Creating for Tomorrow
Asahi Kasei Report 2021
Asahi Kasei Report 2021
1
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
Asahi Kasei Group Overview
Business Overview
3 At a Glance
46 Review of Operations
5 Financial and Non-Financial Highlights
46 Material
7 Addressing Social Issues and Advancing Business
48 Homes
Portfolio Strategies — Our Path to Three Sectors —
50 Health Care
Management Strategy
10 Message from the President
1 8 Value Creation Model
Corporate Governance and
Risk Management
19 The Asahi Kasei Group’s Vision for the Future of
53 Corporate Governance
2
Editorial policy
For greater ease of understanding among our stakeholders regarding the
Asahi Kasei Group’s operating climate and overall business activities, the
Asahi Kasei Report focuses on such areas as our management strategy,
business conditions, and management configuration as well as our efforts
toward sustainability in society. Detailed sustainability-related information is
disclosed on our website.
Period under review
The period under review is fiscal 2020 (April 2020 to March 2021). Some
qualitative information pertaining to April to July 2021 has also been included.
Organizational scope
The scope of the report is Asahi Kasei Corp. and its consolidated subsidiaries
(in other cases, noted in the text). Asahi Kasei’s three operating segments are
Material, Homes, and Health Care. The titles and positions of corporate officers
and other personnel as shown in this report are current as of September 2021.
Guidelines consulted
The GRI Standards, the standards of the Sustainability Accounting Standards
Board, ISO 26000, and other guidelines were consulted during the preparation
of this report.
People and the Earth
57
Directors and Audit & Supervisory
Disclaimer
22 Pursuit of Carbon Neutrality and a Circular Economy
Board Members
27
Initiatives Regarding Climate Change Disclosure
60
Interview with an Outside Director
Based on the TCFD Recommendations
62 Risk Management
29 New Business Creation
32
New Business Creation Utilizing Corporate
Venture Capital
34 Digital Transformation
Corporate Information
39 Human Resource Strategies
66 Consolidated Financial Statements
43 Financial and Capital Policy
71 Corporate Profile / Stock Information
72
Information Disclosure
The forecasts and estimates shown in this report are dependent on a variety of
assumptions and economic conditions. Plans and figures depicting the future
do not imply a guarantee of actual outcome.
Photographs at the beginning of each section
We have used a selection of prize-winning photographs from our
Sustainability Photo Contest held in March and April 2021. The
contest solicited photographs from all Asahi Kasei Group employ-
ees and executives that would inspire people to think about and
act on sustainability in their daily lives. More than 2,300 submis-
sions were received from our sites around the world.
Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate InformationAsahi Kasei Report 2021
3
At a Glance
19.5 %
34.2 %
Fiscal 2020 Net Sales
Notable Facts (as of March 31, 2021)
¥ 2,106.1billion
Employees
44,497
Of which, overseas employees
account for nearly 40%
33.6%
Global bases
More than 20
countries and regions
Material
Homes
Health Care
Fiscal 2020 Operating Income
¥171.8 billion
47.4 %
Consolidated subsidiaries
Overseas sales ratio
Credit rating*
228
42.8 ％
AA
Japan Credit Rating Agency (JCR)
* As of June 30, 2021
Note: Percentages shown exclude the
“Others” category and “corporate
expenses and eliminations”
33.1 %
32.2%
Europe
¥124.9 billion
5.9 %
Net Sales by Region
Note: As of March 31, 2021
China
¥198.9 billion
9.4 %
Asia
(excluding China)
¥ 215.3 billion
10.3 %
Japan
¥1,204.3 billion
57. 2 %
The Americas
¥ 335.9 billion
15.9 %
Other Regions
¥ 26.8 billion
1.3 %
Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate InformationAsahi Kasei Report 2021 Priority Fields for Provision of Value and Related Products
Material
Homes
Health Care
Environment & Energy
Home & Living
Health Care
4
Hipore™ and Celgard™ separators for lithium-ion
Ion-exchange membrane chlor-alkali electrolysis
batteries
Mobility
process
Hebel Haus™ unit homes
Hebel Maison™ apartment buildings
Pharmaceutical products
Engineering plastics
Life Material
Lamous™ artificial suede
Dinamica™ automotive interior material
Hebel Village™ apartments for seniors
Planova™ virus removal filters
Ceolus™ microcrystalline cellulose
Household products
Atlas™ condominiums
ZOLL AED Plus™ automated external defibrillator
Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate InformationAsahi Kasei Report 2021 Financial Highlights
Net sales (domestic & overseas), operating income, operating margin
EBITDA1, depreciation and amortization, EBITDA margin
Net income attributable to owners of the parent, EPS
(¥ billion)
2,500
2,000
1,883.0
2,042.2
2,170.4
2,151.6
2,106.1
198.5
209.6
1,500
1,000
500
0
159.2
177.3
171.8
8.5
9.7
9.7
8.2
8.2
2016
2017
2018
2019
2020
(FY)
(¥ billion)
(¥ billion)
(¥ billion)
300
25
240
20
180
15
120
10
60
0
5
0
400
300
200
100
0
EBITDA
268.4
311.9
313.6
14.3
15.3
295.6
305.1
14.5
14.5
13.7
109.2
113.5
104.0
118.3
133.3
2016
Depreciation and amortization (tangible, intangible, and goodwill)
2020
2017
2018
2019
(FY)
20
15
10
5
0
200
150
100
50
0
170.2
147.5
115.0
121.93
105.66
103.9
82.34
79.8
74.85
57.49
2016
2017
2018
2019
2020
(FY)
5
(¥)
200
150
100
50
0
Domestic sales
Overseas sales (left scale)
Operating income (right scale)
Operating margin (%)
EBITDA margin (%)
1 Operating income, depreciation, and amortization
Net income attributable to owners of the parent (left scale)
EPS (right scale)
In fiscal 2020, both sales and operating income were largely flat year on year as
earnings in the Health Care sector offset declines in the Material and Homes
sectors that stemmed from COVID-19. Overseas sales accounted for over 40%
of total net sales in fiscal 2020, reflecting an increase in overseas sales due to
overseas business expansion, including through M&A.
The amount of depreciation and amortization is increasing with proactive
capital expenditures and M&A activity. EBITDA is regarded as a key perfor-
mance indicator (KPI) signifying the generation of cash flow. The decrease in
depreciation and amortization in fiscal 2018 resulted from a change in the
method of depreciation of property, plant and equipment from the declining-
balance method to the straight-line method.
Net income attributable to owners of the parent in fiscal 2020 decreased due to
a one-off increase in tax expenses due to the reconfiguration of organizations
related to Veloxis Pharmaceuticals, Inc. (hereinafter Veloxis). As a result, EPS
also decreased.
ROE2, ROIC3
Capital expenditure, R&D expenses
Interest-bearing debt, D/E ratio
(%)
20
15
10
5
0
14.0
9.7
11.1
8.8
10.5
7.8
7.6
6.6
5.6
4.9
(¥ billion)
(¥ billion)
154.1
153.7
136.2
90.6
79.6
101.3
85.7
90.1
91.0
89.7
200
150
100
50
0
703.8
659.0
0.52
402.8
424.9
0.45
301.7
0.35
0.23
0.31
800
600
400
200
0
0.8
0.6
0.4
0.2
0
2016
2017
2018
2019
2020
(FY)
2016
2017
2018
2019
2020
(FY)
2016
2017
2018
2019
2020
(FY)
ROE
ROIC
2 Net income per shareholders’ equity
3 (Operating income – income taxes) / average annual invested capital
Capital expenditure
R&D expenses
Interest-bearing debt (left scale)
D/E ratio (right scale)
The Company positions ROE and ROIC as KPIs to indicate its efficiency in
generating profits. In fiscal 2020, ROE declined due to the decrease in net
income. ROIC also declined due to the one-off increase in tax expenses due to
the reconfiguration of organizations related to Veloxis and an expansion in
invested capital associated with an increase in interest-bearing debt following
the acquisition of Veloxis.
The Company proactively carries out capital expenditure geared toward growth,
including sustainability- and digital transformation-related investments, and
research and development (R&D) aimed at the Health Care sector and in new
business creation. However, in fiscal 2020, both capital expenditure and R&D
expenses were flat year on year due to strict scrutiny over investments in light
of the impact of COVID-19.
Although interest-bearing debt increased in fiscal 2019 due to the acquisition
of Veloxis, it decreased in fiscal 2020 because of the repayment of loans
payable following an improvement in cash flows. As a result, the D/E ratio at the
end of fiscal 2020 decreased by 0.07, remaining in line with our target ratio of
around 0.5.
Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate InformationAsahi Kasei Report 2021
6
Non-Financial Highlights
Greenhouse gas (GHG) emissions
(Million tons CO2 equivalent)
4.35
4.22
4.16
3.99
3.89
5
4
3
2
1
0
Energy intensity 1
Workplace injury frequency rate2,3
(Index)
100
100
100
101
Target: –30%
or more by
FY2030
compared with
FY2013
(5.11 MtCO2e)
90
80
70
60
0
96
92
85
3.0
2.5
2.0
1.5
1.0
0.5
0
2.79
1.81
1.93
1.26
0.35
0.30
0.41
0.84
0.44
0.21
2016
2017
2018
2019
2020
(FY)
2016
2017
2018
2019
2020
(FY)
2016
2017
2018
2019
2020
(FY)
1 Indexed to energy consumption per unit of production in fiscal 2016 as 100
The Asahi Kasei Group has thus far targeted the reduction of greenhouse gas
emissions relative to sales (emissions intensity). However, we changed to an
absolute emissions reduction target to indicate a clearer path toward the
achievement of carbon neutrality. We are steadily reducing emissions to achieve
our target and will endeavor to reduce emissions going forward.
We promote energy conservation at every stage of our business activities to
prevent global warming and conserve limited resources. Over the past five
years, we have made steady improvements, lowering our energy consumption
per unit of production by 1% annually on average.
Japan
Overseas
2 Number of accidental deaths and injuries resulting in the loss of one or more workdays, per
million man-hours worked
3 Among domestic and overseas subsidiaries and affiliates applying the Asahi Kasei Group
Responsible Care Program
While the frequency rate of lost-workday injuries among employees in Japan
improved significantly, this rate deteriorated among overseas employees. We
are making improvements by applying measures to avoid recurrence based
on analysis of the causes of injuries that have occurred, while implementing
preventive measures based on risk assessments.
Number of Group Masters
Number of women working as managers4
Number of patents
250
229
180
124
90
300
200
100
0
300
200
100
0
212
193
171
257
231
16,000
12,000
8,000
4,000
0
6,509
6,780
7,219
7,721
7,803
7,359
7,458
7,472
7,456
7,411
2016
2017
2018
2019
2020
(FY)
2017/6
2018 /6
2019 /6
2020/6
2021/6
2016 /12
2017/12
2018 /12
2019 /12 2020/12
Japan
Japan
Overseas
4 Results for personnel employed by Asahi Kasei Corp., Asahi Kasei Microdevices Corp., Asahi
Kasei Homes Corp., Asahi Kasei Construction Materials Corp., Asahi Kasei Pharma Corp., and
Asahi Kasei Medical Co., Ltd.
To foster the growth of our human resources while simultaneously capturing
external human resources, we appoint, nurture, and reward as Group Masters
individuals with the potential to proactively engage in and contribute to the
creation of new businesses and the enhancement of established businesses.
Asahi Kasei believes that it is essential for a diverse range of human resources
with a variety of values and backgrounds to play active roles. For this reason,
we foster an environment to support the advancement of women to positions in
organizational management.
We are focused on building and maintaining an intellectual property network to
secure competitive advantage. We evaluate whether to maintain or abandon our
intellectual property every year, aiming to form an optimal intellectual property
portfolio. As we expand our business globally, it is becoming increasingly
important to obtain patents overseas.
Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate InformationAsahi Kasei Report 2021 Addressing Social Issues and Advancing Business Portfolio Strategies —Our Path to Three Sectors—
In every era, the Asahi Kasei Group has addressed social issues by dynamically transforming its business portfolio and
supplying products and services that meet the changing needs of the times. We will continue to contribute to life and living for
people around the world by Creating for Tomorrow.
(¥ billion)
2,500
2,000
1,500
1,000
Founding and Japan’s first
production of synthetic ammonia
Expansion into petrochemicals
and synthetic fibers
Expansion into homes, health care,
and electronics
Progress in overseas business,
focus on business restructuring
Accelerated globalization through M&A,
expansion of health care business
Net sales (left scale):
Material
Homes
Health Care
Others
Operating income (right scale)
Notes: 1. Non-consolidated figures are shown through fiscal 1976; consolidated figures
are shown from fiscal 1977.
2. Color-coded sales are based on classifications at the time of disclosure; results of
health care–related businesses through fiscal 1988 are included in “Others.”
“As industrialists, we must always
remember that our ultimate mission is
to improve people’s standard of living
by supplying an abundance of
the highest-quality daily necessities
500
at the lowest prices.”
(Founder Shitagau Noguchi, 1933)
0
1922
1940
1950
1960
1970
1980
1990
2000
2010
2020
Social needs and times
Asahi Kasei’s evolution
Business portfolio transformation
New business entry,
M&A
Withdrawal, downsizing,
divestment
1922–
Establishing the basis for
modern life
• Development of chemical industry and
modern agriculture
• The Great Depression and World War II
Founding and Japan’s first production
of synthetic ammonia
Asahi Kasei contributed to establishment of the basis for
modern life through its businesses such as the production of
Bemberg™ cupro, a regenerated fiber.
• Ammonia
• Regenerated fiber
(cupro, viscose rayon)
• Chemical fertilizer
• Foods (monosodium glutamate)
Chemical fertilizers,
regenerated fiber,
explosives, etc.
FY1940
Net sales
¥56
million
7
(¥ billion)
250
200
150
100
50
0
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8
Social needs and times
Asahi Kasei’s evolution
1940 s–
Sufficiency of daily necessities
• Post-war recovery and modernization
of industry
• Start of period of high economic growth
Expansion into petrochemicals and
synthetic fibers
After World War II, the modernization of industry advanced in
Japan, driving the independence and growth of the Japanese
economy. Asahi Kasei embarked on various new businesses that
helped improve the quality of people’s lives.
Business portfolio transformation
New business entry,
M&A
Withdrawal, downsizing,
divestment
• Polystyrene
• Synthetic fiber (acrylic fiber)
Foods
Fibers
Chemicals
FY1960
Net sales
¥ 44.9
billion
1960 s–
Improvement in quality of homes,
development of
public infrastructure
• Period of high economic growth
• Transition to stable economic growth
Expansion into homes, health care,
and electronics
As the Japanese economy transitioned from a period of high
economic growth to a period of more stable growth, Asahi Kasei
entered new fields to address diversifying social needs.
1980 s–
Increased comfort and
convenience
• Emergence and collapse of economic
bubble
• Two decades of meager economic growth
Progress in overseas business, focus on
business restructuring
After the collapse of Japan’s economic bubble, Asahi Kasei
divested, withdrew, and downsized businesses to achieve a
selectively diversified portfolio. It was also during this time that
we built our platforms for global management.
• Saran Wrap™
• Acrylonitrile
• Synthetic rubber
• Ethylene
(construction of naphtha cracker)
• Autoclaved aerated concrete
• Hebel Haus™ unit homes
• Artificial kidneys
• Pharmaceuticals
Others
Foods/Health care
Fibers
Homes/
Construction
materials
FY1980
Net sales
¥ 800.1
billion
Chemicals
• Hall elements
• LSIs
• Lithium-ion battery separators
• Hebel Maison™ apartment buildings
• Insulation panels
• Acquisition of Toyo Jozo Co., Ltd.
(pharmaceuticals and liquors)
• Virus removal filters
• Foods
Others
Health care
Fibers
Chemicals
FY2000
Net sales
¥1,269.4
billion
Electronics
Homes/
Construction
materials
2000 s–
Increasing awareness of the envi-
ronment and quality of life
• Regional diversification
• Effect of global economic crisis
• Advancement of digital technologies
• Aging populations and pursuit of health
and prosperity
• COVID-19 pandemic
• Rising interest in carbon neutrality and
the circular economy
Accelerated globalization through M&A,
expansion of health care business
Asahi Kasei accelerated the globalization of its operations and
expanded its health care business through mergers and acquisi-
tions. We reorganized our operations in the three business sectors
of Material, Homes, and Health Care for thorough portfolio man-
agement with optimal allocation of management resources and
greater generation of synergies between business domains.
• Electronic compasses
• UVC LEDs
• Hydrogen production system
(process verification)
• New businesses for homes
(seniors, medium-rise, overseas)
• Critical care
Others
Material
Health care
FY2020
Net sales
¥2,106.1
billion
• Viscose rayon, acrylic fiber, polyester
• Restructuring of petrochemical
Homes
business
• Liquors
Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate InformationAsahi Kasei Report 2021 9
Management Strategy
Asahi Kasei Sustainability Photo Contest
Name
Wei Gu
Company
Asahi Kasei Transfusion Technology Co., Ltd.
Country/region
China
Care for People, Care for Earth
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information Message from the President
10
In this time of uncertainty, we will pave
the way for the next 100 years by taking
the initiative in realizing a virtuous cycle
between “contributing to a sustainable society”
and “sustainable growth of corporate value”
while leveraging our “diversity” and
“capability to change.”
Hideki Kobori
President
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 11
Working to thoroughly reinstitute safety and to restore trust
The Asahi Kasei Group implements Responsible Care, a chemi-
accidents occurred at Asahi Kasei plants in fiscal 2020. A
recurrence. Furthermore, we are raising the level of safety
cal industry initiative promoting dialogue with society with the
worker died in an explosion at our Moriyama Works in Shiga
awareness of the organization as a whole and of each and every
goal of preserving the environment and ensuring safety, health,
Prefecture, while the outbreak of a fire at our semiconductor
employee by communicating the preventative measures
and quality by thoroughly practicing the three fundamental
plant in Nobeoka in Miyazaki Prefecture also affected our
throughout the Asahi Kasei Group. Respect for human life and
“actuals,” which focus on the actual place, actual thing, and
business partners. I once again offer my sincere apologies to
safety are core values of our business. We will strive to regain
actual fact throughout the life cycle of all of the products and
everyone concerned. We are investigating the causes of each
trust by earnestly working to ensure the safety of communities
services that we provide. Despite these efforts, two serious
accident and thoroughly implementing measures to prevent any
and our employees.
Dramatic change in our business environment triggered by the COVID-19 pandemic and the positioning of “Cs+ for Tomorrow 2021”
The global spread of COVID-19 continues to bring about discon-
rights issues such as forced labor. In this fast-changing world,
value that will be highly regarded by society going forward, and
tinuous and uncertain change. As the pandemic brought new
we must maintain an awareness of all manner of opportunities
we are continually focusing the allocation of management
social and environmental issues into focus, people’s awareness
and risks and boldly take on challenges as a company at the
resources to these five priority fields.
of life, health, and hygiene as well as their values in relation to
forefront of change.
Wherever there is change, there are business opportunities.
work and lifestyles have changed dramatically. I believe that
In 2019, the Asahi Kasei Group launched the “Cs+ for
In this era of great uncertainty, we will take a proactive approach
increasing emphasis will be placed on the fulfillment of individu-
Tomorrow 2021” medium-term management initiative. While we
by leveraging our strengths, which are the “diversity” of our
als in their lives and careers due to these changes.
promoted various measures for the two mutually reinforcing
human resources, technologies, and businesses and the “capa-
Meanwhile, global warming—the primary cause of climate
aspects of sustainability of “contributing to the sustainability of
bility to change” created by the ingenuity of our individual
change—has become a pressing issue for mankind. Amid these
society” and “the sustainable growth of corporate value,” our
employees, organizations, and the company as a whole.
circumstances, public- and private-sector initiatives aimed at
basic approach remains unchanged. In regard to “contributing
realizing carbon neutrality by 2050 are proceeding at a rapid
to the sustainability of society,” we set forth “Care for People,
pace that would have been unimaginable a year ago. We also
Care for Earth” to clarify our stance of continuing to contribute to
need to urgently respond to changes in international affairs
the sustainable development of people and the earth. We also
resulting from the decoupling of the United States and China,
identified Environment & Energy, Mobility, Life Material, Home &
and to all aspects of the entire supply chain, including human
Living, and Health Care as priority fields where we can provide
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
12
Progress on “Cs+ for Tomorrow 2021”
In fiscal 2020, the second year of “Cs+ for Tomorrow 2021,” we
In Health Care, the acute critical care business, which we
The Health Care sector performed well in fiscal 2020,
proceeded steadily with initiatives in our priority fields for provi-
have positioned as a core driver of growth, entered into the
recording increased net sales and operating income. On the
sion of value amid a business environment that continues to
respiratory dysfunction field by acquiring Respicardia, Inc. In
other hand, results in the Material sector fell significantly short of
change unpredictably.
addition, we steadily expanded the pharmaceutical business
our plan at the time of formulating “Cs+ for Tomorrow 2021”
In Environment & Energy, we are incrementally increasing
through such measures as working to increase sales of Envarsus
due in part to a deterioration in business stemming from the
our production capacity for lithium-ion battery separators in
XR™, an immunosuppressive drug for kidney transplant
decoupling of the United States and China and a decline in
line with the growth of the market for eco-friendly electric
patients manufactured by Veloxis Pharmaceuticals, Inc., which
demand for products for the automotive market and petrochemi-
drive vehicles. In Mobility, we are expanding the business of
we acquired in fiscal 2019.
cals. Meanwhile, in the Homes sector, results lagged one year
Sage Automotive Interiors, Inc., a manufacturer of automobile
While the Asahi Kasei Group was steadily promoting such
behind the plan due to a decrease in orders received resulting
interior fabric, while generating synergies with Lamous™, an
initiatives, lockdowns were implemented in major cities around
from restrictions on customers visiting model homes in Japan
environment-friendly artificial suede. In Life Material, we
the world and a state of emergency was declared in Japan in
because of COVID-19. However, we are beginning to see a
decided to build a second plant for Ceolus™ microcrystalline
response to the spread of COVID-19. As the shortage of medical
recovery in the Homes sector as a result of efforts to attract
cellulose, which is scheduled for completion in spring 2023,
products became a serious issue due to the global suspension
customers in ways other than through model homes.
in order to expand our output of high-performance products
of production and distribution, we acted quickly to provide a
Our financial condition is sound, reflecting our emphasis
for pharmaceuticals.
response. Our actions included temporarily ramping up produc-
on financial discipline, careful selection of capital expenditure
In Home & Living, we are working to contribute to the
tion capacity of ventilators to 10,000 per month, the equivalent
and investment projects, and thorough implementation of
achievement of a carbon neutral society and to enhance resil-
of 25 times that of our usual output, increasing the production of
appropriate control of inventories and expenses taking into
ience to disasters with the aim of building sustainable urban
material for medical gowns and masks, and supplying virus
consideration the circumstances in each sector. Going forward,
environments. Meanwhile, to make the expansion of the over-
removal filters required for the development of vaccines and
we will improve our capital efficiency and cash-generation
seas business in the United States and Australia a pillar of
pharmaceuticals. These actions exemplify how we leverage our
capabilities by steadily implementing investments in projects
growth, we are developing business models adapted to the
“diversity” and “capability to change” to quickly identify changes
that will contribute to growth over the medium to long term and
specific characteristics of each of these countries.
in the business environment and adapt in a flexible manner.
the transformation of our business portfolio, with a focus on the
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13
Performance and Outlook by Sector
Current Situation by Sector*
Outlook
)
n
i
g
r
a
m
g
n
i
t
a
r
e
p
o
(
y
t
i
l
i
b
a
t
fi
o
r
P
Health Care
Material
Material
• Slower growth and lower income due to environmental change
• Recovery under way, but performance below target
Sales
Operating income
Operating margin
FY2019
1,093.1
92.4
8.4%
FY2020
991.2
66.5
6.7%
FY2021
1,168.0
100.0
8.6%
Homes
• Domestic business recovering from COVID-19 impact but 1 year
Homes
behind plan
• Consolidation of McDonald Jones Homes
Growth (revenue growth rate)
Dotted circle: current term
Solid circle: mid-term target
Circle size: operating income amount
Sales
Operating income
Operating margin
FY2019
704.4
72.7
10.3%
FY2020
692.6
63.5
9.2%
FY2021
791.0
67.0
8.5%
Health Care
• Increased demand for ventilators and virus removal filters;
income growth forecast to achieve target
Sales
Operating income
Operating margin
FY2019
337.8
43.5
12.9%
FY2020
407.9
67.6
16.6%
FY2021
400.0
55.0
13.8%
* FY2019–FY2020 results, FY2021 forecasts (announced in May 2021); ¥ billion
cost of capital while maintaining our sound financial condition.
continuous dividend increases from a medium- to long-term
We plan to deliver returns to our shareholders at the level
perspective through the sustained generation of cash flow
envisaged when formulating “Cs+ for Tomorrow 2021” by
while paying close attention to the balance between invest-
adhering to our policy of aiming for stable dividends and
ments for growth and our financial position.
