Asahi Kasei Report 2022
Be a Trailblazer
1
Asahi Kasei’s Commitment to Life and Living—
Our Unwavering Philosophy for a Century
Inspired by a desire for mankind to achieve happiness, Asahi Kasei was founded with
the aim of supplying an abundance of high-quality daily necessities at affordable prices
to enable people to lead better lives. For a century, while the needs of society have
changed in accordance with the times, Asahi Kasei has used its insight to meet these
needs. Anticipating changes in society to take on challenges and seeking to transform
itself has been Asahi Kasei’s unchanging approach since its founding.
Asahi Kasei Report 2022 Asahi Kasei Group Overview
Asahi Kasei’s Ideals
Growth Strategy
Strengthening of
Corporate Governance
Corporate Information
2
Contents
Asahi Kasei Group Overview
32
Initiatives regarding Climate Change Disclosure
Corporate Information
3 At a Glance
5 Addressing Social Issues and Advancing Business
Portfolio Strategies
7 Financial Highlights
8 Non-Financial Highlights
Asahi Kasei’s Ideals
10 Message from the President
18 Value Creation Model
19 How Asahi Kasei Works to Achieve Its Vision
21 Strengths That Deliver Sustainable Growth
Growth Strategy
Based on the TCFD Recommendations
35 Digital Transformation
38 Transformation of HR
42 New Business Creation
43
Fully Utilizing Intellectual Property and Other Intangible
Assets to Create New Businesses—Establishment of the
Intellectual Property Intelligence Department
Business Strategies by Sector
45 Material
51 Homes
54 Health Care
58
Interview with the CEO of ZOLL Medical Corporation
Strengthening of
Corporate Governance
62 Corporate Governance
81 Consolidated Financial Statements
86 Corporate Profile / Stock Information
87
Information Disclosure
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.
https://www.asahi-kasei.com/sustainability/
Period under review
The period under review is fiscal 2021 (April 2021 to March 2022).
The report also contains some information on activities from April 2022.
Organizational scope
The scope of the report is Asahi Kasei Corporation and its consolidated
subsidiaries (in other cases, noted in the text). The titles and positions of
corporate officers and other personnel as shown in this report are
67 Directors and Audit & Supervisory Board Members
70 Discussion Among Outside Directors
current as of September 2022.
Guidelines consulted
Company-wide Strategies
23 New Medium-Term Management Plan 2024 —
73 Risk Management
76 Environmental Protection
Integrated Reporting Framework, IFRS Foundation
Guidance for Collaborative Value Creation, Ministry of Economy, Trade
and Industry, Government of Japan, etc.
Be a Trailblazer
27 Financial and Capital Policy
29 Green Transformation
77 Compliance / Information Security
Disclaimer
78 Human Rights
79 Health and Productivity Management
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.
0305040201Asahi Kasei Report 2022
3
At a Glance
17.0%
22.1%
Material
Homes
Health Care
Note: Percentages exclude figures for
the “Others” category and
“corporate expenses and
eliminations” from figures for
the Group as a whole.
34.0%
31.1%
Europe
¥153.1 billion
6.2%
Fiscal 2021 Net Sales
Notable Facts (as of March 31, 2022)
¥2,461.3 billion
Employees
46,751
Of which, overseas employees
account for nearly 40%
Global bases
More than 20
countries and regions
46.8%
49.0%
Fiscal 2021 Operating Income
¥202.6 billion
Consolidated subsidiaries
Overseas sales ratio
Credit rating
273
48.1%
AA
Japan Credit Rating Agency (JCR)
Net Sales by Region
Note: Percentages of net sales for the Group as whole
Japan
¥1,276.9 billion
51.9 %
China
¥238.7 billion
9.7%
Asia
(excluding China)
¥ 283.1 billion
11.5 %
The Americas
¥389.4 billion
15.8 %
Other Regions
¥120.2 billion
4.9 %
01Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyStrengthening of Corporate GovernanceCorporate InformationAsahi Kasei Report 2022 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
batteries
Ion-exchange membrane chlor-alkali electrolysis
process
Hebel Haus™ unit homes
Hebel Maison™ apartment buildings
Pharmaceutical products
Mobility
Engineering plastics
Dinamica™ artificial suede
Atlas™ condominiums
Planova™ virus removal filters
Life Material
Pimel™ photosensitive polyimide
Household products
North American and Australian homes
ZOLL AED 3™ automated external defibrillator
01Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyStrengthening of Corporate GovernanceCorporate InformationAsahi Kasei Report 2022 Addressing Social Issues and Advancing Business Portfolio Strategies
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)
3,000
2,500
2,000
1,500
1,000
Founding and Japan’s first pro-
duction 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 at the
lowest prices.”
500
(Founder Shitagau Noguchi, 1933)
0
1922
1940
1950
1960
1970
1980
1990
2000
2010
2021
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.
Chemical fertilizers,
regenerated fiber,
explosives, etc.
• Ammonia
• Regenerated fiber
(cupro, viscose rayon)
• Chemical fertilizer
• Foods (monosodium glutamate)
FY1940
Net sales
¥56
million
5
(¥ billion)
300
250
200
150
100
50
0
01Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyStrengthening of Corporate GovernanceCorporate InformationAsahi Kasei Report 2022
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Social needs and times
Asahi Kasei’s evolution
Business portfolio transformation
New business entry,
M&A
Withdrawal, downsizing,
divestment
1940s–
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.
• Polystyrene
Foods
Fibers
• Synthetic fiber (acrylic fiber)
Chemicals
FY1960
Net sales
¥ 44.9
billion
1960s–
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.
1980s–
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 diversi-
fied portfolio. It was also during this time that we built our platforms
for global management.
• Saran Wrap™
• Acrylonitrile
• Synthetic rubber
• Ethylene
Foods/Health care
Homes/
Construction
materials
(construction of naphtha cracker)
• Autoclaved aerated concrete
• Hebel Haus™ unit homes
• Artificial kidneys
• Pharmaceuticals
Others
Fibers
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
Fibers
Health care
Chemicals
FY2000
Net sales
¥1,269.4
billion
Electronics
Homes/
Construction
materials
2000s–
Increasing awareness of the
environment 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 manage-
ment 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
• Viscose rayon, acrylic fiber,
polyester
• Restructuring of petrochemical
business
• Liquors
Others
Material
Health care
FY2021
Net sales
¥2,461.3
billion
Homes
01Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyStrengthening of Corporate GovernanceCorporate InformationAsahi Kasei Report 2022 7
Financial Highlights
Net sales (domestic & overseas), operating income, operating margin
EBITDA,1 depreciation and amortization, EBITDA margin
(¥ billion)
(¥ billion)
(¥ billion)
2,461.3
2,042.2
2,170.4
2,151.6
2,106.1
198.5
209.6
177.3
171.8
202.6
9.7
9.7
8.2
8.2
8.2
2,500
2,000
1,500
1,000
500
0
300
240
180
120
60
0
400
300
200
100
0
311.9
313.6
295.6
305.1
15.3
14.5
13.7
14.5
350.8
14.3
113.5
104.0
118.3
133.3
148.1
Net income attributable to owners of the parent, EPS,
EPS before goodwill amortization
(¥ billion)
170.2
147.5
134.85
121.93
119.62
10.39
75.44
90.90
79.8
105.66
74.85
57.49
161.9
137.14
116.68
200
150
100
50
0
(¥)
200
150
100
50
0
2017
2018
2019
2020
2021
(FY)
2017
2018
2019
2020
2021
(FY)
2017
2018
2019
2020
2021
(FY)
Domestic sales
Operating income (right scale)
Overseas sales (left scale)
Operating margin (%)
EBITDA
EBITDA margin (%)
Depreciation and amortization (tangible, intangible, and goodwill)
Net income attributable to owners of the parent (left scale)
EPS before goodwill amortization
EPS (right scale)
1 Operating income, depreciation, and amortization
Both net sales and operating income increased significantly in fiscal 2021, partly due
to growth of overseas business and efforts to improve profitability in the Homes sector,
in addition to an upswing in demand in the Material sector compared with the previous
fiscal year when demand was impacted by the COVID-19 pandemic. Overseas sales
accounted for nearly 50% of total net sales in fiscal 2021 reflecting overseas business
expansion, including through M&A.
Given the upward trend in depreciation and amortization due to proactive capital
expenditures and M&A activities, the Asahi Kasei Group has positioned EBITDA as
a major KPI signifying its ability to generate cash. 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 increased significantly in fiscal 2021,
reflecting an improvement in extraordinary income and loss and a decrease in tax
expenses compared with the previous fiscal year in conjunction with the reconfigura-
tion of Veloxis Pharmaceuticals, Inc. Consequently, EPS also increased. As Asahi Kasei
amortizes goodwill in accordance with Japanese accounting standards, EPS before
amortization of goodwill is shown for reference.
ROE,2 ROIC3
(%)
20
15
10
5
0
14.0
9.7
11.1
8.8
7.6
6.6
5.6
4.9
10.3
6.6
Capital expenditures, R&D expenses
(¥ billion)
Interest-bearing debt,4 D/E ratio
(¥ billion)
186.6
154.1
153.7
136.2
101.3
85.7
90.1
91.0
89.7
98.7
200
150
100
50
0
766.3
703.8
659.0
0.52
0.45
0.45
424.9
0.31
301.7
0.23
800
600
400
200
0
(%)
0.8
0.6
0.4
0.2
0
2017
2018
2019
2020
2021
(FY)
2017
2018
2019
2020
2021
(FY)
2017
2018
2019
2020
2021
(FY)
ROE
ROIC
2 Net income per shareholders’ equity
3 (Operating income – income taxes) / average annual invested capital
Asahi Kasei positions ROE and ROIC as major KPIs to indicate its efficiency in generat-
ing profits. Until fiscal 2020, profits declined due to various changes in the operating
environment while fund procurement needs increased in conjunction with growth
investments, including M&A, while shareholders’ equity and invested capital rose in
conjunction with profit growth. Although ROE and ROIC had trended downward as a
result of these factors, both increased in fiscal 2021 due to an improvement in profits.
Capital expenditures
R&D expenses
Interest-bearing debt (left scale)
D/E ratio (right scale)
4 Amounts stated from fiscal 2019 exclude lease obligations.
Asahi Kasei proactively carries out capital expenditures geared toward achieving
growth over the medium to long term—including outlays in relation to decarbonization,
digital transformation, and other areas to fortify its foundation—and R&D with a focus
on the Health Care sector. While capital expenditures and R&D expenses in fiscal
2020 remained on a par with their fiscal 2019 levels due in part to strict selection of
investments in light of the impact of the COVID-19 pandemic, both increased in fiscal
2021 on the back of the recovery in performance.
Interest-bearing debt was up in fiscal 2021 owing to a rise in working capital, such as
notes and accounts receivable–trade and inventories, due in part to increased market
prices, and higher demand for funds in conjunction with M&A centered on the Health
Care sector. However, Asahi Kasei continues to maintain a sound financial standing,
with its D/E ratio at the end of fiscal 2021 unchanged from the level of the previous
fiscal year as shareholders’ equity increased along with profit growth.
01Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyStrengthening of Corporate GovernanceCorporate InformationAsahi Kasei Report 2022 8
Non-Financial Highlights
Greenhouse gas (GHG) emissions (Scopes 1 and 2)
(Million tons CO2 equivalent)
GHG emission reduction contributions through environmental
contribution products
(Index)
5
4
3
2
1
0
4.22
4.16
3.99
3.91
4.11
Target
3.58 or less
−30%−30% or more
or more
(compared with
(compared with
FY2013)
FY2013)
100
250
200
150
100
50
0
Target
200 or more
30
88
31
100
31
119
29
36
Number of digital professional human resources
(%)
50
40
30
20
10
0
2,600
2,500
300
200
100
0
17
30
56
55
Target
2,500
100
230
2017
2018
2019
2020
2021
2030
(FY)
2018
2019
2020
2021
2030
(FY)
2017
2018
2019
2020
2021
2024
(FY)
Applicable range: Production sites of consolidated companies
Note: Fiscal 2021 figures are preliminary and may change after undergoing third-party verification.
The Asahi Kasei Group has adopted a target to reduce the volume of its GHG emis-
sions by 30% or more from the 2013 base-year level of 5.11 million t-CO2e by 2030
with a view to better clarifying its road map for achieving carbon neutrality. Ongoing
endeavors to reduce emissions are advancing in order to achieve this target.
Volume of GHG emission reduction contributions of environmental contribution
products1 (left scale)
Portion of sales of environmental contribution products2 (right scale)
Note: Internal calculation of the volume of GHG emission contributions from a life cycle assessment per-
spective based on the views of outside experts.
1 Using fiscal 2020 as the baseline year (100)
2 Portion of total net sales excluding the Health Care sector
Products and services of the Asahi Kasei Group that contribute to improving the environment across
their entire life cycle are designated as environmental contribution products. We will work to develop
environmental contribution products with the goal of reducing society’s overall GHG emissions.
Note: Total figures up to fiscal 2020 include only human resources specializing in data analysis.
Applicable range: Total employees worldwide
The Asahi Kasei Group will promote bottom-up human resource development to
enable all employees globally to engage in their work duties with a mindset conducive
to utilizing digital technology. In particular, we have defined human resources who
resolve business issues and create new value and business models through advanced
digital technology and data utilization as digital professional human resources. By pro-
actively promoting the development and acquisition of such human resources, we aim
to increase their number to 2,500 by fiscal 2024.
Number of Group Masters
Number of women working as managers and percentage of women in
the total number of managers and the Group Masters program
Number of valid patents and percentage of which accounted
for by GG10-related patents
400
300
200
100
0
250
259
229
180
124
Target
300
100
300
240
180
120
60
0
277
257
277
Target
10.0
231
212
193
2.2
2.3
2.8
3.4
3.7
(%)
15
100
12,000
10,670
10,618
10,669
10,776
10,779
12
9
6
3
0
9,000
6,000
3,000
0
29.6
30.0
30.1
30.5
30.6
277
Target
50.0
(%)
80
100
60
40
20
0
2018/1 2018/10 2019/10 2020/10 2021/10
2024
2018/6 2019/6 2020/6 2021/6 2022/6
2030
2017/12 2018/12 2019/12 2020/12 2021/12
2030
The Asahi Kasei Group appoints, nurtures, and rewards as Group Masters human
resources with the potential to proactively engage in and contribute to the creation of
new businesses and the enhancement of established businesses. In addition to
increasing corporate value, the Group Masters program contributes to the growth of
our human resources and helps us to recruit outstanding external human resources.
In accordance with business strategies and other matters, we also annually revise the
technology and specialized fields for human resources to be appointed as Group
Masters to enable us to better utilize the program.
Number of women working as managers (left scale)
Percentage of women in the total number of managers and the Group Masters
program (right scale)
Applicable range: Results for personnel employed by Asahi Kasei Corporation, Asahi Kasei Microdevices
Corporation, Asahi Kasei Homes Corp., Asahi Kasei Construction Materials Corp., Asahi
Kasei Pharma Corporation, and Asahi Kasei Medical Co., Ltd.
Amid rapid change in the operating environment, the Asahi Kasei Group must utilize the capabil-
ities of its diverse human resources to boost co-creativity if it is to create value continuously. With
the promotion of women as a KPI, we will realize conditions that enable diverse human
resources, including women, to thrive in a variety of settings within the organization through the
creation of an environment and requirements for achieving the KPI.
Total number of valid patents (of which,
are GG10-related patents) (left scale)
Percentage of valid patents accounted for by GG10-related patents (right scale)
Note: Valid patents are those for which the patent right or patent application has not expired. The number
of patents in the graph represents the number of patent families (number of inventions).
The Asahi Kasei Group focuses efforts on maximizing intellectual property value in
order to establish a patent portfolio that contributes to its businesses. We will aim to
further enhance our competitiveness by increasing the percentage of valid patents
accounted for by 10 of our businesses (GG10) that will drive our growth going forward.
01Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyStrengthening of Corporate GovernanceCorporate InformationAsahi Kasei Report 2022
9
Asahi Kasei’s Ideals
10 Message from the President
18 Value Creation Model
19 How Asahi Kasei Works to Achieve Its Vision
21 Strengths That Deliver Sustainable Growth
02Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information02Strengthening of Corporate GovernanceAsahi Kasei Report 2022 10
Message from the President
Asahi Kasei is stepping forward
to become a global trailblazer
by reanimating its “A-Spirit”
to boldly advance transformation
without fear of change
Koshiro Kudo
President
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information02Strengthening of Corporate GovernanceAsahi Kasei Report 2022 Message from the President
11
The fire and accident at Asahi Kasei Group plants
I would like to begin by once again offering my sincere apologies to everyone affected,
quality assurance. My task now is to ascertain the circumstances on the front lines
including neighboring residents, for the considerable concern and inconvenience
fully and accurately, and to verify whether there is anything lacking that we have over-
caused by the fire at our Bemberg Plant in Nobeoka, Miyazaki Prefecture, in April
looked. I am currently visiting our front lines to communicate directly with employees
2022, and the serious accident that occurred at an affiliate in fiscal 2021.
and deepen my understanding of their circumstances, including by seeing the expres-
The Asahi Kasei Group will strive to identify the causes of these incidents, and
sions on their faces as they work, and listening to their concerns. I am determined to
thoroughly implement measures to prevent any recurrence. The foundations underpin-
take decisive actions grounded in the front lines that will be effective in contributing to
ning our businesses are the front line efforts for environmental protection, safety, and
a fundamental solution.
My ambition for Asahi Kasei
I became President & Representative Director in 2022, a pivotal year as the centennial
same time, however, I have been apprehensive that our appetite to take on challenges
of Asahi Kasei’s founding. I sense a responsibility to preserve the heritage of Asahi
and create new things may have dimmed in recent years. I am concerned that, after
Kasei that has been nurtured by our predecessors for a century, and firmly pass it on
several years of stable management, we may be on the verge of forgetting the meaning
to subsequent generations. The essence of this heritage is “A-Spirit,” an aggressive
of A-Spirit. To allow A-Spirit to fade would be to squander the legacy that our predeces-
“animal spirit” and the spirit of Asahi Kasei. A-Spirit epitomizes the mettle of a pioneer
sors worked so hard to build. Our heritage would be lost. Nevertheless, I am confident
and the ambition to create things that did not exist before. In this way, A-Spirit is
that A-Spirit—an intrinsic part of our heritage—can be reanimated if we inspire our
unique to the corporate culture of the Asahi Kasei Group, and integral to the way we
personnel. My message to employees is: “tradition is what we create, not what we pre-
create new value without being bound by precedent.
serve.” With this in mind, I intend to invigorate A-Spirit throughout the Asahi Kasei
I see the Asahi Kasei Group as a company that embodies sincerity, one of our
Group in fiscal 2022, building on the momentum of our centenary and the launch of
Group Values. This is vividly reflected in the earnest manner in which our employees
our new medium-term management plan (MTP).
tackle their work, and in the value that our business activities provide to society. At the
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information02Strengthening of Corporate GovernanceAsahi Kasei Report 2022
Message from the President
12
Asahi Kasei’s potential to generate two mutually reinforcing aspects of sustainability
Rather than solely generating profits, I believe that companies must pursue their own
countries. Cooperation and contributions based on a resolve to accept compromise will
purpose in society. In fiscal 2022, coinciding with the centennial of Asahi Kasei’s
enable us to overcome such divisions.
founding, we redesigned the diagram of our corporate philosophy to reaffirm the Group
Considering the role companies play in contributing value to society, the key is how
Mission, Group Vision, and Group Values with employees globally. The Asahi Kasei
they create value and whether they are capable of creating significant value. Such
Group Mission states that “we, the Asahi Kasei Group, contribute to life and living for
potential to create value depends on a company’s ability to combine and utilize its
people around the world.” I believe that executing this mission sincerely will lead to
intangible assets—including human resources, intellectual property, know-how, and
sustainable growth of our corporate value. Indeed, it is only by contributing to the sus-
data—and whether the created value meets the needs of society at a given time. I
tainability of society that we can achieve sustainable growth of corporate value. This is
firmly believe that the Asahi Kasei Group is exceptional in its abundance of intangible
the basis of the two mutually reinforcing aspects of sustainability that we aim for.
assets and ability to utilize them flexibly. We also have an exceptionally diverse array of
The world faces several serious issues today—the decoupling of the United States
and China, the Russia–Ukraine situation and the powerlessness of the United Nations,
the deterioration of democracy and the rise of autocracy, and the differing expectations
Two aspects of sustainability for Asahi Kasei
of various countries toward the creation of a carbon-neutral society, in addition to a
declining birthrate and aging population and a growing disparity between urban and
rural areas in Japan. I firmly believe that in contributing to a sustainable society, there
is no place for selfishness, either as an individual or as a company. A sustainable soci-
ety will only be achieved if a diverse range of stakeholders around the world are willing
to cooperate with one another to overcome global issues through mutual compromise.
For example, consider the various proposals for international rules to achieve global
carbon neutrality. There is an issue of fairness between developed and developing
Contributing to a sustainable society
Realizing the Group Vision
countries. There are still many people in developing countries who are living in poverty
Sustainable growth of corporate value
and struggling to survive. These people would bear the brunt of such rules unless we
fundamentally solve the issue of poverty. Achieving an energy transition for decarbon-
ization will be extremely difficult unless we devise measures that not only take into
account the wishes of developed countries but also the conditions of developing
Action aligned with Group Values
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information02Strengthening of Corporate GovernanceAsahi Kasei Report 2022
Message from the President
13
human resources as well as a broad range of businesses with active communication
I am certain that our diversity, flexibility, and willingness to change allow us to create
between them. Our custom, which dates from the time of our founding, of referring to
value by continuously recombining our resources to fulfill our Group Mission of contrib-
one another by name as opposed to by title, affords a high degree of approachability.
uting to life and living for people around the world.
The significance of three-sector management
A century has passed since the founding of the Asahi Kasei Group. Our success in
by continuing to refine our three-sector management to better clarify each sector’s
navigating dramatic changes to the operating environment and maintaining firm
role. Specifically, the Material sector will aim to improve profitability and investment
growth is rooted in the efforts of our predecessors to overcome difficulties and proac-
efficiency by helping resolve environmental issues through technological development
tively transform our business portfolio. By always remaining conscious of our strengths
and innovation in materials. The Homes sector will achieve growth in Japan, North
and core competencies while constantly transforming our wide-ranging business,
America, and Australia, and raise its cash-generating capabilities by continuing to
we could maintain a certain degree of control as we adapted to changes in society for
underpin people’s safe and comfortable daily lives. The Health Care sector will drive
continual growth.
overall profit growth by pursuing its mission of improving and saving patients’ lives. In
I believe that a big reason for the Asahi Kasei Group’s continual portfolio transfor-
this way, we will advance the execution of growth strategies and the reorganization of
mation and operation in multiple sectors is an awareness that it must avoid a situation
our portfolio reflecting the respective roles of each sector. Achieving growth in all three
where the survival of the company would be imperiled by any single business being
sectors will further strengthen our business platform—including intangible assets such
unable to continue. As Asahi Kasei is not affiliated with any large industrial group, we
as human resources, intellectual property, know-how, and data—and the strengthened
have always had to rely on our own capabilities to survive as a growing company
business platform will in turn create synergies that support the growth of each sector. I
throughout our history. Our business portfolio spanning multiple sectors indicates how
will increasingly emphasize to investors how our three-sector configuration enables us
we have continually grown by taking on a variety of challenges in accordance with
to organically utilize our intangible assets, which enhances the potential for increasing
changes in the operating environment.
corporate value.
The Asahi Kasei Group currently operates businesses in three sectors: Material,
Throughout our history, the Asahi Kasei Group has recovered from difficult situa-
Homes, and Health Care. I believe that our current configuration of three sectors is
tions by leveraging the strength of having multiple sectors to overcome challenges
optimal for pursuing our Group Mission of contributing to life and living for people
cooperatively. We currently face challenges in terms of how to capture opportunities
around the world. We will achieve growth in all sectors over the medium to long term
that arise from significant market changes, in order to achieve continuous growth. I am
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information02Strengthening of Corporate GovernanceAsahi Kasei Report 2022
Message from the President
14
convinced that by clarifying the respective role of each sector and strengthening our
our corporate value. I am also prepared to reform our way of three-sector management
three-sector management, we will overcome these challenges and ultimately increase
as needed to enable us to continue responding to changes in society.
New Medium-Term Management Plan 2024 “Be a Trailblazer”
Commitment embodied in the key concept of “Be a Trailblazer”
Process for achieving financial targets
To realize its ideals, the Asahi Kasei Group must create new value without fearing
Our financial targets in the new MTP are operating income of ¥270.0 billion, return on
change. As I stated at the outset, I believe that we must once again awaken the
equity (ROE) of 11% or more, and return on invested capital (ROIC) of 8% or more by
A-Spirit, including a healthy sense of urgency and a spirit of taking on challenges, to
fiscal 2024. While achieving continuous profit growth by reaping the benefits of our
achieve new growth for the next 100 years. Based on this, we emphasized our com-
previous growth investments, we will seek to improve our capital efficiency. Personally,
mitment to reawakening our A-Spirit in formulating the new MTP, including a redesign
I believe that boldness and a focus on our front lines will be the keys to increasing
of our philosophy diagram.
ROIC. In terms of boldness, transformation of our portfolio with a focus on the Material
While we were studying specific details of the new MTP, we had teams of mid-level
sector is an urgent task. To achieve our targets, we must make bold management deci-
employees expected to be next-generation leaders from the United States, Europe,
sions to push ahead with transformation. Meanwhile, I believe by focusing on our front
China, and Japan discuss their vision of the Asahi Kasei Group for 2030. I decided to
lines we provide opportunities for business managers to exert their abilities. ROIC must
make “Be a Trailblazer” the key concept of the new MTP based on a phrase that came
be managed by each of our businesses based on their respective business character-
up during the discussions that struck a particular chord with me. I think that the key
istics and business stage. ROIC serves as a target for front-line employees in each
concept of “Be a Trailblazer” fits in perfectly with my commitment to reawaken our
business to align their direction, while taking the initiative in analyzing figures and the
A-Spirit to take on challenges and create new things.
circumstances behind them to identify ways to raise efficiency. Consider the analogy of
The new MTP is positioned as the first step toward realizing the Asahi Kasei Group’s
climbing a mountain. In the same way that working together to find the best route to
vision for 2030. Going forward, we will aim to reach our vision for 2030 in stages.
the summit and supporting one another along the way would raise the spirits of a
group of climbers, ROIC acts as a target for strengthening the bonds of our front-line
employees toward achieving their targets in operating businesses. Corporate
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information02Strengthening of Corporate GovernanceAsahi Kasei Report 2022
Message from the President
15
management will implement bold transformation of our portfolio, while the front lines
speed and asset-light as two sides of the same coin. By pursuing the optimal operating
promote efficient business operations using ROIC as an indicator. These two essential
framework with swift commercialization, we will greatly expand the potential for adding
elements advance in tandem.
higher value.
Capital policy will also be important for improving ROE. We had previously aimed
We designated 10 businesses as “10 Growth Gears” (GG10) that will drive our
for a debt-to-equity (D/E) ratio of around 0.5 times. In the new MTP, we changed this
future growth, and set a clear policy of making bold investments while proactively
to a range between 0.4 times and 0.7 times, considering possible changes in the bal-
examining M&A opportunities. We aim to increase the percentage of overall operating
ance of our capital structure. I look forward to proactively communicating how our cap-
income accounted for by GG10 from the current level of approximately 35% to 50%
ital policy supports the business model of generating stable earnings in three sectors,
by fiscal 2024 and to 70% by around fiscal 2030. To do so, approximately ¥600 billion
to build further trust with shareholders, investors, and other stakeholders.
of the ¥1 trillion we have allocated for investments over the three years of the MTP will
be in GG10-related investments. Examples of GG10 include, in the Material sector, the
Working to evolve our business portfolio
business for lithium-ion battery separators, which has driven growth in recent years,
Challenging investment for growth together with cash generation through the strength-
and a hydrogen-related business using alkaline water electrolysis that we are currently
ening of existing businesses and structural transformation are the essential combination
commercializing. In the Homes sector, GG10 include businesses in North America
for further evolution of our business portfolio. While striking a balance between them,
and Australia that we acquired and are growing with new business models. In the
the new MTP strongly emphasizes the three elements of speed, asset-light, and high
Health Care sector, they include the critical care business, which is seeing expansion
value-added.
in the area of serious cardiopulmonary conditions, and the bioprocess business
As a manufacturer, there is a conventional process of performing in-house
including both Planova™ virus removal filters and Bionova Scientific, LLC, a CDMO
research and development (R&D), building plants, developing markets, and earning
(contract development and manufacturing organization) for next-generation antibody
profits. While I am confident that the Asahi Kasei Group’s R&D has many highly prom-
drugs, which we acquired in May 2022. These and the other GG10 businesses will
ising technology seeds, I also recognize that increasing the speed of commercialization
drive our growth going forward. We will promote policies tailored to the characteristics
and appropriately seizing business opportunities is an issue. To quickly commercialize
and stage of each business while emphasizing the aspects of speed, asset-light, and
projects at an early stage, it may be better not to keep the entire process in-house. As
high value-added.
digital technology advances and society’s needs rapidly evolve, trying to do everything
In terms of generating cash through the strengthening of existing businesses and
by ourselves would only slow us down. We need to consider accelerating commercial-
structural transformation, we will first aim to complete the reform of the strategic
ization through out-licensing or forming alliances from a best-owner perspective in
restructuring businesses that we have been advancing since the period of the previous
order to quickly get our outstanding technology into practical use. This is why I see
MTP. After identifying the strategic restructuring businesses by fiscal 2021,
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information02Strengthening of Corporate GovernanceAsahi Kasei Report 2022
Message from the President
16
we classified them into the three categories of Recovery, Follow, and Exit based on
technology in house, then we should aim to further strengthen it by business develop-
reexamination of their strategies. Those classified as Recovery businesses are seeing
ment such as M&A.
their profit levels rise following progress in profit improvement measures. Going for-
ward, we will continue to assess Follow businesses, which are currently executing
Strengthening our business platform
reformulated strategies. Exit businesses will be downsized, divested, etc., as quickly as
The Asahi Kasei Group has businesses in a wide range of sectors, and human
possible. We will continually assess our business portfolio from a medium-term per-
resources with a variety of experience. In light of this, we actively promote measures
spective and take prompt action on the strategic restructuring businesses.
that strengthen our business platform by organically linking diverse human resources,
Fundamental transformation of our business structure will entail withdrawal not
intellectual property, know-how, and data, to utilize them as shared intangible assets.
only from businesses with deteriorating performance but also from those that are
Nevertheless, there is still potential to further leverage our diversity. In addition to the
incompatible with our vision. By distributing the resources gained through such with-
viewpoints of green transformation (G), digital transformation (D), and human resource
drawals to GG10, we will further accelerate the evolution of our business portfolio. We
transformation (P), we have identified the maximum use of intangible assets as a key
will comprehensively evaluate compatibility with our vision from the five perspectives of
focus of the new MTP. We are steadily advancing measures in each area. I believe our
best owner, carbon neutrality, competitiveness, growth potential, and profitability and
A-Spirit will be indispensable, as well as effective, for enabling us to link the latent
capital efficiency, in addition to recent performance. The divestiture of the photomask
potential of such intangible assets to value creation and growth.
pellicles business, announced in May 2022, is one example. The business has a high
While advancing such activities will necessitate greater intensity than before, the
market share and consistently earns profits. Nevertheless, viewed from the best-owner
first one or two steps in particular will require the most effort. If we can boldly clear
perspective, we concluded that transferring it to another company would be optimal for
those initial steps, I believe there is great potential for us to take the lead in society.
the business itself.
