Japan
Manufacturing industries, Japan
Note: Fiscal years for the Asahi Kasei Group, calendar years for the chemical
Note: Fiscal years for the Asahi Kasei Group, calendar years for the chemical industry and
industry and manufacturing industries in Japan.
manufacturing industries in Japan.
* Frequency rate: Number of accidental deaths and injuries resulting in the loss of
one or more workdays, per million man-hours worked. Our goal of 0.1 or less is
extremely ambitious. At a plant with 100 workers, it would mean only one
worker in 50 years suffered from a workplace injury which resulted in a day off.
* Lost-workdays, severity-weighted, per thousand man-hours worked.
Health maintenance
The Asahi Kasei Group implements various activities to help employees maintain and advance their mental and
physical well-being in accordance with its health management guidelines, including screening for lifestyle-
related diseases and mental health checkups.
Enhanced health management framework
During fi scal 2014, we began a series of interviews to confi rm
whether the activities of our health management centers at each
site, including the duties of our industrial physicians and health
nurses, are being performed in accordance with the Industrial Safety
and Health Law and our health management guidelines. Further
guidance and support is being provided as necessary.
Health maintenance and promotion for employees
The Asahi Kasei Group has provided employees with health guid-
ance and exercise guidance by outside experts and health mainte-
nance staff in each site.
In fi scal 2014, the results of annual checkups indicated that the
proportion of employees with health warning signs rose slightly, in
line with an increase in the average employee age, while BMI and
the ratio of employees who smoke was generally unchanged.
Since fi scal 2013, we have promoted the use of our health
Ratio of employees with health warning signs
60
50
40
30
20
‘12
‘13
‘14
FY
Average age
Ratio of employees with health warning signs (%)
BMI
Ratio of employees who smoke (%)
50 Asahi Kasei Report 2015
improvement program, a tool for health management that was
revised to enable more easy use of specifi ed health guidance. This
program is especially useful for the maintenance and improvement
of employees’ health at independent plants where on-site health
care staff is limited, and also as an outside resource for affi liated
companies.
Measures to prevent falling
Based on the falling risk assessment manual issued by the Japan
Industrial Safety & Health Association, in fi scal 2013 we prepared a
manual for physical fi tness tests to prevent falling. In fi scal 2014 we
began using this manual to assess falling risks of our employees, fol-
lowed-up with guidance by industrial physicians. This has been com-
pleted at about half of our sites, with preparations advancing at the
remaining sites.
Mental health and care
The Asahi Kasei Group is working to improve the workplace envi-
ronment by enhancing its four complimentary approaches to care in
accordance with its mental health care guidelines. For self-care by
individual employees and care by industrial medical staff, in fi scal
2013 we began full implementation of an intranet-based electronic
diagnosis system developed by Fujitsu Software Technologies Ltd.
The system has been used to survey stress at 24 sites, with appropri-
ate follow-up implemented. Ongoing stress surveys will be per-
formed annually at each site. In addition to surveying the stress level
of individual employees, this system analyzes workplace stress to
help improve the workplace environment as part of our effort for
care by line of authority.
Product safety
To ensure the provision of products that the customer can use safely and reliably, the Asahi Kasei Group con-
stantly strives to improve product safety and product quality, while maintaining consistent production control. In
fi scal 2014, we once again met our target of no serious product safety incidents.
Product safety guidelines
Group-wide product safety guidelines have been prepared to
secure product safety and prevent the occurrence of product
safety incidents. Specifi c product safety measures for individual
products are applied by each core operating company in accor-
dance with the guidelines.
Prevention of product safety incidents
Consumer satisfaction and safety
Products sold by the Asahi Kasei Group range from industrial
materials to consumer products. Many of the materials we sell
are used in products which are purchased by ordinary consumers.
Consumer satisfaction is therefore the ultimate measure of our
success in the provision of safe, high-quality products. We strive
to maintain product quality and safety through continual atten-
tion to production control to ensure that the products used by
consumers are completely free of safety defects.
Managing chemical substances
To ensure the safety of products and production processes in the Asahi Kasei Group, we maintain awareness of
the properties of the chemical substances we use, and manage them strictly and appropriately throughout each
phase from materials procurement to production, use, and disposal.
The Asahi Kasei Group’s effort
Global trends on management of chemical substances
The Asahi Kasei Group is enhancing the management of chemical
substances in accordance with relevant global trends. Many interna-
tional organizations and private-sector associations are promoting
chemical management based on risk assessment and advancing
product stewardship in supply chains.
Committing to the RC Global Charter
On May 30, 2008, the President of Asahi Kasei Corp. signed a letter
of commitment to the Responsible Care Global Charter (RCGC) on
behalf of the Asahi Kasei Group, indicating our recognition of the
importance of RC and especially chemical substance control. The
RCGC was launched by the International Council of Chemical
Associations (ICCA) with a UN resolution. When RC Global Charter
was amended in 2014, the President of Asahi Kasei Corp. again
signed it on November 19, 2014.
Developments in management of chemical substances
Organization
Related items
Development
UN
OECD
EU
Resolutions at international conferences
concerning global environment
Safety checks on existing chemicals
Implement new regulation on chemicals
• Resolution to minimize adverse effects on human health and the environ-
ment due to production, handling, and use of chemical substance; imple-
mentation of Action Plans to achieve certain targets by 2020
• Implementation of Globally Harmonized System (GHS)* for the classifi ca-
tion and labeling of chemicals
• Collection of safety data under the High Production Volume (HPV)
Chemicals initiative by each member country and its chemical industry
• REACH Regulation for the registration, evaluation, authorization, and
restriction of chemicals
• RoHS Directive for the restriction of the use of certain hazardous substanc-
es in electrical and electronic equipment
Outline of efforts for product safety and chemical
substance management
The Asahi Kasei Group routinely performs employee education on
product liability, chemical product safety, and equipment safety,
along with risk assessment. We examine the substance of com-
plaints about our products and apply lessons learned to our quality
assurance systems (QMS and GMP) as part of the continuing effort
to ensure product safety and avoid complaints.
With regard to the safety of chemical products, the Global
Harmonized System of Classifi cation and Labeling of Chemicals
(GHS) has been introduced in Japan in accordance with a United
Nations advisory. We have revised our SDSs for compatibility with
GHS and have labeled our chemical products to make safety infor-
mation more visible.
In addition to their useful properties, many of our products are
potentially hazardous if handled improperly. We therefore provide a
range of information for the safe use and handling of our products, con-
tinuously review the safety the of our products, and strive to ensure that
the safety information that we provide is easy to understand and apply.
* Globally Harmonized System of Classifi cation and Labeling of Chemicals (GHS):
An international system of standardized hazard categories for chemical products,
together with harmonized labeling.
Asahi Kasei Report 2015
51
Respect for Employee Individuality
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 careers, to be key to business performance.
Our human resources policies are focused on the maintenance and reinforcement of a corporate culture emphasizing
Asahi Kasei characteristics, the personal growth of each employee, and the creation and expansion of business
through superior people and organizations, based on the understanding that the exceptional power of our people
and organizations is the source of our competitive strength.
Human Resources Principles
The Human Resources Principles of the Asahi Kasei Group are a distillation of the values and beliefs held in com-
mon by all employees, a key aspect of a corporate culture where personal growth and corporate development
are mutually reinforcing.
Corporate Commitment
Basic Expectations
Expectations of Leaders
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.
• 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
Human resource development
Group Masters
The Asahi Kasei Group employs a “Group Masters” program to rec-
ognize employees who have developed and exercised extraordinary
expertise and skills that hold universal value, and to facilitate appli-
cation thereof throughout the group. As of April 2015, 92 Group
Masters are designated: 2 as Group Fellows, 22 as Senior Group
Experts, and 68 as Group Experts, with rank and remuneration com-
mensurate with division general manager, department general man-
ager, and section manager, respectively.
Development of global human resources
To support the expansion of world-leading businesses under our
medium-term management initiative “For Tomorrow 2015” from
the perspective of human resources, we are implementing measures
such as internship programs for young personnel, expanding over-
seas study programs, and holding training sessions including an
Intercultural Communication Program for personnel at overseas sub-
sidiaries.
Development of engineers and technical specialists
Under “For Tomorrow 2015,” we are accelerating the creation of
new businesses which provide new value for society. Engineers and
technical specialists in R&D and manufacturing are essential human
resources for successful business development, and therefore we are
reinforcing measures to create better, more vibrant workplaces for
them as well as examining programs that provide a wide range of
career opportunities to enable their personal and professional growth.
Valuing human rights and diversity
Basic policy
Corporate HR & Labor Relations leads the effort to ensure that there
will be no discrimination on the basis of gender, nationality, age, or
otherwise, to maintain a lively workplace culture which enables per-
sonnel to perform at their best, to advance the employment of persons
with disabilities, and to rehire personnel after the mandatory retirement.
Fiscal 2015 hiring
In April 2015, 333 new graduates were hired: 250 men and 83
women. In addition, 61 persons were hired in mid-career between
April 2014 and March 2015.
Expansion of opportunities for women
In 1993, we established a dedicated corporate organ (now Diversity
Promotion Group) to promote equal opportunity, and have proac-
tively increased the proportion of women hired and expanded the
distribution of job assignments for women. While only fi ve employ-
ees at the rank of manager or above were women in 1993, this had
risen to 454 in June 2015. The variety of posts where women are
assigned also continues to expand.
52 Asahi Kasei Report 2015
Number of women as managers*
500
410
370
454
317
344
400
300
200
100
0
‘11/6
‘12/6
‘13/6
‘14/6
‘15/6
* Results as of June 30 each year for personnel employed by Asahi Kasei Corp., Asahi
Kasei Chemicals Corp., Asahi Kasei Fibers Corp., Asahi Kasei Homes Corp., Asahi
Kasei Construction Materials Corp., Asahi Kasei Microdevices Corp., Asahi Kasei
E-materials Corp., Asahi Kasei Pharma Corp., and Asahi Kasei Medical Co., Ltd.
Preventing harassment
Sexual harassment is clearly prohibited in the Asahi Kasei Group by
our Corporate Ethics – Code of Conduct and by our corporate
employment regulations. Prevention is reinforced through training at
each level of promotion in rank, and through periodic company-
For more information, please refer to the Asahi Kasei Group CSR Website.
http://www.asahi-kasei.co.jp/asahi/en/csr/
wide training within each core operating company for conformance
with corporate ethics. A central point of contact is established for
consultation about related issues and concerns in the Asahi Kasei
Group.
Employment of persons with disabilities
Asahi Kasei Ability Corp. was established in 1985 for the employ-
ment of disabled persons, performing a wide range of services for
the Asahi Kasei Group, including data entry, digitizing documents,
website design, printing of business cards, document printing and
binding, dispatch of sample products, cleaning, copying, and planter
box gardening.
Rate of employment of disabled persons at applicable
Group companies*
(%)
2.2
1.94
1.98
2.12
2.08
2.05
2.00
2.1
2.0
1.9
1.8
1.7
‘11/6
‘12/6
‘13/6
‘14/6
‘15/6
Asahi Kasei Group
Legal minimum
* Results as of June 1 each year at applicable Group companies. Calculation based on
total employment of 24,037.5 persons in the 19 applicable companies. As of June 1,
2015, the number of disabled persons employed by Asahi Kasei Ability Corp. stood
at 314.0 of the total 492.0 disabled employees. Calculated in accordance with the
Act on Employment Promotion etc. of Persons with Disabilities.
Balancing work and family life
Basic policy
We provide various forms of support for personnel to work with
security and vitality in accordance with their individual circumstances
and values from the perspective of balancing work and family life.
Parental leave
Our parental leave is available through the fi scal year in which the
child turns three years old. In fi scal 2014, 457 personnel utilized
parental leave. This is included 231 men, which is 40% of those
who were qualifi ed, and 226 women.
Employees using parental leave*
300
226
179
190
240
242
212
235
233
226 231
200
100
0
‘10
‘11
‘12
‘13
‘14
FY
Women
Men
* Results for personnel employed by Asahi Kasei Corp., Asahi Kasei Chemicals Corp.,
Asahi Kasei Fibers Corp., Asahi Kasei Homes Corp., Asahi Kasei Construction
Materials Corp., Asahi Kasei Microdevices Corp., Asahi Kasei E-materials Corp.,
Asahi Kasei Pharma Corp., and Asahi Kasei Medical Co., Ltd.
Main provisions to support balance in work and family life
Support for family care
Our personnel are allowed to take leave of up to one year for the
purpose of attending to any family member who requires care.
Enhanced provisions for days off and fl exible working hours are also
available to help personnel continue working while providing care
for family members. In fi scal 2014, 6 personnel utilized leave of
absence for family care.
Leave of absence to accompany spouse on
overseas assignment
As globalization continues to advance, an increasing number of per-
sonnel have a spouse who is transferred to an overseas assignment.
In fi scal 2013 we adopted a provision for such personnel to take a
leave of absence to accompany their spouses living overseas.
In fi scal 2014, 7 personnel utilized this provision.
Employee survey
Management and labor work in concert to resolve people-related
issues based on mutual understanding and awareness. We regularly
perform a survey of employees to gauge improvements to previous-
ly identifi ed problems and track changes in employee perceptions
over time. Survey results are also utilized in the evaluation of various
measures and the consideration of new measures.
e
v
a
e
l
/
f
f
o
e
m
T
i
s
r
e
h
t
O
Pregnancy
Delivery
Child-rearing
One
year old
Two
years old
Three
years old
Entry to
elementary
school
End of
third grade
Family care
Time off for
morning sickness
42 days
Maternity leave
56 days
Plus 14 days off
before/after delivery
Up to April 1
after child reaches
three years of age
Expanded application of unused paid days off to care for family members (up to 40 days)
Parental leave
Leave of absence for
family care
(one year in total)
Time off for family care
Time off for family illness
Shortened working hours for child-rearing
Women only
Financial assistance for employing babysitters/caretakers
“Kids Support”
shortened working
hours for
child-rearing
Shortened working
hours for family care
(one year in total)
Flexible working
hours for family care
Asahi Kasei Report 2015
53
Corporate Citizenship
We are committed to advancing in harmony with society from a global perspective through fair information disclosure
and the proactive employment of management resources for corporate responsibility and citizenship.
Stakeholder dialog
Different corporate organs hold responsibility for fair and open dialog with each of our different groups of stakeholders.
Stakeholders
Customers
Shareholders,
investors
Suppliers
Local
communities
Corporate
Communications at
Asahi Kasei Corp.
Communications
sections at core
operating
companies
Marketing and sales
departments,
consumer contact
offices
Investor Relations at
Asahi Kasei Corp.
Purchasing and
logistics sections,
environment and
safety sections at
production sites
General affairs and
administration
sections at
production sites
(cid:115) Issuing news
releases
(cid:115) Holding news
conferences
(cid:115) Website disclosure
of information
(cid:115) Face-to-face
discussion by
marketing and sales
personnel
(cid:115) Taking inquiries via
telephone, website,
etc.
(cid:115) Meeting with
securities analysts
and institutional
investors
(cid:115) Seminars for
Individual investors
(cid:115) Website disclosure
of information
(cid:115) Taking inquiries via
telephone, website,
etc.
(cid:115) Safety discussion
forums
(cid:115) Information
exchange forums
(cid:115) Periodic community
dialog meetings
(cid:115) Community
outreach initiatives
(cid:115) Issuing news
releases
(cid:115) Holding news
conferences
(cid:115) Issuing documents
for information
disclosure
(cid:115) Website disclosure
of information
(cid:115) Responding to
CSR-related
questionnaires
(cid:115) Promoting social
contribution
activities
Asahi Kasei Group
Customer relations
For materials, intermediates, and devices, communication with our customers is handled by sales departments
and R&D departments. For consumer products such as Saran Wrap™ and Frosch™, pharmaceuticals, and Hebel
Haus™, communication with our customers is handled by the customer support center of each product.
Investor relations
We strive to disclose information in a timely and fair manner to enable our domestic and international investors
to gain an accurate understanding of the Asahi Kasei Group.
Shareholder distribution
Please refer to “Return to Shareholders and Share Information”
on page 3.
IR meetings with institutional investors and
securities analysts
In fi scal 2014, Investor Relations (IR) held 293 meetings with institu-
tional investors and securities analysts in Japan, including quarterly
results briefi ngs and an annual management briefi ng with the
President. We proactively hold meetings with investors with the aim
of deepening their understanding of key businesses of Asahi Kasei.
In addition, 53 meetings were held overseas.
In total, 346 meetings were held to directly provide information
to institutional investors and securities analysts during the year, with
a cumulative attendance of 1,344. We also provide a wide variety of
information for investors on our website.
Seminars for individual investors
To provide individual investors with a better understanding of the
operations of the Asahi Kasei Group, 27 seminars were held in fi scal
2014, with total attendance of 2,876 individual investors.* We will
continue to provide accurate and timely information to individual
investors through direct com-
munications, the corporate
website, and articles published
in magazines for individual
investors.
* Excluding participants of the 123rd
Ordinary General Meeting of
Shareholders.