• Prioritization of profitability and capital efficiency over
increased scale; acceleration of portfolio transformation
• Thorough financial discipline; strict selection of
growth investments
• Domestic growth in homes for seniors and medium-rise
homes; overseas expansion in the U.S. and Australia
• Use of IT to raise profitability; continued cash flow
contribution
• High earnings growth and profitability through returns
on previous investments
• Continued investment for further expansion as
growth driver
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
14
Proactively reformulating our business strategy to accelerate the transformation of our business portfolio
In fiscal 2020, we advanced the allocation of management
monitored conditions in these 15 businesses and have already
COVID-19 pandemic, our businesses that hold the leading or
resources to our priority fields for provision of value and proac-
begun taking action with a view to implementing structural
second-leading market share have maintained and strengthened
tively reformulated our business strategy to accelerate the
reform in several of them.
relationships with customers and business partners. Moreover,
transformation of our business portfolio. In a business environ-
Going forward, we will further emphasize the perspective of
these businesses have also succeeded in obtaining and lever-
ment subject to discontinuous and uncertain change, it is
market position to evaluate businesses. In fact, even in a busi-
aging a range of market information. We will further solidify
becoming increasingly necessary to grow earnings sustainably
ness environment in which it is challenging to develop face-to-
businesses with strong market positions with the aim of achiev-
using limited capital in order to continuously meet the expecta-
face relationships with new customers due to the ongoing
ing a more profitable portfolio of value-added businesses.
tions of various stakeholders.
Given such circumstances, we strengthened evaluations of
our business portfolio from the perspective of capital efficiency
while integrating evaluations of the sustainability of our busi-
nesses from the perspective of social issues and global environ-
mental problems. Specifically, building on evaluations using
profitability (operating margin) and growth (revenue growth
rate), we implemented business evaluations that added capital
efficiency (ROIC) and cost of capital perspectives, sustainability
perspectives (making use of quantitative indicators such as GHG
emissions), and the perspectives of profit amount, profit volatil-
ity, and business stage.
Based on the results of the business evaluations, we identi-
fied 15 businesses as strategy reformulation businesses from
among approximately 60 businesses evaluated, centered on
businesses handling commodity products in the Material sector
in particular. Senior management, including myself, and the
leaders of each business carried out strategy reexaminations
taking into consideration the discontinuous and uncertain com-
petitive environment in the future. After setting key performance
indicators (KPIs) and milestones, we have continuously
Business Portfolio Transformation
Business evaluation
Strategy reformulation
businesses
Strategy study for individual businesses
Evaluated by profitability (operating margin)
and growth (revenue growth rate)
Additional evaluation to classify businesses
in 4 categories
• ROIC, cost of capital
• Sustainability (GHG emissions, etc.)
• Profit amount, profit volatility,
business stage
4 categories
High earnings
base
Strategy
reformulation
Growth driver
Strengthening
Among approx. 60
businesses evaluated
15 businesses
Mainly commodity
products in
Material sector
Reconsidered strategy based on view of
competitive environment impacted by
COVID-19 pandemic
Set KPIs and milestones for strategy refor-
mulation, continually monitoring progress
Process stages
1) Study strategies/directions of businesses
2) Formulate specific measures/action plans
3) Execute measures
Actions begun for structural reform
of several businesses
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
15
Pursuing sustainability aimed at achieving carbon neutrality and a circular economy
We pursue “Care for People, Care for Earth” under “Cs+ for
the collective knowledge of the Asahi Kasei Group.
efficiently by consolidating projects for environmental contribu-
Tomorrow 2021.” By “Care for People” we aim to contribute to
The goal of realizing carbon neutrality by 2050 represents a
tion technologies and products, such as those for green hydro-
the achievement of a society in which people can lead active
major challenge that transcends generations. I believe our gen-
gen using alkaline water electrolysis technology, CO2 separation
lives in the new normal, while “Care for Earth” indicates our
eration must begin to do what we can now as a party with a
and recovery systems, and next-generation CO2 chemistry tech-
contribution to the creation of a sustainable world through the
stake in realizing carbon neutrality and pass on the results of our
nology, while unifying contact points with external organizations.
achievement of carbon neutrality and a circular economy.
efforts to the next generation, rather than leave tackling this
We also recognize that the material industry has a major
The Asahi Kasei Group has been implementing various
major challenge to those who come after us. We will formulate a
part to play in the creation of a circular economy. With this in
initiatives contributing to the achievement of carbon neutrality
road map and accelerate initiatives to achieve our targets of
mind, several of our organizations are examining fields where
and a circular economy. Amid these efforts, in May 2021 we
energy consumption reduction, energy decarbonization, manu-
we can make a contribution. As one example, we have built a
announced our goal of achieving carbon neutrality (net-zero
facturing process innovation, and the transformation of our
platform in partnership with IBM Japan, Ltd., that visualizes
carbon emissions) by 2050* to create a sustainable world. We
business portfolio to low-carbon businesses centered on the
and manages the supply chain utilizing blockchain technology
have also set a target to reduce our GHG emissions by 30% or
Material sector.
for the recycling of used plastic. During fiscal 2021, we will
more by 2030 compared with fiscal 2013.
In April 2021, we established the Green Solution Project,
conduct demonstration trials and carry out verification to
In the process leading up to our announcement on carbon
which is under my direct authority as president, with the aim of
ensure traceability.
neutrality, senior management, including myself, and the lead-
strengthening business creation to achieve carbon neutrality.
ers of each business carefully carried out repeated discussions
Based on an overarching view of markets related to decarbon-
to verify the impact of carbon neutrality on all of our stakehold-
ization, this project will create new businesses leveraging our
ers. Ultimately, based on our Group Mission of contributing to
superior technologies to accelerate commercialization while
life and living for people around the world, we concluded that
promoting partnerships with other companies, the public sector,
we could achieve carbon neutrality by 2050 if we drew upon
and academia. We will endeavor to develop businesses
* Direct GHG emissions from business activities as indicated by Scope 1 (direct GHG
emissions) and Scope 2 (indirect GHG emissions from use of electricity, heat, and
steam supplied by other companies)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
16
Implementing digital transformation and strengthening our human resource foundations for creating new value
The Asahi Kasei Group proactively promotes digital transforma-
acquiring digital human resources. We are strengthening DX
telecommuting, bolstering the development of professional
tion (DX) as a pillar of our growth strategy to transform business
training for employees to promote measures for cultivating all
human resources by enhancing the Group Masters program,
models and create value. In April 2021, we established Digital
employees to digital human resources, under which we aim for
implementing measures aimed at revitalizing our organizations
Value Co-Creation. By transferring digital-related organizations
all employees to work with a mindset for utilizing digital technol-
and spurring the growth of our human resources based on the
that had been divided among multiple units under the oversight
ogy, including through the Open Badge system. At the same
results of a new engagement survey, and nurturing the next
of the new unit and consolidating human resources and knowl-
time, we will increase the number of digital professional person-
generation of leaders. In these ways, we are providing support for
edge therein, we will entrench DX initiatives group-wide, which
nel to 230 by the end of fiscal 2021 via the implementation of
the growth of employees of all ages and positions in accordance
will enable us to transform our business models and create new
development programs and new recruitment.
with the career plans of their choice.
businesses. In May 2021, we formulated our DX Vision 2030 to
From the perspective of strengthening our human resource
We are also proactively advancing measures in relation to
clarify our aspiration for DX.
foundations, we are encouraging “lifetime growth” in which
health and productivity management. I believe that maintaining
In January 2021, prior to establishing Digital Value
diverse individuals enhance their expertise and grow continu-
and improving the physical and mental health of employees and
Co-Creation, we opened CoCo-CAFE, a digital co-creation labo-
ously even in times of dramatic change. We are once again
their families is the foundation for employee vitality and growth.
ratory. With the opening of this laboratory, we aim to fortify our
reviewing workstyles and mechanisms for developing human
To create opportunities for employees to play active roles and
DX foundations and create value by gathering together digital
resources while creating foundations that support the autono-
achieve growth, we will focus on reducing the rate of absence
human resources from various functions, such as marketing,
mous growth of employees and enable diverse individuals to
due to ill health, enhancing motivation for work, and fostering a
research and development, and production technology, to con-
thrive, guided by the basic principle that “people are our core
strong organizational culture of ambition, which will in turn help
nect knowledge held inside and outside the company.
assets; everything starts with people.” Examples of our endeav-
raise productivity.
Besides these efforts, we are also proactively developing and
ors include recommending diverse workstyles such as
Strengthening corporate governance and risk management to improve corporate value
Corporate governance and risk management are vital elements
Audit & Supervisory Board Members and their various back-
of corporate value while incorporating the perspectives of a wide
for steadily implementing our management strategies and the
grounds as we make the most of our “diversity” and “capability
range of stakeholders in a timely manner. These discussions
business activities and initiatives to strengthen our foundations
to change.” In a fast-evolving business environment, we will
included the sharing of a broad range of information on the
based on them, as well as for enhancing our operations.
continue to review corporate governance as a mechanism for
substance of communications with investors and shareholders
With our corporate governance structure, we have in place a
making optimal decisions transparently, fairly, promptly, and
and on the promotion of sustainability as well as deliberations
system to gain appropriate oversight and advice, paying atten-
boldly. At Board of Directors’ meetings in fiscal 2020, we carried
concerning the transformation of our business portfolio.
tion to the proportion of Independent Outside Directors and
out free and open discussions on our policy for the improvement
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
17
In respect to risks, we have placed particular priority on
consideration for the environment, safety, health, and quality. In
business and draft contingency plans in response to important
export control regulations due to the decoupling of the United
order to heighten the risk awareness of each and every
risks. In addition, the Risk Management & Compliance
States and China, human rights issues encompassing the entire
employee, as well as the Asahi Kasei Group as a whole, and deal
Committee, which I chair, thoroughly confirms and follows up on
supply chain, cyber security including the dissemination of
decisively with risks, managers responsible for risk management
the progress of group-wide risk countermeasures.
information centered on social networking services, and
and compliance identify, assess, and analyze risks in each
Our Commitment toward the Next 100 Years
Fiscal 2022 will see the launch of the Asahi Kasei Group’s next
Kasei Group will take on the challenge of achieving a new trans-
medium-term management initiative and mark the centennial of
formation to ensure that our commitment to “Care for People,
Asahi Kasei’s founding. Shitagau Noguchi, our founder, stated
Care for Earth” endures for another century thanks to the “diver-
that “As industrialists, we must always remember that our ulti-
sity” of our human resources, technologies, and businesses and
mate mission is to improve people’s standard of living by supply-
the “capability to change” that springs from the ingenuity of our
ing an abundance of the highest-quality daily necessities at the
employees, organizations, and the company, cultivated over the
lowest prices.” By continuing to adhere to this vision, the Asahi
past century.
Management Direction for the Next 100 Years
1. Realize the two aspects of
• Providing solutions for a sustainable society through innovative technologies and
sustainability for Asahi Kasei
advanced initiatives
• Providing value expected by society to realize sustainable growth of corporate value
2. Strengthen corporate governance
and management of operations in
the three business sectors
• Pursuing both high profitability and capital efficiency and sustainable profit growth
• Pursuing synergies between businesses and dynamic portfolio transformation
3. Further enhance business platform,
• Providing a venue where diverse individuals can thrive with high motivation
the fundamental strength of
Asahi Kasei
• Maximizing use of intangible assets such as diverse core technologies and
accumulated know-how
• Upgrading and streamlining operations and reforming business models through DX
Hideki Kobori
President
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
Value Creation Model
18
Contribution to sustainability (non-financial indicators identified in the materiality analysis)
Sustainable growth of corporate value (average between fiscal 2018 and 2020)
Outcome
Contribution to the
global environment
Contribution to health
and longevity
Contribution to
comfortable life
Net sales
¥ 2,142.7 billion
Operating income ¥186.2 billion
EBITDA ¥ 304.8 billion
ROE 8.1 %
EPS
¥ 79
ROIC 6.8 %
Business portfolio management capability
Contributing to sustainable society
Contributing to sustainable society
Ability to
manage diversified
business
Ability to
ascertain business
characteristics
Ability to
transform business
portfolio
Group Mission Contributing to life and living for people around the world
Material
Homes
Health Care
Environment
& Energy
Mobility
Life
Material
Home
& Living
Health
Care
Care for People, Care for Earth
Employee action principles
Creating new value
Compliance
Communication
Connect
Challenge
Diversity & Capability to Change
Strengthening business foundations
through the “Cs”
Care for People, Care for Earth
The Asahi Kasei Group’s Vision for the Future
of People and the Earth (P19–21),
Pursuit of Carbon Neutrality and
a Circular Economy (P22–26)
Compliance
Materiality (P19), Risk Management (P62–64)
Communication
Human Resource Strategies (P39–41),
Health and Productivity Management (P42)
Challenge/Connect
Pursuit of Carbon Neutrality and
a Circular Economy (P22–26)
New Business Creation (P29–33)
Digital Transformation (P34–38)
Input
Strong financial foundation
D/E ratio: 0.451
Credit rating: AA (JCR)2
Technologies in a wide range
of fields
( polymers, compound semiconductors,
homes, pharmaceuticals, etc.)
Human resources involved
in multiple businesses
Number of employees: 44,497 1
Bases: More than 20 countries and regions 1
Contact points with
various markets
( automotive, electronics, hospitals,
consumers, etc.)
Financial and Capital Policy (P43–44)
New Business Creation (P29 –33)
Human Resource Strategies (P39 –42)
Review of Operations (P46 –51)
1 As of March 31, 2021
2 As of June 30, 2021
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 19
The Asahi Kasei Group’s Vision for the Future of People and the Earth
The Asahi Kasei Group contributes to solutions for various social issues through business activities aimed at achieving sustainability. With a uniform
aspiration of “Care for People, Care for Earth” when creating value in all of our businesses, we will deliver new value in a variety of fields that contribute
to the sustainability of society.
Materiality
In fiscal 2017, we identified the important issues and themes that
Process for Identifying Materiality
we should prioritize as the materiality of the Asahi Kasei Group.
1) Identification of Issues
3) Evaluation of Appropriateness
We have since added two new material issues—Initiatives toward
We identified issues in light of requirements of society and our
We verified the appropriateness of the material issues by examining
Carbon Neutrality and Initiatives toward a Circular Economy—in
Group Mission, Group Vision, and Group Values while making
them from a diverse range of perspectives, such as through delib-
consideration of the further growing sense of urgency regarding
reference to international guidelines such as ISO 26000 and the
erations involving the leaders of various divisions, discussions with
the global environmental impact of climate change and resource
Global Reporting Initiative (GRI) Standards as well as the evalua-
outside companies, and consultations with Outside Directors.
extraction and depletion as well as the importance of these mat-
tion criteria of the major ESG rating institutions.
4) Examination and Approval
ters to the management of the Asahi Kasei Group.
2) Determination of Degree of Importance
The Board of Directors approved the material issues after exami-
Extremely
important
We evaluated the degree of importance both to society and to the
nation at the Management Council.
Asahi Kasei Group and mapped it on two axes.
Highest priority
as premise
Governance
Compliance/
sincerity
Human rights
Safety/quality
Governance
Asahi Kasei is constantly pursuing an optimal state of corporate governance. ( P53–56)
Extremely
important
s
r
e
d
l
o
h
e
k
a
t
s
r
o
f
e
c
n
a
t
r
o
p
m
I
Business
Contribution to
Global environment
Health and longevity
(
P21)
Comfortable life
Wastewater
(
WEB)
Industrial waste
(
WEB)
Decarbonization
(
P23, 24, 26)
Circular economy
(
P25)
Supply chain management
(
WEB)
Compliance/
sincerity
Human rights
Biodiversity
(
WEB)
Communication with
stakeholders
WEB)
WEB)
(
(
Diversity
Social contribution
(
WEB)
Human resources
(
P39 – 42)
Risk management
(
P62– 64)
Importance for the Asahi Kasei Group
Harmony with the natural environment
Health and comfort
Basic activities
Safety/quality
Extremely
important
While strictly following laws, regulations, and internal rules, Asahi Kasei strives to practice a high level of corporate
ethics while engaging in various business activities in good faith.
All executives and employees of the Asahi Kasei Group adhere to the Asahi Kasei Group Code of Conduct and
undergo thorough training in their departments, including case study sessions in fiscal 2020.
Asahi Kasei endorses and is a signatory to the United Nations (UN) Global Compact. In addition, we are formulating a
human rights policy in accordance with the UN’s Guiding Principles on Business and Human Rights and will imple-
ment human rights due diligence to ascertain human rights violation risks in the business value chain and take action
to prevent or reduce such risks.
Operational Safety; Workplace Safety and Hygiene
Through our Responsible Care program, we aim to achieve zero severe industrial accidents and zero occupational
injuries. We provide employees with education and training, perform risk assessments during construction in order to
ensure safe and stable plant operation, and repeatedly review existing processes.
Quality Assurance
Asahi Kasei focuses on activities to improve quality in order to continue providing reliable quality to our customers. In
fiscal 2020, we strengthened the quality assurance system, augmented employee training to develop human resources for
managing and ensuring quality, performed on-site quality audits, and conducted verification and inspection activities.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
20
Provision of Value through Our Businesses for Realizing a Sustainable Society
To achieve our vision for the future of people and the earth and
Mobility, and Life Material in the Material sector, Home & Living
business activities while pursuing the development of a portfolio
provide greater value to society, we have determined five priority
in the Homes sector, and Health Care in the Health Care sector.
of high-profitability and high-value-added businesses from the
fields for provision of value and are allocating management
In these priority fields for provision of value, we will continue
perspective of “Care for People, Care for Earth.”
resources to them. These fields are Environment & Energy,
contributing to the future of people and the earth through our
Social issues
and trends
• Expansion of clean energy
• Transition to carbon neutrality and
a circular economy
• Progress of CASE
(Connected, Autonomous, Shared &
Services, and Electric)
• Rising global population
• Next-generation communications
• Diversifying lifestyles
• Intensifying natural disasters
• Advancement of longevity society
revolution
Environment
& Energy
Material
Mobility
Life
Material
Homes
Home
& Living
Health Care
Health
Care
Asahi Kasei Group’s
priority fields
for provision of value
Contributing to the environment
with wide variety of technology
(CO2 chemistry, semiconductors, etc.)
Contributing to the future of mobility
with technology for safety, comfort,
and the environment
Contributing to healthy and comfort-
able daily life with distinctive prod-
ucts and technological strength
Care for Earth
Business contribution to the global environment
Contributing to superior social
infrastructure and comfortable living
through our know-how gained
in urban markets
Contributing to healthy longevity
with pharmaceuticals and medical
devices discerning the needs of
the aging society
Care for People
Contribution to secure and comfortable life and to health and longevity
• Clean energy
• Conservation of energy and improve-
ment of the environment
• Contribution to carbon neutrality
and a circular economy
Provision of value
to society
• Society with safe and comfortable
• Comfort and convenience
• Safety and reliability
• Achievement of society with
mobility
• Human health
• Comfortable and healthy life
healthy longevity
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 21
Increasing Opportunities through Care for People, Care for Earth
Care for People
Active life
in the new normal
Care for Earth
Carbon neutral
sustainable world
With the aim of creating a society in which health and longevity and a secure and comfortable
We are accelerating innovations for addressing a variety of environmental issues, such as realizing
life are available to all, we facilitate high-quality medical care and fulfilling life through our tech-
carbon neutrality and a circular economy, and offering solutions through our businesses.
nologies, products, and solutions.
Social Issues
Solutions through Our Businesses
Social Issues
Solutions through Our Businesses
Contribution to secure and comfortable life
Business contribution to the global environment
Storm and flood damage /
Intense heat
• Resilient homes/communities (total resilience)
Circular economy
New styles of living and working
• Homes/consumables/apparel meeting new needs
Carbon recycling
Digitalization
• Products related to next-generation communications
• Material recycling
• Chemical recycling
• CO2 separation/recovery
• CO2 chemistry
(glass fabric, etc.)
Next-generation energy
• Alkaline water electrolysis (green hydrogen)
Contribution to health and longevity
Response to COVID-19
Facilitation of high-quality
medical care
• Ventilators
• Therapeutic apheresis
• Virus removal filters
• Surface disinfection solution
• 3Cs visualization solution
• Medical gowns
• Masks
• Defibrillators
• Implantable neurostimulator device
• Osteoporosis treatment
• Rheumatoid arthritis treatment
• Immunosuppressive agent
• Artificial kidneys
Electric drive vehicles
• Lithium-ion battery separator
• Lightweighting resins
Other environmental contribution
products
• Ion-exchange membrane process for chlor-alkali
electrolysis
• Purging agent for plastic molding machines
• Elastomer for asphalt modification
• CO2 sensors
• S-SBR synthetic rubber for fuel-efficient tires
• Hebel Haus™, Hebel Maison™
• High-performance insulation
• Biomass feedstock products
• Manufacturing process for acrylonitrile
• High-volume water filtration module
• Bio-PLA (polylactic acid) nonwoven fabric
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 22
Pursuit of Carbon Neutrality and a Circular Economy
Determined to help resolve social issues, the Asahi Kasei Group contributes to solutions through business activities. As climate change and other
environmental issues become increasingly serious, the need for sustainability is greater than ever. We utilize our diverse technologies and human resources
to create new value in the pursuit of carbon neutrality and a circular economy.
Carbon neutrality and a circular economy are essential to the
businesses and products that contribute to reduced environ-
achievement of a virtuous cycle of contributions to a sustainable
mental impact across the entire life cycle, and recycling
society and sustainable growth of corporate value. Our wide-
technology. Looking ahead toward 2050, we are developing
ranging efforts include technology for hydrogen production using
technologies and supplying products and services that contrib-
renewable energy, CO2 chemistry that uses CO2 as a resource,
ute to life and living for people around the world.
• Promotional
activity
Recycled
material
Collection
Blue enclosures indicate Asahi Kasei’s major areas of contribution
Electricity
• Resource conservation
(thinner parts)
• Greater recyclability
Product
development
Reduce
Recycle
Solar power
Wind power
Hydroelectric
power
• Recycled material
• Biomass feedstock
Raw
material
• Material recycling
• Chemical recycling
P25
Renewable
energy
• Alkaline water
electrolysis system
P23
H2
Household electricity
consumption
Industrial electricity
consumption
Electric vehicles
Chemical
products
(manufacturing)
Consumers
(use)
Reuse
CO2
Outflow
• Elucidating mechanism of
microplastic formation
Green
methanol
Green
fuel
• CO2 separation/recovery
• CO2 chemistry
P24
• Greater durability
• Biodegradable technology
(research subsidy)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 23
Leadership in Creating a Hydrogen Society
The Asahi Kasei Group is aiming for the practical use of low-
cost green hydrogen derived from renewable energy through
the development and verification of an alkaline water electroly-
sis system. Hydrogen is garnering global attention as a next-
generation form of energy, and we are working to meet high
expectations for the future of hydrogen by allocating manage-
ment resources to this area in order to play a leadership role in
the creation of a hydrogen society.