Although our initiatives in relation to strengthening our business platform are currently
I spent most of my career in Asahi Kasei’s fibers and textiles business. Between
receiving a strong reception externally, other companies will catch up or overtake us if
2001 and 2009, we closed down our viscose rayon, acrylic fiber, and polyester fiber
we simply proceed at the same pace. I am therefore determined to reawaken our
businesses. These closures were very tough for our suppliers and other stakeholders,
A-Spirit in the strengthening of our business platform, and continuously take on bold
including employees who were reassigned. Based on this experience, I keenly realize
challenges in order to build a leading position among the global competition.
that business closure is the last resort. It would surely be better to consider a busi-
If we look at corporate governance solely in terms of companies meeting society’s
ness’s future prospects while it’s still profitable, and take measures before it’s too late.
expectations, there is a risk of confusing ends with means. If you only try to follow,
On the other hand, if we determine that it would be best to keep a business or
you will always be behind. The Corporate Governance Code may serve as a barometer,
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information02Strengthening of Corporate GovernanceAsahi Kasei Report 2022
Message from the President
17
but ultimately it’s up to us to consider on our own accord how to strengthen the Asahi
through dialogue with shareholders, investors, and other stakeholders, and revise it as
Kasei Group’s business platform. We must not fall into the trap of passively satisfying
appropriate. I look forward to opportunities for proactive dialogue where participants
the items in the code. We should explain our rationale rather than mindlessly comply.
can have a frank exchange of views.
At the same time, I recognize that we must confirm our corporate governance policy
Toward the next 100 years
I have never been interested in doing something just because other people are doing
first step toward the next 100 years, we will awaken our A-Spirit to boldly carve out
it. I chose “Be a Trailblazer” as the key concept of the new MTP because of my com-
new paths without fearing change.
mitment to deploying our A-Spirit to the fullest extent. This is the ethos of the Asahi
Kasei Group, which has continuously taken on challenges by constantly anticipating
the future. Fiscal 2022 is a pivotal year for us in a variety of senses, including the cen-
tennial of Asahi Kasei’s founding. The time is ripe for us to boldly take risks and
embrace challenges looking ahead to the next generation. To emphatically take our
Koshiro Kudo
President
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information02Strengthening of Corporate GovernanceAsahi Kasei Report 2022 18
Value Creation Model
Outcome
Fields for
provision of
value
Asahi Kasei
Group
Business
platform
Two Mutually Reinforcing Aspects of Sustainability for the Asahi Kasei Group
Contributing to a sustainable society
Sustainable growth of corporate value (long-term outlook for around FY2030)
Living in health and comfort
Care for People
Active life in the new normal
Harmony with the natural environment
Care for Earth
Carbon-neutral sustainable world
Operating income ¥ 400 billion
(FY2021–FY2030 CAGR 7% or more)
ROE 15 %
or more
ROIC 10 %
or more
Environment & Energy
Mobility
Life Material
Home & Living
Health Care
Material
Homes
Health Care
Expanding and enhancing intangible assets by repeatedly circulating and organically connecting them across sectors
Data
Know-How
Brand
Human
Resources
Technologies
A-Spirit
Customer
Contact Points
etc.
Intellectual
Property
Input
D/E ratio: 0.45 Credit rating: AA (JCR)
Note: As of March 31, 2022
Core technologies, digital technology, data,
manufacturing know-how, etc.
Strong financial foundation
Technologies in a wide range of fields
Human resources involved
in multiple businesses
Advanced specialists, digital professional
human resources, etc.
Intangible assets
Contact points with various markets
Marketing channels, trust, brand, etc.
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How Asahi Kasei Works to Achieve Its Vision
The Asahi Kasei Group seeks to achieve the two mutually reinforcing aspects of sustainability of “contributing to sustainable society” and “the sustainable growth of
corporate value.” Here we describe Asahi Kasei’s value creation process, which is based on realizing the Asahi Kasei Group Vision.
Sustainability for Asahi Kasei
Process for Identifying Materiality
The Asahi Kasei Group carries out business activities to provide
new value to society by enabling “living in health and comfort”
and “harmony with the natural environment,” as set forth in its
Group Vision. We aim to achieve two mutually reinforcing
Extremely
important
aspects of sustainability whereby it contributes to the creation
of a sustainable society while such efforts lead to improved cor-
porate value. We believe that providing value that contributes to
ensuring the sustainability of society will bring about sustainable
improvements in our corporate value along with a high level of
profitability, which will in turn enable us to take on further chal-
lenges. Guided by this belief, we established our Sustainability
Policy in November 2021, under which we are accelerating
actions for a sustainable society.
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
Highest priority
as premise
Governance
Compliance/
sincerity
Human rights
Safety/quality
P62–66
P 77
P 78
P 76
Wastewater
Industrial waste
Business
Contribution to
P45 – 60
Global environment
Health and longevity
Comfortable life
Decarbonization P29–34
Circular economy P29–34
Supply chain management
Communication with stakeholders
Biodiversity
Social contribution
Diversity
Human resources P38 – 41
Risk management P73– 75
Identification of Issues
We identified issues in light of requirements of society
and our Group Mission, Group Vision, and Group
Values while making reference to international guide-
lines such as ISO 26000 and the Global Reporting
Initiative (GRI) Standards, as well as the evaluation cri-
teria of major ESG rating institutions.
Determination of Degree of Importance
We evaluated the degree of importance both to society and
to the Asahi Kasei Group and mapped it on two axes.
Evaluation of Appropriateness
We verified the appropriateness of the material issues
by examining them from a diverse range of perspec-
tives, such as through deliberations involving the lead-
ers of various divisions, discussions with outside
companies, and consultations with Outside Directors.
Key Points
of the Asahi Kasei Group Sustainability Policy
Importance for the Asahi Kasei Group
Harmony with the natural environment
Harmony with the natural environment
Health and comfort
Health and comfort
Basic activities
Basic activities
Examination and Approval
Extremely
important
The Board of Directors approved the material issues
after examination at the Management Council.
• Realize the two mutually reinforcing aspects of
sustainability of “contributing to sustainable society”
and “the sustainable growth of corporate value”
In fiscal 2017, the Asahi Kasei Group identified the important
are integrated into management strategies. Accordingly, in light
issues and subjects that it should prioritize as its materiality
of these material issues, the new medium-term management
through the process outlined above in order to achieve its
plan identifies issues to be addressed in five fields for provision
• Pursue optimal corporate governance for realizing
vision. Having since reviewed these issues and subjects in
of value that will contribute to Asahi Kasei’s creation of value over
this goal
accordance with changes in the operating environment, we
the long term. The next page clarifies the process leading up to
• Create value by contributing to sustainable society
have defined them as shown in the above diagram. For detailed
identifying opportunities and creating value in each of the fields
• Carry out responsible business activities
information on key performance indicators (KPIs) and initiatives
for provision of value in order to ensure that our efforts to resolve
• Facilitate the empowerment of personnel
for each material issue, please view more information under
issues lead to the creation of highly profitable opportunities.
each category. Material issues are meaningful only when they
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Process Leading Up to Value Creation in Each Field for Provision of Value
• Expansion of clean energy
• Progression of CASE and MaaS
• Increasing sophistication of next-
• Diversification of lifestyles
• Advancement of a longevity society
Operating environment
• Transition to carbon neutrality and
a circular economy
generation communications technology
• Intensification of natural disasters
• Rising global population
• Labor shortages
Relevant fields for provision
of value and issues they
address
Environment
& Energy
Carbon neutrality/
Circular economy
Material
Mobility
Life
Material
Homes
Home
& Living
Health Care
Health
Care
Safe, comfortable, and
eco-friendly mobility
More comfortable and
convenient lifestyles
Homes/communities enriching
people’s lives
Society of active longevity
Material issues
that correspond
with issues
• Global environment
–Decarbonization
–Circular economy
• Global environment
–Decarbonization
–Circular economy
• Comfortable life
• Global environment
–Decarbonization
–Circular economy
• Comfortable life
• Global environment
–Decarbonization
–Circular economy
• Comfortable life
• Health and longevity
Specific examples of value
creation opportunities
projected based on the
operating environment
• Creation of a business model aimed at
achieving a hydrogen society
• Accelerated commercialization of vari-
ous technologies contributing to
carbon recycling
• Provision of products and services
contributing to GHG emissions
reductions
• Provision of products and services that
meet diversifying needs for in-vehicle
comfort as autonomous driving
becomes widespread
• Provision of products that meet needs
for materials with low environmental
impact
• Creation of innovative products with
strengths in competitive sensing tech-
nologies in response to the develop-
ment of markets for energy
conservation and comfort
• Realization of efficiency and greater
productivity through industrialization
and provision of high-quality homes
suited to local conditions in North
America and Australia
• Provision of products and solutions
with a strong competitive advantage
for leading-edge semiconductor and
packaging processes
• Provision of homes compliant with
Net Zero Energy House (ZEH) and
ZEH Mansion (ZEH-M) standards
• Provision of highly resilient homes
able to withstand disasters
• Provision of medical device solutions
addressing unmet needs in the criti-
cal care and cardiopulmonary condi-
tions fields
• Promotion of a global pharmaceutical
business that reflects increasing
needs for better medical care and the
progression of aging societies in vari-
ous developed countries overseas
• Provision of bioprocess-related prod-
ucts and services that support the safe
and efficient manufacture of
pharmaceuticals
Output
• Hydrogen-Related
• CO2 Chemistry
• Energy Storage
• Car Interior Material
• Digital Solutions
• North American and Australian Homes
• Critical Care
• Environmental Homes and Construction
• Global Specialty Pharma
Materials
• Bioprocess
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information02Strengthening of Corporate GovernanceAsahi Kasei Report 2022 21
Strengths That Deliver Sustainable Growth
At the root of the Asahi Kasei Group’s success throughout its history in adapting flexibly to changes in society to grow continuously are unique strengths that create
value from its abundant intangible assets.
Turning a Diverse Array of Intangible Assets into the
Group’s Shared Assets
We have transformed our business portfolio flexibly and proactively in
Maximizing the Value of Intangible Assets through the
Promotion of DX and Intellectual Property Strategies
The Asahi Kasei Group focuses in particular on the promotion of DX
accordance with changes in the times. This transformation is sup-
and intellectual property strategies with the goal of appropriately com-
Examples of Utilizing Intangible Assets Across
Business Sectors
Utilizing M&A know-how and human resources from the Health
Care sector for overseas expansion in the Homes sector
ported by a business platform that underpins the Asahi Kasei Group
bining its shared assets to maximize their value. As barriers between
In the Health Care sector, business development leveraging M&A and
as a whole. In a highly volatile and unpredictable operating environ-
industries become lower and activities transcending industry frame-
corporate venture capital (CVC) activities is driving growth. Utilizing the
ment, it becomes increasingly important to reinforce the foundation
works accelerate, new value can be created by taking data, intellectual
know-how and human resources accumulated through such efforts,
and platform supporting such transformation.
property, and other intangible assets accumulated in one field and uti-
the Homes business expanded into Australia in 2017 and North
We have a diverse range of businesses. Rather than confining the
lizing them in another, or by combining such intangible assets in differ-
America in 2018. Overseas net sales in the Homes business were
diverse human resources, data, technologies, know-how, and other
ent fields. Amid an unpredictable operating environment, it is also vital
¥146.3 billion in fiscal 2021, and the fiscal 2025 target is ¥200 billion.
intangible assets created through these businesses to any single field,
to enhance the precision of strategy planning and decision-making by
we accumulate them as shared assets for the Asahi Kasei Group as a
utilizing data and intellectual property in an integrated manner.
whole. We have expanded and enhanced our diverse and extensive
To this end, we established Digital Value Co-Creation to spread DX
intangible assets by leveraging them across our business sectors to
throughout the Asahi Kasei Group as a whole, and the Intellectual
Utilizing a variety of expertise gained through the operation
of diverse businesses in enhancing the management of the
Asahi Kasei Group as a whole
repeatedly circulate and organically connect them. Efforts that contribute
Property Intelligence Department to utilize intellectual property in our
As our three business sectors differ in the value they provide and the
to the circulation of such intangible assets include the transfer of human
management. In addition, to deliberately track, manage, and analyze
industries that they serve, each has its own industry-specific manage-
resources across business sectors, the deliberate provision of opportuni-
our accumulated intangible assets, we have accelerated the develop-
ment methods, perspectives, risk management know-how, and other
ties for human resources within the Asahi Kasei Group to connect, and
ment of mechanisms such as DEEP, a data management infrastruc-
unique expertise. Senior executives share the diverse perspectives and
the cultivation of an open and dynamic corporate culture receptive to
ture for the Asahi Kasei Group as a whole, and SPACE, a personnel
information gained from such expertise to quickly understand market
diverse ideas that encourages employees to take on new challenges.
recommendation system.
trends and enhance management.
Systems for Accumulating, Expanding, and Enhancing Intangible Assets in Asahi Kasei’s Business Platform
Material
Homes
Health Care
Asahi Kasei
Group
Business
platform
Expanding and enhancing intangible assets by repeatedly circulating and organically connecting them across sectors
Data
Know-How
Brand
Human
Resources
Technologies
A-Spirit
Customer
Contact Points
etc.
Intellectual
Property
Utilizing human resource rotations across business sectors
to cultivate the next generation of leaders
We cultivate human resources with broad viewpoints and elevated per-
spectives by implementing planned transfers across business sectors
to give people experience of a diverse range of businesses. The sys-
tems we have developed to deliberately circulate our intangible assets
are centered on people. For example, after growing as digital human
resources, personnel from business units transferred to Digital Value
Co-Creation return to their business units as DX promotion leaders.
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Growth Strategy
Company-wide Strategies
Business Strategies by Sector
23 New Medium-Term Management Plan 2024—
Be a Trailblazer
27 Financial and Capital Policy
29 Green Transformation
32
Initiatives regarding Climate Change Disclosure Based on
45 Material
51 Homes
54 Health Care
58
Interview with the CEO
of ZOLL Medical Corporation
the TCFD Recommendations
35 Digital Transformation
38 Transformation of HR
42 New Business Creation
43
Fully Utilizing Intellectual Property and Other Intangible
Assets to Create New Businesses—Establishment of the
Intellectual Property Intelligence Department
03Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022
23
New Medium-Term Management Plan 2024 — Be a Trailblazer
The Asahi Kasei Group formulated its new medium-term management plan (MTP) for three years from fiscal 2022 to fiscal 2024 focused on the theme
“Be a Trailblazer” as the first step toward realizing its vision for 2030.
Review of the Previous Medium-Term Management Plan
While we achieved our initial target for net sales in fiscal 2021,
the same time, we steadily implemented growth strategies in
our fields for provision of value and strengthened our founda-
the final year of the previous MTP, results for operating income,
tion for growth under an uncertain operating environment.
Financial Targets for FY2024
Operating income ¥270 billion
ROE 11% or more ROIC 8% or more
net income, ROIC, and ROE fell short of the plan amid changes
in international affairs—such as the decoupling of the United
States and China and the situation in Russia and Ukraine—and
major changes in the operating environment, including the
COVID-19 pandemic and surging feedstock and fuel prices. At
Major Initiatives
• Promoted growth strategies through proactive M&A in the
Health Care and Homes sectors
• Accelerated the technological development and commercializa-
tion of hydrogen-related, CO2 chemistry, and other businesses
• Implemented reforms in strategic restructuring businesses
identified through business evaluations
Priority Investments
• Implemented M&A in the Health Care sector
• Expanded growth businesses such as lithium-ion battery (LIB)
separator
• Strengthened foundation for digital transformation (DX)
and decarbonization
Strengthened Business Platform
Green:
Formulated Sustainability Policy, introduced internal
carbon pricing, and declared goal of achieving
carbon neutrality
Digital: Formulated Asahi Kasei DX Vision 2030, established
Digital Value Co-Creation, and launched DX training
People: Strengthened management capabilities, began career
design program for young employees, and promoted
empowerment of women
Vision for 2030
Issues exposed by major changes in society, such as those
prompted by COVID-19, correspond with the Asahi Kasei
Group’s commitment to “Care for People, Care for Earth.” Such
issues will become more interrelated across a variety of indus-
tries as industrial boundaries become less distinct. The Asahi
Kasei Group, with its diverse range of businesses, views these
issues as significant business opportunities and aims to achieve
further growth by boldly taking on challenges in our five fields
for provision of value. We are also targeting a reduction in our
GHG emissions of 30% or more by fiscal 2030 compared with
fiscal 2013.
Long-Term Outlook for Around FY2030
Operating income ¥400 billion
ROE 15% or more ROIC 10% or more
Basic Guidelines for Business Portfolio Evolution
Challenging investment for growth together with cash genera-
tion through the strengthening of existing businesses and struc-
tural transformation are the essential combination for further
evolution of our business portfolio. To strike a balance between
them, we will place a strong emphasis on the three elements of
speed, asset-light, and high value-added.
With regard to “asset-light,” we will create optimal business
models and scenarios tailored to each of our businesses based
on the following two approaches without being constrained by
conventional ideas of the process industries. In terms of existing
businesses, we will pursue ways to generate profits by utilizing
existing assets to the full. In the Material sector in particular, we
will examine a variety of possibilities, including the downsizing
and divestiture of businesses, from the standpoint of reducing
GHG emissions to achieve carbon neutrality. In order to estab-
Aims of the New Medium-Term Management Plan
We will evolve our business portfolio to realize our vision by pur-
lish new businesses, we will thoroughly pursue optimal uses of
capital, including utilizing the capital of other companies, with-
suing two mutually reinforcing aspects of sustainability as “con-
out being exclusively dependent on our own R&D investments
tributing to sustainable society” and “the sustainable growth of
or owning our own facilities for commercialization. Being asset-
corporate value.” Specifically, we will focus resources on business
light in the development of new businesses accelerates the
that will drive future growth while reaping the benefits of growth
pace of development and allows us to focus on fields where we
investments and advancing the reform of strategic restructuring
can build superior positions, resulting in higher added value.
businesses. In addition, we will embark on a fundamental busi-
ness structure transformation from a medium-term perspective.
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022 24
Challenging Investment for Future Growth
The Asahi Kasei Group has designated businesses that will
We plan to invest ¥1 trillion or more on a cumulative basis
Investments” section on page 28 . Although GG10 currently
drive future growth as 10 Growth Gears (GG10) and will focus
over the period of the new MTP, of which approximately ¥600
account for approximately 35% of our total operating income,
resources on them going forward. With GG10 as gears to not only
billion will be in GG10-related businesses. We will also proac-
we will aim to increase this to more than 70% by around 2030.
accelerate our own growth but also the transformation of soci-
tively identify M&A opportunities to make bold investments.
The following table provides an overview of GG10.
ety, we aim to accelerate the creation of a sustainable society.
For more details, please see the “Capital Expenditure and
Overview of GG10 Businesses
GG10
Environment & Energy
Major Products and Services
Market Environment
Future Direction
Hydrogen-Related (P46 )
Hydrogen-related business centered on alkaline water
electrolysis systems
Amid growing global demand for green hydro-
gen, the water electrolysis market is predicted to
grow, led by Europe.
Through participation in demonstration projects around the world, etc., we aim to
become a leading supplier driving the commercialization of the business by 2025
and construction of a supply chain.
CO2 Chemistry (P47 )
• CO2 chemistry (manufacture of chemical products
using CO2 as feedstock)
• CO2 separation and recovery systems (CO2 adsorption
technologies, etc.)
The CO2 separation and recovery market, gar-
nering increasing attention with efforts to achieve
carbon neutrality, is expected to expand globally.
Energy Storage (P48 )
of batteries over their total life
• LIB separators and next-generation battery materials
• Various new technologies helping enhance the value
With growth centered on automotive applica-
tions, the LIB separator market is forecasted to
more than triple in size between 2021 and 2025.
We will advance demonstrations in Europe with the aim of commercializing a busi-
ness for CO2 separation and recovery systems by 2027. As for CO2 chemistry, we
began R&D in the 1980s and have been operating a licensing business since 2002;
we will seek to commercialize next-generation technologies in addition to expanding
existing technologies.
To meet robust demand, we will increase our production capacity for LIB separators
over the medium to long term, including by examining strategic partnerships. We
will identify various new technologies that will contribute to the swift commercializa-
tion of innovative new materials and the enhancement of the value of batteries over
their total life.
Mobility
Car Interior Material( P49 )
solutions (air conditioning, sound, etc.)
• Interior materials, such as seat upholstery
• Interior space management-related technologies and
As new needs arise in relation to interior space
in conjunction with the rapidly advancing shift to
electric vehicles (EVs) on a global scale, the
growth of the car interior market is expected to
outpace the growth of automobile production.
Catering to new market trends and needs, we will utilize group-wide resources such
as marketing, technological, and design capabilities in an integrated manner, and
strengthen our concept proposals in addition to material proposals with the aim of
becoming the leading global manufacturer of car interior materials.
Life Material
Digital Solutions (P50 )
Electronic components
Current sensors, gas sensors, magnetic sensors, milli-
meter wave radar ICs, etc.
Electronic materials
Photosensitive polyimide, photosensitive dry film, high-
performance glass fabric, epoxy resin curing agent, etc.
The market for digital solutions is likely to
expand due to increasing needs for digital tech-
nologies and the cutting-edge technologies that
underpin them due to the progression toward a
carbon-neutral society, an aging society, and a
digital society.
We will offer components, materials, and solutions in response to the needs of the
digital society by strengthening our integration of electronic components and materi-
als. In addition, we will explore new developments aimed at future growth, including
M&A, while promoting the identification of new business opportunities.
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022 25
GG10
Home & Living
North American and
Australian Homes (P53 )
Environmental Homes and
Construction Materials (P52 )
Health Care
Critical Care (P57 )
Major Products and Services
Market Environment
Future Direction
North America
Promoting a supplier model to streamline a wide range
of processes in manufacturing and on construction sites
Australia
Promoting a new business model pursuing competitive
advantages leveraging strengths in R&D
Hebel Haus™ unit homes, Hebel Maison™ apartment
buildings, pre-owned Hebel Haus™ homes, Neoma
Foam™ insulation panels
Amid expectations of solid ongoing demand for
homes in North America and Australia on the
back of a housing shortage associated with pop-
ulation growth, issues including labor shortages,
lengthy construction periods, and delays in the
adoption of IT have become evident.
Using our know-how in industrialized housing development cultivated in Japan, we
will offer high-quality homes suited to local conditions. In North America, we will aim
to establish and promote a supplier model streamlining a wide range of processes
around housing frames at manufacturing and construction sites. In Australia, we will
pursue customer satisfaction by establishing a highly competitive business model
that builders or suppliers could not achieve alone.
Potential demand is high as only 20% of new
order-built unit homes in Japan currently meet
ZEH standards, despite the government target
for ZEH-level energy efficiency performance in
new housing from fiscal 2030.
Based on our superior homes with high durability and thermal insulation perfor-
mance, we will offer new solutions in the field of energy, such as electricity purchas-
ing systems. By contributing to the environment and realizing customer satisfaction,
we expect this business to continue to be a main source of stable earnings from
fiscal 2025 onward.
• Critical care medical devices, such as defibrillators
(defibrillators for professional use, AEDs, LifeVest™
wearable defibrillator, etc.,)
• Diagnosis and treatment of cardiopulmonary
conditions
Global market growth is anticipated in both criti-
cal care medical devices and the diagnosis and
treatment of cardiopulmonary conditions due to
factors including the progression and increasing
sophistication of medical care and the aging of
society.
We will aim to become the leading global player in cardiopulmonary resuscitation
and related areas through endeavors that include offering critical care medical
devices and multifaceted solutions for the diagnosis, treatment, and management of
heart disease and launching innovative medical devices that address unmet needs
in relation to sleep apnea, acute myocardial infarction, and other diseases.
Global Specialty Pharma (P55 )
Various pharmaceuticals for immunology and transplan-
tation, etc. (such as Envarsus XR™
immunosuppressant)
With approximately 25,000 kidney transplants
carried out annually in the United States, the
market is expected to see ongoing growth.
Bioprocess (P56 )
• Bioprocess-related products centered on Planova™
virus removal filters
• Pharmaceutical contract research organization (CRO)
and contract development and manufacturing organi-
zation (CDMO) services
The bioprocess market is predicted to expand
continuously due to the ongoing growth of bio-
therapeutics, such as biopharmaceuticals, and
the increasing diversity and sophistication of
pharmaceutical technologies.
We will promote business development, clinical development, and sales through col-
laboration between Asahi Kasei Pharma and Veloxis Pharmaceuticals. In addition,
we will aim to capture further growth opportunities, including the potential for
acquiring a business platform in Europe.
In addition to expanding our position in the virus removal filter market, we will aim to
capture further growth opportunities through our entry into the CRO and CDMO
businesses.
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022 26
Generating Cash through the Strengthening of
Existing Businesses and Structural Transformation
reexamining the strategies of strategic restructuring businesses.
Furthermore, we will advance a fundamental business
These businesses are categorized as Recovery businesses
structure transformation, not only with respect to businesses
During the period of the new MTP, we will promote fundamental
(those achieving a recovery in profits through strategy revision),
with deteriorating performance but also from the standpoint of
business structure transformation from a medium-term per-
Follow businesses (those planning and implementing reorgani-
compatibility with our vision. Assessing businesses from the five
spective while aiming to complete the reform of the strategic
zation strategies), and Exit businesses (those under consider-
perspectives of best owner, carbon neutrality, competitiveness,
restructuring businesses, which we has been advancing since
ation for downsizing or divestiture). Going forward, we will
growth potential, and profitability and capital efficiency, we will
the period of the previous MTP.
carefully monitor Follow businesses and downsize or sell Exit
create and implement a specific road map during the period of
Business Evaluation Framework
implement regular evaluations of our business portfolio, based
through fundamental business structure transformation to GG10
businesses as quickly as possible. At the same time, we will
the new MTP. We will then allocate the resources gained
on which we will promptly reformulate the strategies of under-
in order to accelerate the evolution of our business portfolio.
performing businesses.
C
I
O
R
S
O
R
/
Fundamental
business structure
transformation
Strategic
restructuring
businesses
Net sales growth rate
Building on evaluations of the growth potential (net sales growth
rate), profitability (operating margin), and capital efficiency
(ROIC) of each strategic restructuring business, we have evalu-
Reform of Strategic Restructuring Businesses
Fundamental Business Structure Transformation
Revise the strategies of businesses whose recent performance
Structural transformation by assessing not only business
deteriorated due to the COVID-19 pandemic and other factors
performance but also strategic fit with our vision
Exit
Businesses under
consideration for
downsizing or
divestiture
Recovery
Businesses achieving
a recovery in profits
through strategy
Follow
revision
Businesses planning and implementing
reorganization strategies
Best owner
Carbon
neutrality
Competitiveness
Growth
potential
Profitability
and capital
efficiency
Targets in the New Medium-Term Management Plan
Targets in the New Medium-Term Management Plan
ated these businesses including the perspectives of sustainabil-
• Assess Follow businesses that are currently executing
• Formulate and implement a road map for fundamental
ity (quantitative indicators such as GHG emissions), profit
amount, profit volatility, and business stage. Based on the
results of the business evaluations, senior executives, including
the President, and the heads of businesses held discussions
reformulated strategies and complete the downsizing or divesti-
ture of Exit businesses
business structure transformation
• Invest the resources gained through transformation
• Implement regular business evaluations and revise the strate-
in GG10 to accelerate growth
gies of underperforming businesses
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022
Financial and Capital Policy
27
Enhancing Capital Efficiency
economic slowdown as an effect of United States–China decou-
The Asahi Kasei Group focuses on the cost of shareholders’
pling and the COVID-19 pandemic. In response, we are
equity and seeks to continuously realize return on equity (ROE)
advancing strategy reformulation following evaluations of busi-
exceeding that cost. While pursuing the optimal capital struc-
nesses that were unable to maintain certain levels of operating
ture, we will work to heighten return on invested capital (ROIC)
income, ROIC, and revenue growth.
in each business by portfolio transformation, building competi-
Despite the impact of changes in the operating environ-
tive advantage, raising productivity, and carefully examining
ment, we maintained a sound financial foundation thanks to the
investment projects to ensure effective returns.
success of our three-sector management. While emphasizing
Achievements of the Previous Medium-Term
Management Plan
financial discipline, we made proactive investments in the
Health Care sector, where we expect growth over the medium to
long term, in lithium-ion battery separators and other growth
In fiscal 2021, the final year of our previous medium-term man-
businesses, and to strengthen our business platform, such as
agement plan (MTP), net sales exceeded the initial target while
by digital transformation and measures for decarbonization.
profitability and capital efficiency fell short. This was largely due
Regarding shareholder returns, the cumulative dividend payout
to lower than expected operating income and ROIC in the
ratio over the three years of the previous MTP (fiscal 2019 to
Material sector which was impacted by changes in the operat-
2021) was 41%, essentially in line with the initial plan.
ing environment from around fiscal 2019, such as the global
Primary Financial Metrics
FY2018
FY2019
FY2020
FY2021
FY2021 initial plan
(as of May 2019)
Net sales (¥ billion)
Operating income (¥ billion)
Operating margin
EBITDA (¥ billion)
EBITDA margin
Net income (¥ billion)
EPS
ROIC
ROE
D/E ratio
Net D/E ratio
Capital ratio
Profitability
Capital
efficiency
Financial
health
2,170.4
2,151.6
209.6
9.7%
313.6
14.5%
147.5
¥106
8.8%
11.1%
0.31
0.17
53.6%
177.3
8.2%
295.6
13.7%
103.9
¥75
6.6%
7.6%
0.52
0.36
48.2%
2,106.1
171.8
8.2%
305.1
14.5%
79.8
¥57
4.9%
5.6%
0.45
0.30
50.3%
2,461.3
2,400.0
202.6
8.2%
350.8
14.3%
161.9
¥117
6.6%
10.3%
0.45
0.31
50.4%
240.0
10.0%
370.0
15.4%
180.0
¥130
9.0%
11.1%
Around 0.50
—
—
Toshiyasu Horie, CFO
Director, Senior Executive Officer
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022
28
Policies in the New Medium-Term Management Plan
Shareholder returns
the level of shareholder returns, with a payout ratio of around
Framework for capital allocation
We will determine the level of shareholder returns based on the
30% to 40% (total for the three years of the new MTP.) Share
By raising our overall cash generation capability and capital effi-
medium-term outlook for free cash flow. Shareholder returns
buybacks will be performed as deemed appropriate based on
ciency, over the three years of the new MTP we expect to
will basically be by dividends, with an aim to maintain or
comprehensive consideration of the suitable level of equity,
achieve operating cash flow between ¥750 billion and ¥900 bil-
increase dividends per share. We will strive to steadily increase
investment items, and the share price.
lion, and investing cash flow between ¥800 billion and ¥900
billion including capital expenditure and financial investments.