54 Asahi Kasei Report 2015
For more information, please refer to the Asahi Kasei Group CSR Website.
http://www.asahi-kasei.co.jp/asahi/en/csr/
Principled supplier relationships
A relationship of mutual trust with our suppliers is fostered through fair and principled purchasing practices
based on regulatory compliance and respect for the environment and human rights.
Purchasing and Procurement Policy
Purchasing departments throughout the Asahi Kasei Group regard
suppliers as important partners and work to build relationships with
them based on sincerity in accordance with our Group Philosophy.
To this end, we are placing greater emphasis on CSR in accordance
with our Purchasing and Procurement Policy which was revised in
fi scal 2011.
The Asahi Kasei Group Purchasing and Procurement Policy
Basic Policy
1. Compliance
We uphold all laws relevant to purchas-
ing transactions as well as the Asahi
Kasei Group’s internal regulations.
2. Fairness and
impartiality
We uphold all laws relevant to purchas-
ing transactions as well as the Asahi
Kasei Group’s internal regulations.
3. Open door
principle
We provide fair opportunities to any
potential supplier, both domestic and
overseas.
4. CSR-focused
procurement
We perform purchasing in close coordi-
nation with our group-wide activities
for CSR.
5. Partnership
We strive to deepen mutual under-
standing and build relationships of trust
with our suppliers.
Focus on CSR in purchasing and procurement
In fi scal 2014, the Asahi Kasei Group asked 160 major suppliers
of materials and construction services to participate in a CSR sur-
vey, and the response rate was 98%. This objective of the survey
was to better understand our suppliers’ efforts to promote CSR,
and identify any areas where improvement may be requested.
Survey items covered included CSR promotion systems, compli-
ance, environmental safety, risk management, product safety,
human rights and labor, information security management, and
intellectual property management. Survey results were scored on
a scale, and feedback was given to suppliers including requests
for improvement.
Supplier relations at production sites
Safety seminars are periodically held at our principal production
sites to discuss accident prevention and exchange information
with suppliers.
Safety seminar in Moriyama,
Shiga
Public outreach
We work to honor and respect the local culture of each community where our operations are based, and to
maintain effective dialog and communication with community members.
Openness to the community
Measures for community dialog and interaction include regularly
held forums and meetings with representatives of local govern-
ments and members of local residents associations, and the host-
ing a variety of events. We also offer plant tours to provide a
better understanding of our operations and the measures we
implement for the environment and safety. In the Nobeoka/
Hyuga region of Miyazaki, Japan, we constructed two evacuation
towers to enable people to quickly reach a safe height in the
event of a tsunami. The evacuation towers are available for use
by nearby community members.
Neighborhood clean-up (Kawasaki,
Kanagawa)
Local residents at a cherry blossom
event (Suzuka, Mie)
Community dialog meeting
(Izunokuni, Shizuoka)
Plant tour (Fuji, Shizuoka)
Asahi Kasei Report 2015
55
Community fellowship
The Asahi Kasei Group is involved in a wide range of community-focused activities in accordance with its Basic
Framework focused on the three themes of Nurturing the Next Generation, Coexistence with the Environment,
and Promotion of Culture, Art, and Sports, under our Community Fellowship Policy.
The Community Fellowship Committee is organized under direct supervision of the holding company President. Its
roles include formulation of overall policy, plans, and courses of action with regard to community fellowship activities
in accordance with our Basic Framework. The Committee also monitors and reviews community fellowship activities
at each site and at each affi liated company of the Asahi Kasei Group.
Community Fellowship Policy
Effective utilization of our human resources and technologies to
advance community fellowship based on the unique characteristics of
the Asahi Kasei Group.
Basic Framework
Nurturing the Next Generation
Striving for meaningful community fellowship actions with a constant
awareness of our objectives and effectiveness.
Coexistence with the Environment
Supporting and nurturing participation in community fellowship by
employees, encouraging volunteerism and individual initiative.
Promotion of Culture, Art, and Sports
1
2
3
Community fellowship activities
Nurturing the Next Generation
To promote understanding and heighten interest in science and
technology among elementary, junior high, and high school stu-
dents, especially those near our production bases, we visit schools
and host visits by students to factories to give explanations and
demonstrations of science and technology and on environmental
issues. We also support career development with occupational lec-
tures and problem-solving training. In fi scal 2014, a total of some
3,200 students of 97 schools participated.
The Asahi Kasei Group provides sponsorship for chemistry
experiment shows and other science-related events that give chil-
dren an opportunity to learn about science and chemistry in a fun
way. We also sponsor educational events organized by newspaper
companies that provide opportunities for children to learn about sci-
ence and the environment.
Coexistence with the Environment
In addition to our afforestation activities in Miyazaki and Shizuoka,
Japan, since June 2011 we have participated in an afforestation
project in the Horqin Desert of
Inner Mongolia, China. In fi s-
cal 2014, trees were planted
on April 12 and 13.
Tree planting in China
Disaster relief
To support areas affected by the Great East Japan Earthquake, in
September 2014 and March 2015 we participated in a Disaster Relief
Market outside our Tokyo Head
Offi ce building featuring pro-
duce of Iwate, Miyagi, and
Fukushima prefectures. This
event was co-hosted by Mitsui
Fudosan Building Management
Co., Ltd.
Science class (Nobeoka)
Disaster Relief Market
Science class (Fuji)
Science class (Tokyo)
Asahi Kasei Award presented at
the Japan Student Science Awards
56 Asahi Kasei Report 2015
Promotion of Culture, Art, and Sports
The Asahi Kasei Himuka Cultural Foundation was established in
1985 to enrich the environment of day-to-day life and culture in
Miyazaki Prefecture, with a
wide range of cultural activi-
ties being held. We also con-
tribute to community
fellowship through our corpo-
rate distance running and
judo teams.
Orchestra concert in Nobeoka
(photo by Yukan Daily)
Financial Section
Contents
58
60
66
68
Consolidated Eleven-Year Summary
Management’s Discussion and Analysis
Risk Analysis
Consolidated Financial Statements
68 Consolidated Balance Sheets
70 Consolidated Statements of Income
71 Consolidated Statements of Comprehensive Income
72 Consolidated Statements of Changes in Net Assets
73 Consolidated Statements of Cash Flows
74 Notes to Consolidated Financial Statements
74 1. Major policies for preparing the consolidated fi nancial statements
74 2. Signifi cant accounting policies
75 3. Changes in signifi cant accounting policies
76 4. Notes to Consolidated Balance Sheets
77 5. Notes to Consolidated Statements of Income
79 6. Notes to Consolidated Statements of Comprehensive Income
79 7. Notes to Consolidated Statements of Changes in Net Assets
81 8. Note to Consolidated Statements of Cash Flows
81 9. Leases
81 10. Financial instruments
85 11. Marketable securities and investment securities
86 12. Derivative fi nancial instruments
88 13. Provision for retirement benefi ts
90 14. Taxes
91 15. Business Combinations
93 16. Asset retirement obligations
93 17. Business segment information
96 18. Information on related parties
97 19. Per share information
98 20. Additional information
98 21. Borrowings
99
Independent Auditor’s Report
Asahi Kasei Report 2015
57
Consolidated Eleven-Year Summary
Asahi Kasei Corporation and Consolidated Subsidiaries
For the years ended March 31
Net salesb
Chemicals & Fibers
Chemicals
Life & Living
Fibers
Homes & Construction Materials
Homes
Construction Materials
Electronics
Health Care
Health Care
Critical Care
Others
Domestic sales
Overseas sales
Operating income
Ordinary income
Income before income taxes
Net income
Comprehensive income
Net income per share, yen
Capital expenditure
Depreciation and amortization
R&D expenditures
Cash dividends per share, yen
As of March 31
Total assets
Inventories
Property, plant and equipment
Investments and other assets
Net worthc
Net worth per share, yen
Net worth/total assets, %
Number of employees
2015a
2014
2013d
2012
2011e, f
¥1,986,405
¥1,897,766
¥1,666,640
¥1,573,230
¥1,555,945
954,623
824,288
—
130,335
603,786
551,817
51,969
150,388
257,133
146,485
110,648
20,476
912,505
791,615
—
120,890
589,380
534,377
55,003
144,995
232,387
152,546
79,840
18,499
—
—
—
684,582
680,112
699,801
—
—
—
109,613
110,849
108,761
—
486,182
51,504
131,148
—
133,450
52,131
18,031
—
451,965
46,146
146,113
—
119,483
—
18,562
—
409,224
47,418
158,337
—
116,387
—
16,017
1,313,128
1,289,054
1,181,429
1,151,705
1,106,656
673,277
157,933
166,543
158,440
105,652
214,484
75.62
89,108
86,058
75,540
19.00
2015
¥2,014,531
339,677
502,507
334,368
1,082,654
775.05
53.7
30,313
608,712
143,347
142,865
163,860
101,296
146,102
72.48
92,397
86,052
71,101
17.00
485,211
91,960
95,125
82,302
53,712
117,515
38.43
113,785
80,050
71,120
14.00
421,525
104,258
107,567
94,866
55,766
62,561
39.89
85,124
78,440
66,269
14.00
449,289
122,927
118,219
98,342
60,288
45,088
43.11
66,014
84,092
62,320
11.00
2014
¥1,915,089
2013
¥1,800,170
2012
¥1,410,568
2011
¥1,425,879
328,540
480,535
285,735
912,699
653.15
47.7
29,127
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
a. Beginning with the year ended March 31, 2015, the former Chemicals segment and the former Fibers segment are combined as a new Chemicals & Fibers segment, the former
Homes segment and the former Construction Materials segment are combined as a new Homes & Construction Materials segment, and the former Health Care segment and
the former Critical Care segment are combined as a new Health Care segment.
b. Beginning with the year ended March 31, 2014, the sequence of segments has been changed to correspond with the classifi cation of our four business sectors: Chemicals &
Fibers, Homes & Construction Materials, Electronics, and Health Care.
c. Net assets less minority interests. Through the year ended March 31, 2006, fi gures for shareholders’ equity shown.
d. 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 are reported. Critical Care
segment results were included beginning on April 27, 2012.
e. Beginning with the year ended March 31, 2012, the accounting policy for naphtha resale in the Chemicals segment was changed. This change is applied retroactively to net
sales for the years ended March 31, 2008, through March 31, 2011.
f. In the year ended March 31, 2011, the Services, Engineering and Others segment was replaced with the Others category.
58 Asahi Kasei Report 2015
2010e, g
2009e, g
2009e
2008e, h
2007
2006i
2005
¥1,392,212
¥1,521,178
¥1,521,178
¥1,663,778
¥1,623,791
¥1,498,620
¥1,377,697
Millions of yen, except where noted
—
—
—
—
580,709
657,393
709,556
846,224
—
—
—
—
101,201
116,405
102,176
114,072
—
389,728
47,024
142,700
—
113,207
—
17,642
—
409,882
60,927
129,655
—
119,619
—
27,297
—
409,882
60,927
91,721
—
119,619
—
27,297
—
386,227
55,732
113,267
—
111,232
—
37,024
—
752,632
52,558
106,639
—
405,695
60,818
112,094
—
104,474
—
28,881
—
660,402
51,942
89,704
—
404,539
56,512
102,859
—
105,842
—
26,821
—
557,439
59,149
104,261
—
375,755
59,908
93,025
—
103,933
—
24,228
1,021,803
1,127,213
1,127,213
1,176,441
1,195,751
1,125,454
1,067,893
370,409
393,965
393,965
57,622
56,367
46,056
25,286
—
18.08
83,990
86,166
62,924
10.00
34,959
32,500
19,031
4,745
—
3.39
34,959
32,500
19,031
4,745
—
3.39
126,725
126,725
79,436
60,849
10.00
79,436
60,849
10.00
487,337
127,656
120,456
105,599
69,945
—
50.01
82,911
73,983
56,170
13.00
428,040
127,801
126,507
114,883
68,575
—
49.00
84,413
71,646
52,426
12.00
373,166
108,726
104,166
94,481
59,668
—
42.46
66,310
69,399
51,467
10.00
309,804
115,809
112,876
91,141
56,454
—
40.16
68,479
71,531
50,715
8.00
2010
¥1,368,892
2009
¥1,379,337
2009
¥1,379,337
2008
¥1,425,367
2007
¥1,459,922
2006
¥1,376,044
2005
¥1,270,057
251,084
447,497
226,331
633,343
452.91
46.3
25,085
273,539
441,271
218,477
603,846
431.77
43.8
24,244
273,539
441,271
218,477
603,846
431.77
43.8
24,244
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
g. 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.
h. In the year ended March 31, 2008, the Life & Living segment was combined with the Chemicals segment.
i. In the year ended March 31, 2006, Leona™ nylon 66 fi lament operations were transferred from the Fibers segment to the Chemicals segment.
Asahi Kasei Report 2015
59
Management’s Discussion and Analysis
Fiscal year 2014 (April 1, 2014 – March 31, 2015)
Operating Environment
Non-operating income and expenses, ordinary income
Net non-operating income was ¥8.6 billion, a ¥9.1 billion
Although the US economy continued to recover and there
improvement from the ¥0.5 billion net non-operating
were signs of improvement in Europe during fi scal 2014,
expenses of a year earlier. Foreign exchange gains increased,
slower growth was seen in China and other emerging
and equity in losses of affi liates transitioned to equity in
countries, while the global economy faced heightened
earnings of affi liates. As a result, ordinary income increased by
geopolitical risks due to political instability in certain regions.
¥23.7 billion (16.6%) to ¥166.5 billion.
As for the Japanese economy, consumer spending softened
during the early part of the fi scal year due to the effect of the
consumption tax increase, but in the latter part of the fi scal
Extraordinary income and loss
Extraordinary loss of ¥11.2 billion included ¥4.7 billion in loss
year the Japanese economy continued on a path of gradual
on disposal of noncurrent assets, ¥4.0 billion in business
recovery with the weaker yen and lower oil prices leading to
structure improvement expenses, and ¥1.3 billion in impairment
improved corporate performance.
loss. The net extraordinary loss of ¥8.1 billion was a ¥29.1
billion decline from a year ago.
Overview of Consolidated Results
Net sales, operating income
Consolidated net sales for the fi scal year increased by ¥88.6
Net income
With ordinary income of ¥166.5 billion and net extraordinary
loss of ¥8.1 billion, income before income taxes and minority
billion (4.7%) to ¥1,986.4 billion. Overseas sales increased by
interests was ¥158.4 billion. Income tax expense was ¥51.5
¥64.6 billion (10.6%) to ¥673.3 billion, largely in the Health
billion (current income taxes of ¥44.1 billion combined with
Care segment, and increased by 1.8 percentage points as
a deferred income tax obligation of ¥7.5 billion). Minority
a portion of consolidated net sales from 32.1% to 33.9%.
interests in income of consolidated subsidiaries were ¥1.2
Domestic sales increased by ¥24.1 billion (1.9%) to ¥1,313.1
billion. As a result, net income increased by ¥4.4 billion (4.3%)
billion with strong performance in the Chemicals & Fibers
to ¥105.7 billion, and net income per share increased by
segment.
¥3.14 to ¥75.62 from the ¥72.48 of the previous year.
Operating income increased by ¥14.6 billion (10.2%) to
¥157.9 billion. As a percentage of net sales, cost of sales
decreased by 0.6 percentage points to 72.5%. SG&A increased
by ¥20.4 billion, increasing as a portion of net sales by 0.2
percentage points to 19.6% despite the increase in net sales.
Operating margin increased by 0.4 percentage points to 8.0%.
Net Sales,
Overseas Sales Ratio
Operating Income,
Operating Margin
SG&A, SG&A Ratio
Net Income,
Net Income per Share
(¥ billion)
2,000
(%)
(¥ billion)
40
160
(%)
(¥ billion)
16
400
(%)
(¥ billion)
40
120
1,500
1,000
500
0
30
120
12
300
30
90
20
80
8
200
20
60
10
40
4
100
10
30
’10
’11
’12
’13
’14
0
0
FY
’10
’11
’12
’13
’14
0
0
FY
’10
’11
’12
’13
’14
0
0
FY
’10
’11
’12
’13
’14
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)
60 Asahi Kasei Report 2015
(¥)
100
75
50
25
0
FY
Results by Operating Segment
Bemberg™ cupro fi ber was impacted by increased
depreciation expenses for a new production facility, but fi bers
Beginning with the fi rst quarter of fi scal 2014, the Asahi Kasei
operations benefi tted from the weaker yen, and sales of
Group’s previous seven reportable segments of Chemicals,
Bemliese™ continuous-fi lament cellulose nonwoven for facial
Fibers, Homes, Construction Materials, Electronics, Health
masks etc., of Lamous™ artifi cial suede for automotive interiors,
Care, and Critical Care, together with an “Others” category,
and of Roica™ elastic polyurethane fi lament were fi rm.
have been changed to the four reportable segments of
Chemicals & Fibers, Homes & Construction Materials,
Electronics, and Health Care, together with an “Others”
Homes & Construction Materials
Sales increased by ¥14.4 billion (2.4%) from a year ago to
category, in accordance with a change in the governance
¥603.8 billion, and operating income decreased by ¥5.5 billion
confi guration. The fi gures for the previous fi scal year have
(8.0%) to ¥63.0 billion.
been recalculated in accordance with the new segment
Among homes operations, in order-built homes,
confi guration for comparison purposes.