Around the time of our founding we began producing ammo-
nia using hydrogen obtained through water electrolysis, and in
Satoru Tamura
Asahi Kasei Senior Executive Officer
Senior General Manager, Marketing &
Innovation /
Senior General Manager, Green Solution
Project
Nobuko Uetake
Deputy Senior General Manager,
Green Solution Project
1975 we commercialized the ion-exchange membrane process
Development of Business Models for
Quest for Practical Application of
for chlor-alkali electrolysis. With technology built up over many
Supporting a Hydrogen Society
Hydrogen Energy
years, Asahi Kasei is now the only company in the world that sup-
plies both electrolysis systems and ion-exchange membranes
developed in-house, which is a significant competitive advantage.
In March 2020, our alkaline water electrolysis system with
the world-leading scale of 10 MW was adopted at the
Fukushima Hydrogen Energy Research Field (FH2R), a project
supported by Japan’s New Energy and Industrial Technology
Development Organization (NEDO). Hydrogen supply using this
system has begun, and we are advancing verification in order to
achieve higher levels of performance, lower equipment costs,
and increased durability as the development project proceeds
toward commercialization.
Green Solution Project
The Green Solution Project was launched in April 2021 with the mission of creat-
ing businesses that contribute to carbon neutrality. Directly reporting to the
President of Asahi Kasei, this project examines the potential of various business
models for contributing to decarbonization based on an overarching view of the
decarbonization market and the Asahi Kasei Group’s various technologies in addi-
tion to hydrogen production technology for the development of action plans.
Achieving a hydrogen society requires coordination
The alkaline water electrolysis system we are devel-
that extends beyond the production of hydrogen to
oping is expected to reduce total cost through
encompass aspects of the supply chain such as stor-
increased scale. Nevertheless, total cost with our
age, transportation, and use. The Asahi Kasei Group
alkaline water electrolysis system still exceeds the
is a member of the Japan Hydrogen Association and
target set forth in the Ministry of Economy, Trade and
is engaged in joint hydrogen-related initiatives with
Industry’s The Strategic Road Map for Hydrogen and
various companies. For example, we participate in a
Fuel Cells. We need further innovation, and we are
NEDO verification project in Namie Town, Fukushima
advancing technology development to reduce cost
(FH2R). We are also advancing joint initiatives over-
and improve reliability by scaling up the equipment.
seas, such as supplying an alkaline water electrolysis
At the same time, we are looking at projects where
system as we participated in the ALIGN-CCUS project
conditions such as electricity cost, power supply sta-
for realizing a low-carbon society in Germany, where
bility, and other characteristics of the location and
the transition to a hydrogen society is gaining
customer may enable commercialization as soon as
momentum. We are working to create higher-value
possible. We will continue to work together with other
business models with hydrogen as a key focus.
relevant companies in order to achieve a level of cost
that will make a hydrogen society possible.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
24
Utilization of CO2 as a Resource
Japan is pursuing a goal of achieving carbon neutrality in 2050
Blu-ray discs, housings for smartphones and home electronics,
by cutting GHG emissions as well as by promoting carbon recy-
automotive light covers, and windows for airplanes and high-
cling by using CO2 as a resource to address both global warming
speed trains. We are also developing a process to produce isocy-
and resource issues. The concept of finding ways to utilize emit-
anates using CO2 as a raw material. Once completed, this
ted CO2 as a measure for combating global warming originates in
process is expected to be applied in the production of a variety of
Japan, and many Japanese companies are advancing develop-
polyurethane materials, such as foams, cushions, thermal insula-
ment projects based on this concept. The global carbon
tion, elastomers, paints, adhesives, and fibers.
recycling market is projected to reach the scale of ¥5.7 trillion in
Regarding CO2 separation and recovery, we are developing
2030. For commercial application in the efficient collection of
selective CO2 adsorption technology using zeolite, which is an
CO2 from factory exhaust gas and other sources to be used as a
excellent CO2 adsorbent. Management resources are increas-
resource, there is a need to further reduce the cost of CO2 sepa-
ingly being allocated to this development with the aim of com-
ration and recovery systems.
mercialization as early as 2025. The combination of carbon
The Asahi Kasei Group has been engaged in the develop-
recycling using CO2 separation and recovery systems and CO2
ment of CO2 chemistry, which uses CO2 as a raw material, since
chemistry together with CO2-free hydrogen produced with alka-
the 1980s. Our decision to become involved in this field was
line water electrolysis technology has the potential to accelerate
based on our desire to help the world create a carbon neutral
advances in green chemistry as well as reductions in the carbon
society. By utilizing core catalyst and chemical process technolo-
footprints of various products.
gies, we have already commercialized CO2 chemistry technology
While we aim to commercialize the isocyanate production
to manufacture chemical products using CO2, and we have
technology in 2030, we are targeting the commercialization of a
licensed the technology to several chemical manufacturers. We
special polyurethane intermediate in 2026. We will begin trial
are also developing innovative processes for a CO2 separation
sales of this material, which can reduce energy consumption in
and recovery system. These efforts will be advanced alongside
relation to automotive paints, in 2022.
the development of hydrogen-related business to help the chem-
Leveraging our position as the pioneer in commercializing
istry industry achieve carbon neutrality.
polycarbonate manufacturing technology using CO2 as a
resource, we can lead the chemical industry’s effort for decar-
Green Chemistry Framework Based on Carbon Recycling and
Hydrogen Derived from Renewable Energy
Alkaline
water
electrolysis
technology
CO2
separation
and recovery
technology
Polycarbonate,
isocyanate
CO2
Chemistry
Specialty chemical products
Synthetic rubber, elastomers, fibers,
coating materials, engineering plastics, etc.
Fuel
General-purpose
plastic
Methanol,
ethanol, etc.
Chemical product
synthesis
technologies
Carbon Recycling—A Proactive Approach to
Global Warming
The achievement of carbon neutrality requires the adoption of energy sources
with fewer CO2 emissions and efforts for reducing energy consumption. The sep-
aration, recovery, and use of CO2 as a resource, a process known as carbon
recycling, is also being researched as an important means of reducing green-
house gas emissions. Carbon recycling is garnering attention from the Japanese
World-Leading Green Chemistry
bonization by supplying chemical compounds and chemical
government, which released a carbon recycling technology road map in 2019
The CO2 chemistry technology of the Asahi Kasei Group has been
products synthesized from CO2 and hydrogen derived from
commercialized in a process to manufacture polycarbonate,
renewable energy.
which is used for a wide range of applications including DVDs,
clarifying the technological and cost-related hurdles needing to be cleared as
well as the steps to be taken going forward.
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25
Contribution to a Circular Economy
Contributing to a circular economy is a priority for the Asahi
innovative plastic resource recycling process technology. We are
and to track companies involved in recycling chains can stimu-
Kasei Group along with reducing greenhouse gas emissions in
also advancing development of technology for chemical recycling
late changes in consumer behavior. We anticipate use by general
the realization of a carbon neutral sustainable society. Several
of polystyrene by thermally decomposing used polystyrene prod-
consumers as well as by companies. For consumers, blockchain
challenges need to be tackled in order to implement a circular
ucts into the raw material styrene monomer. Construction of a
technology traceability will make it possible to view the histories of
economy within society. The material industry has an extremely
facility for this purpose is scheduled.
recycled plastic products by scanning QR codes printed on the
important role to play in overcoming these challenges, and we
are proactively advancing trials aimed at fulfilling this role.
Recycling Chain Traceability
products. The traceability of previously difficult-to-track recycling
processing will create an environment in which anyone can use
In May 2021, Asahi Kasei launched the BLUE Plastics
recycled plastic with peace of mind. We plan to begin trial distri-
Development of Recycling Technology
(Blockchain Loop to Unlock the value of the circular Economy)
bution and verification with toiletry containers made using resins
The Asahi Kasei Group, along with three business partners as
Project. This project to recycle used plastic employs the block-
that employ this system in fiscal 2021. Looking ahead, Asahi
well as academic collaborators, is developing polyethylene mate-
chain technology of IBM Japan, Ltd., with the aim of developing a
Kasei will expand the scope of resins and applications for which
rial recycling technology that allows recycled resins made from
digital platform for tracking resource recycling rates as well as the
this platform can be used by creating a digital platform offering
used plastic chips to be utilized in toiletry containers. In 2020,
recycling chains for products made using recycled plastic. The
open access to anyone. We are currently advancing initiatives for
this initiative was incorporated into a NEDO project for developing
ability to view recycled plastic usage rates in recycled materials
creating such a platform and deploying it in Asia.
Role of Partners in the Polyethylene Material Recycling Technology Development Project
Toyama Kankyo Seibi Co., Ltd.
Collection and sorting
Final product
Material mix and
pelletization
Molding
Academia
Physical property reproducing technology:
Fukuoka University
Mechanism analysis:
Kobe University
Prototype consumer-use
smartphone app
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 26
Reduction of Greenhouse Gas Emissions from Business Activities
In addition to raising corporate value by helping reduce green-
Previously, we focused on reducing the index of GHG emis-
area of Miyazaki Prefecture with a focus on long-term use. To
house gas (GHG) emissions through operations around the
sions to net sales. Now we have adopted reduction targets in
fund renovations of aged facilities, we issued a green bond (envi-
world, the Asahi Kasei Group is working to lower GHG emis-
terms of the absolute volume of emissions to clarify our path
ronmental bond) in 2020. The funds raised through this bond
sions from our business activities in order to minimize the
toward carbon neutrality.
issue will be allocated to part of the renovation work. Through
impact on the environment. Climate change is becoming an
Efforts toward accomplishing these targets include reducing
these renovations, we aim to enable increased use of renewable
increasingly serious issue throughout society. The reduction of
energy consumption and adopting carbon-free energy sources,
energy at our facilities for decades or even a century. Other ini-
GHG emissions is central to our efforts to combat climate
innovating production processes, advancing research and devel-
tiatives include installing solar power generation facilities at our
change. We are pursuing emissions reductions from various
opment, and transforming our business portfolio by transitioning
plants and attaching the environmental value created by the
aspects to ensure that we are able to preserve a healthy envi-
to high-value-added, low-carbon businesses.
solar panels installed on the roofs of Hebel Maison™ apartment
ronment for future generations.
buildings to the electricity used at our Kawasaki Works.
GHG Emissions Reduction Initiatives
GHG Emissions Reduction Targets and Efforts
Adoption of Carbon-Free Energy Sources
Calculation of Carbon Footprint Using Digital Technology
As seen in trends such as the adoption of the Paris Agreement,
Asahi Kasei is installing equipment for reducing GHG emissions,
Asahi Kasei has begun calculating its carbon footprint in a
there is an increasingly international movement toward carbon
eliminating the use of coal-fired thermal power, and adopting
manner that indicates the CO2 emissions associated with every
neutrality. The Asahi Kasei Group has established new carbon
carbon-free renewable energy sources. For example, we are in
product and with each step from raw material procurement to
neutrality targets to accelerate initiatives for contributing to the
the process of upgrading and raising the capacity of the hydro-
shipping. Our products and services are used in a variety of
transition toward carbon neutrality.
electric power facilities that supply our plants in the Nobeoka
industries and fields. For this reason, we are calculating initially
Carbon Neutrality Targets
GHG Emissions
(Million tons CO2 equivalent)
2050
2030
Goal to achieve carbon neutrality
(net-zero emissions)
Target to reduce GHG emissions by 30% or more
(compared with fiscal 2013)
Note: Direct GHG emissions from business activities as indicated by Scope 1 (direct GHG
emissions) and Scope 2 (indirect GHG emissions from use of electricity, heat, and
steam supplied by other companies)
14
12
10
8
6
4
2
0
1995
2013
2016
2017
2018
2019
2020
(FY)
Notes: 1. Figures represent total of Scope 1 and Scope 2 emissions
2. Data for 1995 excludes overseas emissions
the footprints of only certain products as we examine and
develop the ideal framework and system with the goal of
utilizing digital technology for more extensive carbon footprint
tracking. In the future, carbon footprint information for each
product and service will be used to guide initiatives for reducing
our GHG emissions and collaborating with partners across the
supply chain.
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Initiatives Regarding Climate Change Disclosure Based on the TCFD1 Recommendations
In accordance with the TCFD recommendations, we examined
comprising diverse businesses gives rise to both opportunities
Corporate Governance
changes that are expected to occur due to climate change and
and risk abatements. In addition, we confirmed that we have the
Asahi Kasei regards climate change measures as important man-
their impact on our business in the three business sectors of
potential to capture new opportunities related to climate change
agement issues, and discusses their implementation status at
Material, Homes, and Health Care. The results revealed that the
through our diverse businesses and technologies. We will reduce
meetings of the Management Council and the Board of Directors.
financial impact on Health Care would be negligible. While cli-
the risks of climate change and continue to develop as a com-
In order to accurately understand the issue of climate
mate change is expected to have a significant impact on Asahi
pany that coexists with the environment while viewing adaptation
change and discuss measures for addressing it, members of
Kasei as a whole from a financial perspective over the medium
and mitigation measures as business opportunities, thereby con-
executive management discuss issues related to sustainability,
to long term, it became clear that the financial risk to the
tributing to the achievement of a sustainable society.
including climate change, at meetings of the Sustainability
Company as a whole is limited because its business portfolio
Aspiration of the Asahi Kasei Group
Physical risks
Transition risks
Strengths
of Asahi Kasei
Creating opportunities
Businesses contributing to
a sustainable society
Diversity
Capability
to change
Reducing risks
Committee, chaired by the Asahi Kasei President, with results
reported to the Board of Directors. In addition, our Global
Environment Committee, chaired by the Executive Officer for
Technology Functions, discusses issues related to the environ-
ment, as a subcommittee of the Sustainability Committee.
Strategy (Analysis of Opportunities and Risks)
Basis of analysis
• Scenarios assume temperature rises of 4°C and less than 2°C by 2050
• Examination covers our Material, Homes, and Health Care sectors
• Analysis of the impact on our existing business portfolio
Opportunities
Important Changes
Main Opportunities
Principal Initiatives
4°C scenario
Serious storm and flood
damage
Increase in heatstroke and
infectious diseases
Decarbonization
Less than 2°C
scenario
Spread of electric vehicles
(EVs)
• Increase in need for disaster-resilient housing
• Greater emphasis on resilience in house building and urban development
- Hardware/software
- Unit homes/community
• Expansion in demand for existing and new pharma-
ceuticals and acute critical care products
• Provision of acute critical care pharmaceuticals and medical devices for heatstroke and infectious diseases
• Provision of consumables, equipment, and services for biopharmaceutical manufacturing processes
• Promotion of the spread of net zero-energy houses
• Development of carbon-negative homes and communities
(ZEH)2 through government policies
• Increase in EV-related demand
• Battery components
• Materials for reducing vehicle weight
• Provision of components and systems for next-generation mobility
• Strengthening of collaboration with automobile and battery manufacturers
Advent of a hydrogen society
• Increase in demand for water electrolysis using
• Utilization of alkaline water electrolysis system
renewable energy
1 TCFD: Task Force on Climate-related Financial Disclosures. The TCFD was established and its recommendations were officially announced by the Financial Services Board in 2017.
2 ZEH: Houses with a net energy consumption of zero or less as achieved through advanced insulation and energy saving combined with power generation such as solar
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Risks
Important Changes
Main Risks
Principal Countermeasures
4°C scenario
Serious storm and flood
damage
“Physical” production risks
• Suspension of production due to plant damage
• Disruption of raw material supply due to damage incurred by suppliers
Rise in temperature
“Human” production risks
• Deterioration of working environment and productivity at construction sites
• Continuous revision of BCP and reinforcement of preemptive response (review
of inventory levels, study of multiple suppliers/sites, etc.)
• Promotion of industrialization and utilization of IT in housing construction
Less than 2°C
scenario
Decarbonization
• Rise in costs due to stricter regulations3 (manufacturing and raw material costs)
• Changes in materials needs (decarbonization requirements, necessary
• Expansion in utilization of renewable energy, etc.
• More efficient energy use; development and commercialization of industrial
specifications)
processes for decarbonization
• Decarbonization of raw materials
3 Annual costs of approximately ¥40 billion if multiplying our fiscal 2020 GHG emissions of approximately four million tons by a hypothetical carbon tax of ¥10,000 per ton
Risk Management
We examine risks and opportunities and formulate policies from
the perspective of the “Care for Earth” concept in our medium-
term management initiative.
In addition, we incorporate the aspect of sustainability,
2050 Goal to achieve carbon neutrality (net-zero emissions)4
2030 Target to reduce GHG emissions by 30% or more4
(compared with fiscal 2013)
including climate change, into our decision criteria for allocating
Even amid the COVID-19 pandemic, we did not see a significant
management resources, and confirm the status of GHG emis-
reduction in global GHG emissions. To achieve a sustainable
sions when undertaking investments and other major
society, we believe it is necessary to further accelerate our emis-
expenditures.
sions reduction initiatives. Accordingly, on May 25, 2021, we
We calculate total GHG emissions for the Asahi Kasei Group
announced new GHG emissions targets, changing our reduction
annually, and the Board of Directors and other bodies manage
targets from those based on emissions intensity (emissions
progress toward our targets.
Metrics and Targets
volume / net sales) to those based on absolute emissions. In
addition to reducing GHG emissions associated with our busi-
ness activities, we contribute to reducing society’s GHG emis-
The Asahi Kasei Group has established the following GHG emis-
sions through our diverse technologies and businesses as a vital
sions targets:
part of our global warming countermeasures.
4 Direct GHG emissions from business activities as indicated by Scope 1 (direct GHG emissions) and Scope 2 (indirect GHG emissions
from use of electricity, heat, and steam supplied by other companies)
Carbon neutral
sustainable world
Reduce our own
GHG emissions
Contribute to reducing
society’s GHG emissions
2050
Goal to achieve carbon neu-
trality (net-zero emissions)4
2030
Target to reduce GHG
emissions by 30% or more
(compared with fiscal 2013)4
• Environment & Energy
• Mobility
• Life Material
• Home & Living
Major perspectives
Renewable energy / energy
saving / electricity storage /
Key points of our initiatives
hydrogen / EVs / CO2 separation,
Reduction of energy use /
decarbonization of energy /
innovation of manufacturing
processes / R&D / business
portfolio transformation
recovery, and use / weight
reduction / extended product
lives / heat insulation / ZEH / CO2
sensors / utilization of digital
technologies / circular economy,
etc.
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New Business Creation
Creating new businesses to deliver new value for society has been a consistent part of the Asahi Kasei Group’s history. It will also be a staple in our future as
we hone the diverse core technologies we have developed over nearly a century of operation and create new businesses by connecting people and technolo-
gies both inside and outside. Our approach toward forging these connections will include partnering and merging with and acquiring other companies,
collaborating with government agencies and other organizations, making corporate venture capital investments, and conducting group-wide marketing activi-
ties. At the same time, we will take advantage of digital technologies to develop new business models and accelerate new business creation.
Diverse Approaches to New Business Creation
R&D-Oriented Approach
perspectives, such as those related to business strategies,
activities and create new businesses and business models on a
The Asahi Kasei Group has developed numerous core technolo-
patent strategies, and sustainability.
group-wide basis. The M&I Acceleration System (MAS) in-house
gies through wide-ranging technical synergies. These synergies
were made possible thanks to our ability to combine our diverse
Group-wide Marketing Approach
innovation framework is one system that functions toward this
end. MAS seeks to produce virtual venture capital and accelerator
human resources, varied technologies, and multifaceted busi-
New business creation is being accelerated from a marketing-
functions in-house, and it has already generated success. MAS
nesses. One of our strengths is the capacity to produce a
oriented approach that extends beyond the Asahi Kasei Group’s
makes it possible to effectively connect and utilize the necessary
virtuous cycle entailing the utilization and application of core
three business sectors. Established in April 2019, the Marketing
management resources, internal and external networks, and
technologies from new perspectives, the creation of unprec-
& Innovation unit is developing an innovation platform for sup-
administrative functions, opening the way to create new busi-
edented businesses, and the subsequent generation of further
plying market value by leveraging our comprehensive, cross-
nesses beyond the reach of our established organization.
technical synergies. Meanwhile, Corporate Research &
business organizational capabilities while working to establish ties
Fresh Logi™, a solution developed for the previously unex-
Development operates a “stage-gate” system to optimally allo-
with external partners. We look to carry out effective marketing
plored food and agriculture field, is one offering created using
cate management resources to research projects in stages
ranging from the discovery stage to the commercialization stage.
M&I Acceleration System (MAS)
With this stage-gate system, we involve relevant divisions in the
development process from an early stage to promote the com-
mercialization of new technologies through a concerted
group-wide effort. This approach helps clarify the current stage
of development projects and ensures that decisions related to
when a given project will be moved on to the next stage will not
be made purely based on a technical perspective. Rather, these
decisions are made through evaluations based on numerous
• Starting in Marketing & Innovation
• Starting in the Asahi Kasei Group
• Starting in collaboration with
other companies
M&I Acceleration System (MAS)
Entry
Virtual venture capital and accelerator functions
Exit
(Providing means and opportunities
to accelerate commercialization projects)
Management
resources
Internal/external
networks
Administrative
functions
Human resource development
• Commercialization within
the Asahi Kasei Group
• Joint commercialization with
other companies
• Divestment/licensing
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30
MAS. This solution helps maintain the freshness and quality of
fruits and vegetables and thereby contributes to reductions in
food loss and CO2 emissions. By combining our Neoma Foam™
high-performance insulation with CO2 sensors, we succeeded in
the development of sealed insulated boxes. Fresh Logi™ uses
these boxes to create a logistics system that allows for the man-
agement of vegetables and other produce while maintaining
Ideal Fruit and Vegetable Transportation and Storage Realized by Fresh Logi™
Traditional
Disruption in cold chain
logistics flow at points ofloading,
unloading, and transshipment
Inefficient
loading
Fresh Logi ™
Uninterrupted cold chain
logistics flow through use
of sealed boxes
Efficient loading
through ability
to mix cargo
Transportation
environment
data
Tracking of
transportation
environment data
Precooling
Up to 48 hours
Precooling
Up to 48 hours
their freshness. With this system, we are forming connections
Farm
Distribution base
Refrigerated truck
Markets/retailers
Farm
Distribution base
Ordinary truck
Markets/retailers
that extend beyond the Asahi Kasei Group. Specifically, we are
utilizing the Smart Agriculture Traceability (SMAGt)* platform of
Information Services International-Dentsu, Ltd., and engaging in
Connections Formed by Fresh Logi™
joint development with government and academic institutions to
Asahi Kasei Group (Industry)
develop new business models, with the aim of commercializing
Asahi Kasei Construction Materials Neoma Foam™ and thermal insulation data
Asahi Kasei Microdevices
Environmental sensor know-how and module development
Academic Institutions
External research
institutions
Appropriateness of validity tests for
sealed-box transportation
Fresh Logi™ over the period from 2021 to 2022.
Asahi Kasei Home Products
* A smart agriculture data distribution platform that uses blockchain technology to track
the production and transaction histories of regional agricultural products
CVC
Informatics Initiative
Asahi Kasei Advance
Corporate IP
Freshness maintenance know-how and network of
distribution channels
Searching for overseas start-ups and technologies
Data analysis and algorithm development
Design and manufacture of sealed boxes
IP strategy
Corporate Production Technology
Simulation of thermal insulation/temperature retention and
improving designs
External Partner (Industry)
Information Services
International-Dentsu, Ltd.
