Asahi Kasei Report 2023
Be a Trailblazer
1
The Asahi Kasei Group
Contributes to Life and Living
for People around the World
Guided by the universal purpose set forth in its Group Mission, the Asahi
Kasei Group creates new businesses in response to social issues that
change with the times. Meanwhile, we also achieve growth by repeatedly
transforming our business portfolio in accordance with the conditions of
each era, including through business downsizing and withdrawal.
The essence of the heritage nurtured by our predecessors in that process is
“A-Spirit.” Representing the Asahi Kasei spirit, this term epitomizes the
mettle of a pioneer and our ambition to create things that did not previously
exist. A-Spirit is unique to the corporate culture of the Asahi Kasei Group,
and integral to the way we create new value unbound by precedent.
We will continue striving toward our Group Vision of enabling “living in health
and comfort” and “harmony with the natural environment” by addressing
changing social issues through two mutually reinforcing aspects of
sustainability: “contributing to sustainable society” and “the sustainable
growth of corporate value.”
Asahi Kasei Report 2023 22
On the Publication of the Asahi Kasei Report 2023
The Asahi Kasei Report aims to enhance understanding among our stake-
business portfolio. Chief Financial Officer Toshiyasu Horie also touches on
holders regarding the narrative of how the Asahi Kasei Group creates value
efforts to further improve capital efficiency and the Asahi Kasei Group’s
through two mutually reinforcing aspects of sustainability—contributing to
mindset regarding capital allocation in his Message from the CFO, while
a sustainable society and achieving sustainable growth of corporate value.
Outside Director Tsuyoshi Okamoto describes the status and challenges of
It is also intended as a tool for constructive dialogue with our stakeholders.
the Asahi Kasei Group’s efforts to improve corporate value, as well as mea-
This report consists of descriptions of the Asahi Kasei Group’s business
sures to strengthen governance. The Message from the President and
model, management strategy, governance, and other content, with emphasis
these opening pages present the key points that we particularly want to
on the details and progress of our medium-term management plan (MTP)
convey to our stakeholders. This report also includes features newly added
for fiscal 2024, focused on the theme “Be a Trailblazer.” It is compiled by a
since fiscal 2022, such as a new presentation of our value creation model
project team comprising related departments under the supervision of the
and progress on implementing business strategies for our “10 Growth
Executive Officer for Corporate Planning, Accounting & Finance, and IR.
Gears” (GG10) businesses to drive future growth, as well as the status of
The Asahi Kasei Report 2023 describes progress of activities and
efforts to create value from the
future management policies at the conclusion of the first year of the MTP,
perspective of GDP (Green, Digital, People) and the maximum use of
along with messages from management and input from our employees.
intangible assets.
The Message from the President in Asahi Kasei Report 2022, published
Over the more than 100 years since its founding, the Asahi Kasei Group
in fiscal 2022, featured a straightforward explanation from President
has grown by continually transforming its business portfolio. We have done so
Koshiro Kudo on his thoughts and determination upon assuming the role of
by capturing the ever-changing needs of the times to create new businesses,
President, as well as how the Asahi Kasei Group will create value by exe-
and downsizing or withdrawing from businesses whose value-creation
cuting its MTP. In his message in fiscal 2023, looking back on the year
became problematic. We hope that, through this report, our stakeholders
since he assumed the role, Mr. Kudo also acknowledges new challenges
will recognize the potential of the Asahi Kasei Group as it continues to
that lie ahead for improving the Asahi Kasei Group’s corporate value, as
transform into the future, and we welcome your unreserved feedback.
well as his thoughts and determination regarding transformation of the
Regarding photos used on the cover and at the beginning of each section
A number of photos used in this report are winning entries from our “2nd Sustainability Photo Contest” held in fiscal 2022 among all
Asahi Kasei Group employees and executives. More than 1,000 photos were submitted by 622 applicants from 22 countries around
the world, a great many of which convey our commitment to “Care for People, Care for Earth.”
Photographer
Cover
Name
Company
Country/region
Siriporn Pentanyakorn
Asahi Kasei Advance Thailand
Thailand
On the Publication of the Asahi Kasei Report 2023
Name
Company
Country/region
Kaytlin Kilian
Sage Automotive Interiors
U.S.A.
Asahi Kasei Report 2023
3
Period under review
The period under review is fiscal 2022 (April 2022 to March
2023). The report also contains some information on activi-
ties from April 2023.