Chemicals & Fibers
Sales increased by ¥42.1 billion (4.6%) from a year ago to
deliveries increased mainly for Hebel Maison™ apartment
buildings based on strong orders in the previous fi scal year,
but the cost of materials rose and selling, general and
administrative expenses increased with higher costs for sales
¥954.6 billion, and operating income increased by ¥17.2
promotion. In real estate, management of rental units was
billion (36.2%) to ¥64.6 billion.
fi rm. In remodeling, orders decreased in reaction to the surge
Among chemicals operations, in petrochemicals, market
in demand prior to the consumption tax increase.
prices for styrene declined, but the strengthening of
In construction materials operations, shipments of
petrochemical operations in Japan had a positive effect on
Hebel™ autoclaved aerated concrete (AAC) panels increased,
performance, and terms of trade for acrylonitrile improved
but shipments of Neoma™ high-performance phenolic foam
substantially due to fi rm market prices and lower feedstock
panels decreased as an effect of the consumption tax increase
costs. Performance polymers benefi tted from the weaker yen
and the business was impacted by increased depreciation
and sales of engineering plastics were fi rm, but synthetic
expenses for a new production line.
rubber was impacted by low market prices for general-
purpose products. In specialty products, sales of ion-exchange
membranes were fi rm, but Saran Wrap™ cling fi lm and other
consumables were impacted by the consumption tax increase.
Chemicals business operating income
increases/decreases
Fibers business operating income
increases/decreases
Homes business operating income
increases/decreases
(¥ billion)
(¥ billion)
(¥ billion)
Operating costs
and others
+16.9
54.2
Sales
volume
+0.4
38.9
Foreign
exchange2
+24.3
60
45
30
15
Sales
prices1
-26.3
0
’13
1 Excluding impact of foreign exchange
2 Impact of foreign exchange on sales prices
Sales
prices1
+1.0
Sales
volume
+1.6
8.6
Foreign
exchange2
+2.0
10.5
Operating
costs
and others
-2.7
15
12
9
6
3
0
Sales prices
+11.6
Sales volume
+0.8
63.0
59.2
Operating
costs
and others
-16.2
80
60
40
20
0
’13
’14
FY
’14
FY
’13
’14
FY
Note: Operating income increases/decreases are shown by business categories corresponding to the former operating segments.
Asahi Kasei Report 2015
61
Electronics
Sales increased by ¥5.4 billion (3.7%) from a year ago to
In medical devices operations, overseas sales of dialysis
products and of therapeutic apheresis devices were fi rm and
¥150.4 billion, and operating income increased by ¥0.1 billion
shipments of Planova™ virus removal fi lters increased, while
(0.4%) to ¥14.3 billion.
the weaker yen contributed to performance.
Electronic devices operations benefi tted from the weaker
In critical care operations, the LifeVest™ wearable
yen and shipments of electronic devices for smartphones
defi brillator business continues to expand smoothly, and sales
increased, but cost of goods sold increased due to a devaluation
of other products such as defi brillators and related accessories
of inventories in relation to structural improvement of
increased, but selling, general and administrative expenses
the power management device business continuing from
grew with reinforced sales activity.
fi scal 2013.
Electronic materials operations benefi tted from the
weaker yen and sales of high-end products in each product
Others
Sales in “Others” increased by ¥2.0 billion (10.7%) from
category increased, but sales prices decreased mainly for
a year ago to ¥20.5 billion, and operating income decreased
Hipore™ Li-ion battery separator.
by ¥0.8 billion (45.6%) to ¥0.9 billion.
Health Care
Sales increased by ¥24.7 billion (10.6%) from a year ago to
¥257.1 billion, and operating income increased by ¥4.1 billion
(15.3%) to ¥30.8 billion.
In pharmaceuticals operations, pharmaceutical products
excluding new drugs were impacted by reduced
reimbursement prices, and shipments of Teribone™
osteoporosis drug decreased in reaction to the surge in
demand prior to the consumption tax increase.
Construction Materials business
operating income increases/decreases
Electronics business operating income
increases/decreases
Health Care business operating
income increases/decreases
Sales prices
+0.6
Sales volume
-0.9
4.1
Operating costs
and others
-1.1
(¥ billion)
6
5.5
5
4
3
2
1
0
(¥ billion)
25
(¥ billion)
35
30.3
Sales volume
-1.8
Operating
costs
and others
+1.7
Foreign
exchange2
+1.8
26.7
Sales prices1
-5.2
Sales volume
+5.9
14.2
Operating
costs
and others
+0.9
Foreign
exchange2
+6.9
14.3
Sales prices1
-13.6
20
15
10
5
0
30
25
20
15
10
5
0
’13
’14
FY
’13
’14
FY
’13
’14
FY
1 Excluding impact of foreign exchange
2 Impact of foreign exchange on sales prices
Note: Operating income increases/decreases are shown by business categories corresponding to the former operating segments.
62 Asahi Kasei Report 2015
Liquidity and Capital Resources
Interest-bearing debt decreased by ¥34.9 billion (11.5%)
to ¥269.0 billion.
Financial position
Total assets at fi scal year end were ¥2,014.5 billion, ¥99.4
billion (5.2%) higher than a year earlier.
Net assets increased by ¥172.0 billion (18.6%) from
¥925.8 billion to ¥1,097.7 billion. Net income was ¥105.7
billion, foreign currency translation adjustments increased by
Current assets increased by ¥1.2 billion (0.1%) to ¥891.6
¥52.8 billion, and net unrealized gain on other securities
billion, mainly as inventories increased by ¥11.1 billion and
increased by ¥37.9 billion, while dividend payments were
notes and accounts receivable–trade increased by ¥8.9 billion,
¥26.5 billion. As a result, net worth per share increased by
while cash and deposits decreased by ¥27.7 billion,
¥121.91 to ¥775.05, net worth/total assets increased from
Noncurrent assets increased by ¥98.3 billion (9.6%) to
47.7% to 53.7%, and debt-to-equity ratio decreased by 0.08
¥1,123.0 billion, notably with a ¥51.0 billion increase in
points to 0.25.
investment securities largely due to higher fair market value
and a ¥27.7 billion increase in property, plant and equipment.
Current liabilities decreased by ¥69.3 billion (12.0%) to
¥507.4 billion, mainly as a result of a ¥38.3 billion decrease in
income taxes payable and a ¥10.0 billion decrease in
commercial paper.
Although deferred tax liabilities increased by ¥14.5
billion, noncurrent liabilities decreased by ¥3.2 billion (0.8%)
to ¥409.4 billion with a ¥15.6 billion decrease in long-term
loans payable.
Critical Care business operating income
increases/decreases
Others operating income
increases/decreases
Foreign
exchange2
-0.4
4.1
Operating costs
and others
-8.9
(¥ billion)
2.0
Sales volume
+0.1
1.7
1.5
1.0
0.5
0.9
Operating costs
and others
-0.9
(¥ billion)
15
Sales
volume
+16.6
Sales
prices1
+0.3
10
5
0
(5)
-3.5
’13
Total Assets, Net Worth
(¥ billion)
2,500
2,000
1,500
1,000
500
0
’14
FY
0
’13
1 Excluding impact of foreign exchange
2 Impact of foreign exchange on sales prices
’14
FY
’10
’11
’12
’13
’14
FY
Total assets
Net worth
Note: Operating income increases/decreases are shown by business categories corresponding to the former operating segments.
Asahi Kasei Report 2015
63
Capital expenditure
Notable capex by operating segment was as follows.
Capital expenditure (capex) was primarily for new and
expanded production plant and equipment in long-term
Chemicals & Fibers
Construction of new line for solution-polymerized styrene-
growth fi elds. Investments were also made for rationalization,
butadiene rubber (S-SBR), construction of new plant for
labor-saving, maintenance, and IT systems to bring greater
polycarbonatediol (PCD) construction of new production
product reliability and cost reductions.
facility for Bemberg™, rationalization, labor-saving, and
Capex by operating segment shown below is for
maintenance.
property, plant and equipment and intangible assets (other
than goodwill), combined, excluding consumption tax.
A total of ¥89.1 billion was invested during the fi scal year
for the expansion of businesses with competitive superiority,
particularly in the Chemicals & Fibers segment, as well as for
modifi cation and rationalization.
Totals for the year
(¥ million)
Compared to
previous year (%)
Chemicals & Fibers
Homes & Construction Materials
Electronics
Health Care
Others
Combined
41,718
10,864
11,600
16,595
1,389
82,165
Corporate assets and eliminations
6,943
Consolidated
89,108
107.6
72.2
79.5
91.4
99.6
93.4
155.4
96.4
Homes & Construction Materials
Rationalization, labor-saving, and maintenance.
Electronics
Rationalization, labor-saving, and maintenance.
Health 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
(¥ billion)
0.8
120
300
200
100
0
’10
’11
’12
’13
’14
FY
’10
’11
’12
’13
’14
0.6
0.4
0.2
0.0
FY
90
60
30
0
’10
’11
’12
’13
’14
FY
Interest-bearing debt (left scale)
Capex
D/E ratio (right scale)
Depreciation and amortization
64 Asahi Kasei Report 2015
Cash fl ows
Cash fl ows from fi nancing activities
Cash used included ¥44.4 billion to reduce loans payable,
Free cash fl ows* were a positive ¥37.1 billion, as cash
bonds payable, and commercial paper and ¥26.5 billion for
generated, principally from income before income taxes and
dividend payments. Net cash used in fi nancing activities was
minority interests and from depreciation and amortization,
¥74.0 billion, ¥31.1 billion less than a year earlier.
exceeded cash used, principally for purchase of property, plant
and equipment, purchase of intangible assets, and purchase of
investment securities. Cash fl ows from fi nancing activities
were a net ¥74.0 billion used, principally due to a decrease in
short-term loans payable. As a result, cash and cash
equivalents at fi scal year end were ¥112.3 billion, ¥30.8 billion
less 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
Cash fl ows from operating activities
Cash used included ¥85.4 billion for income taxes paid and a
competitiveness, and business structure improvements, and
with greater capital effi ciency through utilization of group
¥13.6 billion decrease in notes and accounts payable–trade.
fi nance and maintenance of optimum inventory levels.
Income before income taxes and minority interests generated
A wide range of fund-raising methods including bank
¥158.4 billion and depreciation and amortization generated
borrowings, bonds, and commercial paper will be utilized
¥86.1 billion. Net cash provided by operating activities was
dynamically in accordance with the fi nancial circumstances of
¥137.6 billion, ¥106.6 billion less than a year earlier.
the Asahi Kasei Group in order to obtain stable fi nancing at
low cost.
Cash fl ows from investing activities
Cash used included ¥83.0 billion for purchase of property,
These resources will be used to fund strategic
investments under the “For Tomorrow 2015” strategic
plant and equipment for continuing expansion of
management initiative focused on the expansion of world-
competitively superior operations and enhancement of overall
leading businesses and the creation of new value for society
competitiveness and ¥10.7 billion for purchase of intangible
by expanding operations in the fi elds of the Environment &
assets. Net cash used in investing activities was ¥100.5 billion,
Energy, Residential Living, and Health Care, as well as
¥3.3 billion less than a year earlier.
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)
Cash Flows
(¥ billion)
160
120
80
40
0
(40)
(80)
(120)
(160)
300
200
100
0
(100)
(200)
(300)
’10
’11
’12
’13
’14
FY
’10
’11
’12
’13
’14
FY
Net cash provided by operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities
Asahi Kasei Report 2015
65
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 business 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 to
condition. Because products in this fi eld rapidly become
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 acute critical care
Overseas operations may face a variety of risks which
device businesses
cannot be foreseen, including the existence or emergence
of economically unfavorable circumstances due to legal
Pharmaceutical, medical device, and acute critical care
and regulatory changes, vulnerability of infrastructure,
device businesses may be signifi cantly affected by
diffi culty in hiring/retaining qualifi ed employees, or other
government measures regarding health care or other
factors, and social or political instability due to terrorism,
changes in government policy in various countries.
war, or other factors. Overseas operations may be impaired
Unforeseeable side effects or complications may emerge,
by such scenarios, thereby affecting our consolidated
signifi cantly affecting these businesses. Product approval
performance and business plans.
may be withdrawn as a result of reexamination, and
66 Asahi Kasei Report 2015
competition may intensify as a result of the market entry of
Business and capital alliances
generics. For products under development, regulatory
approval may be prolonged or fail to be obtained, market
Acquisitions, business alliances, and capital alliances may
demand may be lower than expected, and reimbursement
bear lower results or less synergy than anticipated due to
prices may be lower than expected. Such scenarios may
deterioration of the operating environment, thereby
affect our consolidated performance and fi nancial
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
loss for goodwill, etc., thereby affecting our consolidated
Industrial accidents and natural disasters
performance and fi nancial condition.
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 Report 2015
67
Consolidated Financial Statements
Consolidated Balance Sheets
Asahi Kasei Corporation and Consolidated Subsidiaries
March 31, 2015 and 2014
ASSETS
Current assets:
Cash and deposits (Notes 8 and 10)
Notes and accounts receivable—trade
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
Machinery, equipment and vehicles (Note 4(b), (d))
Accumulated depreciation
Machinery, equipment and vehicles, net
Land (Note 4(d))
Lease assets (Note 9)
Accumulated depreciation
Lease assets, net
Construction in progress
Other (Note 4(d))
Accumulated depreciation
Other, net
Subtotal
Intangible assets
Goodwill (Note 15(d))
Other
Subtotal
Investments and other assets
Millions of yen
Thousands of
U.S. dollars (Note 1)
2015
2014
2015
¥123,821
325,568
1,802
161,554
112,813
65,311
21,707
80,520
(1,517)
891,579
¥151,474
316,705
—
151,156
112,243
65,141
27,469
68,106
(1,894)
890,401
471,033
(261,352)
209,681
453,498
(250,633)
202,866
1,345,790
1,290,526
(1,170,771)
(1,127,452)
175,019
59,287
13,054
(10,232)
2,822
37,566
143,593
(125,461)
18,133
502,507
163,074
58,067
13,567
(9,095)
4,472
35,216
137,897
(121,056)
16,841
480,535
$1,030,553
2,709,680
14,998
1,344,603
938,935
543,579
180,666
670,162
(12,626)
7,420,549
3,920,375
(2,175,214)
1,745,160
11,200,916
(9,744,245)
1,456,671
493,442
108,648
(85,160)
23,487
312,659
1,195,114
(1,044,203)
150,920
4,182,330
153,835
132,241
286,076
137,679
120,740
258,419
1,280,358
1,100,633
2,380,990
Investment securities (Notes 4(a), (b), 10 and 11)
289,393
238,419
2,408,598
Long-term loans receivable (Note 10)
Net defi ned benefi t asset (Note 13)
Deferred tax assets (Note 14)
Other
Allowance for doubtful accounts
Subtotal
9,952
2,929
11,351
21,016
(273)
334,368
9,173
2,369
16,278
19,751
(256)
285,735
82,830
24,378
94,474
174,915
(2,272)
2,782,921
Total noncurrent assets
1,122,952
1,024,689
9,346,251
Total assets
The accompanying notes are an integral part of these statements.
68 Asahi Kasei Report 2015
¥2,014,531
¥1,915,089
$16,766,800
LIABILITIES AND NET ASSETS
Liabilities:
Current liabilities:
Notes and accounts payable—trade (Note 10)
Short-term loans payable (Notes 4(b), 10 and 21)
Commercial paper (Notes 10 and 21)
Lease obligations (Notes 9, 10 and 21)
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
Total current liabilities
Noncurrent liabilities:
Bonds payable (Notes 10 and 21)
Long-term loans payable (Notes 4(b), 10 and 21)
Lease obligations (Notes 9, 10 and 21)
Deferred tax liabilities (Note 14)
Provision for directors’ retirement benefi ts
Provision for periodic repairs
Provision for removal cost of property, plant and equipment
Net defi ned benefi t liability (Note 13)
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
(2015—5,742,862 shares, 2014—5,230,736 shares)
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on other securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defi ned benefi t plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Commitments and contingent liabilities (Notes 4(c) and 9)
Millions of yen
Thousands of
U.S. dollars (Note 1)
2015
2014
2015
¥151,867
96,015
—
1,383
101,164
10,203
74,675
2,396
2,562
2,832
533
63,817
507,449
40,000
130,400
1,219
57,943
—
1,248
7,865
142,035
3,506
19,146
5,998
409,360
916,809
103,389
79,408
699,259
(3,041)
879,014
113,562
(1,697)
99,531
(7,757)
203,639
15,068
1,097,722
¥159,925
103,605
$1,263,978
799,126
10,000
1,784
93,313
48,520
80,164
7,964
2,503
2,893
806
65,305
576,782
40,000
146,037
2,445
43,441
818
173
9,526
143,523
3,244
18,899
4,434
412,541
989,323
103,389
79,404
635,403
(2,591)
815,605
75,626
(171)
46,734
(25,094)
97,095
13,067
925,766
—
11,511
841,981
84,919
621,515
19,942
21,323
23,571
4,436
531,144
4,223,462
332,917
1,085,310
10,146
482,256
—
10,387
65,460
1,182,147
29,180
159,351
49,921
3,407,074
7,630,537
860,499
660,907
5,819,883
(25,310)
7,315,972
945,169
(14,124)
828,390
(64,561)
1,694,873
125,410
9,136,263
Total liabilities and net assets
¥2,014,531
¥1,915,089
$16,766,800
The accompanying notes are an integral part of these statements.