SMAGt platform
Government Institutions
Miyazaki
Prefecture
Visits to agricultural cooperatives and
production sites
National research
institutions
Establishment of freshness retention
metrics and forecasting models
Other government
agencies
Coordination with food distribution rational-
ization committees
New Business Creation Driven by Cross-Cultural Synergies
M&A-Driven Approach
pharmaceutical business platform for further development and
M&A activities are a viable option to accelerate business portfolio
expansion of businesses. In April 2021, we acquired
Investment in and Co-Creation with Start-Up
Companies
transformations for acquiring new growth foundations and
Respicardia, Inc., manufacturer of an implantable neurostimula-
The Asahi Kasei Group is actively engaging in corporate venture
strengthening existing businesses. Asahi Kasei is proactive in
tor device for the treatment of central sleep apnea, which is a
capital investments and other forms of open innovation with
adopting this approach, as evidenced by our success in the
new field for us. This business will serve as a central growth
start-up companies and entrepreneurs in fields with high poten-
Health Care sector, where we are accelerating our evolution into
driver in acute critical care, further expanding existing busi-
tial for innovation. Commercialization activities are being
a global health care enterprise. In March 2020, we acquired
nesses and branching into peripheral fields.
advanced with this regard while taking appropriate risks. One
Veloxis Pharmaceuticals, Inc., which serves as an overseas
example of these activities is LIFE CO-LAB., a housing field
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 31
accelerator program for which we began accepting applications
years, we have held IPL de Connect, an internal group-wide
These IP activities have been highly recognized, and we
in March 2021. Developed together with 01Booster Inc., this
event that gives rise to innovation, as a preliminary step to the
received an award from the Minister of Economy, Trade and
program utilizes our resources to support the businesses of
creation of new businesses. Advanced through discussions
Industry in the Intellectual Property Achievement Awards pro-
start-up companies and entrepreneurs over a set period with the
based on the IP landscape, these activities promote innovation
gram sponsored by the Ministry of Economy, Trade and Industry
goal of co-creating new businesses. Through such programs, we
by prompting chain reactions of awareness as connections are
and the Japan Patent Office in April 2021.
look to generate innovation that would be impossible for us to do
made among our diverse core technologies, marketing func-
alone while accelerating the creation of value in new and exist-
tions, and planning functions.
ing business fields.
New Business Creation Guided by Aggressive
Intellectual Property Utilization
The Asahi Kasei Group is advancing intellectual property (IP)
activities based on four main focuses—(1) construction of an
IP network that contributes to businesses based on a scenario
for IP rights utilization, (2) IP clearance for guaranteeing busi-
ness execution, (3) implementation of IP activities to support
globalization of businesses, and (4) contribution to business
innovation, from the perspective of IP, by digital transformation.
Systematic human resource development plans are being
implemented based on these focuses. We actively perform IP
landscaping, which leverages IP analysis for formulating and
innovation by digital transformation. Based on industry and
market information, IP information, specifically big data on
patents and research reports, is collected and processed to
formulate IP maps and associated materials. These materials
are provided to management and business units to inform
discussions about our market position, strengths, and business
opportunities, eventually leading to management and business
decisions related to matters such as M&A activities for creating
new businesses and reinforcing existing businesses. In recent
Asahi Kasei’s Core Technologies
Optical fiber
Fibers
Blood purification,
artificial kidneys
Diagnostic reagents,
DNA, peptides
Nonwovens
Hollow-fiber
membrane
LSIs
Food wrapping film
Semiconductor devices
LIB separator
Adhesives
Virus removal
filters
Pharmaceutical
additives
Ion-exchange
membrane
Synthetic rubber
Modified polyphenyl-
ene ether resin
Polyethylene
Prescription drugs
Compound semiconductors
(magnetic and other sensors)
Wire-grid
polarizing film
Acrylonitrile catalyst
Polycarbonate
Purging compound
for molding machines
Aerated concrete
Anti-quake
structures
Polyamide
Paint materials, SB latex
(functional coatings)
Polyacetal
Photomask
pellicles
Catalyst/process
Polymer/processing (polymer, film)
Fibers/nonwovens
Membrane/separation
Compound semiconductors/LSIs
Homes/construction materials
Pharmaceuticals
Created by Asahi Kasei using “TechRadar
Vision” (a tool provided by VALUENEX
Japan Inc.)
Each dot indicates a patent held by the
Asahi Kasei Group in Japan.
reviewing business strategies, as one measure for business
Photosensitive resins, films
Foam, insulation material
Resin molding
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
New Business Creation Utilizing Corporate Venture Capital
32
The management understands CVC’s role and
recognizes it as an option for new business creation
Q You proposed CVC to the President, and it was
established in 2008. Why did you choose CVC as a
One of the advantages of venture capital investment is that
start-ups focus on markets that do not yet exist. Making invest-
vehicle for creating new businesses and what benefits do its
ments allows us to monitor new markets and assess when best
investments deliver?
to proceed to the next stage while deepening our understanding
Around the year 2000, I took part in a joint project with a start-
of such markets. In addition, investing in “white spaces” adja-
up in San Diego and witnessed firsthand the business
cent to our existing businesses enables us to secure future
development capabilities of such companies. Technologies
candidates for acquisition and increase our pipeline for creating
developed by start-ups are acquired by other companies and
new businesses. In other words, I proposed the establishment of
used for creating new businesses. The dynamism of such busi-
CVC based on my belief that a new framework for new business
ness development, whereby technologies are monetized, is not
creation would become increasingly necessary going forward,
often seen in Japan. I thought that establishing CVC would pro-
which ultimately led to my current role.
vide a means to outsource business development, which is a
weak point of Japanese companies.
The Asahi Kasei Group carries out R&D in the business divi-
Q How do Asahi Kasei’s uniqueness and competitive edge
contribute to CVC’s activities?
sions and at the corporate level, and utilizes M&A as means to
Asahi Kasei’s key strengths of “diversity” and “capability to
Takashi Morishita
Asahi Kasei America, Inc.
General Manager, Corporate Venture Capital
create new businesses. However, R&D by business divisions
change,” as well as its adaptability to change and its egalitarian
Joined Asahi Kasei in 1986. Established Corporate Venture Capital
(CVC) at Asahi Kasei in 2008 and became General Manager. Moved
base of operations to Silicon Valley in 2011. CVC has invested in
more than 30 start-ups, and led to the 2011 acquisition of Crystal IS,
Inc., a U.S. company developing UVC LEDs utilizing aluminum
takes at least three years while corporate R&D, involving the
corporate culture as symbolized by its use of less formal titles,
development of medium- to long-term projects across the
all serve as advantages in promoting CVC’s activities. To give an
Group, takes approximately seven to ten years. In contrast, M&A
example, decisions on investment amounts of up to $5 million
projects can be developed into new businesses soon after acqui-
per company are delegated to the Investment Committee with-
sition. In terms of time spans, I view CVC as a method for bridg-
out the need for head office approval. This approach facilitates
nitride substrate, and the 2018 acquisition of Senseair AB, a
ing the gaps not covered by R&D and M&A, and representing
decision-making at approximately the same speed as that of
Swedish company developing gas sensor modules.
(Website: http://www.asahikaseiventures.com/)
the difference between the approaches of either creating new
venture capital companies in the United States and Europe,
businesses based on technology within Asahi Kasei or by
which acts as a major strength for CVC. Start-up companies
making investments for acquisitions.
move quickly and opportunities to invest in them are limited.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
33
market and on materials.
acquisitions, start-ups are at least willing to hear what we have to
Going forward, we expect to see
say. The recognition within Asahi Kasei that CVC is an effective
the creation of rapidly accelerating
means to create new businesses is also crucial. With the
new businesses, such as industrial
Company’s understanding that CVC’s activities require a certain
IoT and telehealth (healthcare pro-
amount of time, we work to create tangible results while consid-
vided remotely) due to the changes in
ering how many projects we can implement and the time needed
workstyles and lifestyles triggered by
for implementation. I believe these efforts will help deepen
COVID-19. To prepare for unpredict-
understanding of CVC’s activities both internally and externally.
able market developments, I believe
Another reason behind our ability to maintain CVC’s activi-
Therefore, we must match the speed of start-up companies by
that we must revise the course of our investments while monitor-
ties is that we place the utmost importance on our relationships
putting in place quick and flexible decision-making mechanisms
ing trends. Last year, we primarily invested in spheres including
with start-ups. Since local networks cannot be easily developed
on the investment side in order to make CVC function effectively.
industrial IoT, housing, agriculture, digital health, and neuro-
by those on assignment from Japan, we have increased our
Some of Asahi Kasei’s businesses originally began as joint
modulation, which treats the nervous system using electrical sig-
number of locally hired employees and are leveraging their net-
ventures, and the company embraces the process of incorporat-
nals. Looking ahead, I feel that we must pay close attention to
works. As an organization with technologies and analytical
ing external technologies and making them its own. I believe
such domains while focusing on new businesses created
capabilities in a wide range of business fields, Asahi Kasei can
that this corporate climate and culture is among the reasons
through the realization of a circular economy. For example, we
offer technical advice, equipment, and other support. I believe
why Asahi Kasei’s management team has recognized CVC as a
are beginning to see reverse innovation—whereby technologies
continuing to be a good corporate partner over the long term by
useful entity for new business creation.
developed for emerging countries are deployed globally—in the
providing financing and a variety of expertise will enhance our
Q Please tell us about CVC’s activities in different regions
and its investment portfolio strategy over the medium
sustainability domain, a trend that is likely to spread throughout
standing among start-ups and venture capital companies,
the world going forward. Investing in domains where substantial
thereby making it easier for us to become involved in outstand-
future earnings are expected by providing support for such
ing projects.
to long term.
emerging countries is one investment option.
By region, we will continue investing in the United States, since it
will undoubtedly continue to produce new businesses as the epi-
center of innovation. We will make Europe the focus of our invest-
Q Fiscal 2021 marks the 10th anniversary of the launch
of CVC’s activities in the United States. Could you tell
ments going forward as the public and private sectors in that
us how you have been able to continue CVC’s activities and
region are working proactively to establish a “green recovery”
share with us the expertise and strengths you have gained in
from COVID-19, and we expect to see the creation of new mar-
the process?
kets there based on a circular economy. We just entered China in
The biggest reason is because of our track record. When meeting
fiscal 2020 and are at the stage for exploring possibilities in this
with start-ups, three questions always come up: our fund size,
market. As China leads the world in electric vehicles and related
investment record, and acquisition record. As CVC has already
service businesses, we will carry out monitoring centered on this
invested in more than 30 projects, two of which have resulted in
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
34
Digital Transformation
The Asahi Kasei Group views digital transformation (DX) as a means of using digital technologies to fully leverage our strengths, which are the “diversity”
and “capability to change” of our human resources, technologies, and businesses, in order to transform business models and drive value creation.
Accordingly, we will actively promote DX initiatives going forward.
Road Map of the Asahi Kasei Group’s DX Promotion
The Asahi Kasei Group has created a road map that breaks
Initiatives during the Digital Introduction Period
as the automation of product inspection through the use of AI,
down its DX initiatives into four phases—the Digital Introduction
During the Digital Introduction Period, which began in 2018, we
the enhancement of productivity through data analysis, predictive
Period (from 2018), the Digital Deployment Period (from 2020),
promoted functional DX initiatives, including materials informat-
detection of equipment abnormalities, and the use of IoT tools to
the Digital Creation Period (from 2022), and the Digital Normal
ics (MI), production technology innovation, IP landscaping, and
make tasks more advanced, less labor intensive, and more pre-
Period (from 2024)—and lays out the content of the initiatives in
digital marketing. Through these efforts, we launched approxi-
cise. We aim to commence the operation of smart factories within
each phase. Going forward, we will implement DX initiatives in
mately 400 projects on a group-wide basis and worked to
a few years as we further promote DX at production sites.
each phase established under the road map.
resolve various issues through collaboration between personnel
of DX support and promotional divisions and personnel of each
Overview of the DX Promotion Road Map
business.
from 2018
Digital Introduction
Period
Foundations of functional DX
• MI, production technology innovation,
IP landscape, etc.
About 400 projects
from 2020
Digital Deployment
Period
from 2022
Digital Creation
Period
Acceleration of group-wide DX
promotion
• Formulation of DX Vision
• Digital Value Co-Creation,
co-creation laboratories, etc.
Management Innovation through DX
• Business model transformation,
valuing intangible assets
• Utilization in management decision-making
• Utilization in human resource management,
etc.
from 2024
Digital Normal Period
All employees become
digital human resources
All employees gain mindset of digital utilization
IP Landscaping
We formulate overarching maps of IP by using digital technolo-
gies to collect and process various IP-related information, such
as patents and research reports. By analyzing this information
Materials Informatics (MI)
With the aim of dramatically improving development speed and
alongside industry and market information, these maps help us
developing exceptional innovative materials, we are promoting the
identify the Asahi Kasei Group’s market position, business
utilization of MI, which involves enhancing the efficiency of R&D
strengths, and business development potential. For more details
activities on materials through the use of AI and statistical analy-
on IP landscaping, please see the “New Business Creation” sec-
sis. The promotion of MI has already led to the successful devel-
tion on p.29 –33.
opment of innovative materials within a short time frame, and we
now make use of MI in the development of nearly all of our prod-
ucts. In addition, we are proceeding with preparations to establish
a foundation for the more advanced utilization of MI, including in
unmanned “smart laboratories” for material exploration. We are
also developing MI tools that can be used in sales activities.
Digital Marketing
We are leveraging digital technologies as a tool to transition from
marketing based on empirical rules to marketing based on sci-
entific evidence. As part of this effort, we have introduced
customer relationship management (CRM) systems in order to
visualize information communicated between our sales repre-
Production Technology Innovation
sentatives and our clients. While ensuring the security of our
We are promoting activities aimed at enhancing productivity by
clients’ confidential information, we are sharing data on a cross-
utilizing digital technologies in all processes at our manufacturing
organizational basis and making use of such data as an asset.
facilities. These activities involve a broad range of initiatives, such
Furthermore, we are drawing on digital technologies to establish
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 35
contact points with our clients, including holding virtual exhibi-
future world full of smiles” through borderless connections
leverage the Asahi Kasei Group strength of “diversity” to drive
tions that utilize virtual reality in the Homes sector.
enhanced by digital innovation. By doing so, we presented a
business model transformation and value creation, entrench DX
Initiatives during the Digital Deployment Period
sharing DX Vision 2030 with stakeholders both inside and out-
digital value co-creation. Under Digital Value Co-Creation, we
We have transitioned from the phase of solidifying foundations
side, we will accelerate the co-creation of the value we offer to
integrated the Smart Factory Initiative and Informatics Initiative,
for functional DX initiatives to a phase in which we will expand
society by utilizing digital technologies to transform our business
which promoted DX in Corporate Production Technology and
the scope of our DX promotion on a group-wide basis. During
models with the aim of realizing healthy, secure, safe, and com-
Corporate Research & Development, respectively, together with
this phase (from 2020 to 2022), we are working to reinforce our
fortable lifestyles as well as a world where there is less burden on
Corporate IT Management. We also newly established the
vision for the world we wish to create by 2030 through DX. By
in group-wide management, and accelerate reforms through
foundation for accelerating group-wide DX promotion.
the environment.
Development of the DX Vision
Establishment of Digital Value Co-Creation
In May 2021, the Asahi Kasei Group formulated DX Vision 2030,
We established Digital Value Co-Creation in April 2021. The mis-
which states our intention to co-create “healthy living” and “a
sion of this organization is to draw on digital technologies to
Asahi Kasei will co-create “healthy living” and “a future world full of smiles”
through borderless connections enhanced by digital innovation.
Crossing boundaries and forming
connections with the power of digital
“Healthy living” and
“a future world full of smiles”
To create new value for society, we will resonate
We will help realize healthy, secure, safe, and
across countries and cultures and co-create
comfortable lifestyles to create a world full of
across companies and organizations.
smiles for future generations.
Marketing Technology Initiative and Strategy & Co-Creation. We
aim to achieve seamless and powerful collaboration between IT
and digital technologies. While enhancing production, manufac-
turing, and R&D efficiency, establishing vital infrastructure, and
improving quality, we will also work to create new sales and mar-
keting approaches and develop new business models through
the use of digital technologies.
In addition, we will effectively utilize digital technologies in
relation to sustainability, such as reducing our CO2 emissions
and ensuring optimal plant operation, as well as for reform of
workstyles and enhancement of employee engagement.
Digital Value Co-Creation (organization reporting to the President)
Strategy
DX promotion in overall
business and management
Strategy & Co-Creation
Sales and marketing
DX promotion
Marketing Technology
Initiative
Function
R&D DX promotion
Informatics Initiative
Manufacturing and production
DX promotion
Smart Factory
Initiative
Foundation
IT infrastructure and security
Corporate IT
Management
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
36
Opened CoCo-CAFE Digital Co-Creation Laboratory
Cultivation and Reinforcement of Digital Human Resources
A vital part of accelerating our DX promotion is connecting inter-
nal and external knowledge to co-create value. We opened
CoCo-CAFE in January 2021 to serve as a laboratory and testing
ground for bringing together digital personnel from marketing,
R&D, and production technology divisions, and for invigorating
exchanges between internal and external parties. Through
CoCo-CAFE, we are working to strengthen our DX foundation,
transform our existing business models, and promote the estab-
lishment of new business models with the aim of offering new
value to the world.
CoCo-CAFE is being utilized as a space for pursuing chal-
lenges and co-creation; leveraging, verifying, and experiencing
digital technologies in a highly advanced manner; and cultivat-
ing digital human resources. It will also be used as a powerful
driver for new value creation by not only forming connections
between in-house personnel but also enabling collaboration
between industry, academia, and government bodies.
While aiming to have all employees serve as digital human
internal and external parties. At CoCo-CAFE, co-creation activities
resources who engage in their work with a high awareness of digi-
are being carried out in a highly proactive manner.
tal technology utilization, we will make proactive efforts to recruit
We are also implementing training programs to turn busi-
and cultivate digital professional human resources who are able to
ness managers into DX leaders who understand the importance
leverage advanced digital technologies and data to resolve business-
of DX and can promote it on their own initiative.
related issues and create new value and business models.
Recruitment and Cultivation of Digital Professional
Promotion of DX Educational Activities for All Employees
Human Resources
We are strengthening DX educational activities for all employees
We have established KPIs for securing and enhancing three
based on the notion that it is essential to enhance the IT and digi-
types of human resources and are systematically implementing
tal literacy of all Asahi Kasei Group employees in order to achieve
recruitment and cultivation activities accordingly. The three
our plans of cultivating all employees to digital human resources
types of human resources we aim to secure and enhance are
in the Digital Normal Period. In April 2021 we launched our own
personnel who understand the background of DX issues and
original Open Badge system. By visualizing employee skills, the
can organize and resolve business-related issues based on that
Open Badge system encourages independent and self-motivated
understanding; personnel who can practically apply and utilize
learning by promoting step-by-step acquisition of basic knowledge
data science in a manner that responds to various issues; and
on digital technologies through the use of e-learning. In addition,
personnel who possess and can leverage knowledge of informa-
we hold large-scale, in-house events, such as the company-wide
tion processing, AI, and statistics. By targeting these types of
DX conference, to provide opportunities for employees to
human resources in carrying out our recruitment and cultivation
learn about successful examples of DX promotion.
activities, we will increase the number of digital professional per-
Furthermore, our digital co-creation laboratory CoCo-CAFE serves
sonnel who can promote advanced digitalization activities to 230
as a space for DX-related learning and collaboration between
by the end of fiscal 2021.
Open Badge
Level 1
Knowledge
Understanding
the basics
Level 2
Skill
Level 3
Experienced
Level 4
Expert
Level 5
Thought Leader
Possessing skills and
knowledge that can
be applied to work
Ability to actually
utilize DX to improve
work processes, etc.
Ability to strengthen
business
competitiveness
Ability to drive
organizational and
business reforms
Level 5
Level 5
Thought Leader
Thought Leader
Level 4
Level 4
Expert
Expert
Level 3
Level 3
Experienced
Experienced
Plan for all employees to be
digital human resources
Digital professional
human resources
Digital professional
candidates
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
Examples of the Asahi Kasei Group’s DX Initiatives
37
MI-Hub
Example: Development of new S-SBR (polymer material)
for fuel-efficient tires
Example of CUI inspection by
removing insulation
MI educational
contents
Internal
cloud
Polymer structure
Polymerization
conditions
Composition
Mixing conditions
MI/AI
Optimization
Fuel
efficiency
vs.
Abrasion
resistance
Physical
properties
of tires
y
c
n
e
i
c
i
f
f
e
l
e
u
F
e
c
n
a
m
r
o
f
r
e
p
Abrasion resistance performance
Discovery of new polymer structure within short time
frame through estimation/investigation using MI
Consortium of chemical companies (JPCA members)
Vision for commercialization
Data collection/analysis and
model development
Company
A
Company
B
Company
C
Each company: Provision of data
Detection
Services
Platform
Company
X
Company
Y
Company
Z
Fostering a Corporate Culture That Promotes MITo extensively apply MI to all of our R&D projects and leverage MI to strengthen group-wide business competitiveness, it is imperative that our laboratory researchers make use of MI on a daily basis in their research. To that extent, we launched the MI-Hub initia-tive, which offers original educational programs that include a computing environment that is easily accessible to all researchers and educational materials that cater to the actual work that our researchers perform. Many of our researchers have started to utilize MI in their day-to-day work and, as laboratory attendance remains restricted due to the COVID-19 pandemic, we have begun to see several successful cases where researchers use MI to conduct material design at home and then promptly put that design to use to develop new materials. Furthermore, communities are beginning to develop that tran-scend the respective divisions to which our researchers who use MI belong, and this has started to foster a corporate culture of friendly competition and mutual support.Promoting Plant Maintenance Using Data: Project to Detect Corrosion Under InsulationAt chemical plants that have been operating for many years, the management of corrosion under insu-lation (CUI), which is corrosion on the external surface of equipment covered by thermal insulation, is a common and important issue for ensuring safety. Leading the way with addressing this issue, the Asahi Kasei Group has developed a model that can predict the occurrence of CUI by collecting and analyzing a great deal of CUI data from chemical companies that are members of the Japan Petrochemical Industry Association (JPCA). This model has been recognized for having a higher degree of accuracy than conventional CUI prediction methods used at JPCA member companies, and has already been disclosed to these companies via a digital platform. The development of this model was recognized in fiscal 2020 with the Award of Excellence in the Fourth Infrastructure Maintenance Awards sponsored by the Ministry of Economy, Trade and Industry. In fiscal 2022, we will work to commercialize detection services for CUI and other matters as we aim to further enhance the reliability of plants through the widespread adoption of such services.Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
Examples of the Asahi Kasei Group’s DX Initiatives
38
Co-Create
(Creating together)
Co-Execute
(Executing together)
Co-Operate
(Operating together)
Creating a vision:
What kind of joy will we
provide and to whom?
Creating something, having
customers experience it,
and making improvements
Getting more people to use
what we created
Co
Working together with various partners to overcome generational viewpoints
and to transcend organizational, corporate, and national boundaries
Using Digital Technologies to Achieve SustainabilityTo accelerate the realization of a carbon neutral sustainable world and a circular economy using dig-ital technologies, we will pursue various efforts to generate synergies between sustainability and DX, including visualizing our carbon footprint and establishing plastic recycling platforms that utilize blockchain technology. In terms of visualizing our carbon footprint, we are collecting and combining data related to CO2 emissions throughout our entire supply chain, from raw material procurement through to the transportation of products to customers. By doing so, we are able to confirm the carbon footprint of each of our products as needed. We will also leverage the data collected through this effort in future initiatives to reduce our CO2 emissions. In a similar manner, for establishing plastic recycling platforms, not only will we introduce blockchain and other advanced technologies, we will also position the data handled by such technologies as a source of value and leverage this data in the creation of frameworks to recycle limited resources more efficiently, beginning with the visualization of the recycling process.Generating Value through Digital Co-CreationTo create new value through such means as transforming our business models and enhancing efficiency in a highly innovative manner, we are actively adopting garage methodology and promoting agile development under a thought process that emphasizes the customer’s perspective. Garage methodology is organized into three phases: Co-Create, Co-Execute, and Co-Operate. By pursuing and maintaining collaboration between internal and external partners in each phase of this methodology, we are accelerating reforms in each strategic business unit, core operating company, and corpo-rate functional department. In the Material, Homes, and Health Care sectors, we are working to transform business models for existing businesses by applying garage methodology. Going forward, we will take on the challenge of enhancing the value of the intangible assets created from the diversity of our human resources, technologies, and businesses.Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 39
Human Resource Strategies
The Asahi Kasei Group seeks to create new value by leveraging the “diversity” and “capability to change” of our human resources, technologies,
and businesses. To support this effort, we are developing platforms that support the autonomous growth of our human resources and are conducive to
contributions from diverse individuals in accordance with our basic principles that “people are our core assets” and that “everything starts with people.”