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 current as of
September 2023.
Disclaimer
The forecasts and estimates shown in this report are depen-
dent on a variety of assumptions and economic conditions.
Plans and figures depicting the future do not imply a guaran-
tee of actual outcome.
Contents
01 Asahi Kasei’s Ideals
4 Message from the President
12 Message from the CFO
15 Message from an Outside Director
02 Value Creation
18 Addressing Social Issues and
Transforming Our Business Portfolio
20 Asahi Kasei’s Technological Heritage and
Path to Three Sectors
22 At a Glance
23 Financial Highlights
24 Non-Financial Highlights
25 Value Creation Model
26 Value Creation Mechanism
28 Materiality
03 Growth Strategy
31 Progress on Medium-Term Management Plan 2024—
Be a Trailblazer
36 Strategies by Sector
36 Material
43 Homes
47 Health Care
04 Strengthening Our
Foundation for Growth
53 New Business Creation
57 Green Transformation
61 Disclosure Based on the TCFD Recommendations
64 Digital Transformation
68 Transformation of HR
74 Health and Productivity Management
76 Maximum Use of Intangible Assets
05 Strengthening of
Corporate Governance
79 Directors
80 Directors and Audit & Supervisory Board Members
82 Corporate Governance
84
Discussing Asahi Kasei’s Corporate Governance:
Interview with New Outside Director Chieko Matsuda
89 Risk Management
92 Environmental Protection
93 Human Rights
94 Compliance / Information Security
95 Communication with Stakeholders
06 Corporate Information
97 Consolidated Financial Statements
102 Corporate Profile / Stock Information
103 Information Disclosure
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
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Message from the President
Creating unique Asahi Kasei value through
maximum use of diverse intangible assets
to transform our business portfolio
without delay
Koshiro Kudo
President
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 5
No Growth Without Transformation
We adopted the key concept of “Be a Trailblazer” in our medium-term man-
Why do I place such an emphasis on tackling challenges? Because just
agement plan (MTP) launched in April 2022. The heritage passed on since
as we have thrived through the transformation of our business portfolio, we
our founding is the “A-Spirit,” which the plan aims to spur among all
would cease to grow if we stop transforming. We must never forget this.
employees. “A-Spirit” comprises ambitious motivation, a healthy sense of
Our growth will stagnate and eventually decline if we maintain the status
urgency, quick decisions, and a spirit of advancement, and represents the
quo instead of taking on new challenges. To continue to grow without falling
source of the transformative power that has brought about the Asahi Kasei
into such circumstances, we must continuously push ourselves, never let-
Group’s growth. Our history of growth is a sequence of tackling challenges
ting up on our transformation. With this in mind, upon unveiling the MTP in
to create new value. I became concerned, however, that stable manage-
fiscal 2022, we set forth the key concept of “Be a Trailblazer” to awaken the
ment over many years and increased recognition of the Asahi Kasei Group
“A-Spirit” among all employees.
in society has fostered a corporate culture that accepts the status quo.
Celebrating our centenary, I harbored a sense of foreboding as I looked over
our history from founding to present day.
Continuing to Grow with People by Contributing to Life and Living through Innovation
If I were asked to describe Asahi Kasei, I would first share our Group
on the basis of this belief led to a three-sector management configuration—
Mission of contributing to life and living for people around the world. Our
Material, Homes, and Health Care—which enables us to seek steady
customers and society at large expect us to create new value while spurring
growth into the future. Based on our experience of transformation, I am
innovation with our original technologies, to improve the quality of life and
convinced such a configuration represents the most suitable form of man-
living for people around the world with such value, and to continuously con-
agement for Asahi Kasei today.
tribute to society through value creation. Our business activities are based
With that said, managing a large number of businesses can lead to
on the belief that our growth is maintained by facilitating the development of
abstract aims among each of those businesses, so we must avoid losing
society through the consistent pursuit of value that contributes to realizing
sight of our goals. Meanwhile, accelerating the pace of innovation requires
the Group Vision of living in health and comfort and harmony with the natu-
continuous investment and R&D, and ensuring and expanding a stable
ral environment. The two mutually reinforcing aspects of sustainability—
earnings base to fund such activities is indispensable. In the MTP, we have
contributing to a sustainable society and achieving sustainable growth of
clarified the roles of the three sectors and established targets and measures
corporate value—embodying our ideal for the future, refer exactly to this
to address these two challenges. The roles for each of the sectors are
state. Transforming our business portfolio through repeated trial and error
defined and built on their distinctive characteristics while focusing on
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 6
technological development and innovation based in the aforementioned
Group by steadfastly promoting growth strategies through the respective
belief. We will continue to improve the corporate value of the Asahi Kasei
roles of the three sectors.