Asahi Kasei Report 2015
69
Millions of yen
Thousands of
U.S. dollars (Note 1)
2015
2014
2015
¥1,986,405
¥1,897,766
$16,532,709
1,439,344
1,385,704
11,979,559
547,061
389,128
157,933
1,389
3,923
1,738
5,197
5,041
17,288
3,056
—
1,168
869
3,586
8,678
166,543
2,756
382
—
3,137
112
1,136
4,728
1,255
4,010
—
11,241
158,440
44,059
7,483
51,542
106,898
1,246
512,062
368,715
143,347
1,183
3,681
—
425
5,288
10,578
3,375
1,756
1,366
1,075
3,488
11,060
142,865
330
1,672
53,532
55,534
—
1,223
5,575
441
22,546
4,753
34,539
4,553,150
3,238,685
1,314,465
11,561
32,651
14,465
43,254
41,956
143,887
25,435
—
9,721
7,233
29,846
72,226
1,386,126
22,938
3,179
—
26,109
932
9,455
39,351
10,445
33,375
—
93,558
163,860
1,318,685
68,166
(6,399)
61,767
102,093
796
366,700
62,280
428,980
889,705
10,370
¥105,652
¥101,296
$879,334
Consolidated Statements of Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2015 and 2014
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
Other
Total non-operating income
Non-operating expenses:
Interest expense
Equity in losses of affi liates
Costs associated with idle portion of facilities
Donations
Other
Total non-operating expenses
Ordinary income
Extraordinary income:
Gain on sales of investment securities
Gain on sales of noncurrent assets (Note 5(c))
Income from compensation for damage (Note 5(d))
Total extraordinary income
Extraordinary loss:
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on disposal of noncurrent assets (Note 5(e))
Impairment losses (Note 5(f))
Business structure improvement expenses (Note 5(f), (g))
Loss on discontinuation of development project (Note 5(f), (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.
70 Asahi Kasei Report 2015
Consolidated Statements of Comprehensive Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2015 and 2014
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
Remeasurements of defi ned benefi t plans
Share of other comprehensive income of affi liates accounted for
using equity method
Total other comprehensive income (Note 6)
Comprehensive income
Comprehensive income attributable to:
Owners of the Parent
Minority interests
The accompanying notes are an integral part of these statements.
Millions of yen
2015
2014
¥106,898
¥102,093
Thousands of
U.S. dollars (Note 1)
2015
$889,705
37,947
(1,526)
48,945
17,096
5,125
107,587
214,484
212,159
¥2,326
12,952
729
29,095
—
1,233
44,009
146,102
144,956
¥1,145
315,830
(12,701)
407,366
142,289
42,655
895,439
1,785,135
1,765,784
$19,359
Asahi Kasei Report 2015
71
Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2015 and 2014
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
Remeasure-
ments of
defi ned
benefi t plans
Total
accumulated
other
comprehensive
income
Minority
interests
Total
net assets
Balance at March 31, 2014
¥103,389 ¥79,404 ¥635,403 ¥(2,591) ¥815,605
¥75,626
¥(171)
¥46,734 ¥(25,094)
¥97,095 ¥13,067 ¥925,766
Cumulative effect of changes in
accounting policies
(15,741)
(15,741)
(15,741)
Restated balance
103,389
79,404
619,662
(2,591)
799,863
75,626
(171)
46,734
(25,094)
97,095
13,067
910,025
Changes during the fi scal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
Net changes of items other than
shareholders’ equity
Total changes of items
during the period
(26,547)
105,652
(26,547)
105,652
(455)
(455)
3
5
296
197
8
296
197
(26,547)
105,652
(455)
8
296
197
—
3
79,597
(450)
79,151
37,937
(1,526)
52,797
17,338
106,545
2,002
187,697
37,937
(1,526)
52,797
17,338
106,545
2,002
108,546
Balance at March 31, 2015
¥103,389
¥79,408 ¥699,259
¥(3,041) ¥879,014
¥113,562
¥(1,697)
¥99,531
¥(7,757) ¥203,639 ¥15,068 ¥1,097,722
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
Remeasure-
ments of
defi ned
benefi t plans
Total
accumulated
other
comprehensive
income
Minority
interests
Total
net assets
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
Cumulative effect of changes in
accounting policies
—
—
Restated balance
103,389
79,403
553,557
(2,431)
733,918
62,622
(900)
16,440
— 78,162
12,371
824,451
Changes during the fi scal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
Net changes of items other than
shareholders’ equity
Total changes of items
during the period
(19,566)
101,296
(19,566)
101,296
(162)
(162)
1
2
1,323
(1,208)
3
1,323
(1,208)
(19,566)
101,296
(162)
3
1,323
(1,208)
—
1
81,845
(160)
81,687
13,004
729
30,294
(25,094)
18,932
696
101,315
13,004
729
30,294
(25,094)
18,932
696
19,628
Balance at March 31, 2014
¥103,389
¥79,404 ¥635,403
¥(2,591) ¥815,605
¥75,626
¥(171)
¥46,734 ¥(25,094)
¥97,095 ¥13,067
¥925,766
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
Remeasure-
ments of
defi ned
benefi t plans
Total
accumulated
other
comprehensive
income
Minority
interests
Total
net assets
Balance at March 31, 2014
$860,499
$660,874 $5,288,414
$(21,565) $6,788,223
$629,430
$(1,423)
$388,964 $(208,856)
$808,115 $108,756 $7,705,085
Cumulative effect of changes in
accounting policies
(131,011)
(131,011)
(131,011)
Restated balance
860,499
660,874
5,157,403
(21,565) 6,657,203
629,430
(1,423)
388,964
(208,856)
808,115
108,756
7,574,074
Changes during the fi scal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
Net changes of items other than
shareholders’ equity
Total changes of items
during the period
(220,949)
879,334
(220,949)
879,334
(3,787)
(3,787)
25
42
2,464
1,640
67
2,464
1,640
(220,949)
879,334
(3,787)
67
2,464
1,640
—
25
662,480
(3,745)
658,768
315,747
(12,701)
439,426
144,303
886,767
16,663
1,562,189
315,747
(12,701)
439,426
144,303
886,767
16,663
903,421
Balance at March 31, 2015
$860,499
$660,907 $5,819,883 $(25,310) $7,315,972
$945,169
$(14,124)
$828,390
$(64,561) $1,694,873 $125,410 $9,136,263
The accompanying notes are an integral part of these statements.
72 Asahi Kasei Report 2015
Consolidated Statements of Cash Flows
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2015 and 2014
Cash fl ows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Impairment losses
Amortization of goodwill
Amortization of negative goodwill
(Decrease) increase in provision for periodic repairs
Increase in provision for product warranties
(Decrease) increase in provision for removal cost of property,
plant and equipment
Decrease in net defi ned benefi t liability
Interest and dividend income
Interest expense
Equity in (earnings) losses 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
Income from compensation for damage
Decrease (increase) in notes and accounts receivable—trade
Increase in inventories
Decrease in notes and accounts payable—trade
Increase in accrued expenses
(Decrease) increase in advances received
Other, net
Subtotal
Interest and dividend income, received
Interest expense paid
Proceeds from compensation for damage
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
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:
(Decrease) increase in short-term loans payable
Decrease in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Repayments of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash used in fi nancing activities
Effect of exchange rate change on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting from changes in scope
of consolidation
Cash and cash equivalents at end of year (Note 8)
The accompanying notes are an integral part of these statements.
Millions of yen
Thousands of
U.S. dollars (Note 1)
2015
2014
2015
¥158,440
86,058
1,255
9,320
(159)
(4,496)
22
(1,723)
(2,300)
(5,312)
3,056
(1,738)
(2,644)
1,136
(382)
4,728
—
717
(3,610)
(13,559)
5,662
(6,553)
(8,587)
219,331
6,761
(3,081)
—
(85,415)
137,597
(17,182)
13,436
(82,990)
944
(10,661)
(1,349)
5,341
(2,808)
—
(3,763)
(5,296)
6,295
(2,438)
(100,470)
(24,324)
(10,000)
10,950
(21,064)
—
(1,830)
(462)
8
(26,547)
(745)
(2)
(74,016)
5,467
(31,423)
143,139
¥163,860
86,052
441
8,823
(231)
1,519
343
7,549
(1,648)
(4,864)
3,375
1,756
(330)
1,223
(1,672)
5,575
(53,532)
(4,082)
(12,377)
(17,831)
476
17,811
15,549
217,786
5,818
(3,447)
53,532
(29,538)
244,152
(7,526)
5,685
(80,933)
2,588
(15,576)
(2,695)
1,018
(1,697)
(152)
—
(10,517)
7,433
(1,382)
(103,753)
3,679
(60,000)
13,362
(34,426)
(5,000)
(2,521)
(165)
3
(19,566)
(589)
152
(105,070)
3,305
38,633
104,008
581
¥112,297
498
¥143,139
$1,318,685
716,255
10,445
77,570
(1,323)
(37,420)
183
(14,340)
(19,143)
(44,211)
25,435
(14,465)
(22,006)
9,455
(3,179)
39,351
—
5,968
(30,046)
(112,851)
47,124
(54,540)
(71,469)
1,825,476
56,271
(25,643)
—
(710,903)
1,145,210
(143,005)
111,827
(690,720)
7,857
(88,731)
(11,228)
44,453
(23,371)
—
(31,319)
(44,078)
52,393
(20,291)
(836,205)
(202,447)
(83,229)
91,136
(175,314)
—
(15,231)
(3,845)
67
(220,949)
(6,201)
(17)
(616,030)
45,501
(261,531)
1,191,336
4,836
$934,640
Asahi Kasei Report 2015
73
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 approximate
current exchange rate of ¥120.15=US$1 prevailing on March 31, 2015,
has been used.
Consolidation and investments in affi liated companies
The consolidated fi nancial statements consist of the accounts of the
parent company and 140 subsidiaries (131 subsidiaries at March 31,
2014, 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 Fibers Corp., Asahi Kasei Homes Corp.,
Asahi Kasei Construction Materials Corp., Asahi Kasei Microdevices
Corp., Asahi Kasei E-materials Corp., Asahi Kasei Pharma Corp., Asahi
Kasei Medical Co., Ltd. and ZOLL Medical Corporation), and Tong Suh
Petrochemical Corp. Ltd. (Korea). Material inter-company transactions
and accounts have been eliminated.
Investments in unconsolidated subsidiaries and 20% to 50%
owned companies in which the Company exercises signifi cant infl uence
are accounted for, with minor exceptions due to immateriality, using
the equity method of accounting. There were 37 such unconsolidated
subsidiaries and 20% to 50% owned companies to which the equity
method is applied at March 31, 2015 (40 at March 31, 2014), including
Asahi Kasei EIC Solutions Corp., 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.
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 combinations 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.
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 useful
lives of the assets, principally ranging from 5 to 60 years for buildings
and from 4 to 22 years for machinery and equipment and vehicles.
Intangible fi xed assets (except for lease assets), including software
for internal use, are 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.
(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.
74 Asahi Kasei Report 2015
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 fi scal year 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 the end of each fi scal year.
(Additional information)
Termination of retirement benefi t plan for directors and corporate
auditors
The Company decided to terminate its retirement benefi t
plan for directors and corporate auditors at its ordinary general
shareholders’ meeting held in June 2014.
As of March 31, 2015, the unpaid balance totaling ¥591
million ($4,919 thousand), which had previously been reported as
provision for directors’ retirement benefi ts, is included in other
under noncurrent liabilities.
(e) Accounting for retirement benefi ts
i) Method of attributing expected retirement benefi ts to
each period
In calculating retirement benefi t obligations, the Company applies
a method of attributing expected retirement benefi ts to each period
based on benefi t formula basis.
ii) Accounting for actuarial gains/losses and prior service
costs
Actuarial gains/losses are amortized using the straight-line method
from the fi scal year following their accrual over a certain period
(mainly 10 years) within the average remaining service period of
employees at the time of accrual. Prior service costs are amortized
using the straight-line method over a certain period (mainly 10
years) within the average remaining service period of employees at
the time of accrual.
iii) Adoption of the simplifi ed method
In calculating expected defi ned benefi t liability and periodic retire-
ment benefi t expenses, certain consolidated subsidiaries have
adopted the simplifi ed method. Under this method, the expected
defi ned benefi t liability is recorded at the severance payment
amount to be required should all employees retire voluntarily at
fi scal year end.
(f) Signifi cant revenue and expense recognition
i) Construction activities that are realizable as of fi scal
year end
The percentage-of-completion method (progress of work is esti-
mated using the percentage of costs incurred to the total projected
costs) is applied.
ii) Other construction activities
The completed-contract method is used.
(g) 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,
2015 and 2014, 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 average cost
method and are refl ected in the consolidated income statements.
3. Changes in signifi cant accounting policies
(a) Changes in accounting policies
The provisions of Article 35 of Accounting Standards Board of Japan
(ASBJ) Statement No. 26 “Accounting Standard for Retirement
Benefi ts” and the provisions of Article 67 of ASBJ Guidance No. 25
“Guidance on Accounting Standard for Retirement Benefi ts” are
applied from the beginning of the fi scal year ended March 31, 2015.
The calculation method for the present value of retirement benefi t
obligations and current service costs has been revised.
The method of attributing projected retirement benefi t obligations
to each period has been changed from the straight-line basis to a ben-
efi t fomula basis. The method of determining the discount rate used
in calculation has been changed from one where the number of years
approximately equal to the average remaining service period of
employees is used as the basis for determining the discount rate to
one using a single weighted average discount rate which refl ects each
forecasted period of payment of retirement benefi t obligations and
the amount of payment forecasted for each period. In accordance with
transitional accounting treatment as stipulated in Article 37 of ASBJ
Statement No. 26 “Accounting Standard for Retirement Benefi ts,” the
effect of the changes in calculation methods of retirement obligation
and service cost arising from initial application is refl ected in retained
earnings at the beginning of the fi scal year ended March 31, 2015.
As a result, net defi ned benefi t liability increased by ¥23,336 million
(US$194,224 thousand), investment securities decreased by ¥127
million (US$1,057 thousand), and retained earnings decreased by
¥15,741 million (US$131,011 thousand) as of the beginning of the
fi scal year ended March 31, 2015. In addition, the effect on operating
income, ordinary income, and income before income taxes and minor-
ity interests for the fi scal year ended March 31, 2015, is immaterial.
Furthermore, the net impact to per share information is considered to
be immaterial.
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.
(h) 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. Transactions subject to consumption taxes
are recorded at amounts net of consumption taxes.
(i) 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 fi scal 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 sub-
sidiaries is translated into Japanese yen at the historical exchange rates.
The translation differences in Japanese yen amounts arising from the
use of different rates are recognized as foreign currency translation
adjustments in the consolidated balance sheets. A portion of the foreign
currency translation adjustment is allocated to minority interest and
the Company’s portion is presented as a separate component of net
assets in the consolidated balance sheets.
(b) Accounting standards issued but not yet applied
Accounting standards for business combinations:
The ASBJ issued ASBJ Statement No. 21 “Revised Accounting Standard
for Business Combinations,” ASBJ Statement No. 22 “Revised
Accounting Standard for Consolidated Financial Statements,” ASBJ
Statement No. 7 “Revised Accounting Standard for Business
Divestitures,” ASBJ Statement No. 2 “Revised Accounting Standard for
Earnings Per Share,” ASBJ Guidance No. 10 “Revised Guidance on
Accounting Standard for Business Combinations and Accounting
Standard for Business Divestitures,” and ASBJ Guidance No. 4
“Revised Guidance on Accounting Standard for Earnings Per Share.”
Under these revised accounting standards, various accounting
treatments were revised regarding changes in ownership interest in a
subsidiary when control over the subsidiary is retained. Revisions apply
to treatment of the change in ownership interest and treatment of
costs related to acquisition of increased ownership interest. The pre-
sentation method of net income was amended, “minority interests”
were changed to “non-controlling interests,” and transitional provisions
for accounting treatments were defi ned.
The Company will apply the revised accounting standards and
guidance from the beginning of the fi scal year ending March 31,
2016. The transitional accounting will be applied from business com-
binations performed on or after the beginning of the fi scal year end-
ing March 31, 2016.