Shareholder returns of between ¥150 billion and ¥180 billion
are expected along with profit growth. We plan to increase
interest-bearing debt to augment cash as needed, expecting to
borrow between ¥50 billion and ¥300 billion depending on the
circumstances. Anticipating a debt-to-equity (D/E) ratio of
between 0.4 times and 0.7 times, we will pursue optimal capi-
tal efficiency while maintaining financial soundness.
Capital expenditure and investments
Over the three years of the new MTP, we plan to make invest-
ments exceeding ¥1 trillion, of which we expect to invest
approximately ¥600 billion in the GG10 businesses. In selecting
investment projects, we will emphasize financial discipline in
both large and small investments for growth by carefully exam-
ining projects from the three perspectives of environmental
value (whether it is worth investment even considering carbon
pricing), investment efficiency (whether it will ultimately contrib-
ute to improved ROIC), and the investment scenario (whether it
is better to invest with capital outside Asahi Kasei.)
Framework for Capital Allocation (three-year period FY2022–2024)
Operating cash flow
3-year total
¥750 billion to ¥900 billion
Borrowing capacity
Increase in interest-bearing debt
+¥50 billion to ¥300 billion
(D/E ratio of 0.4 to 0.7)
Cash flows
(¥billion)
300
200
100
0
（100）
（200）
（300）
（400）
249.9
212.1
139.6
124.5
13.1
253.7
183.3
95.9
（37.7）
（110.3）
（198.9）
（193.7）
（157.8）
（221.0）
（318.2）
Investing cash flow
Capital expenditure and financial investments
3-year total (including M&A)
¥800 billion to ¥900 billion*
* Cash-outflow basis (different from decision-adopted basis)
Shareholder returns
3-year total
¥150 billion to ¥180 billion
Dividends per share and dividend payout ratio
(¥)
40
30
20
10
0
34
34
34
34
34
59.1
45.4
27.9
32.2
29.1
(%)
80
60
40
20
0
2017
2018
2019
2020
2021
(FY)
2017
2018
2019
2020
2021
(FY)
Operating cash flow
Investing cash flow
Free cash flow
Dividends per share (left scale)
Payout ratio (right scale)
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022
29
Green Transformation (GX)
To create new value by strengthening its business platform and enhancing the sophistication of its businesses, the Asahi Kasei Group is focused on the key areas of green
(G), digital (D), and people (P). As green transformation (GX) is a shared and pressing task globally, initiatives are advanced including cooperation with other companies.
Aiming to Create a Carbon-Neutral and Sustainable World
With GX as a key for enabling “harmony with the natural envi-
Framework for Promoting GX
GX in Management Strategy
ronment” under our Group Vision, we aim to create a carbon-
In fiscal 2019, we established a Sustainability Committee with the
GX is one of the pillars of the Asahi Kasei Group’s management
neutral and sustainable world. We are working to achieve this
goal of promoting sustainability across the Asahi Kasei Group.
strategy. In our MTP, we formulated our growth strategy based
aim through a two-pronged approach: reducing GHG emissions
Chaired by the President and with Executive Officers for Business
on megatrends related to climate change. As initiatives related
from our business activities and contributing to reducing soci-
Sectors, Technology Functions, and Business Management
to climate change, pursuing business opportunities from the
ety’s GHG emissions.
Functions as members, the committee shares information on
perspective of reducing risks related to our businesses and miti-
We are targeting a reduction of 30% or more GHG emissions
sustainability-related issues including global environmental mea-
gating and adapting to climate change are key tasks along with
from our business activities by fiscal 2030 (compared with fiscal
sures and provides direction for activities. In fiscal 2021, in order
transforming our business portfolio.
2013), and our goal is carbon neutrality by 2050. We aim to
to accelerate our contribution to reducing society’s GHG emis-
To implement these initiatives related to climate change, we
achieve carbon neutrality with efforts centered on the utilization
sions, we launched a Green Solution Project to advance the cre-
have also allocated a budget for investments related to decar-
of existing technologies up to 2030 in combination with efforts
ation of new businesses aimed at achieving carbon neutrality.
bonization to give greater priority to such investments, and are
over the medium to long term looking ahead to 2050, including
Regarding efforts to reduce GHG emissions from our business
prepared to implement investments totaling approximately ¥60
the development of new technologies. The evolution of our busi-
activities, we appointed an Executive Officer for Carbon Neutrality
billion over the three years to fiscal 2024.
ness portfolio, as set out in the medium-term management plan
and established a dedicated project in fiscal 2022. The project
To raise awareness and encourage actions for achieving
(MTP), is also a vital element in achieving these goals.
has begun detailed discussions on clarifying and giving concrete
carbon neutrality, we operate internal carbon pricing (ICP) that
To contribute to reducing society’s GHG emissions, we will
form to our roadmap for carbon neutrality.
tracks GHG emissions from our business activities as a mone-
capitalize on the diverse technologies and businesses that are a
distinctive feature of the Asahi Kasei Group to pursue the devel-
opment of products and the creation of businesses that will
help reduce GHG emissions from a variety of perspectives.
Given that reducing society’s GHG emissions requires a funda-
mental transformation of social structures, people’s lifestyles,
and other matters, we will proactively cooperate with other com-
panies across industries and promote initiatives with govern-
ment agencies and other parties. Through these efforts, we will
also advance our own evolution and growth.
Board of Directors
(Management Council)
President
Administrative
departments
Strategic business units,
Core operating companies
Sustainability Committee
Global Environment Committee
Other subcommittees
Risk Management & Compliance Committee
ESH & QA Committee
Carbon Neutrality Project
Green Solution Project
tary value. We seek to carefully select investment projects in
order to increase production and accelerate investments that
reduce CO2 emissions by incorporating a monetary value of
¥10,000 per ton of CO2 emissions into calculations to determine
the profitability of capital expenditures. We also incorporate ICP
into performance evaluations for internal awards. Furthermore,
we calculate and provide data to customers on the carbon foot-
print of our products—GHG emissions from the extraction of
raw materials to manufacture and shipment—with a view to
accelerating the reduction of society’s overall GHG emissions.
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022
30
Reducing GHG Emissions from Business Activities
Asahi Kasei has adopted the following targets for Scope 1
power generation, between 100,000 tons and 200,000 tons
liquefied natural gas in order to reduce GHG emissions, with
(direct GHG emissions) and Scope 2 (indirect GHG emissions
through purchases of non-fossil fuel electricity, and between
start-up in March 2022. The fuel conversion is expected to
from the use of electricity, heat, and steam supplied by other
100,000 tons and 200,000 tons through manufacturing pro-
reduce GHG emissions by approximately 160,000 tons annu-
companies), which are the GHG emissions that our business
cess improvement and innovation. In addition, we will transform
ally. We are also expanding our utilization of biomass fuel and
activities most directly affect as a manufacturer, and that we are
our business portfolio with an emphasis on the perspective of
solar power. For example, the Italian manufacturing site of Sage
most expected to reduce.
GHG emission reductions.
Automotive Interiors, Inc., and the Shiga Plant of Asahi Kasei
Targets
2030
Target to reduce GHG emissions by 30% or more
(compared with fiscal 2013)
2050
Goal to achieve carbon neutrality
(net-zero emissions)
In the second step, we will seek to achieve carbon neutrality
Jyuko Co., Ltd., are proactively utilizing solar power generation.
by 2050 through the greening of electricity and steam through
The Asahi Kasei Group has also begun using electricity gener-
the practical application of decarbonization technologies devel-
ated from solar power systems installed on Hebel Maison™
oped by the Asahi Kasei Group, such as alkaline water electroly-
apartment buildings of Asahi Kasei Homes Corp.
In the period covered by the first step toward reducing
sis technology, the innovation of manufacturing processes, and
GHG emissions from our business activities, leading up to
the further transformation of our business portfolio.
Accelerating the Utilization of Carbon Footprints
2030 we will advance reductions with a focus on existing
technologies. In the second step, which we will promote from
Progress to Fiscal 2021
Calculating the carbon footprint of products and services and
providing that data to customers represents an important role
2030 to 2050, we will advance reductions centered on the
The Asahi Kasei Group is successively upgrading and raising
that a materials manufacturer can play in helping society as a
utilization of new technologies.
the capacity of the hydroelectric power facilities it owns, primar-
whole achieve carbon neutrality. With a focus on our mainstay
Specifically, in the first step we will aim to reduce 300,000
ily in Miyazaki Prefecture. In addition, we converted one of our
products, we are advancing the calculation of the carbon foot-
tons of emissions through the low-carbonization of in-house
independently owned coal-fired thermal power plants to run on
print of products while utilizing digital technology.
Roadmap to 2050
(Million tons CO2-e)
1st Step
Reduction centered on
established technologies
3.91
2nd Step
Reduction centered on
new technologies
<3.6
• Low-carbonization of in-house power
generation 300,000 tons
• Purchase of non-fossil power 100,000 to
200,000 tons
• Manufacturing process improvement and
innovation 100,000 to 200,000 tons
• Business portfolio transformation from the
perspective of reducing GHG emissions
• Greening of electricity and
steam through the practical
application of technologies for
alkaline water electrolysis, CO2
separation and recovery, etc.
• Promotion of manufacturing
process innovation
• Promotion of business portfolio transformation
2020
2030
Carbon
neutral
2050
5
4
3
2
1
0
In May 2022, we established a system to calculate the
carbon footprint of synthetic rubber and elastomer products,
and began providing the data to customers in June. Using this
system, we can adjust the unit size and scope of the carbon
footprint data we calculate, enabling us to ascertain data
according to needs. We have also established a platform for
calculating the carbon footprint of performance resins used as
material for automobile parts, electronic parts, etc., by ascer-
taining GHG emissions of each product grade.
Leveraging these leading examples, we will utilize digital
technology to establish a framework enabling us to grasp the
carbon footprint of products in each of our businesses.
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022
31
Contribution to Reducing Society’s GHG Emissions
To contribute to reducing society’s GHG emissions, we are
fiscal 2020. Looking ahead to fiscal 2030, we also aim to further
trains. Asahi Kasei was the first company in the world to com-
working to reduce such emissions from a life cycle assessment
increase the sales ratio of environmental contribution products,
mercialize technology for making polycarbonate using CO2 and
(LCA) perspective, which assesses the impact of our products
which currently account for approximately 30% of total consoli-
ethylene oxide, and has licensed the technology to polycarbon-
and services with an emphasis on reducing environmental
dated net sales excluding the Health Care sector.*
ate manufacturers globally. This technology recovers CO2 that
impact across their entire life cycle. We have adopted the fol-
lowing targets in order to advance the further expansion and
* As the Health Care sector emphasizes providing value to society from the perspective of
enabling “living in health and comfort,” its net sales are excluded from the calculation.
would otherwise be emitted into the atmosphere from other
plants, and uses it as a material to manufacture polycarbonate,
new development of products and services that contribute to
Expansion of Environmental Contribution Products
which reduces CO2 emissions compared with conventional
such reductions.
Defining environmental contribution products
manufacturing methods. In addition, as the manufacturing pro-
Targets
2030
• At least double the contribution to reduced GHG emissions
(compared with fiscal 2020)
• Increase the sales ratio of environmental contribution products
Based on the opinions of outside experts, the Asahi Kasei
Group independently calculates the amount of contribution to
GHG emission reduction from an LCA perspective. We have des-
ignated a total of 20 products and services as environmental
contribution products in fiscal 2022. We are proactively promot-
ing the development and widespread adoption of environmental
contribution products, aiming to at least double their contribu-
tion to reduced GHG emissions by fiscal 2030 compared with
GHG Reduction by Environmental
Contribution Products
Sales Ratio of Environmental
Contribution Products
(Million tons CO2-e)
(%)
30
20
10
0
At least
double
FY2020
30%
2020
2030
FY2030
Taking into account reviews by outside experts, the Asahi
cess involves materials alone, without using solvents, the
Kasei Group assesses the environmental contribution level of
absence of any environmental impact in conjunction with dis-
products proposed by its strategic business units and core
posing of used solvents is also a distinguishing feature.
operating companies from an LCA perspective. The products
and services that are recognized internally as contributing to
Reduction of energy consumption by using CO2 sensors
the environment are designated “environmental contribution
The Asahi Kasei Group has developed CO2 sensors—small,
products.” We assess such products and services from the
high-precision, low-power gas sensors that measure CO2 con-
perspectives of climate change (including CO2 emission
centration levels in the air—by combining the module technol-
reduction, energy saving, and renewable energy), resources
ogy of Senseair AB, a company we acquired, with our own
(waste reduction, recycling, water resources, and raw materi-
compound semiconductor technology. While optimal ventilation
als), biodiversity, and prevention of environmental pollution.
in accordance with air quality can improve the energy efficiency
As efforts to develop and expand such products contribute to
of air conditioning in buildings and large structures, this requires
reduced environmental impact in society while fostering the
the high-precision measurement of CO2 concentration levels.
growth of our businesses, they also help promote the two
Our CO2 sensors are suited to this application, helping to
mutually reinforcing aspects of sustainability of “contributing
reduce the electricity consumption of heating and cooling sys-
to sustainable society” and “the sustainable growth of corpo-
tems. As the measurement of CO2 concentration levels is simi-
rate value,” which we aim for.
larly essential for the energy efficiency of the air conditioning of
Polycarbonate manufacturing technology using CO2
strengthen our environmental con-
Polycarbonate is a high-performance plastic used in a wide
tribution by increasing the sales of
range of products, such as DVDs, Blu-ray discs, housings for
our CO2 sensors in line with the
smartphones and other consumer electronics, automobile
widespread adoption and expan-
headlight covers, and windows for airplanes and high-speed
sion of EVs.
electric vehicles (EVs), we will
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32
Initiatives Regarding Climate Change Disclosure Based on the TCFD1 Recommendations
The Asahi Kasei Group examines the changes that are expected
management share information on and discuss issues related
to occur due to climate change and their impact on its busi-
to sustainability, including climate change. The results of these
nesses from a variety of perspectives. Along with posing risks,
discussions are reported to the Board of Directors, which then
Estimated Cost of CO2 under the +1.5ºC Scenario
The Asahi Kasei Group currently emits approximately four million
tons of CO2 (Scopes 1 and 2) per year. Assuming a CO2 price of
climate change also presents opportunities for Asahi Kasei. Our
discusses issues including the state of initiatives for the whole
¥10,000 per ton, the annual cost of these emissions would come
new medium-term management plan (MTP), which is currently
Asahi Kasei Group. We are also working on a specific roadmap
in progress, was formulated with these risks and opportunities
for achieving our GHG emission reduction targets through the
in mind. We will contribute to the creation of a sustainable soci-
Carbon Neutrality Project (please see page 29 for a diagram
ety through our diverse technologies and businesses while pro-
on this system).
actively promoting climate change adaptation and mitigation
measures as growth opportunities.
Strategy
Basis of analysis
Corporate Governance
We examined the impact on our current businesses and the
The Asahi Kasei Group regards promoting measures to
new opportunities for us leading up to 2050 based on a +4ºC
address climate change as an important management task.
scenario in which global warming countermeasures have not
Accordingly, these measures are one of the core themes of our
progressed adequately (IPCC, SSP3-7.02) and a +1.5ºC sce-
to ¥40.0 billion. As we are reducing our emissions with the goal
of achieving carbon neutrality by 2050, this cost is declining.
Under a trial calculation based on the required CO2 price4 and
our CO2 reduction targets, the total cost of emissions until 2050
would be ¥530.0 billion on a cumulative basis (using a present
value discount rate of 5%).
Meanwhile, the Asahi Kasei Group has approximately ¥1.7
trillion in net assets (as of March 31, 2022) and is positioned to
record positive net income every year up to 2050. We will accu-
rately perceive climate change risks, including CO2 costs, to
pursue business opportunities and evolve our business portfolio.
We will endeavor to expand net assets and enhance shareholder
returns through strategic investments in businesses that contrib-
management strategy.
nario in which CO2 emissions have been significantly curbed in
ute to the environment.
Policies and important matters regarding climate change
order to rein in temperature rises (WEO, Net Zero Emissions by
are deliberated and decided by the Board of Directors, and
2050 Scenario (NZE)3).
specific related matters are determined by the Management
Council, the decision-making body for business execution (spe-
Note: Our analysis is based on a variety of assumptions. Changes to these assumptions
may result in actual risks and opportunities differing significantly from the analysis.
cifically, these include decisions on MTPs, GHG emission
Risks
regulations through carbon pricing and other government poli-
cies primarily aimed at achieving decarbonization, we anticipate
a shift in demand to materials suitable for decarbonization as a
risk. We also anticipate market structure changes resulting from
reduction targets, and capital expenditure plans, as well as con-
Under the +4ºC scenario, we primarily anticipate physical risks,
an acceleration in the transition to a circular economy and the
firming the state of their progress).
such as intense heat, heavy rain, and floods. In particular, we
emergence of innovative technologies designed to create a
Our Sustainability Committee, which is chaired by the
perceive damage to production sites caused by the effects of
decarbonized society as risks.
President, promotes the decisions of the Board of Directors and
increasingly severe storms and floods and the resultant cost of
While the degree of these risks varies, we are advancing
the Management Council at the business level. At meetings of
such damage to be a risk for our major sites in Japan and over-
risk mitigation initiatives based on the view that all may manifest
the Sustainability Committee, members of executive
seas. Under the +1.5ºC scenario, in addition to tightened
as the climate changes going forward.
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 One of the scenarios in the sixth report of the Intergovernmental Panel on Climate Change (IPCC). SSP stands for Shared Socio-Economic Pathway and SSP3-7.0 refers to a regional rivalry in which no climate change countermeasures are enacted and temperatures rise 4ºC by 2100.
3 One of the scenarios in World Energy Outlook (WEO) 2021, prepared by the International Energy Agency (IEA). NZE is a scenario for achieving global net-zero emissions by 2050 in order to limit temperature rises to 1.5ºC by 2100.
4 CO2 prices (US$/tCO2) under NZE in WEO 2021: US$130 in 2030, US$205 in 2040, and US$250 in 2050.
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33
Opportunities
The Asahi Kasei Group has positioned Environment & Energy,
Mobility, Life Material, Home & Living, and Health Care as fields for
provision of value in its MTP. We have also designated GG10 as
businesses in which we will focus resources to achieve growth.
Established on the basis of megatrends related to climate change,
these fields can clearly provide value in terms of mitigation and
adaptation under various climate change scenarios, even consider-
ing the latest IPCC and IEA reports. Accordingly, we believe that our
business promotion and direction can provide various products and
services as business opportunities to address climate change.
Megatrends
Fields for provision
of value
GG10
Relationship with
climate change scenarios
4ºC
1.5ºC
Decarbonized society
Environment & Energy
Digital society
Healthy longevity
society
Mobility
Life Material
Home & Living
Health Care
Hydrogen-Related
CO2 Chemistry
Energy Storage
Car Interior Material
Digital Solutions
North American and Australian Homes
Environmental Homes and Construction Materials
Critical Care
Global Specialty Pharma
Bioprocess
Note: Deemed to have a strong relationship, including a direct reference in the sixth IPCC report and in WEO 2021
Although not as strong as the above, expected to be broadly related
Risks
Important Changes
Main Risks
Major Initiatives
+4ºC
scenario
+1.5ºC
scenario
Serious storm and flood damage
“Physical” production risks
• Impact on production from damage to plants or suppliers
• Continuous revision of BCP and reinforcement of preemptive response
(review of inventory levels, study of multiple suppliers/sites, etc.)
Rise in temperature
“Human” production risks
• Deterioration of working environment and productivity at
• Promotion of industrialization and utilization of IT in housing construction
• Promotion of heatstroke countermeasures at construction sites
Decarbonization
Changes in market structure
construction sites
• Rise in costs due to stricter regulations (manufacturing and raw
material costs)
• Changes in materials needs (decarbonization requirements,
necessary specifications)
• Contraction of existing markets due to the transition to
a circular economy
• Contraction of existing markets due to the advance of
replacement technologies
• Expansion in utilization of renewable energy, etc.
• More efficient energy use; development and commercialization of industrial processes for decarbonization
• Decarbonization of raw materials
• Acceleration of product decarbonization by ascertaining carbon footprints5
• Development of material and chemical recycling technologies and promotion of their practical application
• Adoption of biomass feedstock
• Review of management resource allocation
Opportunities
Important Changes
Main Opportunities
Major Initiatives
+4ºC
scenario
+1.5ºC
scenario
Serious storm and
flood damage
Increase in heatstroke and
infectious diseases
• Increase in need for disaster-resilient housing
• Greater emphasis on resilience in home construction and urban development, such as the expansion of Hebel Haus™
• Expansion in demand for existing and new pharmaceuticals and
acute critical care products
• Provision of related pharmaceuticals and medical devices
• Provision of related process materials, equipment, and services
and Hebel Maison™
Decarbonization
government policies
• Expansion in demand for carbon-free products
• Promotion of the spread of ZEH6 and ZEH-M6 through
• Decarbonization of homes and urban environments through the expansion of ZEH-compliant Hebel Haus™ and Hebel Maison™
• Promotion of the low carbonization of various products (energy, materials, processes)
• Development of chemicals made with CO2 as material
Spread of electric vehicles (EVs)
• Increase in EV-related demand (battery components, materials
for reducing vehicle weight)
• Development of materials for next-generation mobility
• Strengthening of collaboration with automobile and battery manufacturers
Advent of a hydrogen society
• Increase in demand for water electrolysis using renewable energy
• Development of a system to manufacture green hydrogen and promotion of its commercialization
Transition to a circular
economy
Expansion of the digital market
• Expansion in demand for materials and infrastructure compatible
with a circular economy
• Development of material and chemical recycling technologies and promotion of their practical application
• Adoption of biomass feedstock
• Growth in demand for decarbonization-related digital solutions
• Promotion of electronic components, such as current sensors and CO2 sensors, and semiconductor- and substrate-related electronic
(industry and society)
materials businesses
5 GHG emissions of a product from material extraction to production
6 Net Zero Energy House (ZEH) and Net Zero Energy House Mansion (ZEH-M): Houses and apartment buildings with a net energy consumption of zero or less through advanced insulation and energy saving combined with power generation such as solar
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022 34
Risk Management
Metrics and Targets
Asahi Kasei implements independently assured tracking of its
The Asahi Kasei Group has positioned the following metrics as being relevant to climate change risks and opportunities.
GHG emission volumes on an annual basis. The Sustainability
Committee and its subcommittee the Global Environment
Committee share information on the results and the level of
GHG emissions7
2030: Reduce by 30% or more
(compared with fiscal 2013)
2050: Achieve carbon neutrality
Target
Significance of Metric
progress toward achieving targets and discuss future initiatives.
GHG emissions7/operating income
(Fiscal 2021 result: 0.20 t-CO2e/100 million yen)
Decline signifies reduction of carbon tax risk
The committees also monitor the level of GHG emission reduc-
ROIC
Around 2030: Achieve ROIC of 10% or more
Increase indicates progress toward becoming a high-
earnings enterprise capable of adapting to change
tions, examine business strategies, and report to the Board of
Directors during the formulation and annual review of the MTP.
Operating income of GG10
Around 2030: 70% or more of total operating income
(Fiscal 2021: 35%)
Signifies growth of related businesses capable of contrib-
uting to addressing climate change
In addition, the committees monitor related matters on a quar-
Others
terly and monthly basis. For capital expenditures examined and
Internal carbon pricing (ICP)
Make investment decisions based on ¥10,000/t-CO2e and utilize in awards program
proposed as needed, the committees also assess profitability
and make decisions in light of internal carbon pricing.
Reflection of climate change issues
in executive remuneration
Reflect the level of achievement of sustainability promotion, including initiatives related to climate change, in perfor-
mance-linked remuneration
7 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)
Overview of the Group’s Response to Climate Change
Various scenarios in the event of climate change progressing
From curtailing temperature rises through government policies and social changes to intense heat, flood damage, and ecosystem destruction, etc., through failure to curtail temperature rises
Risks
Transition risks
• Carbon pricing (CO2 costs)
• Loss of value of business assets through CO2 costs
• Business deterioration resulting from technological
progress and market changes, etc.
Physical risks
• Damage to supply chain due to flooding and other
adverse weather events, etc.
Asahi Kasei Group Management
Opportunities
Promotion of new MTP focused on the theme
“Be a Trailblazer”
(GG10, asset-light, business structure transformation)
Control
KPIs
GHG emissions, GHG emissions/operating income, ROIC,
GG10 operating income
Progress management
Quarterly meetings, rolling review of MTP, monthly monitoring,
Global Environment Committee
Proactive
advancement
Climate change mitigation and adaptation
• Hydrogen-related
• Digital-related products
business
and services
• CO2 separation,
• Health care business, etc.
recovery, and utilization
• EV-related business
• ZEH and resilient homes
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35
Digital Transformation
Formulation of a DX Promotion Road Map and
the Asahi Kasei DX Vision 2030
Strengthening of the DX Framework
We have worked to strengthen the framework to accelerate the
Cultivation and Recruitment of Digital Human
Resources
The Asahi Kasei Group proactively promotes the utilization of dig-
promotion of DX across the Asahi Kasei Group as a whole. In
We are proactively cultivating and recruiting digital human
ital technology as a means of leveraging its diverse intangible
April 2021, we established Digital Value Co-Creation, an organi-
resources. Along with solidifying our DX human resources
assets to transform business models and drive value creation. In
zation consolidating the promotion of DX in each of the func-
foundation by advancing measures to create 40,000 digital
promoting the utilization of digital technology, we formulated an
tions of sales, marketing, research and development (R&D),
personnel, with all employees acquiring digital literacy and
overall road map to reinforce our foundations for advancing digi-
manufacturing, and production together with digital technology-
working with a mindset for utilizing digital technology, we are
tal transformation (DX), setting the period up to fiscal 2021 as
related matters such as IT infrastructure and cybersecurity. In
also cultivating human resources who can promote DX autono-
the Digital Introduction Period to focus on its front lines and
doing so, we put in place a system for co-creation and collabo-
mously in each of our businesses, including through the devel-
resolve actual issues using digital technology and the Digital
ration with internal and external parties in the digital field. To
opment of business leaders into DX leaders. Through the
Deployment Period to deploy digital technology across busi-
promote such co-creation and collaboration, we opened CoCo-
implementation of development programs and recruitment, we
nesses, regions, work roles, and other aspects of operations.
CAFE, a digital co-creation laboratory with the aim of fortifying
have also advanced the cultivation and recruitment of digital
From fiscal 2022, we will advance the utilization of digital tech-
our DX foundation and creating businesses by encouraging
professional human resources who can resolve the issues of
nology in adding value from intangible assets and creating new
interactions among internal and external digital-related human
businesses and create new value and business models by uti-
business models and businesses as the Digital Creation Period
resources. We have also established a system for collaboration
lizing advanced digital technology and data. As a result of
with the aim of transitioning to the Digital Normal Period, which
between the heads of business units and Digital Value
these efforts, we achieved our target of recruiting and cultivat-
sees all employees utilize digital
technology as a matter of course. In
recognition of these initiatives, Asahi
Kasei was selected as a DX Stock for
two consecutive years in 2021 and
2022, a selection made jointly by
the Ministry of Economy, Trade and
Industry and the Tokyo Stock Exchange, Inc. Our initiatives were
also featured in DX White Paper 2021, which was published by
the Information-technology Promotion Agency, Japan.
In fiscal 2021, we formulated the Asahi Kasei DX Vision 2030
Co-Creation (relationship manager system) to facilitate the
ing 230 digital professional human resources by the end of
sharing of issues, key topics, and other matters in each busi-
fiscal 2021, as planned.
ness and the promotion of concrete initiatives.
Overview of the DX Promotion Road Map
From 2018
Digital Introduction
Period
From 2020
Digital Deployment
Period
From 2022
Digital Creation
Period
From 2024
Digital Normal Period
in order to further accelerate DX. The vision internally and exter-
• MI, production technology
• Formulation of the Asahi Kasei
• Business model transformation,
nally portrays the world that we aim to realize through DX in 2030
innovation, IP landscape, etc.