Material
Homes
Health Care
The Material sector pursues the creation of
The Homes sector raises cash-generating
The Health Care sector drives the Asahi Kasei
new business models to improve profitability
capabilities by accelerating growth in Japan,
Group’s profit growth through the provision of
and capital efficiency through R&D and innova-
North America, and Australia through continu-
innovative pharmaceuticals and medical
tion of materials technology that contributes to
ous efforts to underpin people’s safe and com-
devices that satisfy unmet needs, in pursuit of
a sustainable society.
fortable daily lives.
its mission to improve and save patients’ lives.
Progress on the Medium-Term Management Plan
Fiscal 2022: a year in which we further firmly solidified our
commitment to transformation
direction of future structural transformation of petrochemical chain-related
businesses. At the same time, we proactively implemented M&A and invest-
Fiscal 2022 was the first year of the new MTP, and we vigorously imple-
ment focused on the “10 Growth Gears” (GG10) businesses that are to
mented and worked on specific measures. From the perspective of busi-
drive our future growth. To give an example, we obtained a new growth
ness portfolio transformation, publicly announced measures in fiscal 2022
driver in the bioprocess business through the acquisition of Bionova
included the transfer of our photomask pellicles business and the establish-
Scientific, LLC, a contract development and manufacturing organization
ment of a joint venture for our spunbond nonwoven business. We also
(CDMO) for next-generation antibody drugs, which are expected to enjoy
recorded an impairment loss on Polypore International, LP, following a
significant growth into the future. We also began increasing production
change of strategy in our lithium-ion battery (LIB) separator business.
capacity for Pimel™ photosensitive polyimide to address growing demand
Although our photomask pellicles business held a strong industry position
of cutting-edge semiconductor applications in the Digital Solutions busi-
and enjoyed sufficiently high profitability, we decided to transfer it to a com-
ness, which comprises the electronic components and electronic materials
pany capable of further leveraging the potential of the business from a best-
owner perspective. While the impairment loss on Polypore entailed a painful
businesses. Furthermore, in our North American housing business, we were
able to expand our business model—which is currently beginning to bear
outcome, we set forth a strategy for the future of the separator business by
fruit centered on Arizona—by acquiring Focus Companies, a construction
establishing a clear strategic position of focusing resources on Hipore™
work supplier in Nevada.
wet-process LIB separators, which have the potential for significant growth
Meanwhile, we focused efforts on strengthening our business platform,
in the automotive market going forward. As I will expand on shortly, we also
including intangible assets, such as human resources, core technologies,
established an internal team to advance full-fledged discussions on the
and know-how. Having put forth the maximum use of intangible assets as a
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 7
key area for transformation in the MTP, I am glad to see that awareness for
the operational efficiency of each employee, the key is to efficiently allocate
leveraging intangible assets has spread considerably within Asahi Kasei. For
finite management resources to achieve maximum results. In this light, rais-
example, by using IP landscaping when deciding whether to establish a joint
ing productivity is a quintessential management issue. Low productivity sig-
venture for our spunbond nonwoven business, we found that a combination
nifies that management resources, including already scarce human
of the businesses would yield competitive advantages. Many cases of use
resources, are not being properly allocated to high value-creating fields or
for our intangible assets have emerged, such as the construction of a new,
future growth fields. I believe that organizational leaders must continuously
data-driven business model for smart electrolyzers in the ion-exchange
ask themselves if they are allocating management resources optimally from
membrane chlor-alkali electrolysis process, which employs digital technol-
a medium- to long-term perspective.
ogy. In particular, we are seeing concrete results in relation to digital trans-
This issue also applies directly to the Asahi Kasei Group. Return on
formation (DX). These include the selection of Asahi Kasei as DX Stock for
invested capital (ROIC) indicates the level of productivity relative to capital
the third consecutive year by the Ministry of Economy, Trade and Industry
invested by shareholders and creditors. With profit growth stagnating
(METI), and a profit contribution of ¥2.8 billion from projects manifested in
against an increase in invested capital in recent years, our ROIC in fiscal
fiscal 2022 alone.