The effects of the adoption of the revised accounting standards
and guidance are currently under assessment at the time of prepara-
tion of the accompanying consolidated fi nancial statements.
Accounting standards for unifi cation of accounting policies
applied to foreign subsidiaries for consolidated fi nancial
statements:
The ASBJ issued ASBJ Statement No. 18 “Practical Solution on
Accounting for Unifi cation of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements”
Asahi Kasei Report 2015
75
This accounting standard responds to the accounting standards of
the United States for goodwill which was revised in January 2014 and
ASBJ Statement No. 22 “Accounting Standard for Consolidated
Financial Statements” which was revised in September 2013, and clar-
ifi es the accounting treatment of actuarial differences as cost under
the accounting standards for retirement benefi ts.
The Company will adopt the revised accounting standards for
Unifi cation of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements from the beginning of the fi scal
year ending March 31, 2016.
The adoption of the accounting standard will have no impact.
(c) Changes in presentation
Statements of income:
In the fi scal year ended March 31, 2015, donations, which had previ-
ously been included in other under non-operating expenses, exceeded
10% of total non-operating expenses, and is reported separately,
while insurance income, which had previously been reported separately,
became 10% or less of total non-operating income, and is included in
other under non-operating income. The statements of income for the
fi scal year ended March 31, 2014, have been reclassifi ed accordingly,
resulting in other under non-operating expenses being ¥1,075 million
lower than previously reported, refl ecting the separation of ¥1,075
million as donations, and other under non-operating income being
¥1,132 million higher than previously reported, refl ecting the inclusion
of ¥1,132 million of insurance income.
Statements of cash fl ows:
In the fi scal year ended March 31, 2015, under cash fl ows from
fi nancing activities, increase in short-term loans payable and decrease
in short-term loans payable, which had previously been reported sepa-
rately, are reported as a single amount as a net increase (decrease) in
short-term loans payable, while proceeds from issuance of commercial
paper and redemption of commercial paper, which had previously been
reported separately, are reported as a single net amount as a decrease
in commercial paper, in consideration of the short-term nature and
rapid turnover of these accounts. The consolidated statements of cash
fl ows for the fi scal year ended March 31, 2014, have been reclassifi ed
accordingly, resulting in the previously reported ¥85,603 million as
increase in short-term loans payable and ¥(81,924) million as decrease
in short-term loans payable being combined to ¥3,679 million as net
increase (decrease) in short-term loans payable, and the previously
reported ¥85,000 million as proceeds from issuance of commercial
paper and ¥(145,000) million as redemption of commercial paper
being combined to ¥(60,000) million as decrease in commercial paper.
4. Notes to Consolidated Balance Sheets
(a) Investment securities
Among investment securities, shares of unconsolidated subsidiaries and affi liates as of March 31, 2015 and 2014, amounted to ¥69,210 million
(US$576,030 thousand) and ¥68,399 million, respectively. Included in those amounts are investments in joint ventures of ¥33,912 million
(US$282,247 thousand) and ¥33,878 million, respectively.
(b) Pledged assets and secured debt
A summary of assets pledged as collateral and secured debt as of March 31, 2015 and 2014, is shown below:
Pledged assets
Buildings and structures
Machinery, equipment and vehicles
Secured debt
Short-term loans payable
Long-term loans payable
Millions of yen
2015
¥130
2
¥132
¥2
135
¥137
2014
¥163
2
¥166
¥3
208
¥211
Thousands of
U.S. dollars
2015
$1,082
17
$1,099
$17
1,124
$1,140
Besides the above, investment securities pledged to suppliers as transaction guarantees at March 31, 2015 and 2014, were ¥64 million (US$533
thousand) and ¥53 million, respectively.
(c) Contingent liabilities
Contingent liabilities at March 31, 2015 and 2014, arising in the ordinary course of business were as follows:
Loans guaranteed
Letters of awareness
Completion guarantees
Millions of yen
2015
¥38,664
—
16,250
¥54,914
2014
¥41,789
134
16,416
¥58,339
Thousands of
U.S. dollars
2015
$321,798
—
135,248
$457,045
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.
76 Asahi Kasei Report 2015
(d) Deferred gain on property, plant and equipment deducted for tax purposes
The accumulated reduced-value entries, which are directly deducted from property, plant and equipment, as of March 31, 2015 and 2014, were
¥9,176 million (US$76,371 thousand) and ¥9,511 million, respectively. The breakdown of reduced-value entries as of March 31, 2015 and 2014,
was as follows:
Buildings and structures
Machinery, equipment and vehicles
Land
Other
Millions of yen
2015
¥3,442
5,394
167
173
¥9,176
2014
¥3,491
5,677
188
155
¥9,511
Thousands of
U.S. dollars
2015
$28,648
44,894
1,390
1,440
$76,371
5. Notes to Consolidated Statements of Income
(a) Selling, general and administrative expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2015 and 2014 were as follows:
Salaries and benefi ts
Research and development*
Freight and storage
Millions of yen
2015
¥148,306
57,896
¥36,091
2014
¥134,442
53,390
¥35,277
Thousands of
U.S. dollars
2015
$1,234,340
481,864
$300,383
* The aggregate amounts of research and development expenses included in manufacturing costs and selling, general and administrative expenses for the years ended March 31, 2015 and 2014,
were ¥75,540 million (US$628,714 thousand) and ¥71,101 million, respectively.
(b) Loss on valuation of inventories
Inventories held for sale in the ordinary course of business are stated at the lower of cost or net realizable value. Loss on valuation of inventories
for the years ended March 31, 2015 and 2014, were as follows:
(c) Gain on sales of noncurrent assets
Major components of gain on sales of noncurrent assets for the years ended March 31, 2015 and 2014, were as follows:
Millions of yen
2015
¥2,142
2014
¥994
Land
Machinery
Other
Millions of yen
2015
¥176
184
¥21
2014
¥1,477
184
¥11
Thousands of
U.S. dollars
2015
$17,828
Thousands of
U.S. dollars
2015
$1,465
1,531
$175
(d) Income from compensation for damage
With regard to litigation in the US by the Company’s subsidiary Asahi Kasei Pharma Corp. against Actelion Ltd. of Switzerland and its affi liated
companies and executives in relation to a license agreement for fasudil, a rho-kinase inhibitor discovered and owned by Asahi Kasei Pharma Corp.,
the California Superior Court entered a judgment in November 2011 ordering the defendants to pay US$415.7 million in recognition of the peti-
tion of Asahi Kasei Pharma Corp. The judgment was fi nalized in March 2014, and Asahi Kasei Pharma Corp. received US$523.2 million including
the legal interest rate etc. from the date of judgment to the date of payment. As a result, a total of ¥53,532 million was recorded as income from
compensation for damage under extraordinary income in the consolidated statements of income for the fi scal year ended March 31, 2014.
(e) Loss on disposal of noncurrent assets
Loss on disposal of noncurrent assets for the years ended March 31, 2015 and 2014, 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.
Asahi Kasei Report 2015
77
(f) Impairment losses
Major components of impairment losses for the years ended March 31, 2015 and 2014, were as follows:
Millions of yen
Thousands of
U.S. dollars
Use
Asset class
Location
2015
2014
2015
Item on the Consolidated
Statements of Income
Idle assets
Production facility for
petrochemicals
Production facility for
semiconductors
Production facility for
plastic raw materials
Facility for wastewater recycling
Production facility for
petrochemicals and goodwill
related to the petrochemical
business
Production facility for
pharmaceutical products
Production facility for
plastic raw materials
Others
Buildings, etc.
Machinery and
equipment, etc.
Machinery and
equipment
Machinery and
equipment, etc.
Machinery and
equipment
Machinery and
equipment,
Goodwill, etc.
Construction in
progress, etc.
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Fuji, Shizuoka, etc.
Kurashiki,
Okayama
Goshogawara,
Aomori
Ulsan, Korea
Jiangsu, China
Kurashiki,
Okayama
Miyoshi, Aichi
Kawasaki,
Kanagawa
Oita, etc.
¥621
¥367
$5,169 Impairment losses
455
268
217
145
3,787
Business structure improvement
expenses
2,231 Impairment losses
1,806 Impairment losses
1,207 Impairment losses
6,776
2,601
878
¥172
¥127
$1,432
Business structure improvement
expenses
Loss on discontinuation of
development project
Business structure improvement
expenses
Impairment losses and business
structure improvement expenses
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 idle assets, production facility for plastic raw materials (Korea), facility for wastewater recycling, and part of others, the book
value was reduced to the recoverable amount due to disappearance of prospects for future use, and with respect to production facility for petro-
chemicals, production facility for semiconductors, production facility for petrochemicals and goodwill related to the petrochemical business,
production facility for plastic raw materials (Kanagawa), production facility for pharmaceutical products, and part of others, 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 discounted future cash fl ow with applicable discount rate of 6% as of March 31, 2015 and 2014.
Among the extraordinary losses under others, ¥168 million (US$1,398 thousand) and ¥53 million, were recorded under business structure
improvement expenses for the years ended March 2015 and 2014, respectively.
(g) Business structure improvement expenses
Major components of business structure improvement expenses for the years ended March 31, 2015 and 2014, were as follows:
Impairment of fi xed assets
Additional payment of retirement benefi ts due to application of early retirement, etc.
Loss on disposal and devaluation of inventory and others
Millions of yen
2015
¥623
—
3,387
¥4,010
2014
¥7,707
449
14,390
¥22,546
(h) Loss on discontinuation of development project
Loss on discontinuation of development project for the year ended March 31, 2014, was as follows:
Impairment of fi xed assets
Loss on disposal and devaluation of inventory and others
Compensation expense, etc.
Millions of yen
2015
¥—
—
—
¥—
2014
¥2,601
1,480
673
¥4,753
Thousands of
U.S. dollars
2015
$5,185
—
28,190
$33,375
Thousands of
U.S. dollars
2015
$—
—
—
$—
78 Asahi Kasei Report 2015
6. Notes to Consolidated Statements of Comprehensive Income
Recycling adjustment and tax effects on other comprehensive income for the years ended March 31, 2015 and 2014, were 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
Pre-tax effect
Tax effect
Deferred gains or losses on hedges
Foreign currency translation adjustment
Changes during the fi scal year
Recycling adjustment
Pre-tax effect
Tax effect
Foreign currency translation adjustment
Remeasurements of defi ned benefi t plans
Changes during the fi scal year
Recycling adjustment
Pre-tax effect
Tax effect
Remeasurements of defi ned benefi t plans
Millions of yen
2015
2014
¥53,024
(2,689)
50,335
(12,389)
37,947
(2,037)
72
(1,965)
438
(1,526)
48,829
(24)
48,805
140
48,945
20,168
5,516
25,685
(8,588)
17,096
¥19,995
(23)
19,972
(7,020)
12,952
(932)
2,055
1,122
(394)
729
29,001
—
29,001
94
29,095
—
—
—
—
—
Thousands of
U.S. dollars
2015
$441,315
(22,380)
418,935
(103,113)
315,830
(16,954)
599
(16,355)
3,645
(12,701)
406,400
(200)
406,201
1,165
407,366
167,857
45,909
213,774
(71,477)
142,289
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
5,174
(49)
5,125
¥107,587
1,232
1
1,233
¥44,009
43,063
(408)
42,655
$895,439
7. Notes to Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2015
(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
Thousands of shares
Number of
shares as of
March 31, 2014
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, 2015
1,402,616
1,402,616
5,231
5,231
—
—
522
522
—
—
10
10
1,402,616
1,402,616
5,743
5,743
Notes: 1. The increase of 522 thousand shares in common stock of treasury stock was due to the purchase of shares in quantities of less than one share unit.
2. The decrease of 10 thousand shares in common stock of treasury stock was due to the sale of shares in quantities of less than one share unit.
Asahi Kasei Report 2015
79
(b) Dividends
i) Cash dividends paid
1) The following was resolved by the Board of Directors on May 9, 2014.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥13,974 million (US$116,305 thousand)
¥10.00 (US$0.08)*
March 31, 2014
June 5, 2014
* Including ¥8.00 (US$0.07) ordinary dividend and ¥2.00 (US$0.02) special dividend
2) The following was resolved by the Board of Directors on November 5, 2014.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥12,573 million (US$104,644 thousand)
¥9.00 (US$0.07)
September 30, 2014
December 1, 2014
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 12, 2015.
Dividends for common stock
Total dividends
Source of dividends
Dividend per share
Date of record
Payment date
¥13,969 million (US$116,263 thousand)
Retained earnings
¥10.00 (US$0.08)
March 31, 2015
June 4, 2015
For the year ended March 31, 2014
(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
Thousands of shares
Number of
shares as of
March 31, 2013
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, 2014
1,402,616
1,402,616
5,017
5,017
—
—
219
219
—
—
5
5
1,402,616
1,402,616
5,231
5,231
Notes: 1. The increase of 219 thousand shares in common stock of treasury stock was due to the purchase of shares in quantities of less than one share unit.
2. The decrease of 5 thousand shares in common stock of treasury stock was due to the 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, 2013.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥9,783 million
¥7.00
March 31, 2013
June 5, 2013
2) The following was resolved by the Board of Directors on October 31, 2013.
Dividends for common stock
Total dividends
Dividend per share
Date of record
Payment date
¥9,783 million
¥7.00
September 30, 2013
December 2, 2013
80 Asahi Kasei Report 2015
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, 2014.
Dividends for common stock
Total dividends
Source of dividends
Dividend per share
Date of record
Payment date
¥13,974 million
Retained earnings
¥10.00*
March 31, 2014
June 5, 2014
* Including ¥8.00 ordinary dividend and ¥2.00 special dividend
8. Note to Consolidated Statements of Cash Flows
Cash and cash equivalents
Reconciliation of cash and cash equivalents on the consolidated statements of cash fl ows to the amounts disclosed on the consolidated balance
sheets at March 31, 2015 and 2014, was as follows:
Cash and deposits
Time deposits with deposit term of over 3 months
Money market funds included in short-term investment securities
Cash and cash equivalents
9. Leases
(a) Financing lease transactions
Financing lease transactions without title transfer
i) Components of lease assets are as follows:
Millions of yen
2015
¥123,821
(13,326)
1,802
¥112,297
2014
¥151,474
(8,335)
—
¥143,139
Thousands of
U.S. dollars
2015
$1,030,553
(110,911)
14,998
$934,640
1) Property, plant and equipment: Mainly model homes (buildings and structures) for housing business.
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. For such leases, informa-
tion for the cost and related accumulated amortization, computed using the straight-line method over the term of the lease assuming such
lease transactions accounted for as an operating lease had been accounted for as a fi nancing lease, is required to be disclosed. However, such
disclosure is omitted due to immateriality.
(b) Operating lease transactions
Future lease payments for the non-cancelable portion of the Company’s operating leases at March 31, 2015 and 2014, 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 exces-
sively concentrated on specifi c customers, but the parent company
and each consolidated subsidiary monitor and manage the credit
condition of each customer.
Millions of yen
2015
¥4,986
7,313
¥12,300
2014
¥5,095
9,387
¥14,482
Thousands of
U.S. dollars
2015
$41,498
60,866
$102,372
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 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 currency
swaps, interest-rate swaps) are used as hedges to fi x interest expens-
es for a portion of long-term variable interest-rate borrowings.
Operating receivables and operating liabilities include those
denominated in currencies other than Japanese yen, and are thus
exposed to the risk of exchange-rate fl uctuations. In order to 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.
Asahi Kasei Report 2015
81
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.
Borrowings are exposed to liquidity risk, but the parent company
specifi es standards for required on-hand funds based on the
Company’s funding plans, prepares and revises plans for cash
receipts and disbursements as appropriate, and enters into
commitment-line agreements with transacting fi nancial institutions
to manage such risk.
Loan securitization in 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 in
order to reduce such risk.
iii) Supplementary explanation of fair value of fi nancial
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. The stated
amount of contracts regarding derivative transactions included 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, 2015 and 2014, were
as shown below.
Financial instruments whose fair values are deemed extremely diffi cult to determine are not included in this table (See Notes 2) and 3) below).