DX Vision 2030
adding value from intangible assets
by co-creating “healthy living” and “a future world full of smiles”
About 400 projects
through borderless connections enhanced by digital innovation.
• Digital Value Co-Creation,
• Utilization in management
co-creation laboratories, etc.
decision-making
• Utilization in human resource
management, etc.
All employees gain
a mindset of digital utilization
Foundations of functional DX
Acceleration of group-wide
Management innovation
DX promotion
through DX
40,000
digital human
resources
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022
Three Main Pillars of the Digital Creation Period from
Fiscal 2022
For a strengthened digital platform, we will accelerate the culti-
vation and recruitment of digital human resources, instill agile
In the Digital Creation Period from fiscal 2022, the Asahi Kasei
development that makes use of design thinking throughout the
Group will promote DX through the three main pillars of business
Asahi Kasei Group, and facilitate data utilization.
transformation, enhancement of management, and a strength-
We have also established DX-Challenge 10-10-10 as a key
ened digital platform based on its data management platform
performance indicator (KPI) (fiscal 2024 target) to measure the
with a diverse array of data. In terms of specific initiatives, we
progress of our DX efforts. Under this KPI we will aim for a ten-
will focus on business transformation in the five areas of adding
fold increase in the number of our digital professional human
value from intangible assets and accelerating co-creation, inno-
resources compared with fiscal 2021 (approximately 2,500 of all
vating marketing, connecting supply chains, creating new busi-
employees globally), a tenfold increase in the volume of data
nesses, and operating smart factories. For the enhancement of
usage throughout the Asahi Kasei Group compared with fiscal
management, we will focus on the six areas of DX utilization for
2021, and a ¥10 billion profit contribution from main projects, in
promoting the visualization of management and for decision-
addition to the contribution to profits through the utilization of
making, sophisticated intellectual property usage, invigoration of
DX in normal business activities. In these ways, we will fully uti-
human resources, advanced research and development, quality
lize our diverse assets by leveraging digital technology to change
maintenance, and the visualization of product carbon footprints.
our business models at a rapid pace.
Three main pillars of the Digital Creation Period
Innovating
marketing
Connecting supply
chains
Business transformation
Life Material
Life Material
Life Material
Creating new
businesses
Mobility
Mobility
Mobility
Home & Living
Home & Living
Home & Living
Operating smart
factories
Asahi Kasei
data management
infrastructure DEEP
Health Care
Health Care
Health Care
Supply chain
Visualization of
carbon footprints
Adding value
from intangible
assets/accelerating
co-creation
Environment
Environment
Environment
& Energy
& Energy
& Energy
Visualization of
management/
decision-making
Plants
R&D
Corporate
Enhancement of management
Quality
maintenance
Sophisticated IP
usage
Human resources
DX
Advanced R&D
Strengthened digital platform
Digital HR cultivation and recruitment, further introduction of agile development,
promotion of digital data usage
DX-Challenge 10-10-10
Digital professional human
resources
Volume of digital data usage
10 times
(vs. FY2021)
10 times
(vs. FY2021)
Profit contribution from main
projects
¥10 billion
(Three-year total)
DX-related investment*
Three-year total:
≈¥30.0 billion
* IT investments and cloud usage fees for digital transformation
36
Kazushi Kuse
Director
Primary Executive Officer
Oversight: Digital Transformation (DX)
Senior General Manager,
Digital Value Co-Creation
Eliminating All Barriers through Digital
Technology to Evolve Value Creation
I believe that people, data, and organizational culture are the
three factors that are vital to the success of DX. The Asahi
Kasei Group accumulates an enormous volume of data from
its diverse businesses, technologies, and human resources.
The extent to which we can create new value, such as busi-
ness transformation and increased efficiency, by making full
use of such data depends on our people and organizational
culture. DX will progress dramatically when we have estab-
lished an organizational culture in which not only digital pro-
fessional human resources but all employees properly
understand digital technology to make full use of the abun-
dance of data we accumulate, and in which employees pro-
actively utilize Garage methodology and the like to promote
agile development. Ultimately, spurring transformation
depends on people and organizations—digital technology is
a means of achieving such transformation.
I sense a tremendous potential in a future that will be
unlocked by combining manufacturing technology with digi-
tal technology. We will continue transcending the barriers
among companies and industries through the power of digi-
tal technology to accelerate our contribution to resolving a
wide range of social issues and the creation of new value.
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37
People, Data, and Organizational Culture as Success Factors for Digital Transformation: Initiatives of the Asahi Kasei Group
People
Data
Organizational culture
In fiscal 2021, we launched the Asahi Kasei DX Open Badge Program
Accelerating value creation as an integrated whole requires a frame-
Fostering an organizational culture to drive the Asahi Kasei Group’s
with the goal of enhancing the digital literacy of all employees. The
work that enables the data assets accumulated in the Asahi Kasei
digital transformation and value creation is essential. With this in
program comprises five levels, from Level 1 to Level 5, with those up
Group to be utilized in a cross-sectional manner. To this end, we have
mind, we are promoting Garage methodology—an approach for spur-
to Level 3 designated as expected achievement levels for all employ-
established the data exploration and exchange pipeline (DEEP), a
ring innovation and achieving DX—to foster such an organizational
ees to become digital human resources and Levels 4 and 5 used as
data management platform. DEEP can readily locate data dispersed
culture. The Garage approach is used to create new value and ser-
part of efforts to cultivate digital professional human resources. We
throughout the Asahi Kasei Group and link data between different
vices based on products and know-how in Asahi Kasei’s diverse busi-
have currently held courses up to Level 3, with employees worldwide
systems. These functions have reduced the lead time required to uti-
ness sectors through co-creation and digital technology. A diverse
working to acquire the knowledge and skills through e-learning and
lize data, increased efficiency, and raised productivity. Going forward,
range of participants in different generations, positions, and organiza-
hands-on experience to resolve issues autonomously on the front
we will use the platform to enhance data governance and foster a
tions use design thinking to create narratives of human-centered
lines utilizing digital technology. Employees are issued with a digital
data utilization culture. Using DEEP, we are currently advancing
ideas and experiences. Deploying a development style that verifies
badge managed by a blockchain after completing each level, which
efforts that include consolidating the sales data of automotive-related
value in an agile manner will enable us to foster a culture that reflects
helps promote the visualization of their skills. For Levels 4 and 5, we
businesses, visualizing the carbon footprint of our products, and visu-
user feedback without delay. The fostering of an organizational cul-
will advance the cultivation of digital professional human resources in
alizing the state of management of each business. We will further
ture for digital transformation and value creation is proceeding
coordination with ongoing human resource cultivation efforts in the
accelerate the digital transformation of our businesses by utilizing
steadily with CoCo-CAFE—a venue for taking on challenges and
fields of R&D and production technology along with the Group
DEEP to drive forward the sharing and utilization of the information
co-creating—being utilized in a variety of value creation activities
Masters program.
assets of the Asahi Kasei Group as a whole.
and undertakings on a daily basis.
Dashboard
Portal site
Level 1
Knowledge
Novice level
15 minutes
Level 2
Skill
Intermediate
level
Level 3
Experienced
Target for all
employees
1 hour
A few hours
Level 4
Expert
True digital
professional
Solving actual
problems
Level 5
Thought Leader
Transformation
driver
Recognized as
Group Masters
Sharing a dashboard utilizing various
data on the portal site
40,000 digital personnel targeted in fiscal 2023
Pictograms to enliven use
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022 38
Transformation of HR
The Asahi Kasei Group seeks to create new value by leveraging its diverse intangible assets including human resources, intellectual property, know-how, and data. To
support this effort, we are developing platforms that support the autonomous growth of our human resources and are conducive to contributions from diverse individu-
als in accordance with our basic principles that “people are our most valuable assets” and that “everything starts with people.”
The Asahi Kasei Group’s Human Resource Strategies
Discovering the Future with Lifelong Growth and
Co-creativity of Diverse Individuals
To ensure lifelong growth, we will further intensify efforts to promote
In specific terms, we are promoting a number of measures
learning and challenges aimed at achieving such growth, with each
with the objective of raising the active participation and work
Lifelong growth—whereby all employees continuously challenge
and every employee envisioning their own career, and enhance
engagement of diverse human resources. These entail enhancing
themselves and achieve growth—and co-creativity—leveraging the
management capabilities that bring about results by fully drawing
the development of professional human resources by expanding
Asahi Kasei Group’s diversity to promote collaboration—will play an
out the strengths of individuals and teams.
the Group Masters program,* implementing measures aimed at
important part in enabling us to adapt and take the initiative in an
To enhance co-creativity by leveraging diversity, we will imple-
revitalizing our organizations and spurring the growth of our human
operating environment characterized by discontinuous and unpre-
ment a range of initiatives focused on expanding diversity and con-
resources based on the results of KSA engagement surveys (an
dictable changes.
necting diversity.
Overview of Human Resource Strategies
People are our most valuable assets, everything starts with people
Discovering the future with lifelong growth and co-creativity of diverse individuals
Promoting challenge and growth
Lifelong growth
Autonomous career
development and
realization of growth
Improvement of management
capabilities to draw out the strengths
of individuals and teams
Enhancing employee
well-being and work engagement
Leveraging diversity
Co-creativity
Expanding diversity
Diverse expertise,
Connecting diversity
Combination and integration of
individuality, and workstyles
knowledge
Strengthening competitiveness
of the Asahi Kasei Group
Number of Group Masters
FY2024: 300
(FY2021: 259 in 64 fields)
Main KPIs
Growth behavior index
Continuous actions to monitor
and maintain/improve
Engagement survey results
on a 5-point scale
FY2020: 3.65, FY2021: 3.69
Diversified HR index
Proportion of women working as managers
and Group Masters
FY2030: 10%
(FY2018: 2.2%, FY2021: 3.4%)
Proportion of women and non-Japanese Executive Officers
FY2018: 8%, FY2022: 22%
assessment of employee empowerment and growth), and estab-
lishing a workplace environment that facilitates the active participa-
tion of diverse human resources, including women. In order to
expand the human resources responsible for management, we are
encouraging the next generation of leader candidates to take the
initiative in achieving their own growth through coaching and other
approaches while implementing training through programs to
strengthen leadership and teamwork.
We are also providing systems, IT infrastructure, and other
attributes of the working environment to facilitate employee perfor-
mance in the post-COVID-19 era. Going forward, we will utilize digi-
tal tools to promote the visibility of human resources and connect
them with each other to enable diverse individuals to enhance their
expertise and achieve growth, regardless of their age. In addition,
we will establish key performance indicators (KPIs) and implement
measures that will allow us to continuously provide value to society
by combining and uniting their knowledge.
* A program to increase highly specialized human resources who are recognized inside
and outside the company by appointing, developing, and rewarding human resources
as Group Masters who proactively engage in, and are expected to contribute to, the cre-
ation of new businesses and the strengthening of established businesses
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022
39
Enhancement of Human Resource Management Capacities
Workplace environments have been transformed as a result of
autonomous growth of both employees and organizations.
impact facilitates the ability to visualize the success or failure of
the COVID-19 pandemic, making online communication the
The KSA engagement surveys are based on the empower-
past measures and provides accurate information on the current
norm and fostering greater acceptance of diverse lifestyles and
ment and growth cycle model proposed by Professor Hiroya
status of the organization that can be used to guide future action.
workstyles. As such, the empowerment and motivation of
Hirakimoto of Osaka University and use three indicators related
In fiscal 2021, we began conducting and utilizing KSA in an
employees requires management to implement appropriate
to individual employees and organizations: (1) Supervisor–
integrated manner with stress checks, which had previously
measures based on an accurate understanding of the circum-
subordinate relationships, workplace environments; (2)
been conducted separately. This enables a more multifaceted
stances surrounding employees and organizations. Based on
Employee empowerment; and (3) Action driving growth.
and comprehensive understanding of individuals and organiza-
this recognition, the Asahi Kasei Group launched its KSA
The gauging of these three indicators and their degree of
tions, which contributes to the formulation of measures.
engagement surveys in fiscal 2020, which gauge metrics per-
taining to employee empowerment and growth. Work engage-
ment is generated from 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, demonstrated through support from
supervisors and coworkers, workplace discretion, and evalua-
tions and feedback. To measure work engagement, we track
conditions pertaining to the empowerment of individual employ-
ees, supervisor–subordinate relationships, and workplace envi-
ronments. This information is shared within the organizations to
facilitate discussion among employees and therefore spur the
Items Gauged through KSA Engagement Surveys
1) Supervisor–subordinate
relationships,
workplace environments
• Support from supervisors
• Interpersonal relationships
supporting work
• Encouragement of ingenuity
• Respect for diversity
• Workplace openness
2) Employee empowerment
3) Action driving growth
• Ability to maintain a positive stance
(individual capabilities)
- Confidence, feeling of self-efficacy
- Strength to overcome adversity
- Capacity for plotting course toward achieving goals
- Optimism
• Motivation toward work (work engagement)
• Experience-based learning
• 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)
2) Employee
3) Action driving
empowerment
growth
Individual and
organizational
growth
1) Supervisor–subordinate relationships,
workplace environments
“ It was very beneficial to use the results of the KSA survey in
discussions with division members to involve everyone in
“ The results of the KSA survey cast light on aspects of organiza-
tions that I was unaware of as a department head. The weak-
thinking about ways to drive employee empowerment and
growth in the workplace.”
“ The KSA survey results helped me share the strengths and
weaknesses of our organization with everyone.”
nesses 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 Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022
40
Group Masters Program
In implementing human resource strategies, the heightening of
resources while enabling us to recruit external talent. Moreover,
platforms, and diverse market channels and business models
the specialized skills of individual employees is as important as
succession plans are put in place for Group Masters to link the
that serve as the source of our competitiveness. In fiscal 2021,
the enhancement of human resource management capacities.
development of human resources with the cultivation of busi-
biotechnology was added to the fields identified as core tech-
For this purpose, the Asahi Kasei Group has established the
nesses in order to raise competitiveness.
nologies, bringing the total to ten as shown below. We also
Group Masters program to appoint, nurture, and reward individ-
annually review the fields and categories of work for which spe-
uals who are contributing or are expected to contribute to the
Group Masters Human Resource Portfolio
cialists should be cultivated in both specific business fields and
creation of new businesses or the reinforcement of established
Under the Group Masters program, technology fields to be
core company-wide functions as core platforms. In fiscal 2022,
businesses as Group Masters. This program thus helps develop
strengthened from a cross-business perspective are defined as
we added machine safety and other items to core platforms
a robust pool of human resources with high-level specialist
core technologies, and engineers that drive the enhancement of
while making changes that included transferring digital innova-
expertise and skills who are competitive inside and outside the
technologies in these fields are appointed as Group Masters.
tion from core technologies to core platforms. In this way, we
organization. The program defines five ranks of Group Masters.
For the pursuit of ongoing business growth and new business
are accelerating the development of human resources who will
The roles of each rank are clearly defined, and compensation
creation over the next five to ten years, we annually review the
drive forward each sector.
increases in line with rank, to promote the growth of human
core technologies, production technologies, expertise, business
Group Master Ranks and Roles
Group Masters Fields in Fiscal 2022
Ranks
Roles
Executive Fellow
Senior Fellow
(Status Equivalent to Executive Officer)
(Status Equivalent to Managing
1. Actively participating in
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
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
Person ranked below Principal Expert (candidate to be Principal Expert)
Lead Expert
Person ranked below Lead Expert (candidate to be Lead Expert)
Expert
and contributing to new
business creation and
strengthening operations
by cultivating and enhanc-
ing their skills and abili-
ties as a leading specialist
2. Fostering younger person-
nel in the relevant areas
Actively participating in and
contributing to new business
creation and strengthening
operations by cultivating and
enhancing their skills and
abilities
Business unit-specific fields
88 Group Masters
Material
Homes
Health Care
Core technologies
131 Group Masters
• Membranes and separation
• Electrochemistry (electrolysis and batteries)
• Fibers and polymers
• Catalysts, chemical processes, and
• Analysis and computer simulation
• Biotechnology
• Process development and
construction technologies
inorganic synthesis
• Compound semiconductors
• Product design and advanced control
• Plant engineering
R&D
Support functions
Digital innovation
Core platforms
76 Group Masters
Quality assurance
Environmental
preservation
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022 41
Active Participation of Global Human Resources
Promotion of Human Resources
from Companies Acquired Overseas to
the Management of Core Operating Companies
Development and Active Participation of
Human Resources Hired Locally Overseas
suggestion by the United States team during those discus-
sions formed the basis of “Be a Trailblazer,” the theme of the
We are further promoting efforts to develop outstanding human
new MTP.
When an overseas business is acquired, its outstanding human
resources hired locally overseas to be human resources who
resources are also incorporated into the Asahi Kasei Group.
contribute not only to their respective businesses but to the
Their participation is advancing in the management of core
Asahi Kasei Group as a whole. In addition to working to develop
operating companies at the Executive Officer level. Also, while
human resources hired locally overseas, including through
Asahi Kasei Corp. had three non-Japanese Executive Officers in
cross-border rotations for their development and the strength-
fiscal 2016, this increased to six in fiscal 2022. Of these six,
ening of their networks with personnel in Japan, we are promot-
one has oversight of a business sector while another has been
ing their participation in discussions by the next generation of
assigned as Chief Executive of an acquired business. As these
leaders on company-wide subjects. In fiscal 2021, when con-
appointments demonstrate, we utilize human resources in ways
sidering the new medium-term management plan (MTP)
that extend beyond their original business backgrounds.
which began in fiscal 2022, we created teams comprising
next-generation leaders from the United States, Europe, and
China to discuss the Asahi Kasei Group’s vision for 2030. A
Comments from Participants in Workshops on the Asahi Kasei Group’s Vision for 2030
“ I was able to deliberate on future businesses as well as work across divisions
with a real sense of unity. The workshop produced many wonderful ideas. I
think it would be excellent for the Group to hold similar exercises every two or
three years on improving its current businesses as well as on its future vision.”
—Phani Nagaraj, Asahi Kasei Asaclean Americas, Inc.
“ The workshop gave me a sense that the Group is committed to trans-
forming itself to move forward. With the further vitality of those working
locally, I have high hopes for the Group’s development and success in
the Chinese market.”
—Juan Guo, Asahi Kasei Microdevices (Shanghai) Co., Ltd.
“ The workshop was a great opportunity for me to network with other members
of the Asahi Kasei Group. I am grateful for this experience and hope that
such company-wide networking opportunities will continue in the future.”
—Meghann Woo, Synergos Companies LLC
“ This initiative led me to feel that the Asahi Kasei Group has the potential to
offer valuable solutions that are really needed by the industry through the
synergies the Group creates.”
—Bijan Farazandeh, Asahi Kasei Microdevices Europe GmbH
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022 42
New Business Creation
Various Approaches to New Business Creation
The Asahi Kasei Group primarily adopts three approaches—
research subjects, corporate venture capital (CVC) activities,
business creation, we are focusing on green (G), digital (D),
in-house R&D, investment in startups and other promising
and strengthening the implementation of M&A in order to pro-
and people (P)—GDP—transformation and the full utilization of
companies, and collaboration/M&A—to the creation of new
mote and accelerate each of these approaches. To strengthen
intangible assets.
businesses. We take steps including eliciting and advancing
the business platform underpinning these approaches to new
Material
Homes
Health Care
Businesses
Life Innovation
Homes
Acute Critical
Care
Technologies underpinning
businesses
Measures
Business platform
Environmental
Solutions
Mobility &
Industrial
Construction
Materials
Pharmaceuticals &
Medical Care
Businesses
in three sectors
Fruitful trees
In-house R&D
Planting seeds
Investment in startups and other promising companies
Nurturing saplings
Collaboration/M&A
Transplanting trees
Eliciting and
advancing
research subjects
• Unrestrictive work systems (20% rule)
• Holding internal business contests
• Eliciting new business concepts using backcasting
(activities designing the society of the future)
• More than 30 investments and two acquisitions
CVC activities
• Cultivating business selection acumen for more than a decade
• Strengthening ties with startups
(including recruitment of local employees)
Strengthening of
the implementa-
tion of M&A
• 2012 Acquisition of ZOLL Medical Corporation
• 2015 Acquisition of Polypore International, Inc.
• 2018 Acquisition of Sage Automotive Interiors, Inc.
• 2020 Acquisition of Veloxis Pharmaceuticals, Inc.
Areas to strengthen the business platform: GDP transformation and full utilization of intangible assets
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022 43
Fully Utilizing Intellectual Property and Other Intangible Assets to Create New Businesses—Establishment of the Intellectual Property Intelligence Department
The Asahi Kasei Group’s policy for utilizing intellectual property and other intangible assets entails aligning them with corporate strategy
Policy for utilization of intellectual property and other intangible assets
and business strategies in a timely manner, maximizing its own diverse intangible assets, and fully utilizing intellectual property land-
scaping (IPL). Based on this policy, we established the Intellectual Property Intelligence Department as an organization reporting to the
Timely alignment
Maximization of
Visualization of
with corporate/
the value of diverse
intangible assets
Executive Officer for Corporate Strategy, tasked with the mission of utilizing intellectual property and other intangible assets to create and
business strategies
intellectual property
using IPL
execute strategies aiming to achieve the growth of GG10.
Case Studies of Business Strategies Utilizing Intellectual Property and Other Intangible Assets Focused on Creating New Businesses
Formulation of strategies for the hydrogen-related business
Process for Formulating Strategies for the Hydrogen-Related Business
Centered on alkaline water electrolysis technology, we have cre-
ated business strategies utilizing intellectual property and other
intangible assets via the following steps in order to enter the
hydrogen business.
STEP 1
STEP 2
STEP 3
Implement an overarching analysis of the entire hydrogen business
based on available information
Using IPL, clarify the technologies that will be our strengths and the
technologies that will be the strengths of competitors
Verify our areas of superiority and consider partners with whom we
should join forces
STEP 1 Industry Trend Analysis
STEP 2 Benchmarking
Additional Analysis and
Examination of Business Strategies
STEP 3
Overview of industry trend
Capabilities of competitors
Strategy to focus on strength
Strategy for co-creation
Understand alkaline water
electrolysis technology trends
Identify noteworthy players
(companies)
Technology
1
Technology
2
Technology
3
Technology
4
Technology
5
Verification of superiority based on an overview
of patents in relation to Technology 3
Co-creation with a partner that has
Technology 4, which Asahi Kasei lacks
Asahi Kasei
Company A
Company B
Company C
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Asahi Kasei
Company X
Company Y
Technology 2
Technology 5
Technology 4
Formulation of strategies for circular economy-related
Strategies for Fully Maximizing the Value of Intellectual Property and Other Intangible Assets in the Circular Economy Market
businesses
To lead the design of the circular economy (CE) market, we
must combine accelerating market formation with achieving
commercial viability. The Asahi Kasei Group seeks to accelerate
development by carrying out joint development with other com-
panies in order to take the initiative in the CE market. We
reduce our investment by outsourcing technologies that have
already been established and widely licensing low-profit busi-
nesses to other companies. We will ensure the commercial via-
bility of our core sectors by continuing to maintain exclusive
ownership of them.
Outsourcing
Outsourcing mature
technologies to reduce
capital investment
Joint R&D
Adopting cutting-edge
technologies from
academia and startups
Asahi Kasei Group
exclusive technology
R&D
Production
(Asahi Kasei
Group)
Production and sales
Realizing profitability
through building/
maintaining exclusivity of
the Asahi Kasei Group’s business
￥
Customers
Recycling
Blockchain
(technology
obtained)
Use
Reuse
Obtaining standard essential patents
(SEPs)
Recovery
Standardization
(out-licensing)
Licensing-out business
with a narrow profit
margin through standardization
￥
Patent pool
(SEPs)
￥
Partners
Academia
Startups
Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate GovernanceAsahi Kasei Report 2022 44
Business Strategies by Sector
45 Material
46 Hydrogen-Related
47 CO2 Chemistry
48 Energy Storage
49 Car Interior Material
50 Digital Solutions
51 Homes
52 Environmental Homes and Construction Materials
53 North American and Australian Homes
54 Health Care
55 Global Specialty Pharma
56 Bioprocess
57 Critical Care
58
Interview with the CEO
of ZOLL Medical Corporation
Growth StrategyAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
Business Strategies by Sector
Material
Koshiro Kudo
Executive Officer
for Material Business Sector
President & Representative
Director
In fiscal 2022, Asahi Kasei reconfigured the Material
sector into three strategic business units:
Environmental Solutions, Mobility & Industrial, and
Life Innovation. Amid dramatic upheaval in the
operating environment prompted by social changes
Sales Composition and Major Products by Business Field
Life Innovation
Digital Solutions
• Mixed-signal LSIs, electronic compass
• Magnetic sensors • UVC LEDs
• Pimel™ photosensitive polyimide/PBO precursor
• Sunfort™ dry film photoresist • Glass fabric
Comfort Life
• Bemberg™ cupro fiber, Roica™ premium stretch fiber
• Saran Wrap™ cling film
• Ceolus™ microcrystalline cellulose pharmaceutical and
food additive
• Photopolymers and platemaking systems
J
a
p
Material Sector
FY2021 Net Sales
¥1,210.0 billion
a
n
4
0
%
O
v
e
r
s
e
a
s
(after reconfiguration*)
6
0
%
Basic Policy of the Medium-Term Management Plan
45
Environmental Solutions
• Hipore™ and Celgard™ lithium-ion battery separators,
Daramic™ lead-acid battery separators
• Chlor-alkali electrolysis systems, Microza™ hollow-fiber filtration membranes
• Synthetic rubber, elastomers
• Acrylonitrile (AN), methyl methacrylate, styrene, polyethylene, polystyrene
Mobility & Industrial
• Dinamica™ artificial suede
• Leona™, Tenac™, and Xyron™ engineering plastics, SunForce™ foamed
beads, Asaclean™ purging compound for molding machines
• Leona™ nylon 66 filament
• Duranate™ curing agent for polyurethane coatings
including decarbonization, the Material sector has
Basic Strategy
adopted a more keenly market-focused business
Improving profitability and capital efficiency by portfolio transformation with strategies and tactics that are not following existing paths in order to
management, with an organizational system sup-
realize carbon neutrality
porting the Environment & Energy, Mobility, and Life
Material fields for provision of value. In this way, we
will promote business expansion by strengthening
existing businesses and shifting management
resources to future growth fields for a high-value-
added profit structure that is not easily impacted by
Portfolio Strategy
Challenging investment Focus on next growth businesses
• Accelerating commercialization of new businesses that contribute
to decarbonization (related to hydrogen, CO2, energy storage, etc.)
• Building on value chain in automotive interior materials
• Exploring new business opportunities related to electronic compo-
market conditions, thereby accelerating growth.
nents and materials
Cash generation Full use of existing assets
• Profit growth by expanding production capacity in the separator
business
• Business development utilizing intangible assets (technology
licensing business related to CO2 chemistry, new business models
for ion-exchange membranes, etc.)
Business Performance and KPIs
Operating income growth, operating margin
(¥ billion)
Operating income (left scale)
Operating margin (right scale)
(%)
Others in Material
Life Innovation
Mobility &
Industrial
Environmental Solutions
140
120
100
80
60
40
20
0
(20)
130.0
106.0
8.8
8.8
C A G R 7 %
10.6
10.6
2019
2020
2021
2022
2024
After reconfiguration*
Forecast
Target
21
18
15
12
9
6
3
0
(3)
(FY)
8.0
6.7
8.8
ROIC
(%)
10
8
6
4
2
0
2021
2024
(FY)
Before
reconfiguration
Target
* Figures have been recalculated to reflect the revision of business categories in FY2022
18
RIOC
10.6
12
6
0
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
46
Asahi Kasei seeks to help reduce greenhouse gas emissions around the world through the supply of low-cost green
hydrogen by swiftly commercializing large-scale alkaline water electrolysis systems and becoming a key player in
the hydrogen supply chain.
Environment & Energy
Operating Environment Global progress in hydrogen-related technology development aimed at realizing
Business Strategies
a decarbonized society
As hydrogen is gaining attention as an essential material for a decarbonized society, many companies are advancing efforts for R&D and
commercialization of hydrogen-related technologies.
There are several methods for producing hydrogen. Among these methods, Asahi Kasei is developing alkaline water electrolysis
technology, which is suited for large-scale systems and is expected to enable low-cost, mass production of hydrogen.
Meanwhile, we have set up a hydrogen production project for applying this technology in countries around the world, most notably in
Europe, where demand is rising for green hydrogen produced using renewable energy. Moreover, the market for electrolytic cells for produc-
ing hydrogen is expected to grow to a significant scale going forward.
Strengths of the Asahi Kasei Group Participation in multiple large-scale verification projects for alkaline water
electrolysis systems based on chlor-alkali electrolysis technology
Becoming a leading supplier of alkaline water electrolysis systems
through swift commercialization and supply chain development
While performing trials to achieve high-reliability alkaline water electrolysis systems,
we are working to reduce the costs for practical application with commercialization
targeted in 2025. We plan to expand beyond system supply to become involved in
operation and monitoring. With this objective in mind, we will start by introducing
these systems into Europe, which is ahead of other markets in this regard.
Our hydrogen-related business requires the development of new supply chains
through collaboration with various companies, ranging from upstream energy suppli-
ers to downstream hydrogen users. We are already receiving a large number of
inquiries regarding our alkaline water electrolysis systems. Accordingly, we will be
Asahi Kasei’s alkaline water electrolysis systems are based on the ion-exchange membrane chlor-alkali electrolysis technology we have been
seeking out ideal partners as we drive the development of the supply chain.
developing since 1975. We are unrivaled in the chlor-alkali electrolysis field with our ability to provide membranes, electrolytic cells, elec-
Our goal going forward is to become a leading supplier of alkaline water electrol-
trodes, operating technology, and monitoring systems, and we have a leading share in the global market for ion-exchange membranes. The
ysis systems with a share of 20% in the electrolytic cell market. At the same time, we
expertise accumulated in this area is being utilized to develop large-scale alkaline water electrolysis systems that can be used with renew-
will invest proactively to meet the rapidly growing demand for green hydrogen as we
able energy and other intermittent power supplies, and we are participating in multiple verification projects in this regard.