The Asahi Kasei Group’s Human Resource Strategies
Response to Changes Brought About by COVID-19
systems and infrastructure, for the new normal that is poised to
organization in order to foster workplace environments in which
The COVID-19 pandemic caused sweeping changes to the envi-
emerge after the COVID-19 pandemic has subsided. At the
everyone is passionate about working together.
ronment in which people work such as restrictions on
same time, we have been endeavoring to improve productivity
commuting to workplaces and taking business trips. The result-
through revisions to workstyles and the use of digital technolo-
ing changes to behavioral patterns have also stimulated the
gies. All employees are responding to the sweeping changes by
Continuous Growth of Business Driven by Lifetime
Growth of Employees
diversification of the values of individuals. The Asahi Kasei
exercising ingenuity in their work and in connecting with others
The Asahi Kasei Group’s diverse human resources have contin-
Group is committed to developing comfortable workplace envi-
both inside and outside. Going forward, we will continue to
ued to grow while creating diverse technologies and businesses
ronments, from the perspectives of both human resource
improve employee engagement and desire to be part of an
by embracing our Group Values of sincerity, challenge, and cre-
Overview of the Group’s Human Resource Strategies
Before COVID-19
With COVID-19
Ongoing measures
Active use of diverse human
resources/improvements in work
engagement
More effective measures
in the “new normal”
environment
• Promotion of diverse workstyles
(telecommuting, etc.)
• Expansion of Group Masters program
• Nurturing of the next generation
of leaders
• New engagement survey, etc.
• Introduction of flexible working w/o
“core” time, satellite offices, etc.
• Workstyle reform and productivity
improvement utilizing IT tools
• Maintenance of individual physical
and mental health
• 1-on-1 meetings, etc.
Acceleration
of change
Diversification
of values
Renewed awareness of
importance
Vibrant work environment
Diverse ways of working
Ways of actively embracing change
Flexible management
Growth by enhancing specialization
regardless of generation
Toward an era of greater change
Future direction
Lifetime growth
Diverse individuals maximize
their capabilities
Individuals act on their own
initiative and grow
Management to support growth
and challenge
To achieve lifetime growth,
start preliminary implementation of on-site trials and plan detailed measures
“Everything starts with people” — for the further evolution of Team Asahi Kasei
Diversity cultivated over 100 years of history and capability to change through the innovation of employees, organizations, and the company
ativity. We emphasize an egalitarian corporate culture and team-
work founded on an open exchange of ideas regardless of rank
and position, as symbolized by our custom of referring to others
by name as opposed to by title. With this corporate culture, we
have continued to achieve ongoing growth driven by the core
strengths of our human resources: an unwavering dedication to
pursuing goals, the team spirit that inspires individuals to unite
toward a common goal, and a sincere commitment to customers
and to one’s work. We expect the operating environment to
remain volatile and unpredictable going forward. Faced with such
challenging circumstances, we will continue to build upon these
core strengths while encouraging our diverse, individual employ-
ees to take the initiative, regardless of age, in order to heighten
their specialties through lifetime growth. As our diverse, individual
employees grow in this manner, we will tie their growth to ongoing
business growth through effective management. That is the core
of the human resource strategies of the Asahi Kasei Group.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 40
Enhancement of Human Resource Management Capacities
Workplace environments have been transformed as a result of
discussion among employees and therefore spur the autono-
workplace environments; (2) Employee empowerment; and (3)
the COVID-19 pandemic, making online communication the
mous growth of both employees and organizations.
Action driving growth.
norm and creating a greater deal of acceptance toward diverse
The KSA engagement surveys are based on the empower-
The gauging of these three indicators and their degree of
lifestyles and workstyles. As such, the empowerment and moti-
ment and growth cycle model proposed by Professor Hiroya
impact provides the following benefits:
vation of employees requires management to implement appro-
Hirakimoto of Osaka University and use three indicators
• Ability to visualize the success or failure of past measures
priate measures based on an accurate understanding of the
related to individual employees and organizations: (1)
• Accurate information on the current status of the organization
circumstances surrounding employees and organizations. Based
Relationships between supervisors and subordinates,
that can be used to guide future action
on this recognition, the Asahi Kasei Group launched its KSA
engagement surveys, which look to gauge metrics pertaining to
employee empowerment and growth. Work engagement is born
out of synergies between the capacities of individual employees,
exemplified in their feelings of self-efficacy and confidence and
positivity toward work, and the capacities of organizations, dem-
onstrated through support from supervisors and coworkers,
Items Gauged through KSA Engagement Surveys
Relationships between
supervisors and subordinates,
workplace environments
Employee empowerment
Action driving growth
• Support from supervisors
• Ability to maintain positive stance (individual capabilities)
• Experience-based learning
workplace discretion, and evaluations and feedback. To mea-
• Interpersonal relationships supporting
sure work engagement, we track conditions pertaining to the
empowerment of individual employees, relationships between
supervisors and subordinates, and workplace environments.
This information is shared within the organizations to facilitate
work
• Encouragement of ingenuity
• Respect for diversity
• Workplace openness
- Confidence, feeling of self-efficacy
- Strength to overcome adversity
- Capacity for plotting course toward achieving goals
- Optimism
• Motivation toward work (work engagement)
• Contributions to organization
• Problem-solving/
improvement efforts
• Job crafting
Framework of KSA Engagement Surveys
Comments from Managers Following the Implementation of KSA Engagement Surveys
(questionnaire responses of managers directly overseeing subordinates)
Employee
empowerment
Action driving
growth
Relationships between supervisors
and subordinates, workplace environments
“It was very beneficial to use the results of the KSA survey in discussions with division members to involve everyone in thinking
about ways to drive employee empowerment and growth in the workplace.”
Individual and
organizational
growth
“The KSA survey results helped me share the strengths and weaknesses of our organization with everyone.”
“The results of the KSA survey cast light on aspects of organizations that I was unaware of as a department head.
The weaknesses indicated by the survey report gave me a newfound understanding of our organization.”
“We gained a deeper understanding of our organization through the KSA survey, fostering a greater sense of solidarity
in our efforts to maintain our strong corporate culture.”
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
41
Group Masters Program
In implementing human resource strategies, the heightening of
increases in line with rank, to promote the growth of human
business creation over the next five to ten years, we examined
the specialized skills of individual employees is as important as
resources while enabling us to recruit external talent. Moreover,
the core technologies, production technologies, expertise, busi-
the enhancement of human resource management capacities.
succession plans are put in place for Group Masters to link the
ness platforms, and diverse market channels and business
For this purpose, the Asahi Kasei Group has established the
development of human resources with the cultivation of busi-
models that have been developed as the source of our competi-
Group Masters program to appoint, nurture, and reward individ-
nesses in order to raise competitiveness.
tiveness thus far. This examination led to the identification of the
uals who are contributing or are expected to contribute to the
12 core technology fields shown below including biotechnology
creation of new businesses or the reinforcement of established
Group Masters Human Resource Portfolio
which was added in fiscal 2021. In addition, we have defined
businesses as Group Masters. This program thus helps develop
Under the Group Masters program, technology fields to be
the jobs and occupational fields in which specialists should be
a robust pool of human resources with high-level specialist
strengthened from a cross-business perspective are defined as
cultivated for both specific business fields and core company-
expertise and skills who are competitive inside and outside the
core technology fields, and engineers that drive the enhance-
wide functions as core platforms fields, and we are assigning the
organization. The program defines five ranks of Group Masters.
ment of technologies in these fields are appointed as Group
title of Group Master to individuals capable of driving efforts in
The roles of each rank are clearly defined, and compensation
Masters. For the pursuit of ongoing business growth and new
these areas.
Group Master Ranks and Roles
Group Masters Fields
Ranks
Roles
Executive Fellow
(status equivalent to Executive Officer)
Person who newly developed or considerably
expanded a field of technology
Principal Expert
(status equivalent to Managing Executive
or Senior Managing Executive)
Person who takes the lead in a field of
technology
Senior Fellow
(status equivalent to Managing
Executive, Senior Managing
Executive, or Executive Officer)
Person whose term as Executive
Fellow or Principal Expert
expires after retirement age but
who is expected to continue the
roles shown at right
Lead Expert
Person ranked below Principal Expert (candidate to be Principal Expert)
Expert
Person ranked below Lead Expert (candidate to be Lead Expert)
1. Actively participating in
and contributing to new
business creation and
strengthening operations
by cultivating and
enhancing their skills
and abilities as a leading
specialist
2. Fostering younger
personnel in the relevant
areas
Actively participating in
and contributing to new
business creation and
strengthening operations
by cultivating and enhanc-
ing their skills and
abilities
Business-specific fields
78 Group Masters
Material
Homes
Health Care
Core technology fields
128 Group Masters
Fibers (polymerization, spinning, and cellulose)
Membranes and separation
Electrochemistry (electrolysis and batteries)
Polymers (design, polymerization, processing, and applications)
Catalysts, chemical processes, and inorganic synthesis
Compound semiconductors
Analysis and computer simulation
Process development and construction technologies
Product design and advanced control
Plant engineering
Digital innovation
Biotechnology
R&D
Support functions
Core platform fields
43 Group Masters
Environmental preservation
Quality assurance
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 42
Health and Productivity Management
Health and Productivity Management System
In April 2020, we appointed a Chief Health Officer (CHO) and estab-
our employees and their families are at the heart of the Asahi
raising health and productivity awareness among employees. At
Kasei Group’s health and productivity management activities.
the same time, we are developing health and productivity man-
lished the Corporate Health Care Promotion Center as an organiza-
In recent years, the total number of leave days taken by employ-
agement frameworks. We hope to complete these awareness-
tion tasked with promoting health and productivity management on
ees has been increasing, causing losses in terms of both labor and
raising and framework development measures by March 31,
a group-wide basis under the direct authority of the CHO.
healthcare costs. Factors behind the increase in leave days include
2022, and to begin full-fledged health and productivity manage-
Furthermore, the Statement on Management for Health was
mental health issues, metabolic syndrome, cancer, and smoking.
ment activities thereafter.
issued in October 2020 to add a new dimension to prior health pro-
For this reason, steps to address these factors and help employees
Our focus over the period spanning from fiscal 2022 to fiscal
motion initiatives. To continue raising corporate value, it is
achieve better physical and mental health are absolutely essential to
2024 will be to work to generate concrete benefits through the
imperative to establish workplace environments in which employees
achieving sustainable increases to corporate value.
efforts of major domestic sites and to ensure that these benefits
can succeed while maintaining good physical and mental health.
At the same time, we are advancing initiatives focused on
are tangible for as many employees as possible. Meanwhile, we
Accordingly, we are actively promoting health and productivity man-
supporting the success and growth of each individual, encourag-
will look to expand the efforts of major domestic sites to smaller
agement based on the Group Health and Productivity Management
ing greater working satisfaction and fulfillment, and creating a
independent plants in Japan as well as to overseas sites.
Vision described in the Statement on Management for Health.
vibrant and strong organizational climate with the aim of improv-
From fiscal 2025 forward, efforts will be directed toward
Frameworks for advancing health and productivity manage-
ing productivity. We thereby hope to achieve the virtuous cycle of
enhancing initiatives by evaluating and inspecting prior activities.
ment initiatives on an integrated, group-wide basis were installed
contributing to sustainable society and sustainable growth of cor-
At the same time, we will tackle new challenges as we seek to
in April 2021, when the health and productivity management
porate value described in our medium-term management initia-
disseminate and entrench health and productivity management
functions of major domestic sites were placed under the direct
tive “Cs+ for Tomorrow 2021.”
practices on a group-wide and global basis and to evolve these
supervision of the Corporate Health Care Promotion Center.
Overview of Health and Productivity Management Initiatives
Efforts to maintain and promote the physical and mental health of
Medium- to Long-Term Stance toward Health and
Productivity Management
The Asahi Kasei Group is moving forward with measures for
practices to undertake well-being management.*
* A management approach that goes beyond promoting physical and mental health to emphasize
the development of organizations in which employees are happy, able to feel tangible growth,
and go about their work with a high degree of autonomy and motivation
Overview of Health and Productivity Management Initiatives
Medium- to Long-Term Stance toward Health and Productivity Management
Contributing to sustainable society and sustainable growth of corporate value
FY2020–2021
FY2022–2024
FY2025–
Success and
growth of each
individual
Greater working
satisfaction and
fulfillment
Vibrant and
strong organizational
climate
Group productivity
improvement
• Develop health and productivity
management frameworks
• Commence initiatives at smaller
independent plants in Japan
• Disseminate and entrench
practices on a group-wide basis
• Entrench philosophy, stance,
and policies and improve
recognition
• Generate concrete benefits and
• Evolve practices to undertake
tangible performance
improvements
well-being management
• Tackle new challenges
• Commence initiatives at major
• Launch global initiatives
Maintaining and promoting the physical and mental health of employees and their families
domestic sites
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
Financial and Capital Policy
43
Achieving the Current Medium-Term Management
Initiative
In 2022, we will celebrate the 100th anniversary of Asahi Kasei’s
founding. Looking back on our history, we have constantly grown
by always providing value through our businesses to meet ever-
the transformation of our business portfolio and steadily advanc-
ing our financial and capital policy and other measures.
Enhancing Cash Generation, Reinforcing Financial
Foundations
changing social needs based on the strengths inherent in the
The Asahi Kasei Group achieves steady earnings by operating
“diversity” and “capability to change” of our human resources,
businesses in the three sectors of Material, Homes, and Health
technologies, and businesses. Under “Cs+ for Tomorrow 2021,”
Care. In fiscal 2020, compared with the outlook at the time of
our medium-term management initiative, we aim to achieve two
formulating “Cs+ for Tomorrow 2021,” earnings in Material were
mutually reinforcing aspects of sustainability: contributing to
lackluster, though on a recovery trend as the year progressed,
sustainable society and the sustainable growth of corporate
due to impacts of United States–China tensions and the COVID-
value. In our efforts to contribute to sustainable society, we will
19 pandemic, while operating income in Homes lagged one year
provide greater value by concentrating management resources,
behind, and performance in Health Care was strong. Meanwhile,
including human resources and technologies, in fields where we
we endeavored to maintain and fortify our financial foundations
can provide value to society. For the sustainable growth of corpo-
through measures such as greater financial discipline in light of
rate value, we will seek to continuously realize capital efficiency
changes in our business environment, carefully selecting capital
(ROE) exceeding the cost of shareholders’ equity by accelerating
expenditure and investment projects, and thoroughly
Primary Financial Metrics
Net sales (¥ billion)
Operating income (¥ billion)
Operating margin
EBITDA1 (¥ billion)
Net income per share (EPS)
Net income per shareholders’ equity (ROE)
Net income per net sales (ROS)
Total asset turnover ratio
Financial leverage
Net income per shareholders’ equity and
interest-bearing debt (ROIC)2
D/E ratio
FY2016
1,883.0
159.2
8.5%
268.4
¥82.34
10.5%
6.1%
0.84
2.0
7.8%
0.35
FY2017
2,042.2
198.5
9.7%
311.9
¥121.93
14.0%
8.3%
0.89
1.9
9.7%
0.23
FY2018
2,170.4
209.6
9.7%
313.6
¥105.66
11.1%
6.8%
0.89
1.8
8.8%
0.31
FY2019
2,151.6
177.3
8.2%
295.6
¥74.85
7.6%
4.8%
0.80
2.0
6.6%
0.52
FY2020
2,106.1
171.8
8.2%
305.1
¥57.49
5.6%
3.8%
0.73
2.0
4.9%
0.45
1 Operating income, depreciation, and amortization (tangible, intangible, and goodwill)
2 (Operating income – income taxes) / average annual invested capital
Koshiro Kudo, CFO
Director, Senior Executive Officer
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 44
implementing appropriate control of inventories and expenses.
dividends and continuous dividend increases from a medium- to
around 30% to 40% and considering the ratio of dividends to
As a result, we were able to achieve performance that puts us
long-term perspective through the sustained generation of cash
shareholders’ equity. We plan to maintain dividends per share at
on track to achieve operating cash flow in the range of ¥600
flow while paying close attention to the balance between invest-
¥34 for fiscal 2021* and expect the dividend payout ratio over
billion to ¥700 billion, the three-year target set when formulating
ments for growth and our financial position. Specifically, we aim
the three years of “Cs+ for Tomorrow 2021” to be 40% or higher.
the medium-term management initiative. We will continue striv-
to steadily raise dividends while maintaining a payout ratio of
* Forecast in May 2021
ing to enhance our cash generation capabilities by maximizing
returns on past capital expenditure and investments and by
Overview of Our Financial and Capital Policy
raising productivity, in addition to continuously improving profit-
Estimates at the time of formulating
the medium-term management initiative
Current view
ability and capital efficiency through the transformation of our
Financing for growth (while maintaining financial discipline)
Pursuing returns above cost of capital
business portfolio.
We expect an increase in interest-bearing debt of ¥200
billion to ¥400 billion, within the range anticipated in “Cs+ for
Tomorrow 2021.” Accordingly, we will continue to undertake
financing while targeting a D/E ratio of around 0.5.
Capital Expenditure and Investments Tailored to
Changes in the Business Environment
Amid an increasingly uncertain and obscure business environ-
ment, we intend to concentrate the allocation of resources to
capital expenditure and investments that have greater potential
for sustainable growth while remaining conscious of the cost of
capital. As a result of the more careful selection of investments
from the initial formulation of “Cs+ for Tomorrow 2021,” we plan
to make decisions on capital expenditure and investments at the
level of ¥700 billion to ¥800 billion over the three-year period.
Going forward, we will proactively invest in M&A in the Health
Care sector, in increasing the production capacity of businesses
in priority fields for provision of value in the Material sector, and
in areas related to digital transformation and sustainability.
Shareholder Returns
Our basic policy on shareholder returns is to aim for stable
Borrowing capacity
Capital expenditure (decision-adopted basis)
D/E ratio around 0.5
Increase in interest-bearing debt ¥200 to ¥400 billion
Expected to be within targeted range
at end of FY2021
Operating cash flow
3-year total ¥600 to ¥700 billion
Aiming toward targeted range with
enhanced cash generation
Cash flows
(¥ billion)
300
200
100
0
(100)
(200)
(300)
(400)
169.0
249.9
212.1
139.6
124.5
79.0
13.1
253.7
95.9
(89.9)
(110.3)
(198.9)
(193.7)
(157.8)
(318.2)
3-year total ¥800 billion (including M&A)
Strict selection of investments
¥700 to ¥800 billion
Share buybacks performed flexibly according
to circumstances
Shareholder returns
Growth in dividends per share as earnings expand
(payout ratio of around 30%– 40%)
Returns in line with original assumption
Dividends per share and dividend payout ratio
(¥)
40
30
20
10
0
34
34
34
34
24
29.1
27.9
32.2
59.1
45.4
(%)
80
60
40
20
0
2016
2017
2018
2019
2020
(FY)
2016
2017
2018
2019
2020
(FY)
Operating cash flow
Investing cash flow
Free cash flow
Dividends per share (left scale)
Dividend payout ratio (right scale)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
45
Business Overview
Asahi Kasei Sustainability Photo Contest
Name
Lenny Gutierrez
Company
Asahi Kasei Asaclean Americas Inc.
Country/region
United States
Care for People, Care for Earth
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information Review of Operations
Material
Standing Firm, Striding Forward
Operations in the Material sector got off to a tough start in fiscal
2020 due to the impacts of the COVID-19 pandemic. We
advanced our business activities with a focus on the creation of
and social needs. In the first half of the fiscal year, we leveraged
our robust supply systems to increase output of lithium-ion
battery separators, electronic materials, consumables, textiles,
and hygiene-related materials, demand for which was elevated
by people increasingly staying at home. In the second half of
the fiscal year we reaped the benefits of recovery in the markets
for automotive and petrochemical products.
As we move toward the 100th anniversary of the founding
Hiroshi Yoshida
Executive Officer for Material Business Sector
Director,
Vice-Presidential Executive Officer,
Asahi Kasei Corp.
value by capturing opportunities associated with new workstyles
FY2020
46
Ratio of total consolidated net sales
and operating income
Net sales, operating income
(¥ billion)
(¥ billion)
Sales composition
47.4 %
Operating income composition
33.6 %
991.2
66.5
1,200
1,093.1
92.4
900
600
300
0
2019
2020
(FY)
120
90
60
30
0
Note: Not including “Others” category and corporate expenses
Net sales (left scale) Operating income (right scale)
and eliminations
Basic Materials
Specialty Solutions
Performance Products
Others in Material
Business Strengths
Diverse core technologies
of Asahi Kasei in 2022, we will reinforce our foundations for
With diverse core technologies that include catalysts, polymers, fibers, membranes, and compound
growth through new business creation, accelerated portfolio transformation, and business model
semiconductors, we are creating new value by developing applications that anticipate the changing
innovation utilizing digital technologies. These efforts will be focused on the Environment & Energy,
needs of society. We are also applying these technologies to products that benefit the global envi-
Mobility, and Life Material among our priority fields for the provision of value. At the same time, amid
ronment, such as lithium-ion battery (LIB) separators and acrylonitrile, which we produce using
rising demand for contributions to sustainability, we will pursue sustainable growth of corporate value
technology that reduces CO2 emissions.
through initiatives such as developing decarbonization technologies and engaging in co-creation with
other companies toward the achievement of circular economies.
Main Products
Basic Materials
• Acrylonitrile
Performance Products
• Bemberg™ cupro fiber
Specialty Solutions
• Ion-exchange membranes
Wide-ranging marketing channels
By operating in a variety of businesses, we have built relationships with a wide range of customers
in industries such as automobiles, electronics, telecommunications, clothing, food packaging, and
healthcare, and we leverage these relationships to further develop businesses. In the automotive
market, we are effectively expanding sales activities with our AKXY concept electric vehicle, which
is equipped with a broad range of Asahi Kasei materials and products.
• Methyl methacrylate
• Lamous™ artificial suede
• Sunfort™ photosensitive dry film
• Polystyrene
• Dinamica™ automotive interior
• Battery separators (Li-ion and
Stable supply of high-quality products
material
• Engineering plastics
lead-acid)
• Mixed-signal LSIs
• Synthetic rubber/elastomer
• Hall elements
• Saran Wrap™ cling film
With a diverse range of production technologies and know-how honed over nearly a century, as well
as an industry-leading commitment to Responsible Care, we are able to provide a stable supply of
high-quality products, which earns the trust of customers.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
価価価価価価価価
Material
47
Basic Strategy
Flexible allocation of management resources to priority fields
Responding to Operating Environment Changes
Raising profitability/capital efficiency with new value provision models based on changed operating environment
Business Strategy
Priority Fields for
Provision of Value
Perceived Change
Business Strategy / Way to Provide Value
FY2020 Highlights
Production capacity for Asahi Kasei LIB
System/Solution Provider
Increased Production Capacity for Hipore™ LIB Separator
Environment
& Energy
• Carbon neutral movement
accelerates worldwide
• Rapidly growing need for
technologies and solutions
that contribute to
decarbonization
• Provide systems/solutions that
combine core technologies,
processes, and operational know-
how of materials
• Accelerate development of tech-
nologies and products that
contribute to the environment
Proactively expanding businesses
focused on lithium-ion batteries for
electric drive vehicles.
Click here for details.
Material with Proposal of Usage
Completion of Acquisition of Adient’s Automotive Fabrics Business
Mobility
• Temporary market slow-
down, but changes related
to CASE continue to present
opportunities to provide
value with materials
• Propose lightweighting, modular-
ization, and environmentally
friendly materials to meet sustain-
ability requirements for EDVs
• Strengthen marketing to key
customers
U.S. subsidiary Sage Automotive
Interiors acquired the automotive fabrics
business of Adient plc to strengthen its
business foundation in Europe, the
largest market.
Click here for details.
Life Material
• Firm demand for electronic
materials and healthcare
materials even amid the
COVID-19 pandemic
• New needs arising from
advances in next-generation
communications, changes in
hygiene awareness, and new
lifestyles
Materials Differentiated by High
Performance/Function
Decision to Construct Second Plant for Ceolus™
Microcrystalline Cellulose
• Provide differentiated materials
required by advancing digital
society
• Provide value to meet new needs
in healthcare and other fields with
distinctive materials and devices
The second plant will raise production
capacity for Ceolus™ microcrystalline
cellulose, which is primarily used as an
excipient for pharmaceutical tablets, in
response to growing demand.