Cash and deposits
Notes and accounts receivable—trade
Allowance for doubtful accounts (*1)
Short-term investment securities and 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)
Short-term investment securities and 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)
82 Asahi Kasei Report 2015
Carrying
amount
¥123,821
325,568
(1,369)
324,199
215,200
10,758
673,979
151,867
62,648
—
10,203
40,000
163,767
2,603
6,937
438,025
¥(2,356)
Carrying
amount
¥151,474
316,705
(1,751)
314,955
163,193
9,766
639,388
159,925
84,776
10,000
48,520
40,000
164,867
4,229
6,654
518,971
¥(1,161)
Millions of yen
2015
Fair value
¥123,821
324,199
215,200
10,751
673,971
151,867
62,648
—
10,203
41,190
165,733
2,605
6,925
441,171
¥(2,356)
Millions of yen
2014
Fair value
¥151,474
314,955
163,193
9,770
639,392
159,925
84,776
10,000
48,520
41,278
166,661
4,233
6,632
522,025
¥(1,161)
Difference
¥—
—
—
(8)
(8)
—
—
—
—
(1,190)
(1,966)
(2)
12
(3,146)
¥—
Difference
¥—
—
—
4
4
—
—
—
—
(1,278)
(1,794)
(4)
22
(3,054)
¥—
Cash and deposits
Notes and accounts receivable—trade
Allowance for doubtful accounts (*1)
Short-term investment securities and 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)
Carrying
amount
$1,030,553
2,709,680
(11,394)
2,698,285
1,791,094
89,538
5,609,480
1,263,978
521,415
—
84,919
332,917
1,363,021
21,665
57,736
3,645,651
$(19,609)
Thousands of U.S. dollars
2015
Fair value
$1,030,553
Difference
$—
2,698,285
—
1,791,094
89,480
5,609,413
1,263,978
521,415
—
84,919
342,821
1,379,384
21,681
57,636
3,671,835
$(19,609)
—
(67)
(67)
—
—
—
—
(9,904)
(16,363)
(17)
100
(26,184)
$—
(*1) This reduction represents specifi c allowance for doubtful accounts related to notes and
3) Long-term loans payable
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) Short-term investment securities and investment securities
The stock exchange prices are used to determine fair value of traded stocks, and
the corresponding book value amount is used as fair value of money market
funds, because their fair value approximates book value. Refer to the Note 11
“Marketable securities and investment securities” for information on securities
classifi ed by 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 if available. For those without a 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.
The carrying amounts shown include long-term loans payable that are scheduled
for repayment within one year of March 31, 2015 and 2014, amounting to
¥33,367 million (US$277,711 thousand) and ¥18,830 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. For 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,
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 cases where the deposit period can be estimated, the fair value of long-term
guarantee deposits is determined using a discounted cash fl ow over that period.
iii) Derivative transactions
Refer to the Note 12 “Derivative fi nancial instruments.”
Note 2) For equity investments in nonpublic companies, with a carrying amount as of March
31, 2015 and 2014, amounting to ¥75,995 million (US$632,501 thousand) and
¥75,226 million, respectively, fair value is not included in short-term investment
securities and 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.
Note 3) For long-term guarantee deposits, the fair value of a portion having a carrying
amount as of March 31, 2015 and 2014, amounting to ¥12,209 million (US$101,615
thousand) and ¥12,245 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.
Note 4) For monetary credits and securities with maturity, the amounts scheduled for
redemption subsequent to the closing date are as follows.
Asahi Kasei Report 2015
83
Cash and deposits
Notes and accounts receivable—trade
Long-term loans receivable
Cash and deposits
Notes and accounts receivable—trade
Long-term loans receivable
Cash and deposits
Notes and accounts receivable—trade
Long-term loans receivable
Millions of yen
2015
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
¥123,821
325,568
806
¥450,196
¥—
—
9,952
¥9,952
¥—
—
—
¥—
¥—
—
—
¥—
Millions of yen
2014
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
¥151,474
316,705
593
¥468,773
¥—
—
8,969
¥8,969
¥—
—
205
¥205
¥—
—
—
¥—
Thousands of U.S. dollars
2015
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
$1,030,553
2,709,680
6,708
$3,746,950
$—
—
82,830
$82,830
$—
—
—
$—
$—
—
—
$—
Note 5) For bonds payable, long-term loans payable, lease obligations, and other interest-bearing debt, the amounts scheduled for repayment subsequent to the closing date are as follows.
Millions of yen
2015
Commercial paper
Bonds payable
Long-term
loans payable
Lease
obligations
¥—
—
—
—
—
¥—
¥—
—
20,000
—
20,000
¥—
¥33,367
41,046
20,566
49,468
11,208
¥8,112
Millions of yen
2014
¥1,383
908
227
59
22
¥2
Commercial paper
Bonds payable
Long-term
loans payable
Lease
obligations
¥10,000
—
—
—
—
¥—
¥—
—
—
20,000
—
¥20,000
¥18,830
31,457
39,143
17,975
45,009
¥12,453
Thousands of U.S. dollars
2015
Commercial paper
Bonds payable
$—
—
—
—
—
$—
$—
—
166,459
—
166,459
$—
Long-term
loans payable
$277,711
341,623
171,169
411,719
93,283
$67,516
¥1,784
1,367
848
168
21
¥40
Lease
obligations
$11,511
7,557
1,889
491
183
$17
Short-term
loans payable
¥62,648
—
—
—
—
¥—
Short-term
loans payable
¥84,776
—
—
—
—
¥—
Short-term
loans payable
$521,415
—
—
—
—
$—
Total
¥97,398
41,954
40,793
49,527
31,230
¥8,114
Total
¥115,390
32,824
39,991
38,144
45,030
¥32,493
Total
$810,637
349,180
339,517
412,210
259,925
$67,532
Year ending March 31
2016
2017
2018
2019
2020
2021 and thereafter
Year ending March 31
2015
2016
2017
2018
2019
2020 and thereafter
Year ending March 31
2016
2017
2018
2019
2020
2021 and thereafter
84 Asahi Kasei Report 2015
11. Marketable securities and investment securities
(a) Other securities with available fair value
The aggregate cost, carrying amount which was identical to fair value, and gross unrealized gains and losses of debt and equity securities classifi ed
as other securities for which fair values were available at March 31, 2015 and 2014, were as follows:
Securities with unrealized gains:
Equity securities
Others
Subtotal
Securities with unrealized losses:
Equity securities
Others
Subtotal
Securities with unrealized gains:
Equity securities
Others
Subtotal
Securities with unrealized losses:
Equity securities
Others
Subtotal
Securities with unrealized gains:
Equity securities
Others
Subtotal
Securities with unrealized losses:
Equity securities
Others
Subtotal
Millions of yen
2015
Cost
¥39,063
—
39,063
7,060
1,802
8,862
¥47,925
Millions of yen
2014
Cost
¥34,203
—
34,203
12,020
—
12,020
¥46,223
Thousands of U.S. dollars
2015
Cost
$325,119
—
325,119
58,760
14,998
73,758
$398,876
Carrying
amount
¥206,513
—
206,513
6,884
1,802
8,686
¥215,200
Carrying
amount
¥151,902
—
151,902
11,291
—
11,291
¥163,193
Carrying
amount
$1,718,793
—
1,718,793
57,295
14,998
72,293
$1,791,094
(b) Realized gains and losses on the sale of other securities
The realized gains and losses on the sale of other securities during the years ended March 31, 2015 and 2014, were as follows:
Selling amount
Gain on sales of securities
Loss on sales of securities
Millions of yen
2015
¥3,005
2,756
¥—
2014
¥990
330
¥—
Unrealized gains
(losses)
¥167,450
—
167,450
(176)
—
(176)
¥167,274
Unrealized gains
(losses)
¥117,698
—
117,698
(729)
—
(729)
¥116,970
Unrealized gains
(losses)
$1,393,675
—
1,393,675
(1,465)
—
(1,465)
$1,392,210
Thousands of
U.S. dollars
2015
$25,010
22,938
$—
(c) Loss on other devaluation of investment securities whose fair values are readily determinable
Loss on other devaluation of investment securities whose fair values are readily determinable for the year ended March 31, 2015, was
¥1,656 million (US$13,783 thousand), which is the sum of ¥1,649 million (US$13,725 thousand) for equity securities of unconsolidated
subsidiaries and affi liates, and ¥7 million (US$58 thousand) for other securities, and for the year ended March 31, 2014, ¥1,223 million,
which is for other securities. Among the loss on other devaluation of investment securities for the year ended March 31, 2015, ¥520
million (US$4,328 thousand) was recorded under business structure improvement expenses.
Asahi Kasei Report 2015
85
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
2015
Foreign exchange forward contracts
Selling
Off-market
transactions
U.S. dollar
Euro
Thai baht
Buying
U.S. dollar
¥21,592
6,486
988
2,672
¥31,738
¥—
—
—
260
¥260
¥(332)
135
(27)
(263)
¥(486)
¥(332)
135
(27)
(263)
¥(486)
Millions of yen
2014
Classifi cation
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profi t (loss) from valuation
Foreign exchange forward contracts
Selling
Off-market
transactions
U.S. dollar
Euro
Thai baht
Buying
U.S. dollar
¥19,904
6,114
1,157
3,501
¥30,676
¥—
—
—
166
¥166
¥(267)
(80)
(26)
(661)
¥(1,035)
¥(267)
(80)
(26)
(661)
¥(1,035)
Thousands of U.S. dollars
2015
Classifi cation
Items
Amount of contract
Amount of contract
over 1 year
Fair value
Profi t (loss) from valuation
Foreign exchange forward contracts
Selling
Off-market
transactions
U.S. dollar
Euro
Thai baht
Buying
U.S. dollar
$179,709
53,983
8,223
22,239
$264,153
$—
—
—
2,164
$2,164
$(2,763)
1,124
(225)
(2,189)
$(4,045)
$(2,763)
1,124
(225)
(2,189)
$(4,045)
(b) Derivative fi nancial instruments for which hedge accounting is applied
i) Foreign exchange forward contracts
Classifi cation
Items
Hedged assets/liabilities
Amount of contract
Foreign exchange forward contracts
Selling
Millions of yen
2015
Amount of contract
over 1 year
Principle-based
accounting
U.S. dollar
Euro
Buying
U.S. dollar
Thai baht
U.S. dollar
Accounts receivable—trade
Accounts receivable—trade
Accounts payable—trade
Accounts payable—trade
Investment securities
¥2,039
—
1,791
55
195,205
¥199,089
¥—
—
—
—
—
¥—
Fair value
¥43
—
79
2
(1,995)
¥(1,870)
86 Asahi Kasei Report 2015
Classifi cation
Items
Hedged assets/liabilities
Amount of contract
Foreign exchange forward contracts
Selling
Millions of yen
2014
Amount of contract
over 1 year
Principle-based
accounting
U.S. dollar
Euro
Buying
U.S. dollar
Thai baht
U.S. dollar
Accounts receivable—trade
Accounts receivable—trade
Accounts payable—trade
Accounts payable—trade
Investment securities
¥3,887
109
1,149
65
—
¥5,210
¥—
—
—
—
¥—
Classifi cation
Items
Hedged assets/liabilities
Amount of contract
Foreign exchange forward contracts
Selling
Thousands of U.S. dollars
2015
Amount of contract
over 1 year
Principle-based
accounting
U.S. dollar
Euro
Buying
U.S. dollar
Thai baht
U.S. dollar
Accounts receivable—trade
Accounts receivable—trade
$16,970
—
Accounts payable—trade
Accounts payable—trade
Investment securities
14,906
458
1,624,677
$1,657,004
$—
—
—
—
—
$—
ii) Interest-rate swaps, and interest-rate and currency swaps
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
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
2015
Amount of contract
over 1 year
Interest-rate swaps
Pay fi xed/receive fl oating
Interest-rate and currency swaps
U.S. dollar receive fl oating/
Thai baht pay fi xed
Long-term loans payable
¥90,425
¥77,122
Long-term loans payable
—
—
¥90,425
¥77,122
Items
Hedged assets/liabilities
Amount of contract
Millions of yen
2014
Amount of contract
over 1 year
Interest-rate swaps
Pay fi xed/receive fl oating
Interest-rate and currency swaps
U.S. dollar receive fl oating/
Thai baht pay fi xed
Long-term loans payable
¥88,580
¥76,317
Long-term loans payable
321
—
¥88,901
¥76,317
Items
Hedged assets/liabilities
Amount of contract
Thousands of U.S. dollars
2015
Amount of contract
over 1 year
Interest-rate swaps
Pay fi xed/receive fl oating
Interest-rate and currency swaps
U.S. dollar receive fl oating/
Thai baht pay fi xed
Long-term loans payable
$752,601
$641,881
Long-term loans payable
—
—
$752,601
$641,881
Fair value
¥(139)
(1)
13
(0)
—
¥(126)
Fair value
$358
—
658
17
(16,604)
$(15,564)
Fair value
(*)
—
—
Fair value
(*)
(*)
—
Fair value
(*)
—
—
(*) Fair value of interest-rate swaps and interest-rate and currency swaps, for which special treatment is applied, is included in fair value of the corresponding long-term loans payable for which
hedge accounting is applied.
Asahi Kasei Report 2015
87
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 service.
Additional benefi ts may be granted to employees depending on the conditions under which termination of employment occurs. Certain foreign
subsidiaries have defi ned benefi t pension plans or defi ned contribution plans.
The obligation for these severance indemnity benefi ts is provided for through accruals, contributory funded defi ned benefi t pension plans,
contributory funded defi ned benefi t enterprise pension plans, and non-contributory funded tax-qualifi ed pension plans.
Certain consolidated subsidiaries adopt the simplifi ed method in calculating expected defi ned benefi t liability.
Reconciliations of beginning and ending balances of projected benefi t obligations for the fi scal years ended March 31, 2015 and 2014, were as
follows:
Beginning balance of the projected benefi t obligations
Cumulative effect of changes in accounting polices
Restated balance
Service cost
Interest cost
Actuarial gains/losses
Payment of retirement benefi ts
Other
Ending balance of the projected benefi t obligations
Millions of yen
2015
¥329,869
23,336
353,205
13,624
3,431
(191)
(17,558)
302
¥352,813
2014
¥331,038
—
331,038
12,352
4,887
1,525
(20,315)
381
¥329,869
Thousands of
U.S. dollars
2015
$2,745,476
194,224
2,939,700
113,392
28,556
(1,590)
(146,134)
2,514
$2,936,438
Reconciliations of beginning and ending balances of plan assets for the fi scal years ended March 31, 2015 and 2014, were as follows:
Beginning balance of plan assets
Expected return
Actuarial gains/losses
Contributions
Payment of retirement benefi ts
Other
Ending balance of plan assets
Millions of yen
2015
¥188,715
4,717
19,977
10,015
(9,915)
198
¥213,707
2014
¥177,112
4,368
9,237
9,873
(11,971)
97
¥188,715
Thousands of
U.S. dollars
2015
$1,570,662
39,259
166,267
83,354
(82,522)
1,648
$1,778,668
Reconciliations of ending balance of projected benefi t obligations and the plan assets, and of net defi ned benefi t liability and net defi ned benefi t
asset, as recorded in the consolidated balance sheet at March 31, 2015 and 2014, were as follows:
Projected benefi t obligations of funded plans
Plan assets
Subtotal
Projected benefi t obligations of unfunded plans
Net of liability and asset that have been recorded in the consolidated balance sheet
Net defi ned benefi t liability
Net defi ned benefi t asset
Net of liability and asset that have been recorded in the consolidated balance sheet
Millions of yen
2015
¥219,775
(213,707)
6,068
133,038
139,106
142,035
(2,929)
¥139,106
2014
¥204,264
(188,715)
15,549
125,605
141,154
143,523
(2,369)
¥141,154
Thousands of
U.S. dollars
2015
$1,829,172
(1,778,668)
50,504
1,107,266
1,157,769
1,182,147
(24,378)
$1,157,769
Periodic retirement benefi t expenses for employees and the breakdown of items for the years ended March 31, 2015 and 2014, were as follows:
Service cost (net of employee contributions)
Interest cost
Expected return on plan assets
Amortization of actuarial gains/losses
Amortization of prior service costs
Additional retirement benefi ts
Retirement benefi t expenses of defi ned benefi t plans
88 Asahi Kasei Report 2015
Millions of yen
2015
¥12,037
3,431
(4,717)
5,375
142
992
¥17,259
2014
¥10,713
4,887
(4,368)
6,140
(547)
903
¥17,728
Thousands of
U.S. dollars
2015
$100,183
28,556
(39,259)
44,736
1,182
8,256
$143,645
The components of other comprehensive income on defi ned benefi t plans for the fi scal years ended March 31, 2015 and 2014, were as follows:
Prior service costs
Actuarial gains/losses
Total
Millions of yen
2015
¥142
25,543
¥25,685
2014
¥—
—
¥—
Accumulated other comprehensive income on defi ned benefi t plans at March 31, 2015 and 2014, was follows:
Unrecognized prior service costs
Unrecognized actuarial gains/losses
Total
Share by major classifi cations for plan assets at March 31, 2015 and 2014, was as follows:
Bonds
Stock
Alternative investments
Life insurance
Cash and deposits
Other
Total
Millions of yen
2015
¥503
11,116
¥11,619
2014
¥644
36,659
¥37,303
2015
43%
24%
16%
12%
4%
1%
100%
Thousands of
U.S. dollars
2015
$1,182
212,593
$213,774
Thousands of
U.S. dollars
2015
$4,186
92,518
$96,704
2014
41%
27%
15%
13%
3%
1%
100%
Notes: 1. Alternative investments include mainly investments in real estate and hedge funds.
2. In the fi scal year ended March 31, 2015, alternative investments, which had previously been included in other, are reported separately.
The current and future allocation of plan assets, and the current and future long-term rate of expected return from the variety of assets that
make up the plan assets, are considered in determining the long-term rate of expected return on plan assets.