In Japan, trial operation of a 10 MW-class water electrolysis system, one of the largest single-unit systems in the world, is underway at
the Fukushima Hydrogen Energy Research Field of the New Energy and Industrial Technology Development Organization (NEDO). In addi-
accelerate the global expansion of our hydrogen-related business through means
such as collaboration with other companies with a focus on asset-light operations.
tion, we are engaged in a joint project for developing large-scale alkaline water electrolysis
hydrogen production systems and verifying green chemical plants together with JGC
Holdings Corporation. This project was adopted as a NEDO green innovation fund project,
specifically for hydrogen production through electrolysis using renewable energy, in 2021.
In this project, we are working to develop large-scale alkaline water electrolysis hydrogen
production systems, with the target of creating 100 MW-class systems, as well as systems
for integrating and controlling the production of green chemicals using renewable energy.
In Europe, Asahi Kasei is accumulating operating expertise and data through participa-
tion in the ALIGN-CCUS project and its successor, the TAKE-OFF project.
Key Points for Development of the Hydrogen-Related Business
• Completion of technologies for large-scale systems and modularization
• Development of integrated control systems (overall process optimization)
• Reduction of costs
Alkaline water electrolysis equipment costs: ¥52,000 per kilowatt (2030)
• Development of partnerships in the supply chain
• Securing hydrogen demand based on region and business model
Commercialization
in 2025 and growth
into new business
pillar in 2030
Source: NEDO
GG10 Hydrogen-RelatedAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
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Environment & Energy
Asahi Kasei is pursuing carbon neutrality by utilizing cutting-edge, proprietary technologies to separate, recover,
and utilize CO2.
Operating Environment Development of various CO2-related technologies for contributing to decarbonization
For carbon neutrality, technologies for separating, recovering, and utilizing CO2 are being developed around the world.
Centered on eco-conscious Europe, movements toward carbon neutrality are advancing in various industries. Specific efforts include
recovering CO2 from flue gas at power plants and factories, and separating CO2 and recovering methane from biogas. Accordingly, related
markets are expected to grow rapidly in the future.
There has also been a sharp increase in attention directed toward carbon footprints in the procurement of raw materials. There is thus
rising interest in reducing CO2 emissions from raw material manufacturing processes as well as in using materials produced from CO2.
Asahi Kasei is developing CO2 separation and recovery technology as well as technology for producing chemical products from CO2
Business Strategies
Verification trials for CO2 separation and recovery technology, and
advancement of business for CO2 utilization technology
Asahi Kasei is studying the launch of verification trials for CO2 separation and
recovery technology using actual gas in fiscal 2022 or fiscal 2023. We are target-
ing commercialization of this technology for relatively small-scale processes
(CO2 chemistry). We thereby aim to contribute to reduced CO2 emissions through various efforts spanning from CO2 recovery to usage.
using biogas or other gases by fiscal 2027.
Strengths of the Asahi Kasei Group CO2 adsorption through proprietary zeolite and use of CO2 as a material
via various technologies
Asahi Kasei is developing CO2 separation and recovery technology that adsorbs CO2 from mixed gases using a proprietary zeolite. We have a
long history of using zeolite as a catalyst, and the associated knowledge and technology are being utilized for the purpose of CO2 adsorption.
The CO2 adsorption process using our zeolite only requires half of the energy needed for the amine method that is currently mainstream.
This process is therefore expected to contribute to lower CO2 recovery costs.
Moreover, the Asahi Kasei Group has been engaged in the development of CO2 chemistry, for using CO2 as a raw material, since the
In Europe, the trend toward encouraging the use of biogas is creating
demand for technology to separate CO2 and recover methane from biogas. We
are therefore studying the possibility of conducting trials in Europe.
Meanwhile, development is being advanced for large-scale systems that can
be used at facilities like power plants and factories.
As for CO2 chemistry, we are focused on licensing the technology we have
commercialized for LIB electrolyte material. At the same time, we are accelerating
the development of isocyanate production technology. We are targeting the com-
1980s. In 2002 we began licensing our polycarbonate manufacturing technology which was the first in the world to utilize CO2 while also not
mercialization of a special isocyanate expected to be used as a next-generation
using toxic phosgene, and our technology is used for 16% of global polycarbonate production capacity. Based on this technology and our
automotive paint material in 2026.
commercialization expertise, we started licensing
a technology that uses CO2 as a raw material for
lithium-ion battery (LIB) electrolyte in 2021. We
are also developing various isocyanates for use
as materials for producing polyurethane. The
Asahi Kasei Group enjoys world-leading R&D
capability and a track record of commercializa-
tion in these fields.
CO2 separation/
recovery
CO2
Chemical
feedstocks
CO2 chemistry
(Use of CO2
as a raw material)
Polycarbonate
Materials for LIB electrolyte
Isocyanates
Other chemical products
Other new technologies under development include CO2 conversion using
green hydrogen, ethylene production by CO2 electroreduction, and bio-conversion
of CO2.
With our world-leading environmental solutions technologies, we will contrib-
ute to the increased utilization of CO2 and to the reduced use of fossil resources.
GG10 CO2 ChemistryAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
48
The Asahi Kasei Group will respond to rising energy storage demand associated with decarbonization and
thereby expand its contributions centered on LIB separators and pursue new business opportunities related
to next-generation energy storage devices.
Environment & Energy
Operating Environment Rising importance of LIBs as energy storage devices widely adopted
Business Strategies
throughout society
As efforts to reduce greenhouse gas emissions advance, we expect that dependence on fossil fuels will decrease and the use of
renewable energy will expand, stimulating growth in demand for energy storage devices. Various technologies are currently being
developed to create next-generation storage devices. Nevertheless, LIBs will continue to be an important device in the energy
storage field for the foreseeable future.
Pursuit of growth of separator business while exploring new business
opportunities
Maintaining its focus on the growth of the separator business, the Asahi Kasei Group will
explore the potential for broadening its operations to include other energy storage-related
The trend toward electric vehicles has recently sparked rapid growth in the market for LIBs centered on automotive applica-
products and services.
tions. Demand for LIBs is anticipated to continue to grow as this trend is complemented by the full-fledged spread of electricity
For separators, we are studying the addition of production capacity in Europe and the
storage systems going forward.
United States to facilitate local production and consumption. We are also examining the pos-
Battery and component manufacturers are currently increasing their supply capacity while devoting effort to the development
sibility of strategic partnerships with other companies to achieve an asset-light configuration.
of new technologies to address the diverse needs arising from the expansion of applications for energy storage devices.
At the same time, higher levels of profitability will be pursued through means such as raising
In addition, global growth in LIB demand is also projected to stimulate increased demand for LIB reuse and recycling solu-
tions, which, in turn, is expected to give rise to new markets.
productivity via digital transformation in order to maximize returns from past investments.
Meanwhile, we are working toward the development of next-generation energy storage
Strengths of the Asahi Kasei Group Provision of high-quality separators that address diverse needs based on
accumulated expertise and industry-leading technological capability
The Asahi Kasei Group started researching and developing LIBs in the 1970s, and we developed the early devices that would
evolve to become the LIBs of today. The technology and knowledge we have accumulated over this long history are being
applied to our business for separators, one of the core components of LIBs.
Our strengths in this business include the safety and high performance of our separators backed by our technological exper-
tise, reliable supply capability, and ability to supply both wet-process and dry-process separators. We have earned high recogni-
tion for our ability to make proposals and develop products that leverage these strengths, and we have built strong relationships
with customers in areas demanding high levels of performance. Other strengths of the Asahi Kasei Group include our eco-
friendly production processes and our comprehensive patent portfolio. Over the medium term, we plan to raise our separator
production capacity to 3 billion m2 a year in order to meet the projected robust demand.
Furthermore, our subsidiary Polypore International, LP, partnered with Shanghai Energy New Materials Technology Co., Ltd.,
in 2021 to establish a dry process separator joint venture in China’s growing LIB market. With this joint venture, we aim to culti-
vate the Chinese market for LIBs for electricity storage systems.
devices. Efforts to this end include
commercializing innovative elec-
trolytes that utilize the high ion-
conductivity solvents currently
under development, and develop-
ing innovative lithium-ion capaci-
tors featuring improved energy
density and reduced costs.
As we pursue new business
opportunities in the growing LIB
LIB Separator Market Scale
(Billion m2)
15
12
9
6
3
0
Automotive
Other
Average growth
rate from
2021–2025:
35%
2019
2020
2021
Forecast
2025
Forecast
market, we will also seek to develop
Source: Future Outlook of Energy, Large Scale Secondary Batteries, and Materials
innovative, next-generation batteries.
2020—Electric Vehicles and Automotive Batteries, Future Outlook of Energy,
Large Scale Secondary Batteries, and Materials 2020—Electricity Storage
Systems and Fixed Installation Batteries, Future Outlook of Energy, Large
Scale Secondary Batteries, and Materials 2021—Electric Vehicles and
Automotive Batteries, Fuji Keizai Co., Ltd.
GG10 Energy StorageAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
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Asahi Kasei will supply its proprietary, differentiated, high-value-added solutions to the automotive interior mate-
rial market, which is growing in conjunction with the diversification of automotive interior needs.
Operating Environment Growth projected in automotive interior material market together with diversification of automotive inte-
rior needs driven by advancement of CASE and MaaS
Business Strategies
Mobility
Connected
Autonomous
Shared
Electric
and comfort, we aim to become a distinctive automotive interior solu-
The advancement of CASE (connected, autonomous, shared, and electric) and mobility as a service (MaaS) trends in the automotive industry is driving
the diversification of needs related to automotive interiors.
Changes to Automotive Interiors Driven by CASE
These trends are creating needs for
functions and characteristics in materials
and components that differ from conven-
tional expectations. As a result, the auto-
motive interior material market is
projected to grow at a faster rate than
vehicle production volumes. The broaden-
ing range of automotive interior needs
presents a substantial business opportu-
nity for us, with our diverse lineup of
products and technologies.
Changes in
automotive
interiors
• Monitoring of in-vehicle
• Use as in-vehicle living
environment
room or office
• Recognition and moni-
toring of passengers
• Diversification of seat
design and layout
• Public use
• Availability for various
purposes
• Noise reduction
• Thermal management
• Weight reduction
• Monitoring technologies
• Smart textiles
• Greater comfort
• Innovative designs
New needs for
interior parts/
components
• Easy cleaning, antifoul-
• Soundproofing, vibration
ing properties
• Odor resistance, anti-
bacterial properties
• Enhancement and
diversification of
performance
proofing, thermal
insulation
• Transition to new
materials
Strengths of the Asahi Kasei Group Provision of comprehensive solutions leveraging Sage Automotive Interiors’ superior
proposal capabilities and Asahi Kasei’s diverse products
Sage Automotive Interiors, Inc., which joined the Asahi Kasei Group in 2018, enjoys strengths in its design
and customer proposal capabilities. These strengths are being used to shape regional and material strate-
gies and are thereby contributing to the rapid growth of our automotive interior material business. We have
thus been able to secure a position as a leading global supplier in the seat fabric* market.
Asahi Kasei’s Dinamica™ artificial suede has been well received as a high-quality sustainable material
that does not use organic solvents during the production process. Incorporating Sage’s design capabilities
into this brand has enabled us to create distinctive high-value-added products, which have been increas-
ingly adopted around the world.
Our diverse lineup of products and technologies includes various offerings for increasing the quality of automotive interiors, and combining these
offerings to make unique proposals creates significant opportunities for Asahi Kasei. At the same time, we will take advantage of our digital transforma-
tion, intellectual property (IP), and other foundations to provide proposals that leverage IP landscaping for automobile manufacturers.
* Knitted, woven, and nonwoven car seat fabric (excluding natural and synthetic leather)
Becoming an automotive interior solutions provider by
offering value that meets new needs
By honing superiority for solutions in terms of design, sustainability,
tions provider by developing materials and components, and by offer-
ing services, with a focus on user experience.
Sage will further solidify its position as a leading supplier by trans-
forming its business portfolio for higher added value. This will entail
enriching its lineup of fabrics matched to customer needs and devel-
oping frameworks for regional supply in accordance with regional
demand. Sage is targeting net sales exceeding ¥100 billion in 2024.
While raising production capacity for Dinamica™ products, sustain-
ability initiatives will be reinforced.
Our growth strategies for meeting diversifying automotive interior
needs will include the further differentiation of our solutions. We will
acquire foundations for direct involvement in and contribution to the
development activities of automobile manufacturers in specific auto-
motive interior fields, and develop plant-derived materials, highly
recyclable monomaterials, and materials featuring greater comfort.
We will also seek to create sensing systems that monitor automotive
interiors to track passenger comfort. In addition, effective key
account management practices will be adopted to gain a better
understanding of automobile production processes so that we can
provide unique, comprehensive solutions through development pro-
posals matched to current trends and needs.
GG10 Car Interior MaterialAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
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Asahi Kasei will respond to the needs of the digital society with distinctive components, materials, and solutions
by leveraging its unique position of having both electronic components and electronic materials, and by integrat-
ing these offerings.
Life Material
Operating Environment Accelerated evolution of digital technologies and solutions in response to diversification of
Business Strategies
needs stimulated by social change
Digital technologies and solutions are constantly evolving in conjunction with the accelerated digitalization of society, leading to continued
market growth. As needs become more diverse in a variety of fields, the operating environment is changing at a rapid pace. Digital technolo-
gies and solutions will be imperative to providing new value in response to these trends.
The market is expected to undergo substantial growth over the medium to long term as a result of the advancement of digital technolo-
gies and solutions. Factors behind this advancement are projected to include the new trend toward electric vehicles amid rising environ-
Provision of unique solutions matched to new market needs by
integrating electronic components and electronic materials
Based on an accurate understanding of market trends, we integrate electronic
components and electronic materials to create solutions using various technolo-
gies, providing new value with unique products and services that meet the latest
mental awareness; digitalization as seen in the spread of 5G, 6G, and other high-speed communications systems; and the rising desire for
market needs.
more comfortable lifestyles as people live healthier and longer.
Strengths of the Asahi Kasei Group Deployment of high-value-added products that lead the markets for electronic compo-
nents and electronic materials
Having both electronic component and electronic material businesses is a significant strength of the Asahi Kasei Group.
In our electronic component business, we supply competitive technologies and solutions in markets related to energy conservation and
healthy and comfortable lifestyles. Specific areas include sound quality control, and technologies for sensing magnetic fields, gases, etc.
We also lead the industry in terms of mixed-signal large-scale integrated circuit design technology for bridging the gap between analog and
digital information. In these areas, Asahi Kasei offers a
number of products with world-leading market shares and
Electronic components
Electronic materials
has built strong, trust-based relationships with customers
as a distinctive electronic components manufacturer.
Our electronic materials business, meanwhile, supplies
highly competitive products that are employed in cutting-
edge semiconductors. World-leading market shares have
been maintained along with high evaluation globally for
products including Pimel™ photosensitive polyimide pre-
cursor, a semiconductor buffer coating; dry film photore-
sist used in etching circuits on printed wiring boards; and
ultrathin glass fabric for printed wiring boards.
Creating innovative products with
competitive sensing technology
in the energy conservation and
comfort markets
Providing highly competitive
products and solutions for
leading-edge semiconductor and
packaging process innovations
Product examples
Product examples
• Current sensors
• Gas sensors (CO2, alcohol)
• Magnetic sensors
• Millimeter wave radar ICs
• Photosensitive polyimide
precursor
• Photosensitive dry film
• High-performance glass fabric
• Epoxy resin curing agent
To meet needs emerging amid rising environmental awareness, we will
pursue opportunities related to sensing solutions for electric vehicles, and related
to Hall elements that contribute to energy conservation in air conditioning and
other equipment.
To contribute to the advancement of a digital society, we will drive the evolu-
tion of new electronic components that accommodate 5G, 6G, and other commu-
nication systems as well as electronic materials for cutting-edge semiconductors,
for data server and other applications, and for chip packaging process innovation.
Meanwhile, we will supply solutions that utilize sound quality control and
sensing technologies to improve sound and air quality in living spaces and vehi-
cles in order to accommodate the desire for more comfortable lifestyles as
people live healthier and longer.
Furthermore, a dedicated organization
for creating innovation has been estab-
lished to drive future growth. This will help
us capitalize on the latest needs in order
to create value through means including
in-licensing of technologies and M&A
activities.
GG10 Digital SolutionsAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
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Homes
Order-Built Homes
• Hebel Haus™ unit homes
• Hebel Maison™ apartment buildings
Real Estate
• Apartment rental network, real estate brokerage
• Atlas™ condominiums
Sales Composition and Major Products by Business Field
Construction Materials
• Hebel™ AAC panels
• Neoma Foam™ and Neoma Zeus™
phenolic foam insulation panels
• Foundation piles, structural components
Overseas Business and Others
• Australian business
• North American business
Remodeling
• Maintenance, renovation, etc.
Overse a s 1 8 %
Homes Sector
FY2021 Net Sales
¥822.4 billion
n 8 2 %
(after reconfiguration*)
J a p a
Basic Policy of the Medium-Term Management Plan
Basic Strategy
Maximizing lifetime customer value in the domestic business and continuing to invest and generate returns from past investments in the overseas
business, increasing cash generation capability while maintaining high operating margin (10%) and ROIC (over 30%)
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.
In fiscal 2021, Asahi Kasei Homes made McDonald
Jones Homes Pty. Ltd. (which became NXT Building
Group Pty. Ltd. in April 2022) a consolidated sub-
sidiary as part of the development of overseas busi-
ness in North America and Australia as a new pillar
of growth.
I believe that by steadily transforming the busi-
ness portfolio of the Homes sector in step with the
Portfolio Strategy
Business Performance and KPIs
needs of the era, we will offer new value to society
while further strengthening our efforts to generate
Challenging investment Focus allocation of resources to
Operating income growth, operating margin
(¥ billion)
Operating income (left scale)
Operating margin (right scale)
(%)
cash in a stable manner. Utilizing the strengths we
growth businesses
• Focusing expansion based on platforms in North America and
100
Construction
Materials
95.0
have developed in existing businesses, we will pro-
Australia (including continued M&A)
actively expand into new businesses and markets
and transform our business model while sharpening
our focus on customer satisfaction.
• Expanding environmentally friendly homes and construction materials
(net-zero emission houses and apartment buildings, insulation material)
Cash generation Promotion of high added value in
domestic business and maximization of
synergies in overseas business
• Customer satisfaction as the essence of the domestic business;
developing and providing homes and services that seamlessly meet the
ever-changing needs of people’s lives at different times and in different
environments
• Improvement of profitability of overseas business by leveraging the indus-
trialization, systemization, and digitalization know-how cultivated in Japan
Overseas
Business and
Others
Remodeling
Real Estate
Order-Built
Homes
80
60
40
20
0
（20）
72.9
8.98.9
C A G R 9 %
10.210.2
2019
2020
2021
2022
2024
After reconfiguration*
Forecast
Target
20
16
12
8
4
0
(4)
(FY)
Free cash flow
over net sales
(%)
10
8
6
4
2
0
5.6
4.5
8.8
10.6
12
C A G R 4 %
18
6
0
2021
2024
(FY)
Before
reconfiguration
Target
* Figures have been recalculated to reflect the revision of business categories in FY2022
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
52
Home & Living
Business Strategies
Proposal of greater value through enhanced inter-business synergies
The fundamental goal of our homes business is to satisfy customers, and this is why we
seek to maximize the value we provide to customers over the entire lifespan of the prod-
ucts we offer. We pursue synergies among our various areas of operations beginning
from order-built homes, with renovation, real estate brokerage, insurance, infrastructure,
and other operations developed to offer seamless support for the living needs that
change based on lifestyles. In this manner, we supply homes and services that continue
to earn the favor of customers, thereby securing reliably high earnings and cash genera-
In addition, we have set targets to increase
the ratio of ZEH-compliant unit homes, and of
achieving a 70% rate of ZEH-M–compliant
apartment building orders among total orders
received in fiscal 2024. As one facet of these
efforts, we began offering our unique Eco
ResiGrid system for rental housing units in
March 2021. Through this system, we lease
the roofs of newly constructed Hebel Maison™
ZEH-M–Compliant Apartment
Building Orders among Total Hebel
Maison™ Orders
(%)
100
80
60
40
20
0
44
2021
70
(FY)
2024
Target
We will pursue customer satisfaction as the essence of business as well as seek to protect and enrich
people’s lives and create platforms to support life.
Operating Environment Strong latent housing demand amid numerous social issues to be resolved through housing
In Japan, the number of housing units is sufficient when compared to the number of households, but roughly 40% of the occupied
housing units do not meet standards for seismic resistance. Furthermore, homes that feature both easy access and energy effi-
ciency are only a few percent of the total. In urban areas, the large number of homes constructed during the peak period for hous-
ing starts in the 1970s have since aged, creating a pressing need to replace them with high-quality homes that can be passed on to
the next generation.
The Japanese government has adopted a goal of having all new
homes constructed from fiscal 2030 feature energy efficiency that
complies with Net Zero Energy House (ZEH) standards. This is just
one of the momentous changes occurring in the environment sur-
rounding homes and energy. In 2020, only 24% of newly ordered unit
homes met ZEH standards, and apartment buildings that are compli-
ant with the applicable ZEH-M standards are still rare throughout the
industry. For this reason, home manufacturers will have an important
role to play in advancing the trend toward such homes going forward.
60
50
40
30
20
10
0
ZEH-Compliant Homes among New Housing Orders
(%)
2020 target for home manufacturers
Home
manufacturers
11.9
15.4
19.2
20.5
24.0
Total
General
contractors
tion capabilities.
2016
2017
2018
2019
2020
(FY)
Source: Survey presentation materials from Sustainable open Innovation Initiative
Strengths of the Asahi Kasei Group Commitment to the “Long Life Home” concept since the founding of
Asahi Kasei Homes
Since its founding, Asahi Kasei Homes has continued working to create homes that can be passed down through successive gener-
ations. The “Long Life Home” concept that we advocate has garnered new attention as people’s values grow more diverse, and as
society ages rapidly, approaching an era when many people will live to be 100.
We are contributing to the realization of a sustainable society while exercising consideration for society and for the planet. These
buildings from their owners over a 30-year
contributions are being made with the high durability and seismic resistance of Hebel Haus™ houses, our planning capabilities for
flexibly accommodating lifestyle changes, our long-term maintenance and inspection systems, and our service frameworks for pass-
ing houses on to future generations. When developing houses compliant with ZEH standards, we strive to offer distinctive value
propositions. To deliver this value, we utilize our Neoma Foam™ next-generation insulation, which maintains its superior insulation
performance over the long term; help improve disaster resilience by encouraging the installation of storage batteries; and purchase
surplus solar power through our Hebel Electric Power electricity retail business.
period, during which we maintain and operate
solar power generation systems on these roofs.
By partnering with owners and tenants of rental
housing units, we aim to help protect the envi-
ronment, strengthen resilience to disasters,
and provide greater levels of value.
GG10 Environmental Homes and Construction MaterialsAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
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We are providing high-quality homes suited to each region by improving efficiency and productivity
through industrialization.
Operating Environment Substantial opportunities created by labor shortages, long construction periods, and
sluggish adoption of IT
Business Strategies
Home & Living
Efforts to expand our housing business overseas are being limited to North America and Australia out of consideration for the sizes
of their economies, their population growth rates, and their ratios of high-income individuals. Housing demand has been growing in
recent years. At the same time, however, needs to rationalize construction processes and to reduce costs have also been rising rapidly
amid construction delays due to chronic labor and material shortages, as well as rising costs associated with increasing material prices.
North American Market
In North America, the millennial generation that represents a
large portion of the population has reached house-buying age.
As such, this market is expected to see firm residential housing
demand going forward. At the same time, the changes to the
social climate brought about by the COVID-19 pandemic have
sparked a rise in the desire for homeownership, which in turn
has triggered a sharp increase in demand. Asahi Kasei’s main
target market is the state of Arizona, with a high population
growth rate, which has drawn a large number of companies to
participate in this market. However, Arizona also faces a hous-
ing shortage stemming from factors including insufficiency of
construction workers.
Australian Market
Through a combination of natural growth and immigration, the
population of Australia is expected to rise to 30 million by 2030,
a 15% increase from the level today. It is therefore anticipated
that this country will enjoy steady growth in the housing industry
over the medium to long term. Order trends are strong in this
market due to the historic highs for construction demand
spurred by the government subsidy programs implemented in
response to the impacts of the COVID-19 pandemic. Meanwhile,
labor costs are rising sharply as a result of shortages of workers,
and materials costs are also on the rise. As a result, construction
periods are lengthening.
Strengths of the Asahi Kasei Group Industrialized housing development, design, and construction expertise
fostered through Hebel Haus™
In Japan, industrialized housing, which involves managing quality through the use of standardized components and materials, and
prefabricated modules, has become well established. This is considered to be exceptional when compared with other countries.
Reasons for this are said to include the evolution of unique technologies spurred by efforts to improve quality in response to Japan’s
frequent earthquakes and humid climate. Asahi Kasei launched its homes business amid the growing demand of the 1970s. We
then proceeded to propose housing that met urban lifestyle needs, including three-story homes and two-generation homes, while
developing frameworks for the efficient supply of high-quality houses. The development, design, and construction expertise fostered
through these efforts is anticipated to give rise to innovation in the construction industries and at the construction sites of overseas
countries, where construction periods can be nearly twice as long as those in Japan. We thereby aim to contribute to the rationaliza-
tion of construction processes and to the improvement of the quality of homes.
Improvement of quality and reinforcement of earnings power by shortening
construction periods through heightened efficiency
Rather than simply adapting Japanese homes to overseas markets, Asahi Kasei partners
with local companies with a strong understanding of the market and of our approach in
order to increase quality, and to streamline and shorten construction, through improved
processes and IT. We thereby aim to grow
net sales from overseas housing operations
to ¥200 billion in fiscal 2025 while achieving
an operating margin on par with the level of
10% or more in our domestic business.
Net Sales in Overseas Housing
Operations
(¥ billion)
200
200.0
164.0
146.3
150
100
50
0
25.0
2020
2021
2022
2025
(FY)
Forecast
Target
North America In North America, we have
acquired several companies in the home-
building industry, most notably Erickson
Framing Operations LLC, a building compo-
nent supplier that produces and installs
walls and roofs for wooden houses. We also
acquired companies that perform electrical,
concrete, and HVAC work, as well as plumb-
ing work. Our goal in the North American
market is to develop a supplier model that
rationalizes the various processes at con-
struction sites.
Australia In Australia, we have acquired
steel frame home builders, most notably
NXT Building Group Pty. Ltd., and brought
frame fabrication processes in-house. We
will pursue high levels of customer satisfac-
tion in Australia by establishing a model that
achieves a level of competitiveness that
could not be reached by a single construc-
tion company or supplier.
GG10 North American and Australian HomesAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance 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
Richard A. Packer
Executive Officer
for Health Care Business Sector (joint)
Primary Executive Officer, Asahi Kasei Corp.
Chairman & Board Director, ZOLL Medical
Corporation
Sales Composition and Major Products by Business Field
Acute Critical Care
• Defibrillators for professional use
• LifeVest™ wearable defibrillator
• Automated external defibrillators (AEDs)
• Ventilators
• Thermogard System™ temperature management system
• Implantable neurostimulator devices for central sleep apnea
• Home-based testing and diagnostic solutions for sleep apnea
Jap
a
n
2
4
%
Health Care Sector
FY2021 Net Sales
¥ 415.9 billion
O
v
e
r
s
e
as 76%
54
Pharmaceuticals
• Teribone™ and Reclast™ osteoporosis drugs
• Recomodulin™ anticoagulant
• Kevzara™ rheumatoid arthritis drug
• Plaquenil™ immunomodulator
• Envarsus XR™ immunosuppressive drug
Medical Care
• Planova™ virus removal filters
• Hemodialysis products
• Therapeutic apheresis devices
• Contract research organization (CRO) and contract development
and manufacturing organization (CDMO) businesses
In fiscal 2021, the Health Care sector continued to
implement proactive business expansion measures.
These included M&A related to sleep apnea in the
Basic Policy of the Medium-Term Management Plan
Basic Strategy
Under the mission of “improve and save patients’ lives,” capture a wide range of business opportunities in global markets in both pharmaceuticals
and medical devices to drive the Asahi Kasei Group’s income growth
acute critical care business, in-licensing in the phar-
Portfolio Strategy
maceutical business, and adopting capital expendi-
ture decisions for the bioprocess business in the
medical care business.
The Health Care sector aims to become a major
pillar and the driver of the Asahi Kasei Group’s
Challenging investment Accelerate growth through business
development
• Bringing innovative medical devices in critical care to market
• Expanding global pharmaceutical business through collaboration of
Asahi Kasei Pharma and Veloxis
• Expanding the scope of the bioprocess business to capture market
growth by evolving as a global health care enterprise
growth
promoting both pharmaceuticals and medical
devices worldwide. We will pursue further growth by
offering optimal solutions to medical needs in order
Cash generation Gain earnings through growth of overseas
business and strengthening of domestic
businesses
• Strengthening and expanding of overseas market position in critical
to fulfill our mission of saving the lives of patients
care, pharmaceutical, and bioprocess businesses
and improving their quality of life (QOL).
• Greater efficiency and sophistication of domestic business operations
through the use of DX, etc.
Business Performance and KPIs
EBITDA growth, EBITDA margin
(¥ billion)
EBITDA (left scale)
EBITDA margin (right scale)
(%)
150
120
90
60
30
0
Acute Critical Care
Pharmaceuticals &
Medical Care
140.0
10
50
40
8
101.7
24.524.5
C A G R 1 1 %
26.426.4
30
20
10
0
(FY)
2019
2020
2021
2022
2024
Forecast
Target
6
4
2
0
ROIC
(%)
10
8.8
10.6
8
6
4
2
0
6.2
8.8
2021
2024
(FY)
Target
18
ROIC
10.6
12
6
0
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
55
We will transform into a Global Specialty Pharma business focused on immunology, transplantation, and
related disease areas.