Click here for details.
3.0
1.9
separator
(billion m2)
3
2
1
0
0.8
2018
2019
2020
2023
(Forecast)
Medium-term
target
(FY)
Wet process
Dry process
Sales at Sage Automotive Interiors
(US$ million)
Acquisition of
Adient’s automotive
fabrics business
850
≥1,000
520
560
1,000
750
500
250
0
2019
2020
2021
(Forecast)
Medium-term
target
(FY)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
48
Ratio of total consolidated net sales
and operating income
Net sales, operating income
(¥ billion)
(¥ billion)
Sales composition
33.1%
Operating income composition
32.2%
800
600
400
200
0
704.4
692.6
72.7
63.5
2019
2020
(FY)
120
90
60
30
0
Note: Not including “Others” category and corporate expenses
Net sales (left scale) Operating income (right scale)
and eliminations
Homes
Construction Materials
Business Strengths
Technology for robust homes
This provided an opportunity for us to transform our
FY2020
Adapting and Evolving
Our ability to attract customers in order-built homes operations
was greatly limited in fiscal 2020 as the COVID-19 pandemic
forced us to close or restrict entry to model homes.
business model, which allowed us to enhance customer
engagement through various digital channels, leading to signifi-
cant recovery in orders. At the same time, we moved forward
with industry-leading initiatives related to sustainability and
resilience, taking part in Japan’s first project in this area and
winning several awards. As the domestic housing market con-
tracts over the medium to long term, the changes in social
structures and values brought about by the COVID-19 pan-
Homes
Fumitoshi Kawabata
Executive Officer for Homes Business Sector
Director, Primary Executive Officer, Asahi
Kasei Corp.
President & Representative Director, Asahi
Kasei Homes Corp.
Director, Asahi Kasei Construction Materials
Corp.
demic will make it more important than ever for us to flexibly
Hebel Haus™ has earned a reputation for resilience against disasters, achieved through a combi-
adapt to changes in our operating environment. In our core
nation of high-performance earthquake resistance technology, Hebel™ autoclaved aerated
business of order-built homes, we will seek to promote digital
concrete (AAC), and Neoma Foam™ insulation with world-leading performance.
transformation to enhance our home-building process and transform our business model to earn
greater appreciation from customers.
In addition, we will proactively develop new businesses with growth potential, such as homes
for seniors and medium-rise homes. Overseas, we will leverage the consolidation of Australia’s
McDonald Jones Homes to continue growing our business.
Main Products
Homes
• Hebel Haus™ unit homes
Construction Materials
• Hebel™ AAC panels
• Hebel Maison™ apartment buildings
• Neoma Foam™ and Neoma Zeus™ phenolic foam
Comprehensive system to support people’s lives
One of our strengths is having a comprehensive system based on our “Long Life Home” concept to
address the era of 100-year lifespans. We value our relationships with customers and endeavor to
stay close to them at various stages of their lives. We provide long-term warranties and inspection
systems, and offer renovation and remodeling services according to changes in customers’ lifestyles.
Knowledge, expertise, and assets related to urban housing
By focusing on urban areas, we have gained the ability to propose sites and spaces based on “opti-
mal urban living” and provide consulting services accordingly. We are also expanding rental
management and other businesses related to previously built homes and using our expertise to
• Atlas™ condominiums
• Hebel Maison™ apartment rental network
• Remodeling
insulation panels
develop new businesses such as homes for seniors, medium-rise homes, and overseas business.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
Homes
49
Basic Strategy
Reinforcing and extending value chain management
Responding to Operating Environment Changes
Maintaining existing growth strategy while using digital technology to meet changing lifestyle needs; strengthening resilience
to disasters and adapting to carbon-free by leveraging our know-how for sustainable urban living
Business Strategy
Priority Fields for
Provision of Value
Perceived Change
Business Strategy / Way to Provide Value
FY2020 Highlights
Home
& Living
• Decrease in new housing
starts in Japan
• Rising need for energy-
efficient housing that
contributes to carbon-free
society and highly resilient
housing in response to
increasing severity of
natural disasters
• Diversification of lifestyle
and housing needs in era of
100-year lifespans
• Restrictions on sales
activities amid COVID-19
pandemic
Superior Social Infrastructure
Increase in Hebel Haus™ Ratio of Net Zero-Energy Houses
• Promote sustainability and
strengthen resilience
• Improve customer satisfaction and
provide value through value chain
reinforcement across the sector
Net zero-energy houses using Neoma Foam™ high-performance insulation reached
66% of Hebel Haus™ unit homes delivered in fiscal 2020.
Use of Non-Fossil Fuel Power Excluded from Feed-In Tariff
Environmental value from solar power systems installed on Hebel Maison™ apartment
buildings utilized at Asahi Kasei’s Kawasaki Works.
Support for Swift Recovery from Disasters
Hebel Maison™
Atlas™ Kamikumamoto was completed, replacing a condominium that was damaged
during the 2016 Kumamoto earthquakes.
A system was developed to estimate earthquake damage using seismometers installed
in Hebel Haus™ unit homes.
Leveraging Know-how to
Develop New Businesses
• Accelerate development of over-
seas, homes for seniors, and
medium-rise buildings businesses
Management Foundation
Reinforcement
• Reform workstyles and improve
productivity
Acquisition of the Austin Companies
The Austin Companies, a premier Arizona residential electrical, concrete, and HVAC
group, were acquired in the U.S., joining Erickson Framing Operations LLC, a prefabri-
cated building component supplier acquired in 2018.
Click here for details.
IT Investments for Utilizing Digital Technologies
Adoption of tools for non-face-to-face meetings with customers and other steps to reform
work processes.
Atlas™ Kamikumamoto
Net sales of overseas business
(¥ billion)
100
100.0
McDonald Jones Homes
becomes a consolidated
subsidiary
50
0
18.5
25.8
2019
2020
2021
(Forecast)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
Health Care
Growing Globally
In fiscal 2020, we implemented measures to advance our
evolution into a global health care enterprise, while the COVID-
19 pandemic reminded us of the importance of health care.
Shuichi Sakamoto
Executive Officer for Health Care Business Sector
(joint)
Director, Primary Executive Officer, Asahi Kasei Corp.
Chairman & Director, Asahi Kasei Pharma Corp.
Chairman & Director, Asahi Kasei Medical Co., Ltd.
Board Director, ZOLL Medical Corporation
Board Director, Veloxis Pharmaceuticals, Inc.
included the growth of an osteoporosis treatment and the
advancement of a disease awareness campaign. We strength-
ened our pharmaceutical business foundations in the United
States through the post-merger integration of Veloxis, which
we acquired in March 2020. In medical care, we expanded
our virus removal filter business serving manufacturers of
Notable steps for the pharmaceutical business in Japan
FY2020
50
Ratio of total consolidated net sales
and operating income
Net sales, operating income
(¥ billion)
(¥ billion)
Sales composition
19.5%
Operating income composition
34.2%
500
400
300
200
100
0
407.9
67.6
337.8
43.5
2019
2020
(FY)
120
90
60
30
0
Note: Not including “Others” category and corporate expenses
Net sales (left scale) Operating income (right scale)
and eliminations
Pharmaceuticals/Medical Care
Acute Critical Care
biotherapeutics, including COVID-19 treatments. Growth in our
acute critical care business centered on ventilators, other
Business Strengths
Providing optimal treatments with both pharmaceuticals and medical devices
resuscitation products, and wearable defibrillators. Our mis-
Being engaged in both pharmaceutical and medical device businesses, we are able to provide a
sion is to deploy our unique technological innovations to
wide range of treatments for patients. By increasing opportunities for innovation in both businesses,
deliver the best products, services, and solutions to health
especially in the United States, we are able to provide even more value to support a society of
care professionals around the world, with the aim of saving the
healthy longevity.
Richard A. Packer
Executive Officer for Health Care Business Sector
(joint)
Primary Executive Officer, Asahi Kasei Corp.
Chairman & Board Director, ZOLL Medical
Corporation
Board Director, Veloxis Pharmaceuticals, Inc.
lives of patients and improving their quality of life (QOL). We
will accurately address the needs of the medical community
with both pharmaceuticals and medical devices in order to
make the Health Care sector a major growth-driving pillar of
the Asahi Kasei Group.
Main Products
Pharmaceuticals/Medical Care
• Teribone™ osteoporosis drug
• Recomodulin™ anticoagulant
Acute Critical Care
• Defibrillators for professional use
• LifeVest™ wearable defibrillator
Business platforms in orthopedics, immunology, and acute critical and cardiac care
We have business platforms focused on three fields: orthopedics, where demand for osteoporosis
treatments is increasing as the population ages; immunology, including immunosuppressive drugs;
and acute critical and cardiac care, including our market-leading defibrillators. Accordingly, we are
able to create unique products that contribute to a society of healthy longevity.
World-leading position in virus removal filters
Planova™ is the world’s first virus removal filter to be developed for use during the manufacture of
biotherapeutics such as biopharmaceuticals and plasma derivatives. The reliable high performance
• Kevzara™ rheumatoid arthritis drug
• Automated external defibrillators (AEDs)
and consistent quality of these filters are trusted by pharmaceutical manufacturers around the
• Envarsus XR™ immunosuppressive drug
• Thermogard System™ temperature management
• APS™ polysulfone-membrane dialyzers
system
world, earning us the top share of the global market.
• Therapeutic apheresis devices
• Planova™ virus removal filters
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
Health Care
51
Basic Strategy
Further accelerating transformation to a global health care enterprise
Responding to Operating Environment Changes
Continue priority allocation of management resources;
global expansion of both pharmaceuticals and medical devices, to be the third major pillar and driver of growth
Business Strategy
Priority Fields for
Provision of Value
Perceived Change
Business Strategy / Way to Provide Value
FY2020 Highlights
Net sales, overseas sales
• 13% CAGR1 over past 10 years
Acute Critical Care
Increased Ventilator Production in Response to COVID-19
• Driven by overseas business (reaching nearly 80%)
Health
Care
• Need for COVID-19
response measures
• Rising demand for high-
quality medical care and
improved QOL centered on
developed countries
• Population aging and
government policies to
streamline healthcare
expenditure
• Technological innovations
for next-generation
therapies
• Continue growing resuscitation
products and other existing
businesses and expand into
peripheral fields
Production of ventilators was increased
substantially to meet rapid growth in
demand due to the COVID-19
pandemic.
Click here for details.
Pharmaceuticals
Post-Merger Integration of Veloxis
• Business growth in areas of
strength—orthopedics,
immunology, and neurology—in
Japan and overseas
Progress advanced in post-merger integration of Veloxis, acquired in March
2020; sales of Envarsus XR™ immunosuppressive drug expanded.
Out-Licensing Agreement for AK1780 Chronic Pain Drug Candidate
AK1780, a drug candidate for chronic pain caused by neuroinflammation
developed by Asahi Kasei Pharma, was licensed to Eli Lilly and Company.
Click here for details.
Medical Care
Expansion of Sales for Planova™ Virus Removal Filters
• Reinforce bioprocess business
in line with growth of biothera-
peutics market
While needs for viral safety in biothera-
peutics continue to rise, inquiries for
Planova™ virus removal filters increased
in relation to development of COVID-19
treatments and vaccines.
Click here for details.
(¥ billion)
600
450
300
150
0
Entered critical
care field with
acquisition of ZOLL
119.5
24%
24%
2011
Gained pharmaceutical
business platform in North
America through acquisi-
tion of Veloxis
64%
77%77%
407.9
407.9
400.0
C A G R 1 3 ％
2021
(Forecast)2
Net sales (left scale)
Overseas sales (right scale)
Operating income, operating margin
• More than six-fold growth over past 10 years
• Both amount and margin rising
(¥ billion)
100
75
50
25
0
7
8.8
2011
17
67.6
14
55.0
2021
(Forecast)2
(%)
100
75
50
25
0
(FY)
(%)
20
15
10
5
0
(FY)
Operating income (left scale)
1 Compound Annual Growth Rate
2023
(Forecast)
2 Forecast in May 2021
Operating margin (right scale)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
52
Corporate Governance and
Risk Management
Asahi Kasei Sustainability Photo Contest
Name
Yuya Taketani
Company
Asahi Kasei Corp.
Country/region
Japan
Care for People, Care for Earth
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information Corporate Governance
Basic Approach
Meetings of the Board of Directors, Advisory Committees, and Audit &
Guided by the Group Mission of contributing to life and living for people around the world, the
Supervisory Board (fiscal 2020)
53
Group Vision for Asahi Kasei is to provide new value to people throughout the world and help
resolve social issues by enabling “living in health and comfort” and “harmony with the natural envi-
No. of
Meetings Held
Average Attendance
Main Subjects of Agenda
ronment.” Based on this approach, we aim to contribute to society while achieving sustainable
Board of Directors
14
growth and improving corporate value over the medium to long term, by spurring innovation and
creating synergies through the integration of our diverse range of businesses.
To that end, we will continuously pursue the optimal corporate governance framework for
ensuring transparent, fair, timely, and resolute decision-making in accordance with changes in the
business environment.
Corporate Governance Configuration
Nomination
Advisory Committee
Remuneration
Advisory Committee
Audit & Supervisory
Board
3
4
18
98%
(Directors and Audit &
Supervisory Board Members)
• Business investment
• Medium-term management initiative
• Risk management and compliance
100%
(All members)
100%
(All members)
• Optimum composition and size of Board of Directors
• Policy for nomination of candidates to be Directors and Audit
& Supervisory Board Members
• Standards for judging independence of Outside Directors and
Audit & Supervisory Board Members
• Policy and system for remuneration of Directors
• Deciding on performance-linked remuneration of individual
Directors
96%
(Audit & Supervisory Board
Members)
• Auditing state of performance of Directors’ duties
• Auditing state of operations and financial affairs
• Evaluation of Independent Auditors
Shareholders Meeting
Audit
Election
Oversight
Election
Audit & Supervisory Board
(5 Audit & Supervisory Board Members,
including 3 Independent Outside Members)
Audit
Board of Directors
(9 Directors, including 3 Independent
Outside Directors)
Diversity of Expertise and Experience of Outside Directors and Audit &
Supervisory Board Members
In order to achieve sustainable growth and improve corporate value over the medium to long term,
we consider the makeup of the Board of Directors, paying attention to the diversity of knowledge,
experience, and abilities, so that it can supervise and audit the execution of operations at the Asahi
Kasei Group, which runs a wide variety of businesses. In particular, in order to realize multifaceted
deliberation at meetings of the Board of Directors by reflecting the high sensitivity that swiftly tracks
changes in the social environment and the perspectives of external stakeholders, as well as the
knowledge cultivated through the practice of corporate management, we believe that it is essential
that there be diversity in the fields of expertise and experience of Outside Directors and Outside
Audit & Supervisory Board Members, who have standpoints that are independent of the Asahi
Kasei Group.
Nomination Advisory
Committee
Remuneration Advisory
Committee
Report
Oversight
Internal Audit Department
The distribution of the fields of expertise and experience among Outside Directors and Outside
Audit & Supervisory Board Members is as follows:
Corporate
Management
Finance &
Accounting
Legal Affairs &
Intellectual Property
Environment &
Society
• Audit & Supervisory Board Members Office to
support Audit & Supervisory Board Members
• Internal Audit Department reports to both the
President and the Board of Directors
Tsuneyoshi Tatsuoka
Outside Directors
Tsuyoshi Okamoto
Outside Audit &
Supervisory Board
Members
Yuko Maeda
Akio Makabe
Tetsuo Ito
Akemi Mochizuki
Cooperation
Independent Auditors
Audit
Cooperation
Execution of
operations
Management Council
President
Key points
• 1/3 of Directors are independent
• 1 female Director
• Directors have diverse backgrounds
• 3/5 of Audit & Supervisory Board Members
are independent
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
54
Results of Evaluation of Effectiveness of the Board of Directors (fiscal 2020)
2) Reviewing corporate governance in line with the next medium-term management initiative
The Board of Directors conducts regular evaluations of its own effectiveness through discussions at
meetings of the Board of Directors, having collected questionnaires from Directors and Audit &
Supervisory Board Members after the end of each fiscal year.
The main measures implemented in fiscal 2020 and issues recognized for the future are
Reassessing the makeup, size, and skill requirements of the Board of Directors in line with the next medium-term
management initiative
3) Miscellaneous
Implementing methods for evaluating the effectiveness of the Board of Directors and expanding cooperation among
Outside Directors and Outside Audit & Supervisory Board Members, etc.
as follows:
Main measures implemented in fiscal 2020
The Board of Directors implemented the following measures in fiscal 2020 based on the evaluation of the previous
fiscal year.
1) Enhanced agenda items
The Board of Directors more frequently discussed agenda items relating to medium- to long-term management
issues, such as the management of the business portfolio, initiatives for promoting sustainability, and support for
Overview of Executive Remuneration
Remuneration for Directors
(1) Decision-making policy
As one of the corporate governance mechanisms to ensure that the Asahi Kasei Group can achieve
sustainable growth and enhance corporate value over the medium to long term, we have sought
advice of the Remuneration Advisory Committee on the decision-making policy pertaining to the
digital transformation, in an effort to ensure effective supervision of these issues by the Board of Directors.
contents of remuneration, etc., for individual Directors (hereinafter, the “Decision-making Policy”).
2) Enhanced provision of information to Outside Directors and Outside Audit & Supervisory Board Members
Respecting the contents of the reports thereof, the Board of Directors has made a resolution on the
The Board of Directors secured opportunities for visits to the Group’s sites, which had been conducted regularly,
Decision-making Policy, which includes the following basic policy. (An outline of the Decision-
while taking measures to prevent the spread of COVID-19. Meanwhile, preliminary briefings for the Board of
Directors were expanded in order to facilitate deeper discussion on the days of Board meetings by utilizing online
making Policy is as stated in (2) Basic design and (3) Decision-making process below.)
meetings.
3) Improved committee operations
The Board of Directors decided that Outside Directors shall chair the Nomination Advisory Committee and the
Remuneration Advisory Committee. Furthermore, the Board of Directors entrusted the Remuneration Advisory
Committee with deciding the individual performance-linked remuneration portion of remuneration for Directors.
These changes have improved the independence, objectivity, and transparency of the decision-making process for
the nomination and remuneration of Directors and Audit & Supervisory Board Members.
Issues recognized for the future
Based on measures implemented in fiscal 2020, the Board of Directors has confirmed a common awareness of the
following issues for the future.
1) Enhancing agenda items
Further expanding discussions on medium- to long-term management issues at meetings of the Board of Directors
and reviewing the criteria for bringing agenda items as necessary
Basic policy
Remuneration of Outside Directors, who have a position of independence with respect to manage-
ment of the company, comprises solely fixed basic remuneration at a level determined in
consideration of third-party survey data, in order to secure a high degree of independence unaf-
fected by short-term earnings fluctuations.
The remuneration system for Executive Directors, who are members of senior management,
combines performance-linked remuneration together with stock-based remuneration as nonmon-
etary remuneration, in addition to fixed basic remuneration, which serves as the basis for their
livelihoods, in order to provide incentives tied to earnings and management strategy, with levels of
remuneration amounts and proportions of types of remuneration adjusted as appropriate for each
role according to management strategy and tasks, in consideration of third-party survey data.
To ensure the optimal way of remunerating Directors and design of the remuneration system,
the Board of Directors and the Remuneration Advisory Committee regularly deliberate and continu-
ously confirm appropriateness and make improvements.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
55
(2) Basic design
1) Performance-linked remuneration
fiscal year) and the shares are granted to eligible Directors corresponding to the accumulated
number of points at the time of their retirement as Director and as Officer of the Group (one share
• Designed by combining both the achievement of financial targets, such as asset efficiency, to
of stock per point).
provide incentives tied to earnings and management strategy as management leaders together
with the achievement of nonfinancial targets including individual targets, one of which is progress
Outline of Stock-based Remuneration System (Share Grant Trust)
on sustainability
• Calculated by making a comprehensive judgment based on achievement of financial targets such as
consolidated net sales, operating income, ROA, etc., together with achievement of individually set
[Trustor]
Asahi Kasei
targets, including progress on sustainability
• Standards for financial incentives selected from the perspectives of appropriateness as clear and
objective evaluation criteria based on earnings results as well as awareness for increased asset
efficiency
• The formula required to calculate individual performance-linked remuneration is outlined as follows:
Index calculated by
evaluation1
Basic amount by rank
Individual performance-linked
remuneration amount
1 Coefficient comprehensively considering achievement of financial targets and nonfinancial targets
2) Establishment of the trust
3) Payments for purchase
[Trustee] Sumitomo Mitsui Trust Bank, Limited
(Trustee of sub-trust: Custody Bank of Japan, Ltd.)
Trust delivering shares
Asahi Kasei Shares
Cash
4) Instruct not to exercise
voting rights
3) Purchase
of shares
Stock
market
6) Sales of shares
6) Sales proceeds
6) Shares or cash
Trust administrator
1) Establishment of Share
Grant Regulations
[Beneficiaries]
Directors
5) Conferring points
• Target figures / standard figures and actual figures of management indicators to be used for the cal-
culation of performance-linked remuneration in the most recent fiscal year
(3) Decision-making process
Fiscal 2020 target figure / standard figure
Fiscal 2020 actual figure
• Entrusted to the Remuneration Advisory Committee based on a resolution of the Board of Directors
Consolidated net sales
¥2,034.0 billion
Consolidated operating income
¥140.0 billion
Consolidated ROA2
5.5%
¥2,106.1 billion
¥171.8 billion
5.9%
2 Consolidated operating income / consolidated total assets as of the fiscal year-end
2) Stock-based remuneration
• The Remuneration Advisory Committee is authorized to confirm the reasonableness and appropriate-
ness of the evaluation of the achievement of targets by Executive Directors, as proposed by the
President & Director, and to determine remuneration amounts for individual Directors by applying this
evaluation to the framework formula determined by the Board of Directors.
• Fixed basic remuneration by rank is paid upon determination of the amount by the Board of Directors.
• To reinforce a common perspective with shareholders including both the benefits of share price
• Stock-based remuneration is granted when certain conditions are met, corresponding to points con-
increases and the risk of share price decreases, a stock-based remuneration system was adopted at
ferred based on the Share Grant Regulations adopted by the Board of Directors.
the 126th Ordinary General Meeting of Shareholders held on June 28, 2017.
• The reason for entrusting the aforementioned authority to the Remuneration Advisory Committee is
• A trust established by the company acquires shares of the company and grants them to eligible
because doing so is the most appropriate means of determining the remuneration for individual
Directors. Based on the Share Grant Regulations adopted by the Board of Directors, eligible
Directors from a highly independent, objective, and transparent standpoint while overseeing the busi-
Directors are conferred points in accordance with their rank (maximum of 100,000 points per
ness results of the entire Group.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 56
• To ensure the appropriate use of this authorization to the Remuneration Advisory Committee, this
Strategic Shareholdings
committee comprises a majority of Outside Directors and it regularly reports to the Board of Directors
• With the aim of achieving sustainable growth and improving corporate value over the medium to long
on the process of the above confirmation and determination.
Composition of the Members of the Remuneration Advisory Committee (fiscal 2020)
Name
Position and responsibilities
term, Asahi Kasei holds shares in companies as it deems necessary as part of management strategies
including forming business alliances, raising funds, securing supply chains, and maintaining and
strengthening relationships with business partners. However, we will continuously work to reduce the
amount of strategic shareholdings giving due consideration to factors including risks and costs as well
Tsuyoshi Okamoto
Outside Director Chairperson of the Remuneration Advisory Committee
as the capital efficiency of holding such shares.