Major actuarial assumptions at March 31, 2015 and 2014, were as follows:
Discount rate
The long-term rate of expected return on plan assets
Expected rate of increase in salary
2015
Mainly 0.9%
Mainly 2.5%
2.3-7.3%
2014
Mainly 1.4%
Mainly 2.5%
2.3-7.3%
Required payments to defi ned contribution plans at March 31, 2015, amounted to ¥774 million (US$6,442 thousand), and at March 31, 2014,
amounted to ¥578 million.
Asahi Kasei Report 2015
89
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 deferred tax assets and liabilities at March 31, 2015 and 2014, were as follows:
Deferred tax assets:
Net defi ned benefi t liability
Tax loss carry forwards
Accrued bonuses
Unrealized gain on noncurrent assets and others
Impairment losses
Loss on disposal of noncurrent assets
Depreciation
Unrealized loss on investment securities
Accrued enterprise tax
Provision for product warranties
Devaluation of inventories
Provision for periodic repairs
Asset retirement obligations
Allowance for doubtful accounts
Deferred gains or losses on hedges
Environmental expenses
Experiment and research expenses
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
2015
2014
¥44,782
15,474
8,125
4,481
4,180
4,071
2,968
2,553
1,537
1,261
1,217
1,198
918
758
678
313
115
11,123
105,753
(19,314)
86,439
(55,582)
(34,704)
(9,406)
(5,149)
(203)
(6,287)
(111,330)
¥50,379
17,045
8,593
4,342
5,096
6,331
3,403
2,412
4,187
1,284
1,190
2,830
1,234
969
54
409
90
9,922
119,771
(24,590)
95,181
(43,469)
(30,452)
(10,546)
(3,849)
(299)
(6,683)
(95,297)
Thousands of
U.S. dollars
2015
$372,717
128,789
67,624
37,295
34,790
33,883
24,702
21,248
12,792
10,495
10,129
9,971
7,640
6,309
5,643
2,605
957
92,576
880,175
(160,749)
719,426
(462,605)
(288,839)
(78,285)
(42,855)
(1,690)
(52,326)
(926,592)
Net deferred tax assets (liabilities)
¥(24,891)
¥(115)
$(207,166)
Net deferred tax assets (liabilities) at March 31, 2015 and 2014, were included in the following line items on the consolidated balance sheets.
Current assets—deferred tax assets
Noncurrent assets—deferred tax assets
Current liabilities—other
Noncurrent liabilities—deferred tax liabilities
Millions of yen
2015
¥21,707
11,351
(7)
¥(57,943)
2014
¥27,469
16,278
(420)
¥(43,441)
Thousands of
U.S. dollars
2015
$180,666
94,474
(58)
$(482,256)
90 Asahi Kasei Report 2015
Reconciliation of the differences between the statutory tax rate and the effective income tax rate for the years ended March 31, 2015 and
2014, was as follows:
Statutory tax rate
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 (losses) of unconsolidated subsidiaries and affi liates
Undistributed earnings of foreign subsidiaries
Difference of tax rates for foreign subsidiaries
Valuation allowance
Decrease in deferred tax assets due to the change in statutory tax rate
Other
Effective income tax rate
2015
35.6%
2014
38.0%
0.7
0.3
(4.2)
2.1
(0.4)
0.4
(2.7)
(1.6)
3.2
(0.8)
32.5%
0.7
0.3
(3.5)
1.9
0.4
0.4
(0.3)
(1.2)
0.9
0.1
37.7%
Note: In the fi scal year ended March 31, 2015, tax credits on tax incentive for investment in
productivity improving assets and tax incentive for salary growth, which had previously
been included in other, are included in R&D expenses deductible from income taxes
due to their materiality. The fi gure shown as other for the fi scal year ended March 31,
2014, has been restated accordingly.
The “Act for partial Revision of the Income Tax Act etc.” (Act. No. 9 of
2015) and “Act for Partial Revision of the Local tax Act, etc.” (Act No.
2 of 2015) were issued on March 31, 2015, and applied from the fi scal
year beginning on or after April 1, 2015.
In accordance with this change, the statutory effective tax rate
applied in calculating deferred tax assets and liabilities was changed
from 35.6% to 33.1% from the fi scal year beginning on or after April
1, 2015, and changed from 33.1% to 32.3% from the fi scal year
beginning on or after April 1, 2016.
As a result of this change, deferred tax assets (after netting
deferred tax liabilities) decreased by ¥969 million (US$8,065 thousand),
income taxes—deferred increased by ¥4,996 million (US$41,581 thou-
sand), net unrealized gain on other securities increased by ¥4,228 mil-
lion (US$35,189 thousand), deferred gains or losses on hedges
increased by ¥35 million (US$291 thousand), and remeasurements of
defi ned benefi t plans increased by ¥166 million (US$1,382 thousand)
in the consolidated fi nancial statements for the fi scal year ended
March 31, 2015.
15. Business combinations
Business combinations accounted for by the purchase method were as
follows:
1. Impact Instrumentation, Inc.
(a) Outline of business combination
i) Name of counterparty
Impact Instrumentation, Inc.
ii) Nature of the businesses
Manufacture and sale of respiratory care medical devices
iii) Main reasons for the acquisition
The addition of respiratory care devices of Impact
Instrumentation, Inc. to ZOLL Medical Corporation’s product
group will complement ZOLL’s product portfolio of acute
critical care medical devices centered on cardiac function.
iv) The acquisition date
October 31, 2014
v) Statutory form of business combination
Transfer of business for cash as consideration
vi) Name of company after transaction
ZOLL Medical Corporation
vii) Basic means of materializing the acquisition
Transfer of business for cash as consideration by a consolidated
subsidiary of the Company.
(b) The period of acquiree’s results included in the
consolidated fi nancial statements
From November 1, 2014, to March 31, 2015
(c) Cost of acquisition and details
Business transfer price
Purchase price
Millions of yen
¥3,061
¥3,061
Thousands of
U.S. dollars
$25,476
$25,476
Note: Business transfer price includes ¥262 million (US$2,181 thousand) of contingent
consideration (fair value).
(d) The amount of goodwill, measurement principle,
amortization method and useful life
i) Amount of goodwill
¥1,356 million (US$11,286 thousand)
ii) Measurement principle
Goodwill is measured as the excess of the purchase price over
the fair value of identifi able assets acquired and liabilities
assumed.
iii) Amortization method and useful life
Straight-line method over 10 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
Thousands of
U.S. dollars
¥1,178
2,461
3,640
381
198
¥578
$9,804
20,483
30,295
3,171
1,648
$4,811
(f) Nature of contingent consideration stipulated in the
asset purchase agreement and its accounting treatment
in the subsequent period
i) Nature of contingent consideration
The payment amount of contingent consideration depends on
the degree of achievement of a specifi ed performance metric
after the acquisition date.
ii) Accounting treatment in the subsequent period
The Company will recognize the variable portion of contingent
consideration in accordance with accounting standards general-
ly accepted in the United States.
Asahi Kasei Report 2015
91
(g) Amount of identifi able intangible assets other than
(c) Cost of acquisition and details
goodwill, its details and major weighted average useful life
Purchase price allocated to intangible assets and its
i)
major items
Technology-related assets
Trademarks
Customer-related assets
Millions of yen
¥437
22
¥623
ii) Major weighted average useful life
Technology-related assets
Trademarks
Customer-related assets
Total
Thousands of
U.S. dollars
$3,637
183
$5,185
13 years
5 years
7 years
10 years
(h) Pro forma effects on the consolidated statements of
income assuming the business combination had occurred
at the beginning of the fi scal year, and its measurement
Information is omitted due to immateriality. This note is not audited.
2. Advanced Circulatory Systems, Inc.
(a) Outline of business combination
i) Name of acquiree
Advanced Circulatory Systems, Inc.
ii) Nature of the businesses
Manufacture and sale of Intrathoracic Pressure Regulation
devices
iii) Main reasons for the acquisition
Advanced Circulatory Systems’ novel and non-invasive
Intrathoracic Pressure Regulation (IPR) therapy platform has
far-reaching implications for multiple medical conditions.
Increasing the accuracy of cardiopulmonary resuscitation
through a combination with ZOLL’s defi brillators and the IPR
therapy platform will enable more lives of patients who are in
critical condition to be saved. The acquisition of Advanced
Circulatory Systems further demonstrates ZOLL’s commitment
to offering the most comprehensive portfolio of products for
acute events where rapid medical intervention is needed.
iv) The acquisition date
January 14, 2015
v) Statutory form of business combination
Stock purchase for cash as consideration
vi) Name of company after transaction
Advanced Circulatory Systems, Inc.
vii) Acquired voting right
Voting right before the acquisition
Additional voting right acquired as of the
acquisition date
Voting right after the acquisition
4%
96%
100%
viii) Basic means of materializing the acquisition
Stock purchase for cash as consideration by a consolidated
subsidiary of the Company.
(b) The period of acquiree’s results included in the
consolidated fi nancial statements
From January 14, 2015, to March 31, 2015
Stock purchase price
Purchase price
Millions of yen
¥3,541
¥3,541
Thousands of
U.S. dollars
$29,471
$29,471
Note: Stock purchase price includes ¥2,106 million (US$17,528 thousand) of contingent
consideration (fair value).
(d) The amount of goodwill, measurement principle,
amortization method and useful life
i) Amount of goodwill*
¥1,351 million (US$11,244 thousand)
ii) Measurement principle
Goodwill is measured as the excess of the purchase price over
the fair value of identifi able assets acquired and liabilities
assumed.
iii) Amortization method and useful life
Straight-line method over 10 years
* Based on provisional calculation, as the purchase price allocation is incomplete at the time of
preparation of the accompanying fi nancial statements.
(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
Thousands of
U.S. dollars
¥478
3,958
4,436
403
492
¥895
$3,978
32,942
36,921
3,354
4,095
$7,449
(f) Nature of contingent consideration stipulated in the
share purchase agreement and its accounting treatment
in the subsequent period
i) Nature of contingent consideration
The payment amount of contingent consideration depends on
the degree of achievement of specifi ed milestones and a per-
formance metric after the acquisition date.
ii) Accounting treatment in the subsequent period
The Company will recognize the variable portion of contingent
consideration in accordance with accounting standards general-
ly accepted in the United States.
(g) Amount of identifi able intangible assets other than
goodwill, its details and major weighted average useful life
Purchase price allocated to intangible assets and its
i)
major items
Technology-related assets
¥2,587
Millions of yen
Thousands of
U.S. dollars
$21,531
ii) Major weighted average useful life
Technology-related assets
14 years
(h) Purchase price allocation
The fair value of assets and liabilities has not been determined, and the
purchase price allocation has not been completed at March 31, 2015.
Therefore, provisional accounting treatment has been applied based
on reasonable information available at that time.
(i) Pro forma effects on the consolidated statements of
income assuming the business combination had occurred
at the beginning of the fi scal year, and its measurement
Information is omitted due to immateriality. This note is not audited.
92 Asahi Kasei Report 2015
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
liabilities, 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, 2015, 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 6.4%.
(c) Increase (decrease) in the total amount of asset retirement obligations in the fi scal years ended March 31, 2015 and 2014.
Balance at beginning of year
Increase due to asset retirement obligations accrued
Adjustment due to passage of time
Increase 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
2015
¥4,050
332
123
18
(513)
29
¥4,039
2014
¥3,556
383
112
161
(463)
300
¥4,050
Thousands of
U.S. dollars
2015
$33,708
2,763
1,024
150
(4,270)
241
$33,616
* Increase or decrease in asset retirement obligations was made as it became clear that the cost of asset retirement will be different 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 recorded under asset retirement obligations. Increase (decrease) in those expensed amounts for the fi scal years ended March 31, 2015 and
2014, 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
17. Business segment information
(a) Overview of reportable segments
The Company’s business segments are based on organizational units
for which separate fi nancial information is available, and the Board of
Directors carries out periodic review to allocate management resources
and evaluate business performance.
The Company is organized under a holding company confi gura-
tion with nine core operating companies performing operations in
nine business fi elds. Each core operating company lays out strategy
and develops business activities in Japan and abroad.
At the beginning of the fi scal year ended March 31, 2015, the
Company’s previous seven reportable segments of Chemicals, Fibers,
Homes, Construction Materials, Electronics, Health Care, and Critical
Care, together with an “Others” category, have been changed to the
four reportable segments of Chemicals & Fibers, Homes & Construction
Materials, Electronics, and Health Care, together with an “Others”
category, in accordance with a change in the governance confi guration
to enhance the management foundation in the business fi elds that the
Company is focused on, to obtain more transparent governance, and
to enable fl exible adaptation to changes in the operating environment.
The fi gures for the fi scal year ended March 31, 2014, have been recal-
culated in accordance with the new segment confi guration for com-
parison purposes.
Main products of the four reportable segments are as follows:
Chemicals and Fibers segment
Chemicals business
The Company produces, processes, and sells petrochemical products
(such as nitric acid, caustic soda, acrylonitrile, styrene, methyl methac-
rylate (MMA), and acrylic resin, Suntec™ polyethylene, and polysty-
rene), performance polymer products (such as Stylac™-AS
Millions of yen
2015
¥1,652
14
(17)
¥1,650
2014
¥1,629
114
(90)
¥1,652
Thousands of
U.S. dollars
2015
$13,749
117
(141)
$13,733
styrene-acrylonitrile, Stylac™-ABS acrylonitrile-butadiene-styrene,
Tenac™ polyacetal, Xyron™ modifi ed polyphenylene ether (mPPE),
adipic acid, Leona™ polyamide 66, and synthetic rubber), 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).
Fibers business
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.
Homes and Construction Materials segment
Homes business
The Company constructs Hebel Haus™ unit homes and Hebel Maison™
apartments, and operates real estate businesses (such as management
of Hebel Maison™ rental units, Atlas™ condominiums, Hebel Town™
housing developments, and brokerage of used Hebel Haus™ homes),
remodeling businesses (such as exterior wall refurbishing, reroofi ng,
redesign, interior renovation, and solar panel installation), and fi nancial
and other services (such as mortgage fi nancing, etc.).
Construction Materials business
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.
Asahi Kasei Report 2015
93
Electronics segment
The Company manufactures and sells Hipore™ Li-ion battery separa-
tors, photomask pellicles, APR™ photosensitive resin and printing
plate making systems, Pimel™ photosensitive polyimide precursor,
Sunfort™ photosensitive dry fi lm, mixed-signal LSIs, Hall elements,
and glass fabric for printed wiring boards.
Health Care segment
Health Care business
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.
Critical Care business
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
2015
Chemicals &
Fibers
Homes &
Construction
Materials
Electronics
Health Care
Subtotal
Others
(Note 1)
Total
¥954,623
¥603,786
¥150,388
¥257,133
¥1,965,929
¥20,476
¥1,986,405
18,216
68
544
41
18,868
972,838
603,853
150,932
257,174
1,984,798
64,624
63,037
14,300
30,845
172,806
22,283
42,760
949
41,152
2,027,557
173,755
810,787
414,028
179,102
501,990
1,905,906
62,874
1,968,780
Sales:
External customers
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
35,655
484
46,243
9,430
13,874
—
—
17
304
20,104
8,555
79,064
9,056
1,094
264
80,158
9,320
—
46,547
17,013
63,560
¥41,718
¥10,864
¥11,600
¥16,595
¥80,776
¥1,389
¥82,165
Notes: 1. The “Others” category includes plant engineering and environmental engineering, research and analysis, and employment agency/staffi ng operations.
2. Amortization of goodwill is not included.
Sales:
External customers
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
Millions of yen
2014
Chemicals &
Fibers
Homes &
Construction
Materials
Electronics
Health Care
Subtotal
Others
(Note 1)
Total
¥912,505
¥589,380
¥144,995
¥232,387
¥1,879,267
¥18,499
¥1,897,766
17,149
84
490
39
17,762
929,655
589,464
145,485
232,425
1,897,029
47,447
68,517
14,239
26,742
156,945
775,386
399,220
174,883
476,765
1,826,254
23,767
42,266
1,745
62,935
41,529
1,939,295
158,690
1,889,190
36,969
553
40,657
—
—
8,069
14,303
20,017
8,015
79,357
8,583
994
240
80,351
8,823
15
2,954
41
43,652
17,948
61,601
¥38,762
¥15,037
¥14,583
¥18,154
¥86,536
¥1,395
¥87,930
Notes: 1. The “Others” category includes plant engineering and environmental engineering, research and analysis, and employment agency/staffi ng operations.