Operating Environment Paramount importance of the U.S. pharmaceutical market, the largest in the world,
to growing the pharmaceutical business
Business Strategies
Health Care
The global pharmaceutical market is expected to grow to the scale of $1.6 trillion by 2025, with a compound annual growth rate
of between 3% and 6% over the period from 2021 to 2025. During this period, the U.S. pharmaceutical market will continue to
be the world’s largest market, with a projected scale of between $605 billion and $635 billion in 2025.1 This market features an
ecosystem through which innovation is created as pharmaceutical companies, other companies, government agencies, academic
institutions, drug discovery startups, and investors perform their respective roles while coordinating with other parties.
Accordingly, our acquisition of a business platform in the U.S. market is expected to facilitate the further growth of our pharma-
ceutical business.
Asahi Kasei enjoys strengths in markets related to kidney failure and kidney transplantation. In the U.S., one in seven adults, or
approximately 37 million people, suffer from chronic kidney disease, and some 780,000 of them have end-stage renal failure.
Compared with dialysis, kidney transplantation is a treatment that provides better quality of life for patients and is more economical from
a healthcare standpoint. Around 25,000 kidney transplantations are performed each year, and this number is projected to increase.
1 Source: Global Medicine Spending and Usage Trends Outlook to 2025, IQVIA Holdings, Inc.
Strengths of the Asahi Kasei Group Unique Envarsus XR™ immunosuppressive drug and U.S. sales channels
of Veloxis
In the U.S., our subsidiary Veloxis Pharmaceuticals, Inc., supplies Envarsus XR™, an immunosuppressive drug for kidney trans-
plant patients, and is establishing sales channels targeting major hospitals and medical specialists in the immunology and trans-
plantation fields. Envarsus XR™ employs a proprietary sustained release tacrolimus formulation that limits the rise in maximum
concentration of the drug in the bloodstream and maintains an effective concentration for a longer period of time. This allows the
drug to be effective with a single daily dose and
with reduced side effects. Moreover, Envarsus
XR™ has already been designated as a vital drug
for kidney transplant patients by numerous leading-
edge healthcare institutions in the U.S., and we are
achieving smooth growth of this product with a share
of more than 10% of tacrolimus applications and
at least 30% of new kidney transplant patients.
Approx. 500,000
dialysis patients
Dialysis
Treatments for end-stage
renal failure
Approx. 200,000 kidney transplant patients
(over 25,000 new transplants every year)
Kidney
transplant
Hemodialysis
Peritoneal
dialysis
Living
donor kidney
transplant
Deceased
donor kidney
transplant
Source: National Kidney Foundation
Immunosuppressant administered for life
following transplant to prevent rejection
Utilization of expertise in core fields for Veloxis and Asahi Kasei Pharma
We will continue to pursue higher sales of Envarsus XR™, positioning this drug as a growth
driver for the pharmaceutical business.
In developing our global pharmaceutical operations, we will utilize the expertise of
Veloxis and Asahi Kasei Pharma to accelerate clinical and business development, through
means such as M&A, in-licensing, and open innovation. At the same time, we will look to
develop, launch, and expand sales of new drugs. This objective will be accomplished by
strengthening our clinical and business development functions in the U.S., the world’s
largest pharmaceutical market and the forefront of pharmaceutical innovation. We also aim
to establish a business platform in Europe, in addition to those in Japan and the U.S., in
order to capture new business opportunities.
In the Japanese market, we plan to grow sales of existing pharmaceuticals, including
Teribone™ and Kevzara™, while actively expanding our pipeline through in-licensing. We
will also form drug discovery alliances with academic institutions and biotech startups to
create innovative new drugs through open innovation.
Region
Core treatment
areas
Products
Asahi Kasei Pharma
Orthopedics
• Teribone™
• Reclast™
Critical care/
hospital based
Japan
• Recomodulin™
Immunology
• Kevzara™
• Bredinin™
• Plaquenil™
Veloxis Pharmaceuticals
Global Specialty Pharma targets
1
Disease areas adjacent to
immunology/transplantation,
specialty focused
2
Hospital based
(large number
of beds)
Infection*
Immunology/
transplantation
Renal
diseases
U.S.
Transplantation
• Envarsus XR™
• VEL-101
(former FR104)
* Invasive/severe infection
(e.g., deep mycosis)
GG10 Global Specialty PharmaAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
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We will evolve into a premium partner that contributes to biologics safety and manufacturing
efficiency for pharmaceutical companies.
Operating Environment Expansion of bioprocess-related markets in conjunction with rapid
growth of the biopharmaceutical market
Business Strategies
Health Care
The emergence of more diverse and sophisticated drug discovery technologies is driving the growth of bioprocess-
related markets. This growth is being fueled by the shift in focus of drug discovery away from small molecule
medicines produced through chemical syntheses and toward new drugs such as biopharmaceuticals, which
utilize gene recombination, cell culture, and other biotechnologies, as well as next-generation therapies, such
as cell therapy, gene therapy, and nucleic acid drugs.
In these areas, the market for virus removal filters, which are used to prevent the contamination of biophar-
maceuticals, plasma derivatives, and other biologically originated formulations by viruses, has continued to
show strong growth in conjunction with biopharmaceuticals and plasma derivatives. This strong level of growth
is expected to continue going forward. For biopharmaceuticals, it is important to develop production processes
that ideally match the characteristics of each formulation, and there is also a need to select the appropriate
filter based on the requirements of the given process. Accordingly, the ability to reliably supply a broad lineup
of high-quality products is of the utmost importance to induce pharmaceutical companies to choose Asahi
Kasei as their trusted partner.
Strengths of the Asahi Kasei Group
Leading position in virus removal filter field
In 1989, Asahi Kasei released Planova™, a cellulose hollow-fiber membrane that was the world’s first virus
removal filter to be developed for use during the manufacture of biotherapeutics. We have since gained the
No. 1 global market share for this product. The production of biopharmaceuticals and plasma derivatives
requires sophisticated quality management. We have earned a strong reputation and trust with regard to our
ability to contribute to quality management with technologies for removing viruses from substances with a
high level of precision based on the size of membrane pores. Moreover, we are able to offer technical sup-
port backed by scientific insight, and product proposal and supply capabilities that accommodate customer
needs. This has enabled us to build a strong network among pharmaceutical companies and key opinion
leaders in the industry.
To achieve the reliable supply required in this area, we have
decided to build a new Planova™ assembly plant in Nobeoka,
Miyazaki Prefecture, Japan, which is scheduled for completion
during fiscal 2023. The new plant will take full advantage of
automation and digital transformation technologies as a smart factory
featuring superior levels of quality and production efficiency.
Capturing new growth opportunities through CRO and CDMO businesses
Leveraging our customer base and brand, which span across a variety of bioprocess fields, we are expand-
ing the scope of operations. For example, we have entered the contract research organization (CRO) busi-
ness in the area of assessing the safety of biotherapeutics. In 2019, we acquired ViruSure Forschung und
Entwicklung GmbH, an Austrian company that performs contract biosafety testing services for confirming
safety with respect to viruses and other pathogens on behalf of pharmaceutical companies. This was fol-
lowed in 2021 by our acquisition of Bionique Testing Laboratories LLC, a U.S. company supplying myco-
plasma contract testing services.
We have also entered the contract development and manufacturing organization (CDMO) business.
Bionova Scientific, LLC, acquired in May 2022, is a biopharmaceuticals CDMO that provides pharmaceutical
companies with production process development and manufacturing services on a contract basis. Bionova
has a strong track record with next-generation antibody drugs, which are complicated and challenging to
produce, and has earned a strong reputation for its process development technology. Based in California,
Bionova is targeting the numerous drug-discovery startups on the U.S. West Coast. Bionova looks to grow
orders by differentiating itself through the supply of contract process development and manufacturing ser-
vices for small-scale research projects that are difficult for large CDMOs to accommodate.
In these ways, we are taking a multifaceted approach to capturing the growth of the pharmaceutical
market, including the rapidly growing sector of next-generation pharmaceuticals, by supplying pharmaceuti-
cal companies with comprehensive products and services.
Virus removal
filters
Purification
filters
Fluid
management
Synergies
Synergies
Synergies
of customer
of customer
of customer
base, brand,
base, brand,
base, brand,
etc.etc.
etc.
Biosafety
testing services
(CRO)
CDMO
Advanced therapy medical products
(gene therapy, cell therapy, regenerative medicine, next-generation vaccines, etc.)
Biopharmaceuticals
Plasma derivatives
GG10 BioprocessAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
57
We will pursue growth by expanding operations in cardiopulmonary resuscitation and other
existing areas as well as in adjacent areas in order to contribute to improved health care and
save more lives.
Operating Environment Global growth in medical needs related to heart disease
Business Strategies
Health Care
Heart disease is the leading cause of death in the U.S. and many other developed countries. This situation is stimulat-
ing global growth in medical needs related to defibrillators for treating cardiac arrest and other lifesaving devices, as
well as equipment for diagnosing and treating heart disease and related conditions.
Defibrillators include those implanted in the body and those that are used externally. External defibrillators include
those used by healthcare institutions, the automated external defibrillators (AEDs) placed in public facilities, and the
wearable defibrillators that are worn at all times by individuals at risk of cardiac arrest. When a person is in cardiac
arrest, the chance of survival decreases by the minute. As such, it is important to further spread the availability of
medical devices and systems for swiftly saving people’s lives.
Moreover, there are substantial unmet medical needs in areas adjacent to heart disease as there are still numerous
diseases for which effective treatments have yet to be established.
Strengths of the Asahi Kasei Group Market-leading lineup of defibrillators along with new businesses
established through M&A
Our subsidiary ZOLL Medical Corporation offers a broad product portfolio with outstanding technology related to car-
diopulmonary resuscitation. ZOLL has continued to grow its existing operations while acquiring new technologies and
businesses through M&A.
Currently, ZOLL’s two main business domains are resuscitation, in which it supplies defibrillators for healthcare
institutions and AEDs, and cardiac management solutions, which is centered on the LifeVest™ wearable defibrillator.
With business centered in the U.S., ZOLL has a world-leading market share for defibrillators for healthcare institu-
tions, AEDs, and LifeVest™ along with a superior R&D capabilities and support systems that have earned high levels
of customer satisfaction. Moreover, a solid position has been built for LifeVest™ as a bellwether for developing new
markets. LifeVest™ has been worn by more than 800,000 people around the world and has saved thousands of lives.
In addition, ZOLL purchased Respicardia, Inc., and Itamar Medical Ltd. in fiscal 2021, thereby entering a new
business field through the acquisition of innovative devices for diagnosing and treating sleep apnea, which is common
among heart disease patients.
Pursuit of growth by augmenting our portfolio in cardiopulmonary disease areas
We have continued to pursue organic growth in existing critical care businesses centered on cardio-
pulmonary resuscitation. We are also expanding our existing businesses and branching into adjacent
fields through M&A.
In resuscitation, we are solidifying our market position by expanding operations in the U.S.,
Europe, and other regions while diversifying our product portfolio. In cardiac management solutions,
we have heightened the penetration of LifeVest™ in the U.S. and other markets. Looking ahead, we
will further promote LifeVest™ with the goal of having it adopted as a standard of care.
Meanwhile, the heart disease insight gained and the relationships built with healthcare institutions
will be used to accelerate the market adoption of the sleep apnea diagnosis and treatment solutions
of Respicardia and Itamar Medical. We aim to achieve further growth by enriching our portfolio of
products that address unmet medical needs in cardiopulmonary disease as well as areas adjacent to
critical care.
Acute myocardial infarction
Cardiac arrest
Respiratory distress
TherOx, Inc.
(Acquired in June 2019)
Therapy for acute myocardial
infarction
Respicardia, Inc. (Acquired in April 2021)
Implantable neurostimulators for the treatment of moderate to severe central
sleep apnea (CSA)
Itamar Medical Ltd. (Acquired in December 2021)
Diagnosis solutions for home-based testing for sleep apnea
Expansion to
Expansion to
Expansion to
adjacent areas
adjacent areas
adjacent areas
Cardiopulmonary
resuscitation
Growth of existing
Growth of existing
Growth of existing
businesses
businesses
businesses
LifeVest™
Professional defibrillators, AEDs
GG10 Critical CareAsahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
58
Interview with the CEO of ZOLL Medical Corporation
Critical Care
Driving the growth of the
Asahi Kasei Group, pressing
and ZOLL are both focused on long-term growth. Since join-
ing Asahi Kasei, ZOLL has achieved a compound annual
growth rate of 14%, and we are very proud to be a leading
part of what is an incredibly resilient and determined long-
ahead for the next 10 years
term growth culture.
Jonathan Rennert
Chief Executive Officer
ZOLL Medical Corporation
Q2 ZOLL has expanded its businesses through M&A.
What kind of strategic investments has ZOLL pur-
sued, and what do you focus on when evaluating
opportunities?
ZOLL is always looking for M&A opportunities that comple-
ment our business, spur growth, and positively enhance
patient care. We have three approaches to strategic
investments:
• Small equity investments in startups that we think hold
Q1 This year marks the 10th anniversary of ZOLL joining
the Asahi Kasei Group in 2012. Since then, ZOLL
most important is the respect each organization holds for
great potential;
the other. We have a mutually beneficial, symbiotic relation-
• Structured investments in companies with an option to pur-
has achieved remarkable growth. What are the key
ship that is based on trust and respect. Together, we have
chase in the future;
factors and driving forces of this success?
found the right balance of Asahi Kasei’s support and gover-
• Outright acquisition of companies and technologies that we
nance and ZOLL’s autonomy. For example, Asahi Kasei’s
think offer a good fit with our portfolio of solutions.
We’re very proud of ZOLL’s growth. We have quadrupled our
sound financial foundation and our shared emphasis on
Since joining Asahi Kasei in 2012, ZOLL has made 12
business in the last 10 years, and Asahi Kasei has been tre-
innovation have enabled ZOLL to pursue our growth strate-
acquisitions—totaling approximately $1.2 billion of acquisi-
mendously supportive of our efforts.
gies in the ways we think are best for our business and for
tion cost—and numerous equity investments. Some of those
There are several factors that have driven the successful
the larger group of Asahi Kasei companies.
transactions have augmented existing businesses, while
relationship between Asahi Kasei and ZOLL. One of the
Another reason for our mutual success is that Asahi Kasei
others are helping us expand into adjacent markets.
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Critical Care
Q3 Regarding the core businesses of Resuscitation and
Cardiac Management Solutions, what continuous
started to enter this space, which validates our strategy and
We see tremendous potential for increasing the synergy
will only drive deeper adoption by physicians around the
between the worlds of cardiology and sleep medicine, and
growth trajectory is ZOLL aiming for? And what is the
world. Additionally, we are expanding our portfolio of cardiac
that’s been supported by recent clinical guidance on the
company focusing on specifically?
diagnostic products, including launching the ZOLL Arrhythmia
importance of systematic screening of cardiology patients
Management System (AMS) in 2021. Lastly, CMS is collabo-
for sleep apnea. Of course, ZOLL already has deep roots
ZOLL’s largest businesses are the Resuscitation and Cardiac
rating closely with ZOLL’s newest divisions to help more
and expertise in cardiac disease, and expanding into sleep-
Management Solutions (CMS) divisions. Although both lead
patients receive diagnosis and treatment for sleep-disordered
disordered breathing will enable us to help even more
their respective markets, they continue to pursue aggressive
breathing conditions, which are shown to correlate with car-
underserved patients with products that complement each
growth strategies as there are still many unserved patients
diovascular disease, and help strengthen the collaboration
other in the areas of diagnosis and treatment.
who would benefit from ZOLL’s technologies.
between the worlds of cardiology and sleep medicine.
Itamar’s WatchPAT™ is revolutionizing diagnosis of sleep
In Resuscitation, we are investing in innovation and prod-
uct development to extend our market leadership in external
defibrillators. We also continue to diversify our revenue base,
Q4 In 2021, ZOLL acquired Respicardia and Itamar.
What were the objectives for these acquisitions as
apnea with an at-home test that is commercially available in
multiple markets, including the U.S., Japan, and Europe. By
helping connect the world of cardiology with the world of sleep-
including meeting increased demand for integrated data
new fields of business for ZOLL? And what value will
disordered breathing, we expect to extend Itamar’s leadership
solutions, and growing ExpertCare™ Services, which covers
they create?
position in the home sleep-apnea testing (HSAT) market.
product training, device testing, software updates, and tech-
nical support.
Sleep-disordered breathing is a major co-morbidity of cardiac
Our CMS division focuses on the diagnosis, treatment, and
disease, and ZOLL’s acquisition of Respicardia and Itamar in
management of acute cardiovascular disease, evolving from
2021 will help us extend our core mission of helping to save
an initial emphasis on preventing sudden cardiac death
more lives.
(SCD) to addressing broader clinical needs across the cardiac
Research shows complex interrelationships between car-
disease “continuum of care.” Of course, we remain commit-
diovascular disease and both obstructive sleep apnea (OSA)
ted to CMS’ flagship product, the LifeVest® wearable cardio-
and central sleep apnea (CSA). For example, CSA is common
verter defibrillator (WCD): Twenty years after ZOLL pioneered
in patients with heart failure—with an estimated 10 million
the commercialization of this technology, other providers have
patients worldwide who suffer from both.
Itamar’s WatchPAT™ ONE home sleep apnea test device
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information03Strengthening of Corporate Governance
60
Critical Care
Our Respicardia division offers the remede¯ ® System,
which is the only implantable device approved by the FDA to
Q6 ZOLL has become the driver of the Health Care busi-
ness sector of the Asahi Kasei Group. What is ZOLL
treat moderate to severe CSA in adult patients. Since joining
aiming for in the next ten years?
ZOLL in April 2021, Respicardia has seen significant and
steady growth in implants and order revenue, and we expect
As ZOLL looks to the future, our business strategy remains
that momentum will accelerate throughout 2022.
focused on improving outcomes for underserved patients
Q5 What areas will ZOLL expand in moving forward? In
fiscal 2022, what areas is ZOLL investing in?
suffering from critical cardiopulmonary conditions.
We have aggressive goals for growth. While maintaining our
leadership positions in resuscitation, we will continue to
broaden our scope to other areas of acute critical care, includ-
There are powerful trends influencing international opportu-
ing acute myocardial infarction (AMI), heart failure (HF), and
Asahi Kasei brand is less well known. Another contribution is
nities—including aging populations, investments in digitali-
sleep-disordered breathing and acute respiratory care.
that we serve as a bridge between Asahi Kasei’s Japanese
zation, and demand for improved health services—and the
To get there, we will continue to: diversify our portfolio of
heritage and some of the different management styles com-
global market for medtech is expected to reach approxi-
products and solutions; pursue the clinical work to prove
monly used in U.S.-based companies, and having a decade
mately $600 billion by 2025. We recognize the tremendous
other indications of use for those solutions; and realize the
of experience balancing this dynamic has been helpful as
opportunities in markets outside of the U.S., and we priori-
synergies of recent acquisitions to fuel future growth.
more companies join the Asahi Kasei family. It all comes
tize accordingly.
For the past decade, Asahi Kasei has been on a journey to
back to the mutual respect and symbiotic relationship
We will also continue to evaluate M&A opportunities and
become a global healthcare company, and ZOLL has been a
between ZOLL and Asahi Kasei.
could be in a position to execute additional transactions
big part of that journey. Our contributions include a record of
should the conditions be attractive. Finally, we plan to be
growth and significant contributions to Asahi Kasei’s financial
active in small strategic equity investments this year.
performance—contributions that will continue.
However, our main focus in fiscal 2022 will be to support
ZOLL represents Asahi Kasei’s largest workforce in the
and grow the companies that have recently joined the ZOLL
U.S., and there are two areas of additional contribution that
family. Each new technology added to our portfolio represents
stem from that. One is that, because of the size of ZOLL’s
market opportunities in the billions of dollars. We will concen-
workforce in the U.S., we carry significant value as “brand
trate on realizing synergies and accelerating market penetration.
ambassadors” for Asahi Kasei in a marketplace where the
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61
Strengthening of Corporate Governance
62 Corporate Governance
67 Directors and Audit & Supervisory Board Members
70 Discussion Among Outside Directors
73 Risk Management
76 Environmental Protection
77 Compliance / Information Security
78 Human Rights
79 Health and Productivity Management
04Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance Corporate Governance
Basic Approach
Guided by the Group Mission of contributing to life and living for people around the world, the
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-
ronment.” Based on this approach, we aim to contribute to society while achieving sustainable
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 ensur-
ing transparent, fair, timely, and resolute decision-making in accordance with changes in the busi-
ness environment.
Corporate Governance Configuration
Audit
Election
Oversight
Election
Shareholders Meeting
Audit & Supervisory Board
(5 Audit & Supervisory Board Members,
including 3 Independent Outside Members)
Audit
Board of Directors
(9 Directors, including 3 Independent
Outside Directors)
Nomination Advisory Committee
Remuneration Advisory Committee
Cooperation
Report
Oversight
Cooperation
Independent Auditors
Execution of
operations
Audit
Management Council
President
62
Meetings of the Board of Directors, Advisory Committees,
and Audit & Supervisory Board (fiscal 2021)
Composition
No. of
Meetings Held
Average
Attendance
Board of Directors
Chair
Hideki Kobori
All 9 Directors
All 5 Audit & Supervisory
Board Members
15
99%
Main Subjects of Agenda
• Business investment
• Medium-term management plan
• Risk management and compliance
• 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
3
100%
6
100%
• Policy and system for remuneration
of Directors
• Deciding on performance-linked
remuneration of individual Directors
• Auditing state of performance of
Directors’ duties
18
99%
• Auditing state of operations and
financial affairs
• Evaluation of Independent Auditors
Nomination
Advisory Committee
Chair
Tsuyoshi
Okamoto
Remuneration
Advisory Committee
Chair
Tsuyoshi
Okamoto
Audit &
Supervisory Board
Chairperson
Masafumi Nakao
Outside Directors
Tsuneyoshi Tatsuoka
Tsuyoshi Okamoto
Yuko Maeda
Representative Directors
Hideki Kobori
Shigeki Takayama
Outside Directors
Tsuneyoshi Tatsuoka
Tsuyoshi Okamoto
Yuko Maeda
Representative Directors
Hideki Kobori
Shigeki Takayama
All 5 Audit & Supervisory
Board Members
Major Activities of Outside Officers
Internal Audit Department
Attendance rate of Outside Directors and Audit &
Supervisory Board Members at
meetings of the Board of Directors 96.2%
Attendance rate of Outside Directors at meetings of
the Nomination Advisory Committee
100%
Ratio of Independent Officers
Independent
Ratio of Women
Women
Ratio of Independent Directors
and Audit & Supervisory Board
Members
Ratio of Independent Directors
on the Nomination Advisory
Committee
Ratio of Independent Directors
on the Remuneration Advisory
Committee
6
8
2
3
2
3
2
12
Note: 6 out of 14 Officers are independent (3 out of 9 Directors are independent)
Note: 2 out of 14 Officers are women
(1 out of 9 Directors is a woman)
Tsuneyoshi Tatsuoka 93% Tsuyoshi Okamoto 100%
100%
Yuko Maeda
91%
Tetsuo Ito
93% Akemi Mochizuki
100% Akio Makabe
Tsuneyoshi Tatsuoka 100%
Tsuyoshi Okamoto 100%
100%
Yuko Maeda
Attendance rate of Outside Directors at
meetings of the Remuneration
Advisory Committee
100 %
Attendance rate of Outside Audit & Supervisory
Board Members at meetings of the
Audit & Supervisory Board
97.3%
Tsuneyoshi Tatsuoka 100%
Tsuyoshi Okamoto 100%
100%
Yuko Maeda
Akio Makabe
Tetsuo Ito
Akemi Mochizuki
100%
100%
92%
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63
Fields in Which Expectations of Directors and Audit & Supervisory Board Members Are Particularly High
In order to contribute to life and living for people around the world, Asahi Kasei pursues two aspects of sustain-
internationalization of markets and businesses, digital expertise to advance digital transformation, knowledge of
ability: “contributing to a sustainable society” and “sustainable growth of corporate value.” To this end, we have
the environment & society to respond to changes in the social environment and the status of stakeholders with
identified the knowledge, experience, and capabilities required to advance Group management and its supervi-
agility, and human resource management expertise to utilize people as the foundation of business management.
sion and auditing at a higher level in a discontinuous and uncertain business environment, and have considered
We expect each Director and Audit & Supervisory Board Member to demonstrate their knowledge, experi-
the composition of the Board of Directors with consideration to the balance of its diversity and independence.
ence, capabilities, etc., especially in the areas described as follows, and will accordingly carry out important
Specifically, in addition to expertise in the fields of corporate management & strategy, finance & accounting,
decision-making of group management and appropriate supervision and auditing comprehensively from
legal affairs, intellectual property, & risk management, and R&D, manufacturing, & technology, which are indis-
diverse perspectives.
pensable for pursuing opportunities and reducing risks, we also emphasize global knowledge to align with the
Corporate
Management &
Strategy
Finance &
Accounting
Legal Affairs,
Intellectual Property &
Risk Management
R&D,
Manufacturing &
Technology
Global
Digital
Environment &
Society
Human Resource
Management
Directors
Hideki Kobori
Koshiro Kudo
Shuichi Sakamoto
Fumitoshi Kawabata
Kazushi Kuse
Toshiyasu Horie
Tsuneyoshi Tatsuoka
Independent
Tsuyoshi Okamoto
Independent
Yuko Maeda
Independent
Masafumi Nakao
Yutaka Shibata
Tetsuo Ito
Independent
Akemi Mochizuki
Independent
Haruyuki Urata
Independent
Audit &
Supervisory
Board
Members
Note: Up to four fields with particularly high expectations are noted for each individual. The table above does not represent all of the knowledge, experience, and capabilities of each individual.
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance 64
Results of Evaluation of Effectiveness of the Board of Directors (fiscal 2021)
The Board of Directors conducts regular evaluations of its own effectiveness through deliberations at meetings of
Officer Remuneration
Remuneration for Officers in fiscal 2021
the Board of Directors at the end of each fiscal year. The main measures implemented in fiscal 2021 and issues
The amount of remuneration, etc., of Directors and Audit & Supervisory Board Members in fiscal 2021
recognized for the future are as follows:
Main measures implemented in fiscal 2021
The Board of Directors implemented the following measures in fiscal 2021 based on the evaluation of the previous
fiscal year.
1) Consideration of the role of the Board of Directors throughout the year, including enhanced agenda items relat-
ing to medium- to long-term management issues and holding meetings of independent officers
The Board of Directors actively took up and deliberated agenda items relating to sustainability, business portfolio manage-
ment, risk management promotion, and the new medium-term management plan that starts in fiscal 2022. Furthermore, in
addition to the regular meeting opportunities between Outside Directors and Audit & Supervisory Board Members that were
held in the past, in October 2021, an opportunity was created for only Outside Directors and Outside Audit & Supervisory
Board Members to hold a discussion on the role of the Board of Directors, the nature of explanations and deliberations at
meetings of the Board of Directors, and how to evaluate the effectiveness of the Board of Directors, from an independent
and objective standpoint, as an interim review of effectiveness evaluations of the Board of Directors. Based on this, and fol-
lowing multiple deliberations at meetings of the Board of Directors, the following items were determined as described below:
2) Introduction of “matters to be discussed” and narrowing down of agenda items, and 3) Improvements to enhance deliber-
ations at meetings of the Board of Directors.
2) Introduction of “matters to be discussed” and narrowing down of agenda items
In addition to “matters for resolution” and “matters for reporting,” “matters to be discussed” was established as an agenda item
to further deepen deliberations on important management matters, such as, for example, financial and capital policies, estab-
lishment of optimum governance, the medium-term management plan and other management plans, business portfolio strate-
gies, and large-scale M&A and investments. At the same time, the scope of sustainability and diversity-related matters to be
discussed by the Board of Directors was expanded, while the entrustment of decision-making authority for certain business
operations, such as capital investment and personnel affairs, was promoted to ensure prompt management decision-making
and effective deliberations by the Board of Directors.
3) Improvements to enhance deliberations at meetings of the Board of Directors
The Board of Directors further enhanced deliberations at its meetings by increasing the time for questions and answers on the
day of meetings based on prior explanations to Outside Directors and by clarifying issues and improving executive summaries
for large-scale M&A and investment projects, etc.
Issues recognized for the future
Classification
Directors
of which, Outside Directors
Audit & Supervisory Board Members
of which, Outside Audit
& Supervisory Board
Members
Breakdown by remuneration type (Millions of yen)
Amount paid
(Millions of yen)
Basic
remuneration
470
49
140
45
297
49
140
45
Performance-
linked
remuneration
127
–
–
–
Stock-based
remuneration
46
–
–
–
Number of
Directors and
Audit &
Supervisory
Board
Members paid
11
4
6
3
Composition of remuneration for Executive Directors in fiscal 2021
Basic remuneration
58.9%
Performance-linked
remuneration
30.2%
Stock-based
remuneration
10.8%
(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 basic remuneration only.
Remuneration for Directors
At the 131st Ordinary General Meeting of Shareholders, held on June 24, 2022, Asahi Kasei submitted and
obtained approval for a proposal to raise the maximum monetary remuneration for Directors and Audit &
Supervisory Board Members and partially revise its stock-based remuneration system. The Company also revised
its policy for determining the content of individual remuneration, etc., for each Director (hereinafter, the “decision-
making policy”). The following is an outline of remuneration for Directors following the revision.
Based on measures implemented in fiscal 2021, the Board of Directors has confirmed a common awareness of the
following issues for the future.
(1) Decision-making policy
1) Review and improve results of efforts during the current fiscal year
Based on the improvement efforts made during the current fiscal year, conduct an interim review and make improve-
ments in a timely and appropriate manner.
2) Deepen deliberations on the makeup of the Board of Directors
Continuously examine the size and makeup of the Board of Directors, including its independence and diversity.
As one of the corporate governance mechanisms to ensure that the Asahi Kasei Group achieves sustainable
growth and enhances corporate value over the medium to long term, the Board of Directors sought the advice of
the Remuneration Advisory Committee on the decision-making policy. Respecting the contents of the committee’s
report, the Board of Directors passed a resolution on the decision-making policy, which includes the following
basic policy.