Masumi Shiraishi
Outside Director
Tsuneyoshi Tatsuoka
Outside Director
Hideki Kobori
President and Representative Director Presidential Executive Officer
Shigeki Takayama
Representative Director Vice-Presidential Executive Officer
(4) Reasons upon which the Board of Directors determined the contents of remuneration,
etc., for individual Directors pertaining to fiscal 2020 are in line with the Decision-
making Policy
• The Board of Directors examines the purpose and economic rationale of maintaining individual strate-
gic shareholdings on an annual basis from the perspective of their contribution to the company’s sus-
tainable growth and corporate value improvement over the medium to long term. In verifying the
economic rationale, we comprehensively assess returns in terms of medium- to long-term business
earnings and dividends with reference to the cost of capital and other considerations. As a result of
the verification, we reduce, through sales or other means, holdings of shares judged to be no longer
compatible with the purpose of holding them or deemed to have costs and risks that outweigh the
benefits of holding them, taking into consideration the conditions of the company concerned (in the
• The contents of basic remuneration and stock-based remuneration are determined upon taking into
five years from fiscal 2016 to fiscal 2020, sales of strategic shareholdings totaled ¥74.5 billion).
account the results of deliberations by the Remuneration Advisory Committee, which comprises a
majority of Outside Directors, with objectivity and transparency of the decision-making process ensured.
• Voting rights associated with strategic shareholdings are exercised after comprehensively determining
whether a proposal contributes to the sustainable growth and corporate value improvement over the
• The decision on performance-linked remuneration has been made through a highly independent,
medium to long term of both Asahi Kasei and the investee company.
objective, and transparent process carried out by the Remuneration Advisory Committee.
Percentages Shown for Directors Who Have Executive Responsibilities
Strategic holdings of listed shares
Sales of strategic shareholdings
Fixed base remuneration
55.8%
Performance-linked
remuneration
32.5%
Stock-based
remuneration
11.8%
(Paid monthly)
(Paid monthly)
(Paid at the time of retirement)
• Performance-linked remuneration = commitment to results
• Stock-based remuneration = perspective of shareholders
Note: Outside Directors receive fixed base remuneration only.
(¥ billion)
(stocks)
(¥ billion)
194.7
203.8
178.6
156.4
62
61
123.2
61
60
56
250
200
150
100
50
0
90
80
70
60
50
0
0
50
-100
-150
-200
-250
25
20
15
10
5
0
Cumulative total for five fiscal years
¥74.5 billion
20.5
18.1
16.7
11.9
7.4
2016 2017 2018
2019
2020
(FY)
2016 2017 2018
2019
2020
(FY)
Remuneration for Audit & Supervisory Board Members
• The performance-linked remuneration system is not applied with regard to the remuneration for Audit
& Supervisory Board Members, and their remuneration consists of fixed remuneration. Individual
remuneration amounts are determined through discussions with Audit & Supervisory Board Members.
Fiscal year-end amounts of strategic shareholdings on the
balance sheets (left scale)
Number of stocks (right scale)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information Directors and Audit & Supervisory Board Members (as of June 25, 2021)
Directors
57
Hideki Kobori
President & Representative Director
Shigeki Takayama
Representative Director
Hiroshi Yoshida
Director
Presidential Executive Officer
Vice-Presidential Executive Officer
Vice-Presidential Executive Officer
Shuichi Sakamoto
Director
Primary Executive Officer
Fumitoshi Kawabata
Director
Primary Executive Officer
April 1978
April 2008
April 2009
April 2010
Joined Asahi Kasei
Asahi Kasei Microdevices Director,
Senior Executive Officer
Asahi Kasei Microdevices Director,
Primary Executive Officer
Asahi Kasei Microdevices President
& Representative Director,
Presidential Executive Officer
April 2012
Asahi Kasei Senior Executive Officer
June 2012
April 2014
April 2016
Asahi Kasei Director (position held
at present)
Asahi Kasei Representative Director
(position held at present), Primary
Executive Officer
Asahi Kasei President and Director
(position held at present),
Presidential Executive Officer
(position held at present)
April 1980
April 2009
April 2010
April 2012
April 2013
August 2015
April 2016
April 2018
April 2019
June 2019
Joined Asahi Kasei
Asahi Kasei E-materials Executive
Officer
Asahi Kasei E-materials Director
Asahi Kasei E-materials Director,
Senior Executive Officer
Asahi Kasei E-materials President &
Representative Director, Presidential
Executive Officer
Polypore International, LP, President
& CEO
Asahi Kasei Senior Executive Officer,
President of Separators SBU
Asahi Kasei Primary Executive
Officer
Asahi Kasei Vice-Presidential
Executive Officer (position held at
present)
Asahi Kasei Director (position held
at present), Representative Director
(position held at present)
April 1979
April 2012
April 2014
April 2016
April 2017
April 2018
April 2019
June 2019
Joined Asahi Kasei
Asahi Kasei Chemicals Executive
Officer
Asahi Kasei Chemicals Director,
Senior Executive Officer
April 1981
April 2011
April 2014
Joined Asahi Kasei
Asahi Kasei Chemicals Executive
Officer
Asahi Kasei Chemicals Director,
Senior Executive Officer
Asahi Kasei Lead Executive Officer,
President of Performance Polymers
SBU
November 2014 Asahi Kasei Lead Executive Officer,
Corporate Strategy General Manager
April 2016
Asahi Kasei Senior Executive Officer
Asahi Kasei Senior Executive Officer
June 2016
Asahi Kasei Primary Executive
Officer
Asahi Kasei Vice-Presidential
Executive Officer (position held at
present)
Asahi Kasei Director (position held
at present)
April 2018
April 2019
Asahi Kasei Director (position held
at present)
Asahi Kasei Pharma Chairman &
Director (position held at present)
Asahi Kasei Medical Chairman &
Director (position held at present)
Asahi Kasei Primary Executive
Officer (position held at present)
April 1982
April 2012
April 2013
April 2014
Joined Asahi Kasei
Asahi Kasei Homes Executive
Officer
Asahi Kasei Homes Director
(position held at present), Senior
Executive Officer
Asahi Kasei Homes Marketing
Division General Manager
February 2016 Asahi Kasei Homes Chubu Sales
April 2017
April 2019
June 2019
Division General Manager
Asahi Kasei Senior Executive Officer
Asahi Kasei Homes President &
Representative Director (position
held at present), Presidential
Executive Officer (position held at
present)
Asahi Kasei Primary Executive
Officer (position held at present)
Asahi Kasei Director (position held
at present)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
Directors
58
Koshiro Kudo
Director
Senior Executive Officer
Tsuneyoshi Tatsuoka
Outside Director
Tsuyoshi Okamoto
Outside Director
Yuko Maeda
Outside Director
Joined Asahi Kasei
April 1980
Joined Ministry of International
Trade and Industry
April 1970
Joined Tokyo Gas Co., Ltd.
April 1984
Joined Bridgestone Corporation
June 2002
Tokyo Gas Co., Ltd. Executive Officer
September 2003 Tokyo Medical and Dental University
April 1982
April 2013
April 2016
April 2017
April 2019
June 2021
Asahi Kasei Fibers Executive Officer
Asahi Kasei Lead Executive Officer
Asahi Kasei President of Fibers &
Textiles SBU, Senior General
Manager, Osaka Office
Asahi Kasei Senior Executive Officer
(position held at present), President
of Performance Products SBU
Asahi Kasei Director (position held
at present)
January 2010 Councilor, Cabinet Secretariat
April 2004
August 2011
June 2013
July 2015
June 2016
Deputy Vice-Minister of Economy,
Trade and Industry
Vice-Minister of Economy, Trade and
Industry
Retired from Ministry of Economy,
Trade and Industry
Asahi Kasei Director (position held
at present)
Tokyo Gas Co., Ltd. Senior Executive
Officer
June 2004
Tokyo Gas Co., Ltd. Director
April 2007
April 2010
April 2014
April 2018
June 2018
July 2018
Tokyo Gas Co., Ltd. Representative
Director, Executive Vice President
Tokyo Gas Co., Ltd. Representative
Director, President
Tokyo Gas Co., Ltd. Director,
Chairman
Tokyo Gas Co., Ltd. Director, Senior
Corporate Advisor
Asahi Kasei Director (position held
at present)
Tokyo Gas Co., Ltd. Senior Corporate
Advisor (position held at present)
Director of Technology Transfer
Center and Intellectual Property
Manager of Intellectual Property
Right Department
October 2009
Tokyo Medical and Dental University
Visiting Professor
October 2011 Kyoto Prefectural University of
Medicine Specially Appointed
Professor
May 2013
April 2014
Bridgestone Corporation Executive
Officer
Japan Agency for Marine-Earth
Science and Technology Auditor
(position held at present)
January 2017 CellBank Corp. Director (position
held at present)
October 2020 Kyushu University Executive Vice
June 2021
President (position held at present)
Asahi Kasei Director (position held
at present)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information Audit & Supervisory Board Members
59
Masafumi Nakao
Audit & Supervisory Board Member
Yutaka Shibata
Audit & Supervisory Board Member
Akio Makabe
Outside Audit & Supervisory Board Member
Tetsuo Ito
Outside Audit & Supervisory Board Member
Akemi Mochizuki
Outside Audit & Supervisory Board Member
April 1978
April 2009
April 2012
Joined Asahi Kasei
Asahi Kasei Microdevices Director,
Executive Officer
Asahi Kasei Lead Executive Officer,
New Business Development General
Manager
June 2012
Asahi Kasei Director
April 2014
Asahi Kasei Corporate Research &
Development General Manager
June 2014
Retired as Asahi Kasei Director
April 2015
April 2016
Asahi Kasei Senior Executive Officer
Asahi Kasei Primary Executive
Officer
June 2016
Asahi Kasei Director
April 2017
June 2019
Asahi Kasei Representative Director,
Vice-Presidential Executive Officer
Asahi Kasei Audit & Supervisory
Board Member
(position held at present)
April 1979
April 2008
April 2009
April 2011
April 2016
April 2017
Joined Asahi Kasei
Asahi Kasei Executive Officer
Asahi Kasei Lead Executive Officer
Asahi Kasei Kuraray Medical
President & Representative Director,
Presidential Executive Officer
Asahi Kasei Medical President &
Representative Director, Presidential
Executive Officer
Asahi Kasei Primary Executive
Officer
Asahi Kasei Pharma President &
Representative Director, Presidential
Executive Officer
June 2018
Asahi Kasei Director
April 2019
June 2021
Asahi Kasei Vice-Presidential
Executive Officer
Asahi Kasei Audit & Supervisory
Board Member
(position held at present)
April 1976
February 1998 General Manager, Market Research
Joined Dai-Ichi Kangyo Bank
April 1999
Dept., DKB Research Institute
Graduate School Lecturer, Faculty of
Economics, Shinshu University
September 1999 Lecturer, Faculty of Science and
Technology, Keio University
October 1999 Chief Researcher, DKB Research
April 2002
Institute
Chief Researcher, Research
Division, Mizuho Research Institute
Ltd.
Project Professor, Graduate School
of Management, Shinshu University
October 2003 Counsellor, Internal Audit Division,
April 2003
June 2005
July 2005
June 2014
April 2016
April 2017
Mizuho Corporate Bank, Ltd.
Retired from Mizuho Corporate
Bank, Ltd.
Professor, Faculty of Economics,
Shinshu University
Asahi Kasei Audit & Supervisory
Board Member
(position held at present)
Visiting Professor, Department of
Management and Information
Sciences Tama Graduate School of
Business (position held at present)
Professor, Hosei Graduate School of
Regional Policy Design (position
held at present)
April 1975
Joined Public Prosecutors Office
October 1984
Joined Aoyama Audit Corporation
June 2001
July 2007
July 2008
Director, Special Investigation Dept.,
Tokyo District Public Prosecutors
Office
Chief Prosecutor, Tokyo District
Public Prosecutors Office
Superintending Prosecutor,
Takamatsu High Public Prosecutors
Office
January 2009 Deputy Prosecutor-General,
Supreme Public Prosecutors Office
December 2010 Retired from Public Prosecutors
March 1988
August 1996
Certified as a Certified Public
Accountant
Joined Tohmatsu Audit Corporation
(currently Deloitte Touche Tohmatsu
LLC)
June 2001
Tohmatsu Audit Corporation Partner
July 2018
June 2021
Akahoshi Audit Corporation Partner
(position held at present)
Asahi Kasei Audit & Supervisory
Board Member
(position held at present)
April 2011
June 2015
Office
Certified as an attorney
Of Counsel, Nishimura & Asahi law
firm (position held at present)
Asahi Kasei Audit & Supervisory
Board Member
(position held at present)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information Interview with an Outside Director
Innovation Fully Leveraging the Strength of Diverse Businesses
60
Q Based on your experience in industry-academia-
government collaboration, how do you view Asahi Kasei’s
Q What is your opinion of Asahi Kasei’s corporate
governance structure? How do you view your role as an
businesses and technologies?
Outside Director?
I studied polymer chemistry, so I naturally feel some affinity with
I believe the governance structure is appropriate as a company
Asahi Kasei. The company has numerous products such as
with an Audit & Supervisory Board. The Board of Directors is
Saran Wrap™ which are closely associated with people’s lives.
well balanced, with Directors overseeing each of the three busi-
I also became interested in Asahi Kasei years ago as a recharge-
ness sectors. Discussions at Board of Directors meetings are
able lithium battery researcher. I was really thrilled when Akira
lively, with Outside Directors assessing management from an
Yoshino was named for the Nobel Prize in Chemistry. It shows
external perspective while raising questions and offering advice
just how much Asahi Kasei values its researchers.
as necessary, leveraging their respective areas of expertise.
I believe the Asahi Kasei Group is well positioned to gener-
The most important thing an Outside Director has to offer is
ate innovation as its portfolio of diverse businesses in three
objectivity. Asahi Kasei operates a diverse range of businesses,
sectors gives it an overarching view of different industries. This
with management leaders who are well versed in each respec-
may seem ordinary to people inside the company, but as an out-
tive area. I can provide objective assessments and advice based
sider I see it as a remarkable advantage. As an engineer as well,
on my expertise in technology, industry-academia-government
I envy the environment that Asahi Kasei researchers enjoy.
collaboration, and intellectual property strategy. Having also
There’s a favorable environment for employees to innovate and
been involved in regenerative medicine, I feel that quality assur-
take challenges.
ance and control can no longer been seen as some thankless
task in the background; these days it’s truly the lifeline of a com-
pany. No company can survive for long without reliable quality.
By leveraging my experience, I hope to be able to help enhance
Asahi Kasei’s reputation not only among shareholders and inves-
tors but also among customers and consumers.
Yuko Maeda
Ms. Yuko Maeda joined Bridgestone Corporation in 1984, where she was appointed to a position developing rechargeable lithium batteries. She was later placed
in a principal position for promoting industry-academia-government collaboration in the fields of intellectual property and technology transfer before becoming
an Executive Officer of Bridgestone charged with overseeing environmental activities, innovation, and intellectual property in 2013. Ms. Maeda then became a
Director at regenerative medicine company CellBank Corp. in 2017 before coming to serve concurrently as an Outside Audit & Supervisory Board Member of
Chugai Pharmaceutical Co., Ltd., and an Outside Director of Kosé Corporation. She was installed as an Outside Director of Asahi Kasei in June 2021.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
61
Exerting Combined Strengths for Sustainability
Q What do you think Asahi Kasei needs in order to keep
growing and raising corporate value as a global company?
female Directors and Executive Officers. This will be vital to gen-
erating the types of diverse and innovative ideas needed for glo-
I have held various positions in private-sector, academic, and
balizing operations.
public institutions. This experience has led me to believe that
diversity is the key to new business creation and innovation. A
while back, a university arranged a discussion between an art
Q The COVID-19 pandemic has greatly altered the social
climate and the operating environment. What will be
professor and a corporate executive on the general subject of
required of management going forward?
Q How do you evaluate Asahi Kasei’s sustainability
initiatives, and what are your thoughts regarding the
governance structure to underpin future sustainability?
Even before sustainability became vogue, Asahi Kasei had
defined its Group Mission as “contributing to life and living for
people around the world.” This mission has been embraced by
all employees, and is embodied in a wide variety of businesses.
new businesses. It made me realize that innovation is sparked at
The pandemic has dramatically changed the operating environ-
As indicated in Asahi Kasei’s medium-term management
the intersection of completely different fields. Private-sector
ment for companies as the advance of digitalization has
initiative, it’s essential to have a virtuous cycle of contributing to
companies need to earn profits, so they hesitate to do anything
entrenched remote work and given rise to new workstyles and
a sustainable society, exemplified by the United Nations
that might seem reckless. But there is value to be gained by col-
values. Such changes, however, make us realize that sometimes
Sustainable Development Goals, and sustainable growth of cor-
laborating with the academia, where research is conducted
face-to-face communication is still necessary. This new era will
porate value. This is no easy matter, requiring the whole
more freely. Such collaboration can provide different perspec-
test management’s ability to navigate companies through vari-
company to exert its combined strengths, but society expects no
tives and flexible ideas. Innovation is unlikely to arise from col-
ous risks. Companies need to be able to communicate
less. Asahi Kasei is advancing the development of business con-
laboration between two leading experts in the same field. It’s
effectively both internally and with customers, and develop a
tributing to the advent of a hydrogen society, and has long
important to actively look to different fields and consider differ-
framework for resilience in the post-pandemic world. Only then
utilized renewable energy such as hydroelectric power. And yet,
ent concepts. I feel that this is just what Asahi Kasei is seeking
can a company truly be a provider of solutions that meet the
these efforts are not widely recognized. The company should do
through its initiative to build connections.
changing needs of society.
Looking ahead, it will be crucial for Asahi Kasei to develop
its health care business, which is currently in the stage of global
growth. At the same time, the company should look to increase
the diversity of its management team over the medium to long
term, such as by increasing the number of non-Japanese and
more to explain these efforts and make them easily understood.
I look forward to offering advice in this regard.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
62
Risk Management
The Asahi Kasei Group recognizes that risk management and compliance are matters of utmost
Risk Management & Compliance Framework
importance for continuing to provide social value and gaining the trust of stakeholders. Given our
Asahi Kasei has established the Risk Management & Compliance Committee, which is chaired by
diverse range of businesses, we must respond to differing market, investment, and other risks
the President of the Company and comprised of the Presidents of the Strategic Business Units and
based on the characteristics of each business.
the Core Operating Companies as committee members. This committee is tasked with formulating
For this reason, we recognize that it is important to practice risk management and promote
policies and discussing matters related to group-wide risk management and compliance as well as
compliance in an integrated, group-wide manner. We have established the Asahi Kasei Group Basic
with monitoring the progress of risk countermeasures and the status of compliance. The results of
Regulation for Risk Management & Compliance and are reinforcing systems related to the imple-
discussions by the Risk Management & Compliance Committee are reported to the Board of
mentation of this regulation while fostering compliance awareness among all employees.
Directors twice a year. Managers responsible for risk management and compliance are designated
in each SBU, core operating company, and subsidiary. These managers work to identify, assess,
and analyze the risks of each business and to plan measures for mitigating serious risks.
Outline of Asahi Kasei Group Basic Regulation for Risk Management & Compliance
Framework for Risk Management & Compliance
1. Purpose of the regulation
Board of Directors, Management Council
2. Definition of terms for risk management & compliance
Deliberation/decision
3. Scope of application of the regulation
4. Framework for risk management & compliance
1) Designation of Executive Officer for Risk Management & Compliance
2) Establishment and composition of Risk Management & Compliance Committee
3) Establishment of Risk Management & Compliance Oversight Department and Risk
Management & Compliance Promotion Departments
4) Role of Presidents of SBUs and core operating companies
Reporting
Secretariat
Risk Management &
Compliance Committee
Risk Management & Compliance, General Affairs
(Risk Management & Compliance Oversight Department)
Coordination
Administrative departments
(Risk Management & Compliance Promotion Departments)
5) Designation and role of Risk Management & Compliance Supervisors and Risk
Business units
Instructions/reports
Management & Compliance Managers
5. The Asahi Kasei Group Code of Conduct
6. Crisis response
7. Compliance hotline (internal reporting system)
Strategic Business Units
Core Operating Companies
Subsidiaries (worldwide)
Subsidiaries (worldwide)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
63
Business Risks for the Asahi Kasei Group
The major business risks with the potential to impact the performance of the Asahi Kasei Group include the following. Countermeasures are implemented to mitigate risks based on their characteristics and the
potential extent of their damage.
Group-wide Risks
Performance-Related Risks
Risks Related to
Climate Change
Information regarding disclo-
sure based on the recommen-
dations of the TCFD P27–28
Risks Related to the
COVID-19 Pandemic
The risk of production being impacted by global climate change and of increased costs being incurred due to stricter
regulations or government policy changes as described by the TCFD
Tracking and responding to risks based on annual, individual business-level analyses and
examinations of risks and opportunities
Principal Attributes
Primary Countermeasures
The risk of restrictions on business activity and the risk of volatility in demand for products amid uncertainty over the
outlook with respect to the extent and duration of the COVID-19 pandemic’s effect on economic activity
• Utilizing IT tools and other methods for performing tasks online
• Monitoring of demand trends and effective inventory management to ensure stable
supplies of products
Risks Related to
Global Supply Chains
The risk of supply chains being disrupted in any business due to a need to avoid transactions with given suppliers or
incapacitation of suppliers as a result of natural disasters, industrial accidents, human rights violations, conflicts, or
business failures occurring anywhere in the world
• Assessing and auditing risks when selecting suppliers and monitoring suppliers and buyers
• Diversifying raw material procurement routes for major businesses and products and
securing appropriate inventory levels
Risks Related to Trade
and Economic
Sanctions
Trade:
• The risk of inability to collect payments, delay or suspension of business activity, or deterioration of business perfor-
mance due to increased tariffs, delay in or noncompletion of customs clearance, or delay in or noncompletion of
fund settlement as a result of binational or multinational agreements, changes in frameworks, or new regulations
regarding international trade or fund settlement
• Engaging in prior discussions with authorities and implementing appropriate measures
based on up-to-date understanding of regulatory environment
• Setting independent prices for highly material inter-company transactions between Group
companies based on international transfer-price tax regulations by using pre-confirmation
systems and opinions of external experts
• The risk of the prices of internal transactions between Group companies being judged to be inappropriate by tax
• Carefully screening transactions using external customer screening systems to respond to
authorities and the risk of double or additional taxation due to unfavorable progress in discussions with tax authorities
sanctions
Economic sanctions and other regulations:
The risk of transactions with or investments in overseas companies or other business activity being impacted by
changes in binational or multinational trade conditions as a result of economic sanctions, export control regulations,
or stricter regulations on direct overseas investments implemented from an economic security perspective in Japan or
another country
Risks Related to
Business
Competitiveness
The risk of businesses losing competitiveness as a result of other companies using similar products or technologies to
eliminate differentiation; intensified competition due to the entry of new competitors; changes in industrial structures
due to rapid progress in digital technologies, decarbonization technologies, or other technologies; or sudden changes
in demand structures or market structures
Examining the competitiveness of competing products and examining timely, accurate
forecasts of changes in industrial structures, and then continuously differentiating products
and services, establishing business models that are difficult to imitate, and using intellectual
property to build high barriers to entry
Risks Related to M&A
The risk of incurring impairment of goodwill or other intangible assets if initially expected investment benefits are not
realized, if the performance of a joint venture deteriorates, or if business integration with an acquired company is delayed
Exercising due diligence with respect to companies being considered for acquisition and
carefully verifying business integration plans after acquisitions
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 64
Performance-Related Risks
Risks Related to
Market Conditions
Crude oil and naphtha prices: The risk of volatility in the raw material procurement prices paid by businesses or in
the market prices of feedstocks that affect products’ selling prices
• Stabilizing earnings by revising the method of determining selling prices
(acrylonitrile business)
Principal Attributes
Primary Countermeasures
Exchange rate risk: The risk of volatility in exchange rates between the yen and foreign currencies accompanying
foreign currency-denominated settlements of import and export trading transactions and trading transactions
between third-party countries
• Stable and efficient utilization of capital with a cash management system and by hedging
through forward exchange contracts
Other Risks
In addition to the aforementioned risks, business risks stemming from large-scale natural disasters, industrial acci-
dents, accidents caused by defective products, intellectual property rights, and new laws
• Implementing measures in response through respective responsible divisions
• Implementing risk financing by acquiring property and casualty insurance with the aim of
covering restoration costs if risks actualize
• Evaluating and monitoring risks through periodic discussions at meetings of the Risk
Management & Compliance Committee
Risks Related to Business Segments
Performance-Related Risks
Material
Principal Attributes
Primary Countermeasures
Environment & Energy: The risk of sales volumes or selling prices being lower than forecasted due to fluctuations in
worldwide demand for lithium-ion battery separators or due to the sales policies of competitors, as well as the risk of
drastic changes to the operating environment as a result of changes to technologies or changes to supply chains
stemming from regulations or environmental issues in countries of operation
Environment & Energy: Responding to diverse customer needs by augmenting production
capacity with a focus on electric vehicles, other eco-friendly vehicles, and electricity storage
systems, for which demand is projected to increase over the medium to long term, and
leveraging strength of consistently high levels of quality
Homes
Health Care
Mobility: The risk of volatility in demand due to trends in the global automotive industry as well as the risk of progress
in CASE (connected, autonomous, shared & service, and electric) technologies or other industry changes
Mobility: Monitoring worldwide automotive markets to maintain appropriate inventory levels
and flexibly respond to changes in demand; bolstering lineup of materials matched to
industry changes, including electric vehicle materials and eco-friendly materials; expanding
regional scope of operations; and developing business model for sustainable growth
• The risk of volatility in demand due to consumer spending trends in Japan; policies related to interest rates, land
• Monitoring and swiftly responding to housing market trends in Japan, the United States,
prices, and homes; or taxation system trends
and Australia
• The risk of changes in methods of communication with customers or of changes in needs with respect to homes due
• Attracting customers and acquiring orders through means such as marketing approaches
to an increase in working from home as a result of the COVID-19 pandemic
utilizing digital technologies
• The risk of changes in trends in the housing markets of the United States and Australia
• Monitoring lumber market trends and limiting impacts of price increases
• The risk of fluctuations in timber prices due to a tight supply-demand balance for lumber
• Thoroughly protecting personal information
• The risk of damage to trust due to the leakage of the personal information of a customer
• The risk of a decrease in the sales volumes or selling prices of drugs or medical devices due to periodic revision of
National Health Insurance (NHI) reimbursement prices
• The risk of new drugs under development not receiving approval and not becoming commercial products as planned
• Realizing diverse growth potential and competitive strength by having both a pharmaceu-
tical business and a medical device business, increasing opportunities to acquire innova-
tion, and enhancing the ability to adapt given the uncertainty of future medical regulations
• The risk of development and launches of products that compete with ours, reports detailing adverse drug effects
• Enhancing pipeline, out- and in-licensing products, engaging in joint development, and
associated with our products, or launches of generic versions of our products
accelerating global expansion to achieve consistent ongoing growth
• The risk of reduced domestic demand for pharmaceuticals or critical care products due to limitation of patients
• Monitoring demand trends carefully and implementing flexible production measures in
receiving examinations as an effect of the COVID-19 pandemic
response to fluctuations in demand
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 65
Corporate Information
Asahi Kasei Sustainability Photo Contest
Name
Inthira Mahamad
Company
Asahikasei Plastics (Thailand) Co., Ltd.