2. Amortization of goodwill is not included.
94 Asahi Kasei Report 2015
Thousands of U.S. dollars
2015
Chemicals &
Fibers
Homes &
Construction
Materials
Electronics
Health Care
Subtotal
Others
(Note 1)
Total
$7,945,260 $5,025,268 $1,251,669 $2,140,100 $16,362,289
$170,420
$16,532,709
151,610
566
4,528
341
157,037
185,460
342,505
8,096,862
5,025,826
1,256,196
2,140,441
16,519,334
355,888
16,875,214
537,861
524,653
119,018
256,721
1,438,252
7,898
1,446,151
6,748,123
3,445,926
1,490,653
4,178,027
15,862,722
523,296
16,386,017
296,754
78,485
115,472
167,324
141
71,203
658,044
75,372
9,105
2,197
667,149
77,570
4,028
384,877
—
—
2,530
—
387,407
141,598
529,005
Sales:
External customers
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
$347,216
$90,420
$96,546
$138,119
$672,293
$11,561
$683,854
Notes: 1. The “Others” category includes plant engineering and environmental engineering, research and analysis, and employment agency/staffi ng operations.
2. Amortization of goodwill is not included.
(d) Reconciliation of differences between total amounts of reportable segments and amounts appearing in the consolidated
fi nancial statements (adjustment of difference)
Sales
Total of reporting segments
Net sales in “Others” category
Elimination of intersegment transactions
Net sales on consolidated statements of income
Operating income
Total of reporting segments
Operating income in “Others” category
Elimination of intersegment transactions
Corporate expenses, etc.*
Operating income on consolidated statements of income
Millions of yen
2015
¥1,984,798
42,760
(41,152)
¥1,986,405
2014
¥1,897,029
42,266
(41,529)
¥1,897,766
Millions of yen
2015
¥172,806
949
1,087
(16,910)
¥157,933
2014
¥156,945
1,745
359
(15,702)
¥143,347
* Corporate expenses, etc. include corporate revenue, basic research expense, and group management expense, etc. which are not allocated to reporting segments.
Assets
Total of reporting segments
Assets in “Others” category
Elimination of intersegment transactions
Corporate assets*
Total assets on consolidated balance sheets
Millions of yen
2015
¥1,905,906
62,874
(249,428)
295,179
¥2,014,531
2014
¥1,826,254
62,935
(238,714)
264,613
¥1,915,089
Thousands of
U.S. dollars
2015
$16,519,334
355,888
(342,505)
$16,532,709
Thousands of
U.S. dollars
2015
$1,438,252
7,898
9,047
(140,741)
$1,314,465
Thousands of
U.S. dollars
2015
$15,862,722
523,296
(2,075,972)
2,456,754
$16,766,800
* Corporate assets include assets of the parent company—surplus operating funds (cash and deposits), long-term investment capital (investment securities, etc.), and land, etc.
Asahi Kasei Report 2015
95
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
2015
2014
2015
2015
2014
2015
2015
2014
2015
2015
2014
2015
Depreciation (Note 2)
¥79,064 ¥79,357
$658,044
¥1,094
$9,105
¥5,900 ¥5,701
$49,105 ¥86,058 ¥86,052
$716,255
9,056
8,583
75,372
264
2,197
¥994
240
46,547 43,652
387,407
17,013 17,948
141,598
—
—
—
—
—
9,320
8,823
77,570
— 63,560 61,601
529,005
Amortization of goodwill
Investments in affi liates
accounted for using
the equity method
Increase in property, plant
and equipment, and
intangible assets
¥80,776 ¥86,536 $672,293
¥1,389 ¥1,395
$11,561
¥6,943 ¥4,466
$57,786 ¥89,108 ¥92,397
$741,640
Notes: 1. Adjustments include elimination of intersegment transactions and corporate expenses, etc.
2. Amortization of goodwill is not included.
(e) Related Information
i) Information on products and services
Please refer to (c) Information concerning net sales, income or loss, assets, and other items for each reportable segment.
ii) Geographic information
1) Net sales
Millions of yen
2015
2014
Thousands of U.S. dollars
2015
Japan
China
Other regions
Total
Japan
China
Other regions
Total
Japan
China
Other regions
Total
¥1,313,128 ¥194,007 ¥479,271 ¥1,986,405 ¥1,289,054 ¥187,247 ¥421,465 ¥1,897,766
$10,929,072 $1,614,707 $3,988,939 $16,532,709
2) Property, plant and equipment
Millions of yen
2015
2014
Thousands of U.S. dollars
2015
Japan
Other regions
Total
Japan
Other regions
Total
Japan
Other regions
Total
¥361,130
¥141,377
¥502,507
¥363,241
¥117,295
¥480,535
$3,005,660
$1,176,671
$4,182,330
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.
18. Information on related parties
Related party transactions
Transactions between consolidated subsidiaries of the company submitting the consolidated fi nancial statements and related parties
(a) Subsidiaries, affi liates, etc. of the company submitting the consolidated fi nancial statements
Type of related party
Name of company
Location
Paid-in capital
Business line
Share of voting rights held by the company
(of which, indirectly held)
Relationship with the related party
Nature of transaction
Transaction amount
Account name
Balance at end of year
An affi liated company
PTT Asahi Chemical Co., Ltd.
Rayong, Thailand
14,246 million Thai baht
Chemicals
48.5% (48.5%)
Debt guarantee
Guarantee for completion of manufacturing facilities
¥16,250 million ($135,248 thousand) in the year ended March 31, 2015,
¥16,416 million in the year ended March 31, 2014
—
—
96 Asahi Kasei Report 2015
(b) Directors, Corporate Auditors, major shareholders, etc. of the company submitting the consolidated fi nancial statements
Type of related party
Name of company
Location
Paid-in capital
Business line
Share of voting rights held by the related party
Relationship with the related party
Nature of transaction
Transaction amount
Account name
Balance at end of year
Type of related party
Name of company
Location
Paid-in capital
Business line
Share of voting rights held by the related party
Relationship with the related party
Nature of transaction
Transaction amount
Account name
Balance at end of year
A company in which close relative(s) of a Director or Corporate Auditor of the
Company hold(s) a majority of voting rights
Miwa-Syouji Co., Ltd.
Nobeoka, Miyazaki, Japan
¥65 million ($541 thousand)
Wholesale trade
0.0%
Purchasing consumable goods
Purchasing consumable goods
¥228 million ($1,898 thousand) in the year ended March 31, 2015,
no transactions in the year ended March 31, 2014
Accrued expenses
¥43 million ($358 thousand) as of March 31, 2015, no balance as of March 31, 2014
A company in which close relative(s) of a Director or Corporate Auditor of the
Company hold(s) a majority of voting rights
Miwa Vinyl Co., Ltd.
Nobeoka, Miyazaki, Japan
¥10 million ($83 thousand)
Manufacture and sale of plastic packaging material
—
Purchasing raw materials
Purchasing raw materials
¥49 million ($408 thousand) in the year ended March 31, 2015,
no transactions in the year ended March 31, 2014
Notes and accounts payable—trade
¥2 million ($17 thousand) as of March 31, 2015, no balance as of March 31, 2014
Notes: 1. Transaction amounts are shown net of consumption taxes, while balances at end of year include consumption taxes.
2. Transaction terms and the policy of deciding transaction terms: Ordinary transaction terms are applied to the purchase of products.
19. Per share information
Basic and diluted net assets per share and net income per share for the years ended March 31, 2015 and 2014, were as follows:
Basic net assets per share
Basic net income per share
(a) Basis for calculation of net assets per share
Total net assets
Amount deducted from total net assets
of which, minority interests
Net assets allocated to capital stock
Yen
2015
¥775.05
¥75.62
2014
¥653.15
¥72.48
Millions of yen
2015
¥1,097,722
15,068
(15,068)
¥1,082,654
2014
¥925,766
13,067
(13,067)
¥912,699
U.S. dollars
2015
$6.45
$0.63
Thousands of
U.S. dollars
2015
$9,136,263
125,410
(125,410)
$9,010,853
Number of shares of capital stock outstanding at fi scal year end used in calculation of
net assets per share (thousand)
1,396,873
1,397,386
1,396,873
(b) Basis for calculation of 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
2015
¥105,652
—
¥105,652
1,397,094
2014
¥101,296
—
¥101,296
1,397,501
Thousands of
U.S. dollars
2015
$879,334
—
$879,334
1,397,094
As the Company had no dilutive securities at March 31, 2015 and 2014, the Company does not disclose diluted net income per share for the
years ended March 31, 2015 and 2014.
Asahi Kasei Report 2015
97
20. Additional information
Asahi Kasei Corporation has entered into a defi nitive merger agreement to acquire Polypore International, Inc. (NYSE:PPO, hereinafter: “Polypore”),
a manufacturer of microporous membranes, which currently has two business segments: Energy Storage and Separations Media. In conjunction
with this transaction, Polypore also announced that it has entered into a defi nitive asset purchase agreement to sell the assets and liabilities related
to the Separations Media segment to 3M Company (NYSE:MMM, hereinafter: “3M”) for cash consideration of approximately US$1.0 billion.
Polypore is a compelling fi t with Asahi Kasei’s electronic materials business, led by Asahi Kasei’s Hipore™ lithium-ion battery (“LIB”) separator
with applications in energy storage for both consumer electronics and automotive applications.
Asahi Kasei, through its U.S. subsidiary ESM Holdings Corporation which was established for this acquisition, will acquire all of the outstanding
shares of Polypore’s common stock for US$60.50 per share, which is a 28.4% premium over the average stock price during the one month period
up to February 20, 2015, in the form of a cash merger, which would occur immediately after the closing of the sale of the Separations Media
segment to 3M. As a result of these transactions, Asahi Kasei will acquire Polypore’s Energy Storage business for total net consideration of
approximately US$2.2 billion. The transactions have been approved by the Boards of Directors of Asahi Kasei, 3M, and Polypore, and are subject
to customary conditions, including approval of Polypore’s shareholders and receipt of applicable regulatory clearances.
21. Borrowings
(a) Bonds payable at March 31, 2015 and 2014, comprised the following:
Unsecured 1.46% yen bonds due in 2019
Unsecured 0.30% yen bonds due in 2017
Total
Notes: 1. The current portion of bonds payable is recorded under current liabilities on the consolidated balance sheets.
2. The aggregate annual maturities of long-term debt after March 31, 2015, are as follows:
Year ending March 31
2016
2017
2018
2019
2020
2021 and thereafter
(b) Loans payable at March 31, 2015 and 2014, comprised the following:
Short-term loans payable with an interest rate of 0.59%
Current portion of long-term loans payable with an interest rate of 0.60%
Current portion of lease obligations with an interest rate of 1.41%
Long-term loans payable (except portion due within one year) with an interest rate of 0.71%
Lease obligations (except portion due within one year) with an interest rate of 1.35%
Commercial paper (due within one year)
Millions of yen
2015
¥20,000
20,000
¥40,000
2014
¥20,000
20,000
¥40,000
Millions of yen
¥—
—
20,000
—
20,000
—
¥40,000
Millions of yen
2015
¥62,648
33,367
1,383
130,400
1,219
—
¥229,018
2014
¥84,776
18,830
1,784
146,037
2,445
10,000
¥263,872
Thousands of
U.S. dollars
2015
$166,459
166,459
$332,917
Thousands of
U.S. dollars
$—
—
166,459
—
166,459
—
$332,917
Thousands of
U.S. dollars
2015
$521,415
277,711
11,511
1,085,310
10,146
—
$1,906,101
Notes: 1. Interest rates shown are weighted average interest rates for the balance outstanding at March 31, 2015.
2. The aggregate annual maturities of long-term loans payable and lease obligations (except portion due within one year) after March 31, 2016, are as follows:
Year ending March 31
2017
2018
2019
2020
2021 and thereafter
Long-term loans payable
Lease obligations
Millions of yen
¥41,046
20,566
49,468
11,208
¥8,112
Thousands of
U.S. dollars
$341,623
171,169
411,719
93,283
$67,516
Millions of yen
Thousands of
U.S. dollars
¥908
227
59
22
¥2
$7,557
1,889
491
183
$17
98 Asahi Kasei Report 2015
Asahi Kasei Report 2015
99
Major Subsidiaries and Affi liates
As of May 31, 2015
Paid-in capital
(million)
Equity
interest (%)
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 & Fibers 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.*
Tongsuh 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.
Sale of performance resin
Asahi Kasei Plastics Europe SA/NV*
Fibers, textiles
Asahi Kasei Fibers Corp.*
Flash spun products
DuPont-Asahi Flash Spun Products Co., Ltd.
Spandex
Hangzhou Asahikasei Spandex Co., Ltd.*
Warp-knit spandex textiles
Hangzhou Asahikasei Textiles Co., Ltd.*
Spandex
Formosa Asahi Spandex Co., Ltd.
Promotion and marketing of fi bers
Asahi Kasei Fibers (HK) Ltd.*
Spunbond nonwovens
Asahi Kasei Spunbond (Thailand) Co., Ltd.*
Spandex
Thai Asahi Kasei Spandex Co., Ltd.*
Spandex
Asahi Kasei Spandex Europe GmbH*
Asahi Kasei Fibers Italy SRL*
Sale of cupro cellulosic fi ber and nonwovens
Homes & Construction Materials 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 Construction Materials Corp.*
Asahi Kasei Foundation Systems Corp.*
Asahi Kasei Extech Corp.*
¥
Housing
Real estate development, brokerage, and related business ¥
¥
Steel frames
¥
Financial services
¥
Home maintenance and remodeling
¥
Construction of homes
¥
Construction materials
¥
Installation of piles
¥
Exterior wall panel installation
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
285
CNY
265
CNY
69
CNY
18
CNY
10
CNY
2.6
US$
50
CNY
160
US$
46
US$
35
US$
140
THB
THB
14,246
A
5
3,000
450
154
78
1,003
65
1,185
1,350
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
100.0
50.0
100.0
92.5
50.0
100.0
89.5
60.0
23.8** 100.0
100.0
¥
¥
CNY
CNY
NT$
HK$
THB
THB
A
A
3
3,250
3,200
2,820
1,000
250
100
3,000
200
50
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
* Consolidated subsidiary
** Including capital reserve
100 Asahi Kasei Report 2015
Paid-in capital
(million)
Equity
interest (%)
3,000
¥
3,000
¥
300
¥
50
¥
50
¥
50
¥
¥
10
KRW 7,962
2.9
US$
820
KRW
30
¥
¥
40
181
CNY
143
CNY
14
CNY
10
NT$
1
NT$
49
NT$
326
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
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
US$
0.5
100.0
KRW 1,000
100.0
165
CNY
100.0
NT$
5
A
100.0
17.8
A
100.0
0.5
100.0
0.3
100.0
0.01
100.0
10
1,723** 100.0
100.0
SG$
YTL
¥
US$
¥
230
Electronic devices
Electronic materials
Epoxy resin
LSIs
Glass fabric
Hall elements
Fine pattern coils
Energy and electronic materials
Sale of LSIs
Electronic devices marketing and technical support
LSI design
Electronic devices and printed wiring boards
Electronic devices marketing and technical support
Electronic devices marketing and technical support
Sale of pellicles
Photosensitive dry fi lm
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, bioprocess products
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
Sale of bioprocess products
Sale of medical devices, medical systems
Medical devices, bioprocess products
Acute critical care devices and systems
Sale of acute critical care devices in Japan
Main products/business line
Company
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 FP Corp.*
Asahi Kasei E-materials Korea Inc.*
AKM Semiconductor, Inc.*
Asahi Kasei Microdevices Korea Corp.
AKM Technology Corp.
Asahi Kasei Technosystem Co., Ltd.
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.*
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 America. 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 Kasei Bioprocess Singapore Pte. Ltd.
Asahi Kasei Medical Trading Ltd. Sti.*
Asahi Kasei Medical MT Corp.
ZOLL Medical Corporation*
Asahi Kasei ZOLL Medical Corp.*
Others
Asahi Research Center Co., Ltd.*
Asahi Kasei Engineering Corp.*
Asahi Kasei Advance Corp.*
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
¥
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
500
80
800
5,000
0.1
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 Report 2015
101
Company Information
Corporate Profi le (as of March 31, 2015)
Company Name
Asahi Kasei Corporation
Date of Establishment
May 21, 1931
Paid-in Capital
¥103,389 million
Employees
30,313 (consolidated)
1,185 (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
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.
800 Third Avenue, 30th 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
102 Asahi Kasei Report 2015
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, 2015)
Stock Listings
Stock Code
Tokyo
3407
Authorized Shares
4,000,000,000
Outstanding Shares
1,402,616,332
Transfer Agent
Sumitomo Mitsui Trust Bank, Ltd.
Largest Shareholders
% of equity*
The 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.
5.24
5.23
3.90
2.54
2.53
1.45
1.45
1.40
1.37
1.32
Independent Auditors
PricewaterhouseCoopers Aarata
Mizuho Bank, Ltd.
Number of Shareholders 85,482
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Sumitomo Life Insurance Co.
National Mutual Insurance Federation of Agricultural
Cooperatives
Meiji Yasuda Life Insurance Co.
* Percentage of equity ownership after exclusion of treasury stock.
In this 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 Report 2015
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1-105 Kanda Jinbocho, Chiyoda-ku, Tokyo 101-8101 Japan
www.asahi-kasei.co.jp/asahi/en
Corporate Communications
Tel: +81-3-3296-3008, Fax: +81-3-3296-3162
Printed in Japan
2015.11
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