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance
65
Basic policy
The Directors’ remuneration of the Company is one of the important components of corporate governance.
The Company designs this system to provide appropriate incentives to both executives and supervisors for
achieving sustainable growth and improving medium- to long-term corporate value.
Remuneration for Non-executive Directors1 including Outside Directors, who supervise the manage-
• 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 capital efficiency
• The formula required to calculate individual performance-linked remuneration is outlined as follows:
Index calculated by
evaluation2
Basic amount by rank
Individual performance-linked
remuneration amount
ment of the Company, solely comprises fixed basic remuneration at a level determined in consideration of
2 Coefficient comprehensively considering achievement of financial targets and non-financial targets
third-party survey data, in order to secure a high degree of independence unaffected by short-term earn-
ings fluctuations.
The remuneration for Executive Directors combines performance-linked remuneration with stock-
based remuneration as nonmonetary remuneration, in addition to fixed basic remuneration, which serves
a basic livelihood, in order to provide incentives tied to earnings and management strategy as senior man-
agement, 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.
In conjunction with the revision of the decision-making policy, Asahi Kasei revised the performance-
linked remuneration component of remuneration for Directors. Specifically, the Company changed
its standard financial indicators from ROA to ROIC from the perspective of emphasizing awareness
of the importance of increasing invested capital efficiency and of linking remuneration with the
degree of achievement of the targets established in the medium-term management plan.
To ensure the optimal way of remunerating Directors and the design of the remuneration system, the
Board of Directors and the Remuneration Advisory Committee regularly deliberate and continually confirm
2) Stock-based remuneration
their appropriateness and make improvements.
1 Non-executive Directors include the Chairman.
(2) Basic design
1) Performance-linked remuneration
• Designed to reinforce a common perspective with shareholders, including both the benefits of share price
increases and the risk of share price decreases
• A trust established by Asahi Kasei acquires shares of the Company and grants them to eligible Directors.
Based on the Share Grant Regulations adopted by the Board of Directors, eligible Directors are conferred
points in accordance with their rank (maximum of 150,000 points per fiscal year) and the shares are
granted to eligible Directors corresponding to the accumulated number of points at the time of their retire-
ment as Director and as Executive Officer of the Group (one share of stock per point).
• Designed by combining both the achievement of financial targets, such as capital efficiency, to provide
incentives tied to earnings and management strategy as management leaders, together with the achieve-
Point calculation formula
ment of non-financial targets including individual targets, one of which is progress on sustainability
• Calculated by making a comprehensive judgment based on achievement of financial targets such as
consolidated net sales, operating income, return on invested capital (ROIC), etc., together with achievement
of individually set targets, including progress on sustainability
Standard points determined for each individual
rank × 50%
Standard points determined for each individual
rank × 50% × performance-linked index
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance
The “performance-linked index” shall be a number1 determined in the range of 0.0 to 1.5 according to the
• The Remuneration Advisory Committee comprises a majority of Outside Directors and regularly reports to the
degree of target achievement2 of non-financial and other indicators relating to sustainability set forth in the
Board of Directors on the process of confirmation and determination described on the left.
medium-term management strategies and plans.
66
Indicator
Weight
Indicator Calculation Method
FY2022 Target
FY2024 Target
(4) Changes to breakdown and levels of remuneration
Job satisfaction
DX
Diversity
1/3
1/3
1/3
Percentage of employees absent due to mental illness
0.80%
0.64%
Total number of digital professionals
1,000
2,500
Percentage of female employees in line posts and
highly specialized positions
3.9%
5.0%
1 Values set forth in the table on the right shall be used
Degree of Target Achievement
Performance-Linked Index
as the performance-linked index according to the
degree of achievement of the targets.
120% or more
2 Targets are set for each fiscal year for the above-
105% or more but less than 120%
mentioned indicators and the percentage of achieve-
ment for each indicator is calculated. The degree of
target achievement is deemed to be the total of the
achievement percentage for each indicator multiplied
by each of the weights.
95% or more but less than 105%
80% or more but less than 95%
Less than 80%
1.5
1.2
1.0
0.5
0.0
Asahi Kasei revised its stock-based remuneration system at the 131st Ordinary General Meeting of
Shareholders held on June 24, 2022. Specifically, in order to further improve the link between the stock-
based remuneration system and the Group’s medium-term management strategies and plans, the
Company changed to a performance-based stock remuneration system linking the number of shares
granted to the degree of achievement of performance targets. In addition, the Company raised the maxi-
mum number of shares to be granted to Directors under the revised system by increasing the maximum
amount of money to be contributed by the Company to the trust for acquiring the shares of the Company,
and the maximum number of points to be granted to Directors (revising the upper limit on the total
number of points per fiscal year to be granted to eligible Directors from 100,000 to 150,000).
(3) Decision-making process
• As authorized by the Board of Directors, the Remuneration Advisory Committee confirms the reasonableness
and appropriateness of the evaluation of the achievement of targets by Executive Directors, as proposed by
the President & Director, and determines remuneration amounts for individual Directors by applying this
evaluation to the framework formula determined by the Board of Directors.
• The Board of Directors determines the amount of fixed basic remuneration by rank.
• Stock-based remuneration is granted when certain conditions are met, corresponding to points conferred
based on the Share Grant Regulations adopted by the Board of Directors (the Remuneration Advisory
Committee reports the degree of achievement of targets and the performance-linked indicators at the end of
each fiscal year in relation to stock-based remuneration).
Stock-based
remuneration
10.6%
As a result of the revision of remuneration for Directors,
Performance-linked remuneration (cash) 25.4%
the breakdown and levels of remuneration for the
President & Representative Director will be changed as
described on the right on the assumption that the basic
amount is multiplied by an evaluation index of 100%.
Before the change
Basic remuneration 64.0%
After the change
Basic remuneration 50.0%
Remuneration for Audit & Supervisory Board Members
Performance-linked remuneration (cash) 30.0% Stock-based
remuneration
20.0%
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.
Strategic Shareholdings
The Company is continuing to reduce its holdings of shares held for purposes other than pure investment (strate-
gic shareholdings), taking into consideration factors such as the risk of share price fluctuations, costs associated
with such holdings, and capital efficiency.
The purpose, effectiveness, and economic rationale of individual strategic shareholdings are regularly evalu-
ated from qualitative and quantitative aspects each year, and are reviewed by the Board of Directors.
As a result of the verification, the Company reduces, 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.
Strategic holdings of listed shares
Sales of strategic shareholdings
(¥ billion)
(stocks)
(¥ billion)
250
200
150
100
50
0
203.8
178.6
61
61
60
156.4
123.2
123.2
56
117.7
43
80
70
60
50
40
0
50
-100
-150
-200
0
-250
30
25
20
15
10
5
0
16.7
20.5
18.1
7.4
28.8
Cumulative total
for five fiscal years
¥91.5 billion
2017 2018 2019
2020
2021
(FY)
2017 2018 2019
2020
2021
(FY)
Fiscal year-end amounts of strategic shareholdings on the
balance sheets (left scale)
Number of stocks (right scale)
Note: During fiscal 2021, the Company sold all of its holdings in 13 stocks including Bridgestone Corporation and Lion Corporation. As a
result, at the end of fiscal 2021, strategic shareholdings (including unlisted companies) amounted to 7% of consolidated net assets.
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance
Directors and Audit & Supervisory Board Members (as of June 24, 2022)
Directors
67
Hideki Kobori
Koshiro Kudo
Shuichi Sakamoto
Fumitoshi Kawabata
Chairman & Representative Director
President & Representative Director
Director
Director
Kazushi Kuse
Director
Presidential Executive Officer
Primary Executive Officer
Primary Executive Officer
Primary Executive Officer
Joined Asahi Kasei
April 1981
Joined Asahi Kasei
Asahi Kasei Fibers Executive Officer
April 2011
April 1978
April 2008
April 2009
April 2010
April 2012
June 2012
April 2014
April 2016
April 2022
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
Asahi Kasei Senior Executive Officer
Asahi Kasei Director (position held
at present)
Asahi Kasei Representative Director
(position held at present), Primary
Executive Officer
Asahi Kasei President and Director,
Presidential Executive Officer
Asahi Kasei Chairman and Director
(position held at present)
April 1982
April 2013
April 2016
April 2017
April 2019
June 2021
April 2022
Asahi Kasei Lead Executive Officer
Asahi Kasei President of Fibers &
Textiles SBU, Senior General
Manager, Osaka Office
Asahi Kasei Senior Executive
Officer, President of Performance
Products SBU
Asahi Kasei Director (position held
at present)
Asahi Kasei Representative Director
(position held at present), President
and Director (position held at
present), Presidential Executive
Officer (position held at present)
April 2014
Asahi Kasei Chemicals Executive
Officer
Asahi Kasei Chemicals Director,
Senior Executive Officer
November 2014 Asahi Kasei Lead Executive Officer,
Corporate Strategy General
Manager
April 1982
April 2012
April 2013
April 2014
April 2016
June 2016
April 2018
April 2019
Asahi Kasei Senior Executive Officer
February 2016
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 2017
April 2019
June 2019
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
Asahi Kasei Homes Chubu Sales
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)
April 1987
April 2005
Joined IBM Japan
IBM Japan Executive Officer
January 2008
IBM Vice President
January 2017
IBM Japan Chief Technology Officer
July 2020
Joined Asahi Kasei
Asahi Kasei Executive Officer
Asahi Kasei Executive Fellow
April 2021
Asahi Kasei Senior Executive Officer
Asahi Kasei Digital Value
Co-Creation Senior General
Manager (position held at present)
Asahi Kasei Primary Executive
Officer (position held at present)
Asahi Kasei Director (position held
at present)
April 2022
June 2022
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance
Directors
68
Toshiyasu Horie
Director
Senior Executive Officer
Tsuneyoshi Tatsuoka
Tsuyoshi Okamoto
Outside Director
Outside Director
Yuko Maeda
Outside Director
Joined Asahi Kasei
April 1980
April 1985
April 2015
April 2016
April 2019
April 2020
April 2022
June 2022
Asahi Kasei Chemicals Corporate
Planning & Coordination General
Manager
Asahi Kasei Petrochemicals
Business SBU Planning &
Coordination General Manager
Asahi Kasei Executive Officer
Asahi Kasei Lead Executive Officer
Asahi Kasei Senior Executive Officer
(position held at present)
Asahi Kasei Director (position held
at present)
Joined Ministry of International
Trade and Industry
January 2010
Councilor, Cabinet Secretariat
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)
April 1970
June 2002
April 2004
June 2004
April 2007
April 2010
April 2014
April 2018
June 2018
July 2018
Joined Tokyo Gas Co., Ltd.
April 1984
Joined Bridgestone Corporation
Tokyo Gas Co., Ltd. Executive
Officer
Tokyo Gas Co., Ltd. Senior
Executive Officer
Tokyo Gas Co., Ltd. Director
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)
September 2003 Tokyo Medical and Dental
University Director of Technology
Transfer Center and Intellectual
Property Manager of Intellectual
Property Right Department
Tokyo Medical and Dental
University Visiting Professor
Kyoto Prefectural University of
Medicine Specially Appointed
Professor
Bridgestone Corporation Executive
Officer
Japan Agency for Marine-Earth
Science and Technology Auditor
(position held at present)
CellBank Corp. Director (position
held at present)
Kyushu University Executive Vice
President (position held at present)
Asahi Kasei Director (position held
at present)
October 2009
October 2011
May 2013
April 2014
January 2017
October 2020
June 2021
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance Audit & Supervisory Board Members
69
Masafumi Nakao
Yutaka Shibata
Tetsuo Ito
Akemi Mochizuki
Haruyuki Urata
Audit & Supervisory Board Member
Audit & Supervisory Board Member
Outside Audit & Supervisory Board Member
Outside Audit & Supervisory Board Member
Outside Audit & Supervisory Board Member
Joined Asahi Kasei
Asahi Kasei Executive Officer
April 1975
June 2001
Joined Public Prosecutors Office
October 1984
Joined Aoyama Audit Corporation
April 1977
Director, Special Investigation Dept.,
Tokyo District Public Prosecutors
Office
March 1988
August 1996
Certified as a Certified Public
Accountant
Joined Orient Leasing Co., Ltd.
(currently ORIX Corporation)
February 2005 ORIX Corporation Executive Officer
April 1978
April 2009
April 2012
June 2012
April 2014
Joined Asahi Kasei
Asahi Kasei Microdevices Director,
Executive Officer
Asahi Kasei Lead Executive Officer,
New Business Development
General Manager
Asahi Kasei Director
Asahi Kasei Corporate Research &
Development General Manager
June 2014
Retired as Asahi Kasei Director
April 1979
April 2008
April 2009
April 2011
April 2015
April 2016
June 2016
April 2017
June 2019
Asahi Kasei Senior Executive Officer
Asahi Kasei Primary Executive
Officer
Asahi Kasei Director
Asahi Kasei Representative Director,
Vice-Presidential Executive Officer
Asahi Kasei Audit & Supervisory
Board Member (position held at
present)
April 2016
April 2017
June 2018
April 2019
June 2021
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
Asahi Kasei Director
Asahi Kasei Vice-Presidential
Executive Officer
Asahi Kasei Audit & Supervisory
Board Member (position held at
present)
July 2007
July 2008
January 2009
Chief Prosecutor, Tokyo District
Public Prosecutors Office
Superintending Prosecutor,
Takamatsu High Public Prosecutors
Office
Deputy Prosecutor-General,
Supreme Public Prosecutors Office
December 2010 Retired from Public Prosecutors
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)
Joined Tohmatsu Audit Corporation
(currently Deloitte Touche Tohmatsu
LLC)
August 2006
June 2007
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)
January 2008
January 2009
January 2011
June 2015
June 2020
June 2021
June 2022
ORIX Corporation Managing
Executive Officer
ORIX Corporation Managing
Director
ORIX Corporation Director and
Deputy President
ORIX Corporation Director and
Deputy President, and Group CFO
ORIX Corporation Representative
Director and Deputy President, and
Group CFO
ORIX Bank Corporation
Representative Director and
President
ORIX Bank Corporation Director
and Chairman
ORIX Bank Corporation Special
Adviser (position held at present)
Asahi Kasei Audit & Supervisory
Board Member (position held at
present)
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance 70
Discussion Among Outside Directors
Honing flexibility and sensitivity to changes in the operating
environment, achieving further growth as a sustainable company
How do you rate “Be a Trailblazer,” the new medium-term
management plan for 2024, and what expectations do you
have for the new management team?
From the perspective of achieving sustainable growth, it is
extremely important that Asahi Kasei has established the MTP
to serve as a milestone until 2024, while advancing toward a
vision for 2030, with portfolio management identified as a key
Tatsuoka
In formulating the new medium-term management
for achieving the objectives.
plan (MTP), members of the Board of Directors shared their
perceptions of the external environment and fully discussed
Okamoto Likewise, I find it highly notable that discussions were
matters to be incorporated into the plan over several meetings.
advanced on a company-wide basis, including the process in
Of particular note is the adoption of return on invested capital
which numerous discussions took place at meetings of the
(ROIC) as a key performance indicator (KPI) for performance-
Board of Directors. The new MTP is an excellent plan that will
linked remuneration, to emphasize capital cost and capital effi-
allow Asahi Kasei to steadily advance its immediate priorities
ciency as well as sales and profits.
while maintaining a long-term outlook toward 2030. Particularly
distinctive is Asahi Kasei’s commitment to focusing on how it
will strengthen its three-sector management through the plan.
In specific terms, the MTP clearly identifies 10 businesses—
referred to as 10 Growth Gears (GG10)—that will drive Asahi
Kasei’s future growth. The plan also targets strategic structural
transformation, setting out the way in which Asahi Kasei will
renew its existing business portfolio. Furthermore, as the plan
clarifies the approach to various issues, including policies on
cash flow management and shareholder returns, I consider it to
be well balanced and clear.
Tatsuoka
I feel that the new MTP expresses Kudo-san’s strong
resolve as the new President. Asahi Kasei uses the term
“A-Spirit” to express an “animal spirit” and the Asahi Kasei spirit
comprising ambitious motivation, a healthy sense of urgency,
quick decisions, and a spirit of advancement. I hope that Asahi
Kasei will promote the plan by successfully instilling this spirit
throughout the company, allowing employees to swiftly exert
their abilities to the fullest extent despite an uncertain outlook.
Tsuyoshi Okamoto
Outside Director
Yuko Maeda
Outside Director
Tsuneyoshi
Tatsuoka
Outside Director
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance
Okamoto
It’s important for employees to feel that corporate pol-
icies, not only the MTP, relate directly to them. A company
depends on the strength of its front-line workers. The manage-
ment style should enable those working on the front lines to
How do you evaluate the corporate governance configura-
tion? Also, what corporate governance issues do you think
Asahi Kasei will face going forward?
sense the President’s high
Okamoto The Board of Directors evaluates its own effective-
expectations of them. While it
ness on an annual basis with regard to Asahi Kasei’s corporate
entails a heavy responsibility
governance configuration, and I appreciate that the evaluations
for a new President to assume
have accumulated substantial results. In the evaluations, mem-
office amid a challenging and
bers give their frank opinions, based on which various reforms
dramatically fluctuating oper-
and improvements have been promoted. For example, meet-
71
monitoring. As a result, dis-
cussions on the new MTP fol-
lowed a different format than
with previous MTPs. I also feel
that important subjects are
being presented to the Board
of Directors with greater fre-
quency. Going forward, I hope
the Board of Directors will
more proactively discuss
ating environment, it must
ings between Outside Directors and Audit & Supervisory Board
important issues that affect the company’s future direction over
also be rewarding in the sense
Members have been introduced, as have discussions among
the medium to long term—portfolio transformation and human
that Asahi Kasei celebrated its
Outside Officers. Accordingly, I sense that the corporate gover-
resource development, for example. We should have deeper
centenary in 2022 and is now
nance configuration has improved steadily overall.
discussions on such subjects in addition to adopting resolutions
embarking on its next 100 years.
on specific agenda items.
Maeda Although many companies hire outside experts to eval-
As Okamoto-san mentioned, meetings between Outside
Maeda
I also hope that Asahi Kasei will develop employee-
uate the effectiveness of their Board of Directors, Asahi Kasei
Directors and Audit & Supervisory Board Members, and among
friendly workplaces where those on the front lines are moti-
conducts its evaluation internally. For this reason, evaluations
Outside Officers, now take place on a regular basis. Having a
vated. In many cases at large Japanese companies, those
contain many in-depth comments that reflect the actual situa-
supervisory side whose members routinely communicate and
whose efforts have underpinned the company over a long
tion, and indicate a good understanding of internal circum-
exchange opinions with each other freely will help ensure
period become executives. At Asahi Kasei, however, the
stances, which leads me to feel that information sharing is
smooth cooperation if an urgent situation arises. As regularly
Executive Officer in charge of digital transformation took up the
functioning well. Nevertheless, speaking as an outsider, there
sharing information on matters identified enhances the ability of
position only a few years after joining the company. Such
are times when it takes me some time to grasp the chronology
the supervisory side to execute their roles, I feel that such
flexible Executive Officer promotions are excellent in terms of
of a matter proposed to the Board of Directors. I would appreci-
meetings have facilitated progress.
providing motivation. Ideally, I would like to see the further
ate it if such materials could be improved slightly to facilitate
promotion of women to such positions.
From a diversity perspective, I have concerns about the KPIs
more in-depth discussions. Given the recent efforts to ensure
that matters for deliberation are discussed fully, though, I do
Okamoto The Board of Directors has long discussed the orga-
nizational structure in relation to corporate governance.
for non-financial metrics in the new MTP. The KPIs include only
feel that discussions are improving steadily.
Although Asahi Kasei is a company with an Audit & Supervisory
a numerical target for the number of women in senior positions.
Board, it also has a Nomination Advisory Committee and a
However, I am keen for Asahi Kasei to develop workplaces that
Tatsuoka The last few years have seen Asahi Kasei transition
Remuneration Advisory Committee. This structure enables the
are friendly not only to women but to all employees, including
from a management system in which resolutions are passed on
Board of Directors to operate flexibly in accordance with real
ways to reduce the personnel turnover rate. I think that having
each agenda item to a monitoring system whereby important
conditions at any given time to determine matters to be dis-
non-financial indicators as performance metrics for manage-
subjects are monitored on a company-wide basis. Asahi Kasei
cussed and decided upon. If this positive facet of its corporate
ment is a very positive step toward making them effective.
currently operates a hybrid system of management and
governance is used effectively, I believe the Board of Directors
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance 72
can perform its governance functions satisfactorily through its
Tatsuoka The string of accidents is extremely regrettable and
perspective that utilize the
current organizational structure.
must be recognized as a serious matter. Issues of quality and
respective specialties of the
What is your opinion on the series of fires and accidents at
Asahi Kasei’s plants? Also, what in your view is particularly
important to prevent recurrences?
safety have been raised as agenda items at meetings of the
three sectors, and collabora-
Board of Directors on numerous occasions. The Board of
tion through the adoption of
Directors has repeatedly discussed issues including the status
unique research by universi-
of Asahi Kasei’s systems for managing safety and quality, and
ties, national research insti-
how to increase employee awareness levels. In light of the acci-
tutes, and other organizations.
Maeda
I have been greatly disappointed by the succession of
dents, however, maybe we should return to first principles and
Doing so will further advance
accidents over the last few years. My biggest concern is
carry out thorough examinations based on the assumption that
Asahi Kasei’s vision of three-
whether the message that safety is the highest priority is prop-
some fundamental issue may exist. I believe it’s necessary not
sector management in terms
erly reaching those working on the front lines. The company I
only to gather feedback from the front lines but also to examine
of change and flexibility, which will in turn improve future cor-
worked at previously designated the day on which a fire had
matters of safety in specific terms by incorporating the views of
porate value.
occurred as a company-wide disaster prevention day. Every
objective third parties.
year on that day, all officers would visit plants, where opera-
tions were stopped for the day to give employees the opportu-
nity to reflect on disaster prevention and safety. Such steps
were taken to impress upon employees that nothing is more
important than preventing accidents. It’s often difficult for large
On what areas do you think Asahi Kasei must focus going
forward in order to achieve ongoing improvements in cor-
porate value?
Okamoto Going forward, as barriers between industries
become lower and social issues become more interrelated, I
suspect that developments transcending industries will only
accelerate. I believe that a sustainable society and ongoing
improvement of corporate value will naturally follow if Asahi
companies to thoroughly convey management’s commitment in
Tatsuoka
In its aim to achieve ongoing improvements in corpo-
Kasei shares its management assets and steadily promotes the
this regard to contractors and subcontractors. Demonstrating
rate value, I believe it is crucial for Asahi Kasei to promote busi-
new MTP by leveraging its diverse range of business in accor-
its corporate stance by designating a certain day for all employ-
nesses that society and people continuously consider to be
dance with its Group Mission. Adapting to change will be
ees to consider safety would be one way for Asahi Kasei to pro-
essential by offering solutions to social issues regardless of the
essential for implementing the plan. It will be important for
mote the issue.
operating environment. Sharpening its alertness to changes in
Asahi Kasei to accurately understand changes and revise its
Okamoto Accidents and corner-cutting tend to occur in places
a sense of speed will be vital in determining how Asahi Kasei
by remaining highly sensitive to the operating environment. In
that are difficult for management to monitor. In its new MTP, I
will apply its outstanding technology seeds and business
my capacity as an Outside Director, I am committed to further
commend Asahi Kasei for focusing investments in the GG10 as
models for a carbon-neutral society.
fulfilling my role in being alert to changes.
the operating environment and working with determination and
basic stance as necessary, and to flexibly respond to changes
growth drivers and bringing such businesses to center stage. At
the same time, I wonder how it’s possible to monitor and assess
Maeda Asahi Kasei operates highly specialized businesses in
all the employees who support GG10 behind the scenes. I
three sectors. However, when a company becomes as big as
believe that enabling employees to work with pride, confidence,
Asahi Kasei, it must not only grow but enhance its significance
and a sense of responsibility will boost front-line morale and
by truly making a difference to people’s lives in order to con-
serve as an important element in contributing to a fundamental
tinue to thrive. Offering social value requires Asahi Kasei to
solution to accidents.
strengthen its inputs, such as new ideas from a mutual
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance 73
Risk Management
Overview of the Risk Management Framework and Roles of Constituents
Risk Management Framework and Roles of Constituents
Risk Management Policies
The Asahi Kasei Group is accelerating its global development of diverse operations in three sectors.
This development is taking place in a highly volatile operating environment, characterized by
changes in values spurred by the COVID-19 pandemic as well as rising international tensions asso-
ciated with the decoupling of the economies of the United States and China and Russia’s invasion
of Ukraine. The emergence of new and more complex risks threatens to have an even greater
impact on the operations of the Group. We therefore recognize the need to track risks on a group-
wide basis and strengthen our risk countermeasures. Accordingly, measures were launched in
fiscal 2022 as our first step in reinforcing corporate governance.
Risk Management Reinforcement Measures Instituted in September 2022
Clarification of the risk management framework and roles of involved parties
Under the guidance of the Board of Directors, the President oversees overall risk management with
support from the Executive Officer for risk management and compliance. This Executive Officer
tracks conditions pertaining to our overall risk management activities based on the instructions of
the President, and offers guidance and support to the heads of the relevant departments (adminis-
trative, business, etc.) with regard to specific risk countermeasures. Furthermore, a Risk
Management Team has been assembled under this Executive Officer. This team is responsible for
monitoring the risk management activities of each department and aiding in the implementation of
risk countermeasures. Meanwhile, the Risk Management & Compliance Committee, which is
chaired by the President, works to reinforce awareness among department heads regarding
management-level decisions and instructions pertaining to risk management.
Enhancement of risk management PDCA cycle
The Asahi Kasei Group’s basic policy is to have organizations managing risks autonomously. To
facilitate these efforts, we are enhancing our risk management PDCA (plan–do–check–act) cycle
based on established risk categorizations. Risks requiring regular monitoring by the Board of
Directors are defined as Material Group Risks. Meanwhile, risks with the potential to impact the
ability of business divisions to accomplish the assigned goals of annual management plans are cat-
egorized as Material Business Risks, which are addressed through a focused approach within the
respective fiscal year. For more information, please refer to the following page.
Audit & Supervisory
Board
Coordination
Audit
Reporting
Internal Audit
Department
Reporting
Board of Directors
Reporting
Oversight
President
Reporting
Instructions
Organizational
functions
Chairperson:
President
Executive Officer for risk management
and compliance
Risk Management Team
Risk Management & Compliance, General Affairs;
Corporate Strategy, etc.
Risk Management
& Compliance
Committee
Reporting
Instructions
Reporting
Instructions
Raising
awareness
Executive Officers for
each administrative
function
Support
Heads of business units
Heads of regional
divisions
Audits based on
policies, rules, etc.
Material Group
Risks
Material Business
Risks
PDCA Cycle for Managing Material Group
Risks and Material Business Risks
Autonomous Organization-Level Risk Management
Business Sites Worldwide
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance 74
Risk Management PDCA Cycle (Material Group Risks and Material Business Risks)
Selection
Criteria
Response
Process
Risks
Identified
for Fiscal
2022
Material Group Risks
Material Business Risks
Material risks with the potential to impede the fulfillment of the Group Mission or
the accomplishment of the goals of the medium-term management plan
Risks that relate to social responsibility with a large degree of impact on, or significant
attention from, stakeholders and society
Shared, group-wide material risks requiring a group-wide response
• Examination of possible risks by the Executive Officer for risk management and compliance,
and by the Risk Management Team, through discussion with corporate administrative
departments and business departments
Discussion with the President and approval of risk items and response policies by the Board
of Directors at the beginning of the fiscal year*
• Planning of countermeasures after incorporation of necessary subjects into concrete risk
items by the Risk Management Team and departments responsible for specific risk subjects
Selection
Countermeasure
planning
Material risks with potential to impact the ability of business divisions to accomplish
goals of annual management plans and that thus need to be addressed through a
focused approach within the respective fiscal year
• Examination of possible risks by business departments, incorporation into annual manage-
ment plans, and approval by the Board of Directors at the beginning of the fiscal year
• Planning of risk countermeasures by business departments based on management plans
• Support for risk countermeasures from corporate administrative divisions and the Risk
Management Team
• Implementation of risk countermeasures by relevant departments, regular reporting to the
President and Board of Directors by the respective Executive Officers, and reflection of feedback
into risk countermeasures
Implementation/
reporting
• Implementation of risk countermeasures by business departments, regular reporting to the
President by heads of business units, and reflection of feedback into risk countermeasures
(twice annually)
Monitoring of the overall PDCA cycle by the Executive Officer for risk management and compliance and by the Risk Management Team
Reporting on annual activities and plans to the Board of Directors
* Revisions instituted as necessary in response to major changes in the operating environment
Risks related to accidents at production sites
Risks related to workplace safety (environmental pollution or suspension of operations due to accidents, etc.)
Risks related to quality-associated misconduct
Risks related to quality issues or associated misconduct
Risks related to violation
of laws and regulations
Risks related to noncompliance with laws and regulations for the environment, safety, and quality
Risks related to products and services meeting regulatory requirements or customer expectations
Risks related to global supply chains (feedstock procurement, material procurement,
economic sanctions, export restrictions, human rights)
Risks related to procurement or supply (supply chain) disruptions
Risks related to logistics (regulations,work environments, costs)
Risks related to
personnel and labor
Risks related to cybersecurity and communications infrastructure
Risks related to leaks of confidential or personal information and cybersecurity
Risks related to large-scale natural disasters, pandemics, or emergencies overseas (terrorism, conflict, etc.)
Risks related to pandemics (suspension of operations, etc.)