Country/region
Thailand
Care for People, Care for Earth
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information 66
Consolidated Financial Statements
Consolidated Balance Sheets
Asahi Kasei Corporation and Consolidated Subsidiaries
March 31, 2021 and 2020
ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable–trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Subtotal
Intangible assets
Goodwill
Other
Subtotal
Investments and other assets
Investment securities
Long-term loans receivable
Long-term advance payments–trade
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Millions of yen
Thousands of
U.S. dollars*
2021
2020
2021
¥ 221,779
338,640
203,159
166,494
111,798
97,131
(2,225)
1,136,776
¥ 207,957
330,999
216,463
160,064
101,313
92,153
(1,519)
1,107,430
$ 2,003,243
3,058,802
1,835,056
1,503,875
1,009,827
877,346
(20,098)
10,268,052
598,675
(319,144)
279,531
1,535,326
(1,286,057)
249,269
70,577
8,615
(7,687)
928
84,463
182,414
(149,920)
32,495
717,262
563,110
(305,259)
257,851
1,466,958
(1,243,780)
223,179
67,024
9,645
(8,964)
681
75,487
172,674
(143,210)
29,464
653,686
5,407,596
(2,882,703)
2,524,894
13,867,997
(11,616,448)
2,251,549
637,494
77,816
(69,434)
8,382
762,921
1,647,674
(1,354,169)
293,515
6,478,746
351,921
342,454
694,374
365,680
349,566
715,246
3,178,764
3,093,253
6,272,008
286,517
1,241
29,390
21,116
32,709
(445)
370,529
1,782,165
244,581
7,951
20,467
44,466
28,883
(435)
345,914
1,714,846
2,587,996
11,209
265,468
190,733
295,448
(4,020)
3,346,843
16,097,597
Total assets
¥ 2,918,941
¥ 2,822,277
$26,365,649
Detailed Consolidated Financial Statements are available at the following link:
https://www.asahi-kasei.com/ir/library/financial_briefing/pdf/2103statements.pdf
LIABILITIES AND NET ASSETS
Liabilities:
Current liabilities:
Notes and accounts payable–trade
Short-term loans payable
Commercial paper
Lease obligations
Accrued expenses
Income taxes payable
Advances received
Provision for grant of shares
Provision for periodic repairs
Provision for product warranties
Provision for removal cost of property, plant and
equipment
Other
Total current liabilities
Noncurrent liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for grant of shares
Provision for periodic repairs
Provision for removal cost of property, plant and
equipment
Net defined benefit liability
Long-term guarantee deposits
Other
Total noncurrent liabilities
Total liabilities
Net assets:
Shareholders’ equity
Capital stock
Authorized—4,000,000,000 shares
Issued and outstanding—1,393,932,032 shares
Capital surplus
Retained earnings
Treasury stock
( 2021—6,396,867 shares, 2020—6,440,327 shares)
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on other securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Commitments and contingent liabilities
Total liabilities and net assets
Millions of yen
Thousands of
U.S. dollars*
2021
2020
2021
¥ 142,087
144,571
84,000
880
126,705
21,268
78,601
124
7,222
3,522
5,651
88,533
703,163
110,000
320,404
3,921
58,669
513
3,415
12,652
158,832
21,939
30,899
721,243
1,424,406
103,389
79,641
1,158,792
(5,932)
1,335,890
91,887
(347)
50,462
(10,416)
131,586
27,058
1,494,535
¥ 131,207
275,671
139,000
1,006
121,520
18,145
73,623
78
4,043
3,738
2,640
71,863
842,531
60,000
229,172
3,506
70,600
412
4,560
5,771
174,365
21,613
26,287
596,286
1,438,817
103,389
79,641
1,125,738
(5,990)
1,302,777
67,027
(241)
13,027
(23,275)
56,538
24,145
1,383,460
$1,283,416
1,305,853
758,739
7,949
1,144,477
192,106
709,972
1,120
65,233
31,813
51,043
799,684
6,351,396
993,587
2,894,084
35,417
529,934
4,634
30,846
114,281
1,434,667
198,166
279,099
6,514,705
12,866,101
933,872
719,366
10,466,914
(53,581)
12,066,570
829,979
(3,134)
455,803
(94,084)
1,188,565
244,404
13,499,548
¥2,918,941
¥2,822,277
$26,365,649
* As the amounts shown in U.S. dollars are for convenience only, and are not intended to be computed in accordance with generally accepted
* As the amounts shown in U.S. dollars are for convenience only, and are not intended to be computed in accordance with generally accepted
translation procedures, the approximate current exchange rate of ¥110.71 = US$1 prevailing on March 31, 2021, has been used.
translation procedures, the approximate current exchange rate of ¥110.71 = US$1 prevailing on March 31, 2021, has been used.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
Consolidated Statements of Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2021 and 2020
Consolidated Statements of Comprehensive Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2021 and 2020
67
Net income
Other comprehensive income
Net (decrease) increase in unrealized gain on other
securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests
Millions of yen
Thousands of
U.S. dollars*
2021
2020
2021
¥ 82,098
¥105,728
$ 741,559
24,806
(106)
35,491
12,631
3,020
75,842
¥157,941
¥154,817
3,124
(34,895)
(201)
(26,115)
(3,867)
(3,482)
(68,561)
¥ 37,167
¥ 35,730
1,437
224,063
(957)
320,576
114,091
27,278
685,051
$1,426,619
$1,398,401
28,218
* As the amounts shown in U.S. dollars are for convenience only, and are not intended to be computed in accordance with generally accepted
translation procedures, the approximate current exchange rate of ¥110.71 = US$1 prevailing on March 31, 2021, has been used.
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:
Interest income
Dividends income
Equity in earnings of affiliates
Insurance income
Other
Total non-operating income
Non-operating expenses:
Interest expense
Other
Total non-operating expenses
Ordinary income
Extraordinary income:
Gain on sales of investment securities
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary loss:
Loss on valuation of investment securities
Loss on disposal of noncurrent assets
Impairment loss
Loss on disaster
Loss on fire at plant facilities
Loss on product compensation
Business structure improvement expenses
Total extraordinary loss
Income before income taxes
Income taxes — current
— deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent
Millions of yen
2021
¥2,106,051
1,425,342
680,709
508,901
171,808
2020
¥2,151,646
1,476,606
675,040
497,776
177,264
1,895
4,308
3,451
2,618
5,059
17,331
3,209
7,893
11,102
178,036
17,312
353
17,665
66
10,637
1,937
–
22,287
2,118
7,750
44,795
150,906
73,273
(4,465)
68,808
82,098
2,330
¥ 79,768
2,769
5,251
7,138
1,724
3,596
20,479
4,016
9,720
13,735
184,008
13,679
4,268
17,948
1,953
9,668
21,949
2,437
–
5,173
4,840
46,022
155,934
54,173
(3,967)
50,206
105,728
1,797
¥ 103,931
Thousands of
U.S. dollars*
2021
$19,023,133
12,874,555
6,148,577
4,596,703
1,551,874
17,117
38,912
31,172
23,647
45,696
156,544
28,986
71,294
100,280
1,608,129
156,373
3,189
159,561
596
96,080
17,496
–
201,310
19,131
70,003
404,616
1,363,075
661,846
(40,331)
621,516
741,559
21,046
$ 720,513
* As the amounts shown in U.S. dollars are for convenience only, and are not intended to be computed in accordance with generally accepted
translation procedures, the approximate current exchange rate of ¥110.71 = US$1 prevailing on March 31, 2021, has been used.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
68
Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2021 and 2020
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’
equity
Net unrealized gain on
other securities
Deferred gains or losses
on hedges
Foreign currency
translation adjustment
Remeasurements of
defined benefit plans
Total accumulated other
comprehensive income Non-controlling interests
Total net assets
Shareholders’ equity
Accumulated other comprehensive income
Millions of yen
Balance at March 31, 2020
¥103,389
¥79,641
¥1,125,738
¥(5,990)
¥1,302,777
¥67,027
¥(241)
¥13,027
¥(23,275)
¥ 56,538
¥24,145
¥1,383,460
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Cancellation of treasury stock
Transfer from retained earnings to capital surplus
Change of scope of consolidation
Capital increase of consolidated subsidiaries
Net changes of items other than
shareholders’ equity
Total changes of items during the period
–
(0)
0
0
0
(45,800)
79,768
(0)
(914)
(10)
69
(45,800)
79,768
(10)
69
–
–
(914)
0
(45,800)
79,768
(10)
69
–
–
(914)
0
33,054
59
33,113
24,860
24,860
(106)
(106)
37,434
37,434
12,859
12,859
75,049
75,049
2,913
2,913
77,962
111,075
Balance at March 31, 2021
¥103,389
¥79,641
¥1,158,792
¥(5,932)
¥1,335,890
¥91,887
¥(347)
¥50,462
¥(10,416)
¥131,586
¥27,058
¥1,494,535
Shareholders’ equity
Accumulated other comprehensive income
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’
equity
Net unrealized gain on
other securities
Deferred gains or losses
on hedges
Foreign currency
translation adjustment
Remeasurements of
defined benefit plans
Total accumulated other
comprehensive income Non-controlling interests
Total net assets
¥103,389
¥79,708
¥1,077,586
¥ (3,936)
¥1,256,747
¥101,971
¥ (40)
¥ 42,020
¥(19,213)
¥124,738
¥21,225
¥1,402,710
Millions of yen
(48,723)
103,931
(7,856)
801
(48,723)
103,931
(10,016)
(10,016)
83
7,878
84
–
–
801
(46)
0
(7,878)
7,856
(46)
(48,723)
103,931
(10,016)
84
–
–
801
(46)
Balance at March 31, 2019
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Cancellation of treasury stock
Transfer from retained earnings to capital surplus
Change of scope of consolidation
Capital increase of consolidated subsidiaries
Net changes of items other than
shareholders’ equity
Total changes of items during the period
–
(67)
48,152
(2,055)
46,030
(34,945)
(34,945)
(201)
(201)
(28,993)
(28,993)
(4,062)
(4,062)
(68,200)
(68,200)
2,920
2,920
(65,280)
(19,250)
Balance at March 31, 2020
¥103,389
¥79,641
¥1,125,738
¥ (5,990)
¥1,302,777
¥ 67,027
¥(241)
¥ 13,027
¥(23,275)
¥ 56,538
¥24,145
¥1,383,460
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
69
Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2021 and 2020
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’
equity
Net unrealized gain on
other securities
Deferred gains or losses
on hedges
Foreign currency
translation adjustment
Remeasurements of
defined benefit plans
Total accumulated other
comprehensive income Non-controlling interests
Total net assets
Shareholders’ equity
Accumulated other comprehensive income
Thousands of U.S. dollars*
Balance at March 31, 2020
$933,872
$719,366 $10,168,350
$(54,105) $11,767,474
$605,429
$(2,177)
$117,668
$(210,234)
$510,686
$218,092 $12,496,251
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Cancellation of treasury stock
Transfer from retained earnings to capital surplus
Change of scope of consolidation
Capital increase of consolidated subsidiaries
Net changes of items other than
shareholders’ equity
Total changes of items during the period
–
(0)
0
0
0
(413,693)
720,513
(0)
(8,256)
(90)
623
(413,693)
720,513
(90)
623
–
–
(8,256)
0
(413,693)
720,513
(90)
623
–
–
(8,256)
0
298,564
533
299,097
224,551
224,551
(957)
(957)
338,127
116,150
677,888
26,312
704,200
338,127
116,150
677,888
26,312
1,003,297
Balance at March 31, 2021
$933,872
$719,366 $10,466,914
$(53,581) $12,066,570
$829,979
$(3,134)
$455,803
$(94,084)
$1,188,565
$244,404 $13,499,548
* As the amounts shown in U.S. dollars are for convenience only, and are not intended to be computed in accordance with generally accepted translation procedures, the approximate current exchange rate of ¥110.71 = US$1 prevailing on March 31, 2021, has been used.
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
70
Cash flows from financing activities:
Net (decrease) increase in short-term loans payable
(Decrease) increase in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds payable
Redemption of bonds
Repayments of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Proceeds from share issuance to non-controlling interests
Cash dividends paid
Cash dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Other, net
Net cash (used in) provided by financing activities
Effect of exchange rate change on cash and cash equivalents
Net 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
Millions of yen
Thousands of
U.S. dollars*
2021
2020
2021
¥(168,641)
(55,000)
143,467
(16,936)
50,000
–
(1,226)
(10)
69
–
(45,800)
(1,198)
(307)
(287)
(95,869)
9,639
9,695
204,771
¥ 172,022
62,000
45,816
(17,586)
40,000
(20,000)
(1,276)
(10,016)
84
849
(48,723)
(1,052)
–
(194)
221,923
(4,060)
24,167
180,520
$(1,523,268)
(496,793)
1,295,881
(152,976)
451,630
–
(11,074)
(90)
623
–
(413,693)
(10,821)
(2,773)
(2,592)
(865,947)
87,065
87,571
1,849,616
1,769
¥ 216,235
85
¥ 204,771
15,979
$1,953,166
* As the amounts shown in U.S. dollars are for convenience only, and are not intended to be computed in accordance with generally accepted
translation procedures, the approximate current exchange rate of ¥110.71 = US$1 prevailing on March 31, 2021, has been used.
Consolidated Statements of Cash Flows
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2021 and 2020
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill
Increase in provision for grant of shares
Increase in provision for periodic repairs
(Decrease) increase in provision for product warranties
Increase in provision for removal cost of property,
plant and equipment
Decrease in net defined benefit liability
Interest and dividend income
Interest expense
Equity in earnings of affiliates
Gain on sales of investment securities
Loss on valuation of investment securities
Gain on sale of property, plant and equipment
Loss on disposal of noncurrent assets
Decrease in notes and accounts receivable–trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable–trade
Increase in accrued expenses
Increase (decrease) in advances received
Other, net
Subtotal
Interest and dividend income, received
Interest expense paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares in subsidiaries resulting in change in
scope of consolidation
Payments for transfer of business
Payments of loans receivable
Collection of loans receivable
Other, net
Net cash used in investing activities
Millions of yen
Thousands of
U.S. dollars*
2021
2020
2021
¥ 150,906
108,369
1,937
24,903
–
148
2,033
(221)
9,891
(4,303)
(6,202)
3,209
(3,451)
(17,312)
66
(353)
10,637
5,214
6,110
1,706
1,371
8,190
15,896
318,744
8,690
(3,086)
(70,672)
253,676
(6,262)
4,333
(133,347)
656
(16,945)
(8,061)
20,264
(4,811)
(17,566)
(6,144)
10,428
(297)
(157,751)
¥ 155,934
96,016
21,949
22,288
(79)
119
332
640
3,141
(4,069)
(8,021)
4,016
(7,138)
(13,679)
1,953
(4,268)
9,668
16,919
(51,950)
(45,562)
2,624
(1,925)
(20,688)
178,218
10,834
(4,203)
(60,388)
124,460
(4,195)
13,343
(138,354)
5,693
(16,096)
(10,820)
23,543
(175,759)
(1,964)
(23,170)
9,253
369
(318,156)
$1,363,075
978,855
17,496
224,939
–
1,337
18,363
(1,996)
89,342
(38,867)
(56,020)
28,986
(31,172)
(156,373)
596
(3,189)
96,080
47,096
55,189
15,410
12,384
73,977
143,582
2,879,090
78,493
(27,875)
(638,352)
2,291,356
(56,562)
39,138
(1,204,471)
5,925
(153,058)
(72,812)
183,037
(43,456)
(158,667)
(55,496)
94,192
(2,683)
(1,424,903)
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information
Corporate Profile / Stock Information (as of March 31, 2021)
Corporate Profile
Company Name
Asahi Kasei Corporation
Paid-in Capital
¥103,389 million
71
Employees
44,497 (consolidated) 8,524 (non-consolidated)
Founding
May 25, 1922
Establishment
May 21, 1931
Asahi Kasei Group Offices
Asahi Kasei Corporation
Core Operating Companies
Tokyo Head Office
Hibiya Mitsui Tower
1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006 Japan
Tel: +81-(0)3-6699-3000 Fax: +81-(0)3-6699-3161
Asahi Kasei Microdevices
Hibiya Mitsui Tower
1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006 Japan
Tel: +81-(0)3-6699-3933
Asahi Kasei (China)
Asahi Kasei Homes
8/F, One ICC Shanghai International Commerce Centre
No. 999 Huai Hai Zhong Road, Shanghai 200031 China
Tel: +86-(0)21-6391-6111 Fax: +86-(0)21-6391-6686
Asahi Kasei America
800 Third Avenue, 30th Floor New York, NY 10022 U.S.A.
Tel: +1-212-371-9900 Fax: +1-212-371-9050
Asahi Kasei Europe
Fringsstrasse 17, 40221 Düsseldorf, Germany
Tel: +49-(0)211-33-99-2000 Fax: +49-(0)211-33-99-2200
Asahi Kasei India
The Capital 1502B, Plot C-70, G-Block, Bandra Kurla Complex,
Bandra (East), Mumbai 400051 India
Tel: +91-22-6710-3962 Fax: +91-22-6710-3979
Asahi Kasei Asia Pacific
1705-1706, 17th Floor Singha Complex Building,
1788 New Petchaburi Road, Bang Kapi,
Huai Khwang, Bangkok 10310 Thailand
Tel: +66-(0)21-634-944
1-105 Kanda Jinbocho, Chiyoda-ku, Tokyo 101-8101 Japan
Tel: +81-(0)3-6899-3000
Asahi Kasei Construction Materials
1-105 Kanda Jinbocho, Chiyoda-ku, Tokyo 101-8101 Japan
Tel: +81-(0)3-3296-3500
Asahi Kasei Pharma
Hibiya Mitsui Tower
1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006 Japan
Tel: +81-(0)3-6699-3600
Asahi Kasei Medical
Hibiya Mitsui Tower
1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006 Japan
Tel: +81-(0)3-6699-3750
ZOLL Medical
269 Mill Rd., Chelmsford, MA 01824-4105 U.S.A.
Tel: +1-978-421-9655
Veloxis Pharmaceuticals
2000 Regency Parkway, Suite 500 Cary, NC 27518 U.S.A.
Tel: +1-919-591-3090
Stock Information
Stock Listing
Stock Code
Tokyo
3407
Authorized Shares
4,000,000,000
Outstanding Shares
1,393,932,032
Transfer Agent
Sumitomo Mitsui Trust Bank, Ltd.
Independent Auditors
PricewaterhouseCoopers Aarata LLC
Number of Shareholders 141,137
Largest Shareholders
% of equity
The Master Trust Bank of Japan, Ltd. (trust account)
Custody Bank of Japan, Ltd. (trust account)
JP Morgan Chase Bank 385632
Nippon Life Insurance Company
Asahi Kasei Group Employee Stockholding Assn.
Custody Bank of Japan, Ltd. (trust account 7)
Government of Norway
Sumitomo Mitsui Banking Corp.
Custody Bank of Japan, Ltd. (trust account 5)
Mizuho Trust & Banking Co., Ltd. retirement benefit trust
(Mizuho Bank account) Trustee of sub-trust: Custody Bank
of Japan, Ltd.
Note: Percentage of equity ownership after exclusion of treasury stock.
9.41
5.24
4.87
4.21
2.55
2.31
2.00
1.83
1.43
1.43
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information Information Disclosure
72
Investor Relations
On our IR website, we present information on the Asahi Kasei Group’s business performance and
future policies, in addition to posting financial results materials and a wide variety of management
briefing materials.
https://www.asahi-kasei.com/ir/
Sustainability
We disclose detailed information on Asahi Kasei’s sustainability policies, systems, results, and
data regarding ESG issues on our sustainability website (Sustainability Report).
https://www.asahi-kasei.com/sustainability/
GRI Standards Content Index
https://www.asahi-kasei.com/sustainability/basic_information/guidelines/
SASB Content Index
https://www.asahi-kasei.com/sustainability/basic_information/sasb/
Inclusion in Socially Responsible Investment Indexes
(As of 2021)
• FTSE4Good Index
• FTSE Blossom Japan Index
• MSCI ESG Leaders Indexes
• MSCI Japan Empowering Women Index (WIN)
• MSCI Japan ESG Select Leaders Index
• S&P/JPX Carbon Efficient Index
CDP Climate Change and Water Security A– Evaluation
Selected as a DX Stock
Asahi Kasei received an A– evaluation in the categories of Climate Change
Asahi Kasei has been selected as a Digital
and Water Security in the 2020 survey conducted by CDP. We received an
Transformation Stock (DX Stock), an initiative conducted
A– in the Climate Change category for six consecutive years from 2015 to
jointly by the Ministry of Economy, Trade and Industry
2020, while 2020 was our second year to receive an A– in the Water
and the Tokyo Stock Exchange.
Security category.
Acquisition of the Highest Rank from Development Bank
of Japan, Inc. (DBJ) under its DBJ Environmentally
Rated Loan Program
In November 2020, Asahi Kasei received a Development Bank
of Japan loan under the DBJ Environmentally Rated Loan
Program, having obtained the system’s highest rating as a
“company with particularly advanced environmental programs.”
2020
Asahi Kasei Report 2021Management StrategyAsahi Kasei Group OverviewBusiness OverviewCorporate Governance and Risk ManagementCorporate Information Hibiya Mitsui Tower
1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006 Japan
www.asahi-kasei.com/