Risks related to M&A
Risks related to climate change
Risks related to business alliances and M&A
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance 75
Directives for Addressing Material Group Risks
Material Group Risks
Approach of Main Measures
Risks related to accidents at production sites
Risks related to quality-associated misconduct
• Enhancement of culture of safety through more extensive communication between management and frontline workers
• Reinforcement and enhancement of Life Saving Actions (adherence to activity prohibitions for eliminating serious accidents)
• Improvement of workplace safety and fire prevention technologies
• Reinforcement of workplace safety auditing functions and cultivation of environmental safety experts
For more information, see
“Environmental Protection”
on page 76
• Enhancement of quality awareness and culture through regular communication between management and frontline workers
• Extensive circulation of information regarding quality risks through increased information communication from corporate quality
assurance departments
• Reinforcement of governance through quality inspections and reinforcement of training for quality assurance personnel
Risks related to noncompliance with laws and regulations for the
environment, safety, and quality
• Circulation of information regarding regulations and regulatory revisions, exhaustive education activities, appointment of experts,
and strengthening of internal consultation frameworks
• Development of systems for improving compliance
Quick detection of and response to signs of emerging risks through close coordination among relevant departments from wide-
ranging perspectives related to geopolitical trends, economic security, etc.
Feedstock procurement risks
• Monitoring of suppliers
• Diversification of procurement routes and maintenance of appropriate inventory levels for feedstocks used in major products
and businesses
Risks related to
global supply chains
Material procurement risks
Risks related to economic sanc-
tions, export restrictions, etc.
• Monitoring of suppliers
• Formation and maintenance of relationships with alternative suppliers for equipment components prone to unreliable supplies
• Revision of management procedures pertaining to delivery and upgrade timings for equipment components
• Timely monitoring of regulatory trends and consultation with relevant organizations and experts as necessary before issues emerge
• Rigorous screening of customers through external screening systems
Human rights risks
• Installation of internal frameworks for protecting human rights in line with the Asahi Kasei Group Human Rights Policy
• Definition of priority businesses across supply chain and performance of human rights due diligence
For more information, see “Human
Rights” on page 78
Risks related to cybersecurity and communications infrastructure
• Implementation of swift and flexible countermeasures to combat ever-evolving cyberattacks through technical measures made pos-
sible by installing security systems and raising and reinforcing awareness regarding security via employee education, etc.
For more information, see “Information
Security” on page 77
Risks related to large-scale natural disasters, pandemics, or emer-
gencies overseas (terrorism, conflict, etc.)
• Redevelopment of response policies and manuals based on past incidents (large-scale earthquakes, pandemics, etc.) and arrange-
ment of drills in preparation for risk materialization
• Establishment of standards and systems for setting up emergency response headquarters and response manuals to prepare for
acts of terrorism, conflicts, and other extreme circumstances that may occur overseas
Risks related to M&A
• Prudent due diligence of potential acquisitions
• Careful verification of post-merger integration plans
Risks related to climate change
• Monitoring and formulation of measures based on annual analyses and investigations of climate change-related risks
and opportunities
For more information, see “Initiatives
Regarding Climate Change Disclosure
Based on the TCFD Recommendations”
on page 32
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance
76
Environmental Protection
Policy and Management Framework
The Asahi Kasei Group Mission states that “we, the Asahi Kasei Group, contribute to life and living for people
Current Status and Fiscal 2022 Improvement Policy
In fiscal 2021, in addition to a serious industrial accident at an
around the world.” Based on this mission, we implement environment, safety, and health (ESH) and quality
affiliate in March 2021, there were 21 minor industrial accidents
assurance (QA) activities that recognize health maintenance, process safety, workplace safety and hygiene,
involving small fires, smoke, and minor leaks of hazardous materials
quality assurance, and environmental protection as the most important management tasks in all business activi-
and other substances within plant grounds. In addition, a fire
ties. In July 2022, we revised the Asahi Kasei Group Environment, Health, Safety, and Quality Assurance Policy.
lasting for an extended period occurred in April 2022, bringing the
Under this revision, we strive for stable and safe operation while preventing workplace accidents and securing the
total number of industrial accidents over the past 10 years to 22.
safety of personnel and members of the community, and are strengthening our environmental safety initiatives.
In light of these circumstances, a meeting of the ESH & QA
We aim to gain public understanding and trust by ensuring legal compliance and adopting self-imposed
Committee held in July 2022 reaffirmed that measures to address
targets to achieve continuous improvement while proactively disclosing information and communicating.
industrial accidents and prevent the spread of fires are an urgent
4
3
2
1
0
Occurrences of industrial accidents and
serious industrial accidents
(As of August 2022)
4
3
2
2
Serious industrial
accidents
Industrial accidents
3
2
1
1
1
1
1
1
’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22
Management Framework
PDCA Cycle for Safety Management
ESH & QA
Policy
ESH
Targets
Targets of Core
Operating Companies,
Regions, Etc.
task. At the same time, the committee decided to accelerate the effects of investigations by first applying the results
to the front lines in order to realize a swift and sure response, and determined on a policy to thoroughly implement
efforts to prevent any recurrence of industrial accidents and fires by once again carrying out an in-depth assessment
to ascertain their causes. In fiscal 2022, we are prioritizing the following three measures based on this policy.
Plan
Implement
1) Company-wide promotion and establishment of activities to enhance process safety technology in order to prevent
industrial accidents
2) Implementation of performance assessments through expert audits to evaluate the effectiveness of these activities
3) Enhancement of the effectiveness of fire prevention and extinguishing equipment and of emergency drills to prevent
Review
Audit
Review
Audit
the spread of fires
Sustainability Report
In addition, we will focus on creating a culture that strengthens two-way communication with the goal of
fostering a culture of safety among all employees. As part of these efforts, we will promote and ingrain the Life
Saving Actions program, one of our uniform, company-wide safety initiatives.
Management Council
ESH & QA Committee
Chair: President
Sustainability
Committee
Executive Officer for ESH & QA
Corporate ESH Officer
Corporate Quality Ensurance Officer
General Manager of Corporate
Health Care Promotion Center
• ESH & QA Implementation Managers (Presidents of SBUs
and Core Operating Companies, Senior General Manager
of Corporate Research & Development, Senior General
Manager of Corporate Production Technology)
• ESH Implementation Managers (Senior General Managers
of each Region/Senior General Managers of each Works)
Note: A site or group of sites consisting of several plants and facilities is
called a Region or Works
The Asahi Kasei Group, which aims to realize the two mutually reinforcing aspects
ESH
of sustainability of “contributing to sustainable society” and “the sustainable growth of
corporate value,” acknowledges that the serious industrial accidents of recent years
constitute a serious risk that could undermine our value from the perspectives of
public trust, consideration for the environment, the safety of employees and local
communities, and our own growth. To prevent such critical accidents, we are striv-
ing to enhance process safety technology on a company-wide basis and foster a
culture of safety, including at subsidiaries and affiliates, while incorporating
improvement measures based on audits by experts.
Masatsugu Kawase
Lead Executive Officer
Oversight: ESH & QA and
Manufacturing Functions
FY2022
Target
Priority Initiatives and Measures
Nurture a culture of safety
• Promotion and ingraining of the Life Saving Actions program (thor-
ough adherence to rules on prohibited behaviors to eradicate serious
occupational accidents)
• Strengthening of two-way communication between management and
the front lines
Develop human resources with
expertise in ESH
• Establishment of Group Masters in ESH and formulation of succes-
sion plans for them
Achieve zero serious
industrial accidents
• Company-wide promotion of activities to enhance process safety
technology and introduction of expert audits
Process Safety
Prevent the spread of fires
• Enhancement of the effectiveness of fire prevention and extinguish-
ing equipment (participation of experts)
• Implementation of effective emergency drills in cooperation with
public fire departments
Please see “Process Safety”
for details on these initiatives.
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance
77
Compliance / Information Security
Compliance
Policy and Management Framework
The Asahi Kasei Group positions compliance as a priority issue of materiality from the perspective of value cre-
ation. We seek to act with sincerity in accordance with our Group Values through strict compliance with internal
rules as well as laws and regulations that relate to our businesses and operations. We apply the Asahi Kasei
Group Code of Conduct
to all executives and employees and thoroughly familiarize them with the code while
continuously revising it in light of changing societal demands and circumstances.
To strengthen management of compliance, we established the Risk Management & Compliance Committee,
which is chaired by the President and has Presidents of SBUs and core operating companies as members.
Matters to be reported include plans and results of compliance promotion activities, serious compliance viola-
tions, and the operational status of the Compliance Hotline.
Awareness of the Code of Conduct
Prevention of Bribery
The Asahi Kasei Group has endorsed the United Nations Global Compact and declared that it will work to pre-
vent all forms of corruption, including coercion and bribery. In particular, we consider bribery to be a serious
risk factor that could considerably jeopardize our corporate reputation. Accordingly, we have established the
Asahi Kasei Group Basic Policies for Prevention of Bribery
and operate bribery prevention measures in
accordance with regulations.
Information Security
Policy and Management Framework
The Asahi Kasei Group considers information security to be a serious issue for management in promoting digital
transformation (DX). Accordingly, we formulated the Asahi Kasei Group Information Security Policy
with the
aim of ensuring and further enhancing information security. Regarding the information security framework, we
have established a specialized internal organization (the Security Center) for the implementation of information
Group companies in Japan maintain an understanding of the status of compliance through questionnaires on the
security measures at all Group companies in Japan and overseas from the perspectives of both corporate gover-
issue and regular exchanges of opinions in small groups—such as sections and subsections—using examples of
nance and technology.
compliance violations, which help promote awareness and understanding of compliance. In fiscal 2021, the com-
pliance questionnaire response rate came to 93.5%, with 97% of respondents answering that they had read the
Asahi Kasei Group Code of Conduct and approximately 80% that they understood it. Going forward, we will also
Cybersecurity
Cybersecurity measures have become increasingly important due to the sharp rise and growing sophistication
expand and strengthen compliance activities globally.
of cyberattacks. The Asahi Kasei Group began operating a security operation center (SOC)1 utilizing advanced
security systems, such as endpoint detection and response (EDR),2 to prevent such cyberattacks. In addition,
Compliance Hotline
The Asahi Kasei Group operates a Compliance Hotline in order to promptly collect information on compliance vio-
we devote efforts to employee awareness activities, including carrying out targeted email attack drills several
times a year, as most cyberattacks originate from suspicious emails, and implementing regular information
lations and take measures in response. A wide variety of reports and consultations are received, including from
security training.
suppliers and their employees, with the designated office or an investigation and response team carrying out
1 A SOC is an organization that monitors security. It receives alerts and other intelligence from security tools and investigates the impact
investigations depending on the nature of the reports or consultations. The Executive Officer for Risk
scope and severity of attacks.
Management & Compliance reports on the operational status of the hotline to the Risk Management &
Compliance Committee and to the Audit & Supervisory Board.
The system was revised in June 2022 in accordance with an amendment to Japan’s Whistleblower
Protection Act.
Number of reports and operational status (fiscal 2021): 66 reports
(4 of which were in relation to human rights issues, such as discrimination and harassment)
2 EDR is a system for detecting advanced cyberattacks. The system can also respond to incidents in a variety of ways, such as by
collecting logs required for analysis and isolating breached computers.
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance
Human Rights
Policy
Respect for the human rights of all people is one of the most important aspects of the Asahi Kasei Group’s business
Due Consideration for Human Rights in Procurement
In order to address human rights and labor issues, the Asahi Kasei Group has established a management frame-
activities. The Asahi Kasei Group Human Rights Policy, which was established with the approval of the Board of
work that coordinates among Corporate Procurement & Logistics, the Sustainability Strategy Planning
Directors in March 2022, complies with the International Bill of Human Rights and the International Labour
Department, and Group companies. Under this framework, in addition to providing ongoing training for
Organization’s Declaration on Fundamental Principles and Rights at Work. The Asahi Kasei Group has also
employees, we ascertain the status of corporate social responsibility (CSR) initiatives at suppliers with a CSR
pledged its support for the Ten Principles of the United Nations (UN) Global Compact as well as the UN Guiding
questionnaire, and work together with suppliers to foster an awareness of CSR, including human rights.
Principles on Business and Human Rights and the Children’s Rights and Business Principles. Guided by these
frameworks, we will strive to identify and appropriately address human rights issues in our business activities.
FY2021 CSR Procurement Questionnaire Results (raw material suppliers)
78
Outline of the Asahi Kasei Group Human Rights Policy
Basic Approach
• Respecting the human rights of all stakeholders
• Compliance with international human rights standards
• Endeavoring with business partners to remediate and eliminate human rights violations that occur
Addressing Human Rights Issues (daily activities)
Promoting Respect for Human Rights
•
Compliance with laws and regulations
(corporate initiatives)
Overall Evaluation
Rank D: 2 2%
Rank C: 3 3%
Rank B: 17 17%
* Major suppliers
Responding
companies*
101
Average Scores by Category
9. Harmony with the
local community
8. Supply chain
1. Corporate
governance
100
80
60
40
20
2. Human rights
3. Labor
Rank A: 79 78%
7. Information security
4. Environment
6. Product safety
and quality assurance
5. Fair corporate
activities
(including on working hours, wages, safety
and hygiene, and protection of personal
•
•
Education
Implementation of human rights due
will establish a human rights due diligence system and
information)
diligence
•
Prohibition of unacceptable conduct
•
Commitment to engage with affected
(including discrimination and harassment)
stakeholders
•
Respect for the human rights of all people
in society (including customers and
•
•
Grievances mechanisms
Disclosure
communities)
create a mechanism to implement it on an ongoing basis.
The system will proactively identify, avoid, and mitigate
any negative impacts that the Asahi Kasei Group may
have on society.
Human Rights Due Diligence Process
Act: Information
disclosure and
review of
activities
Check: Tracking
and verification
of initiatives
A
P
Corporate Human
Corporate Human
Rights Policies
Rights Policies
C
D
Plan: Fact-finding,
evaluation, and
identification of
risks
Do: Mitigating risks
and taking preven-
tive and corrective
measures
Human Rights Due Diligence
To fulfill our responsibility to respect human rights, we
Regarding the supply chain, the Asahi Kasei Group’s procurement policy
states that it is a policy to con-
expresses a firm policy against all forms of discrimination and harassment. This policy applies to all executives
sider suppliers as important partners. In addition, we formulated Supplier Guidelines
in 2021 to promote
and employees. Specific examples of education and training include study sessions focusing on abuses of
understanding and cooperation among suppliers.
power in the workplace and promoting greater awareness of human rights and diversity issues through the in-
house magazine and intranet. Going forward, we will continue to advance various initiatives based on the Asahi
Kasei Group Human Rights Policy.
Human Rights Education and Training
The Respect for Human Rights and Diversity section of the Asahi Kasei Group Code of Conduct clearly
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance
79
Health and Productivity Management
Overview of Health and Productivity Management Initiatives
Efforts to maintain and promote the physical and mental health of our employees and their families are at the
core of the Asahi Kasei Group’s health and productivity management activities. Based on the Statement on
Initiatives and Medium- to Long-Term Approach
to Health and Productivity Management
In April 2021, the Asahi Kasei Group transferred responsibility for the health and productivity management
Management for Health issued in October 2020, and the Group Health and Productivity Management Vision set
functions at its major domestic sites to the Corporate Health Care Promotion Center, and commenced health and
forth in the statement, the Corporate Health Care Promotion Center—an organization reporting to the Chief Health
productivity management initiatives within a framework to promote health and productivity management on an
and Productivity Officer (CHO)—takes the lead in promoting initiatives for health and productivity management.
integrated, group-wide basis. In April 2022, we also began a variety of health and productivity management
In recent years, the total number of leave days taken by employees has been increasing, causing both the
activities at smaller offices and subsidiaries in Japan.
amount of lost working time and healthcare costs to increase. In response, we have been promoting measures to
address mental health issues, metabolic syndrome, cancer, and smoking, which are factors behind the increase
in leave days. In April 2022, we added the enhancement of sleep quality and quantity—which are said to be
largely related to presenteeism1—to our health and productivity management targets, and relevant initiatives are
advancing. Among such measures, we especially consider company-wide self-care2 training to address mental
Our focus from fiscal 2022 to fiscal 2024 will be to generate concrete benefits through the activities of major
domestic sites and to ensure that the benefits of such activities are tangible for as many employees as possible.
We also plan to expand the activities to smaller offices and subsidiaries in Japan as well as to overseas sites
during this period. In addition, we will introduce health management tools through the digital transformation of
health information with the goal of quantitatively ascertaining conditions at each workplace and verifying the
health issues to be essential for maintaining and promoting physical and mental health through health and
effectiveness of various measures.
productivity management initiatives in order to achieve sustainable increases in corporate value.
At the same time, we are also focusing on individual and organizational revitalization that supports the
From fiscal 2025, we will further enhance various health and productivity management activities by evaluating
and inspecting prior activities. We will take on new challenges, disseminating and entrenching health and
success and growth of each individual, fosters greater working satisfaction and fulfillment, and creates a vibrant and
productivity management on a group-wide and global basis as we seek to undertake well-being management.4
strong organizational climate. For this purpose, we will improve our productivity and development by enhancing
work engagement and advancing the comprehensive utilization of KSA engagement surveys3 and stress checks,
enabling us to pursue the two mutually reinforcing aspects of sustainability of “contributing to sustainable
society” and “the sustainable growth of corporate value,” which the Asahi Kasei Group aims for.
1 The practice of going to work while suffering from an illness or symptoms of some kind, lowering work performance and productivity.
2 In mental health promotion, self-care is the practice of employees being aware of their own stress levels and applying the knowledge and
methods they have acquired to cope with such stress.
3 Engagement surveys that ascertain the state of individuals and organizations using three indicators: (1) Supervisor–subordinate
relationships, workplace environments; (2) Employee empowerment; and (3) Action driving growth.
4 Well-being management is a management approach that goes beyond promoting physical and mental health to emphasize the
development of organizations in which employees feel happiness, sense tangible growth, and go about their work with a high degree
of autonomy and motivation.
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
Maintaining and promoting the physical and mental health of employees and their families
• 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
domestic sites
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information04Strengthening of Corporate Governance
80
Corporate Information
81 Consolidated Financial Statements
86 Corporate Profile / Stock Information
87
Information Disclosure
05Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information05Strengthening of Corporate Governance 81
Consolidated Financial Statements
Consolidated Balance Sheets
Asahi Kasei Corporation and Consolidated Subsidiaries
March 31, 2022 and 2021
ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable–trade
Notes, accounts receivable–trade, and contract assets
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
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets
Millions of yen
2022
2021
¥ 244,641
–
434,595
252,521
146,120
141,608
117,195
(2,471)
1,334,209
646,311
(333,966)
312,344
1,569,782
(1,288,462)
281,320
69,567
8,679
(6,814)
1,865
102,284
159,312
(121,477)
37,834
805,215
431,335
405,508
836,843
246,701
6,227
30,432
1,193
54,276
34,404
(426)
372,808
2,014,866
¥ 221,779
338,640
–
203,159
166,494
111,798
97,131
(2,225)
1,136,776
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
351,921
342,454
694,374
286,517
1,241
29,390
–
21,116
32,709
(445)
370,529
1,782,165
Thousands of
U.S. dollars*
2022
$ 1,998,538
–
3,550,323
2,062,912
1,193,693
1,156,834
957,397
(20,186)
10,899,510
5,279,887
(2,728,257)
2,551,622
12,823,969
(10,525,790)
2,298,178
568,311
70,901
(55,665)
15,236
835,585
1,301,462
(992,378)
309,076
6,578,017
3,523,691
3,312,703
6,836,394
2,015,366
50,870
248,607
9,746
443,395
281,055
(3,480)
3,045,568
16,459,979
¥ 3,349,075
¥ 2,918,941
$27,359,489
Detailed Consolidated Financial Statements are available at the following link:
https://www.asahi-kasei.com/ir/library/financial_briefing/pdf/2203statements.pdf
Millions of yen
Thousands of
U.S. dollars*
LIABILITIES AND NET ASSETS
2022
2021
2022
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
(2022—6,640,935 shares, 2021—6,396,867 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
¥ 178,092
239,491
113,000
2,224
146,275
58,115
62,476
208
4,738
4,007
4,445
110,778
923,850
160,000
253,785
8,715
52,017
490
5,396
12,298
152,081
22,490
39,139
706,410
1,630,260
103,389
79,887
1,282,325
(6,219)
1,459,381
66,287
(341)
167,225
(5,142)
228,029
31,405
1,718,815
¥ 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
$ 1,454,881
1,956,466
923,127
18,168
1,194,960
474,757
510,383
1,699
38,706
32,734
36,312
904,975
7,547,178
1,307,083
2,073,237
71,195
424,941
4,003
44,081
100,466
1,242,390
183,727
319,737
5,770,852
13,318,030
844,612
652,618
10,475,656
(50,805)
11,922,073
541,516
(2,786)
1,366,106
(42,006)
1,862,830
256,556
14,041,459
¥3,349,075
¥2,918,941
$27,359,489
* 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 ¥122.41 = US$1 prevailing on March 31, 2022, has been used.
* 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 ¥122.41 = US$1 prevailing on March 31, 2022, has been used.
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information05Strengthening of Corporate Governance
82
Consolidated Statements of Comprehensive Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2022 and 2021
Net income
Other comprehensive income
Net increase (decrease) 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*
2022
2021
2022
¥163,834
¥ 82,098
$1,338,404
(25,746)
5
114,406
5,403
3,599
97,668
¥261,502
¥258,322
3,180
24,806
(106)
35,491
12,631
3,020
75,842
¥157,941
¥154,817
3,124
(210,326)
41
934,613
44,139
29,401
797,876
$2,136,280
$2,110,301
25,978
* 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 ¥122.41 = US$1 prevailing on March 31, 2022, has been used.
Consolidated Statements of Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2022 and 2021
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
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
Insurance income
Gain on step acquisitions
Total extraordinary income
Extraordinary loss:
Loss on valuation of investment securities
Loss on disposal of noncurrent assets
Impairment loss
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
2022
2021
¥2,461,317
1,691,549
769,769
567,122
202,647
¥2,106,051
1,425,342
680,709
508,901
171,808
1,364
4,332
8,878
7,088
21,663
3,643
8,614
12,257
212,052
26,545
912
3,777
1,700
32,934
511
7,526
6,811
–
–
15,017
29,866
215,121
93,046
(41,759)
51,287
163,834
1,954
¥ 161,880
1,895
4,308
3,451
7,677
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
Thousands of
U.S. dollars*
2022
$20,107,156
13,818,716
6,288,449
4,632,971
1,655,477
11,143
35,389
72,527
57,904
176,971
29,761
70,370
100,131
1,732,309
216,853
7,450
30,855
13,888
269,047
4,174
61,482
55,641
–
–
122,678
243,983
1,757,381
760,118
(341,140)
418,977
1,338,404
15,963
$ 1,322,441
* 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 ¥122.41 = US$1 prevailing on March 31, 2022, has been used.
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information05Strengthening of Corporate Governance
Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2022 and 2021
83
Millions of yen
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’
equity
Net unrealized gain on
other securities
Deferred gains (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
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
Cumulative effects of changes in accounting
policies
9,212
9,212
9,212
Restated balance
103,389
79,641
1,168,004
(5,932)
1,345,102
91,887
(347)
50,462
(10,416)
131,586
27,058
1,503,747
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Disposal 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
(47,187)
161,880
(371)
0
245
(412)
125
(47,187)
161,880
(412)
125
–
(371)
245
(25,600)
Total changes of items during the period
–
245
114,321
(287)
114,279
(25,600)
(47,187)
161,880
(412)
125
–
(371)
245
5
5
116,763
116,763
5,274
5,274
96,443
96,443
4,347
4,347
100,789
215,069
Balance at March 31, 2022
¥103,389
¥79,887 ¥1,282,325
¥(6,219) ¥1,459,381
¥ 66,287
¥(341)
¥167,225
¥ (5,142)
¥228,029
¥31,405 ¥1,718,815
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’
equity
Net unrealized gain on
other securities
Deferred gains (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
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
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information05Strengthening of Corporate Governance
Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2022 and 2021
84
Thousands of U.S. dollars*
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’
equity
Net unrealized gain on
other securities
Deferred gains (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
Balance at March 31, 2021
$844,612
$650,609 $ 9,466,481
$(48,460) $10,913,242
$ 750,649
$(2,835) $ 412,238
$(85,091) $1,074,961
$221,044 $12,209,256
Cumulative effects of changes in accounting
policies
75,255
75,255
75,255
Restated balance
844,612
650,609
9,541,737
(48,460) 10,988,498
750,649
(2,835)
412,238
(85,091)
1,074,961
221,044 12,284,511
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Transfer from retained earnings to capital
surplus
Change of scope of consolidation
Capital increase of consolidated subsidiaries
2,001
Net changes of items other than shareholders’
equity
(385,483)
1,322,441
0
(385,483)
1,322,441
(3,366)
(3,366)
1,021
1,021
(3,031)
–
(3,031)
2,001
(209,133)
(385,483)
1,322,441
(3,366)
1,021
–
(3,031)
2,001
41
41
953,868
953,868
43,085
43,085
787,869
787,869
35,512
823,372
35,512
1,756,956
Total changes of items during the period
–
2,001
933,919
(2,345)
933,576
(209,133)
Balance at March 31, 2022
$844,612
$652,618 $10,475,656
$(50,805) $11,922,073
$ 541,516
$(2,786) $1,366,106
$(42,006) $1,862,830
$256,556 $14,041,459
* 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 ¥122.41 = US$1 prevailing on March 31, 2022, has been used.
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information05Strengthening of Corporate Governance
85
Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds payable
Repayments of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Purchase of shares in subsidiaries not resulting in change in
scope of consolidation
Other, net
Net cash provided by (used in) 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*
2022
2021
2022
¥ 65,632
29,000
896
(51,094)
50,000
(2,298)
(412)
125
(47,187)
(2,190)
–
(152)
42,321
21,027
25,600
216,235
¥(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
$ 536,165
236,909
7,320
(417,401)
408,463
(18,773)
(3,366)
1,021
(385,483)
(17,891)
–
(1,242)
345,732
171,775
209,133
1,766,481
1,112
¥ 242,948
1,769
¥ 216,235
9,084
$ 1,984,707
* 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 ¥122.41 = US$1 prevailing on March 31, 2022, has been used.
Consolidated Statements of Cash Flows
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2022 and 2021
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase in provision for grant of shares
(Decrease) increase in provision for periodic repairs
Increase (decrease) in provision for product warranties
(Decrease) 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
Increase in notes, accounts receivable–trade, and contract
assets
(Increase) decrease in inventories
Increase in notes and accounts payable–trade
Increase in accrued expenses
Increase in advances received
Other, net
Subtotal
Interest and dividend income, received
Interest expense paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of 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*
2022
2021
2022
¥ 215,121
119,738
6,811
28,391
60
(502)
233
¥ 150,906
108,369
1,937
24,903
148
2,033
(221)
$ 1,757,381
978,172
55,641
231,934
490
(4,101)
1,903
(1,562)
(2,939)
(5,696)
3,643
(8,878)
(26,545)
511
(912)
7,526
–
(45,911)
(73,257)
21,392
10,184
10,546
(19,112)
238,843
7,212
(3,647)
(59,137)
183,271
(3,267)
7,224
(142,256)
1,280
(27,452)
(5,805)
33,437
(80,912)
–
(6,102)
2,782
52
¥(221,019)
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)
(12,760)
(24,009)
(46,532)
29,761
(72,527)
(216,853)
4,174
(7,450)
61,482
–
(375,059)
(598,456)
174,757
83,196
86,153
(156,131)
1,951,172
58,917
(29,793)
(483,106)
1,497,190
(26,689)
59,015
(1,162,127)
10,457
(224,263)
(47,423)
273,156
(660,992)
–
(49,849)
22,727
425
$(1,805,563)
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information05Strengthening of Corporate Governance
Corporate Profile / Stock Information (as of March 31, 2022)
Corporate Profile
Company Name
Asahi Kasei Corporation
Paid-in Capital
¥103,389 million
86
Employees
46,751 (consolidated) 8,646 (non-consolidated)
Founding
May 25, 1922
Establishment
May 21, 1931
Asahi Kasei Group Offices
Asahi Kasei Corporation
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
Core Operating Companies
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 166,437
Largest Shareholders
% of equity
The Master Trust Bank of Japan, Ltd. (trust account)
17.62
Custody Bank of Japan, Ltd. (trust account)
JP Morgan Chase Bank 385632
Nippon Life Insurance Company
Asahi Kasei Group Employee Stockholding Assn.
Sumitomo Mitsui Banking Corp.
State Street Bank West Client — Treaty 505234
Mizuho Trust & Banking Co., Ltd. retirement benefit trust
(Mizuho Bank account)
Trustee of sub-trust: Custody Bank of Japan, Ltd.
Sumitomo Life Insurance Company
Custody Bank of Japan, Ltd. (trust account 4)
Note: Percentage of equity ownership after exclusion of treasury stock
5.32
3.32
2.95
2.59
1.83
1.60
1.43
1.43
1.35
Asahi Kasei Report 2022Asahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth StrategyCorporate Information05Strengthening of Corporate Governance Asahi Kasei Report 2022
05
Corporate Information
87
Information Disclosure
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 2022)
• FTSE4Good Index
• MSCI Japan Empowering Women Index (WIN)
CDP Climate Change and Water Security A– Evaluation
Asahi Kasei received an A– evaluation in the categories of Climate Change and Water Security in the 2021 survey
• FTSE Blossom Japan Index
• MSCI Japan ESG Select Leaders Index
conducted by CDP. We received an A– in the Climate Change category for seven consecutive years from 2015 to
• FTSE Blossom Japan Sector Relative Index
• S&P/JPX Carbon Efficient Index
2021, while 2021 was our third year to receive an A– in the Water Security category.
• MSCI ESG Leaders Indexes
Acquisition of the Highest Rank from Development Bank of Japan, Inc.
(DBJ) under its DBJ Environmentally Rated Loan Program
In August 2022, 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
2022
“company with particularly advanced environmental programs.”
Selected as a DX Stock
In 2022, Asahi Kasei was selected as a Digital Transformation (DX) Stock, an initiative conducted
jointly by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange, for the second
consecutive year.
Hibiya Mitsui Tower 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006 Japan
www.asahi-kasei.com/
Strengthening of Corporate GovernanceAsahi Kasei Group OverviewAsahi Kasei’s IdealsGrowth Strategy