2022 was 4.0%, lower than our cost of capital. Fundamentally strengthen-
Despite such progress in steadily implementing medium-term measures,
ing our profit structure is an urgent necessity. As a first step toward achiev-
operating income in fiscal 2022 came to ¥128.4 billion, significantly lower
ing this goal, we established the Build-up to Trailblaze (BT) Project in fiscal
than the forecast of ¥210.5 billion announced along with fiscal 2021 results
2023. In addition to streamlining measures that have an immediate effect,
in May 2022. The impact of the deteriorating operating environment, includ-
the project aims to reduce SG&A expenses by ¥20 billion per year by adopt-
ing in petrochemical-related Basic Materials and the separator business was
ing measures designed to raise productivity, including rethinking our work-
extremely significant, while our inability to adequately anticipate accelerating
styles and organization. We must also advance business portfolio
changes in the operating environment is a shortcoming that we must
transformation from the perspective of productivity—whether we are allocat-
address. With that said, I believe we were right to have a sense of urgency
ing management resources properly to businesses with future growth
from the outset over the need to transform our business portfolio without
potential—if we are to manage management resources efficiently over the
delay, centered on the Material sector, a stance we have maintained since
medium to long term.
the unveiling of the MTP. Fiscal 2022 renewed my strong conviction that we
must take the lead in transforming of our own accord, rather than following
Transforming our business portfolio without delay
others, to address irreversible changes occurring throughout the world.
Asahi Kasei promotes the transformation of its business portfolio from a
Raising productivity: our foremost challenge
two-pronged approach: increasing the profits of GG10 and advancing struc-
tural transformation focused on petrochemical chain-related businesses.
If I may digress slightly, raising productivity has been identified as the great-
Looking first at our growth strategy, we established GG10 along with the
est challenge facing Japan today, where human capital is in short supply
MTP in fiscal 2022, However, I believe that lumping together 10 businesses
due to serious population decline. Japan cannot expect to address this
with different time frames, scales, and growth directions has made GG10
social issue unless companies work proactively to raise their own productiv-
difficult for both internal and external stakeholders to understand. Reflecting
ity. Although discussions on raising productivity tend to focus on improving
on this, we have classified GG10 businesses into three major categories
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beginning in fiscal 2023, clearly defining our vision for allocating resources
GG10 businesses designated as growth potential areas, such as the
according to business direction.
hydrogen-related, CO2 chemistry, and separator businesses, must be man-
We have positioned four businesses—critical care, global specialty
aged under strategies that are fundamentally different from those adopted
pharma, and bioprocess in the Health Care sector, and Digital Solutions in
in the past. By focusing on niche domains, we have raised earnings by
the Material sector—as first priority areas. With a focus on globally competi-
leveraging our strong technological capabilities. In short, our niche strategy
tive businesses, we will prioritize the investment of management resources
has been successful, resulting in our growth to date. However, I believe
in various businesses in the Health Care sector with the aim of achieving
that these businesses must shift to a strategy of scaling up operations
growth over the medium term. At the same time, we intend to reap steady
through continuous investment over the long term in cooperation with a
results from the sleep apnea diagnosis and treatment device businesses,
wide range of partners. Businesses classified as growth potential areas are
bio-CDMO businesses, and other businesses that we have already acquired
already attracting attention around the world, with technologies and prod-
through M&A and designated as growth drivers. We will also invest proac-
ucts essential to addressing environmental issues. While these businesses
tively, including in pursuit of inorganic growth, in Digital Solutions. In three
can be expected to continuously spur innovation and achieve growth, our
businesses in the Material sector—hydrogen-related, CO2 chemistry, and
independent operation is insufficient; we need to work in concert with a
energy storage including separators, which are growth potential areas—we
variety of other companies. Given that heavy capital expenditure will be
will make upfront investments aimed at future growth. We have also desig-
required, I believe we must consider all funding options, including subsi-
nated another three businesses—car interior material in the Material sector,
dies, the use of capital of other companies, and joint ventures. Such
and environmental homes and construction materials and North American
endeavors represent a new challenge for us, since we have traditionally
and Australian homes in the Homes sector—as earnings base expansion
operated in niche domains, but we aim to steadily increase the profitability
areas for boosting our cash-generating capabilities. We will make invest-
of businesses classified as growth potential areas and developing them to
ments based on careful assessment of the ability to maintain steady earn-
contribute to the world.
ings generation and to expand the scale of earnings. In particular, we are
In addition to growth strategies, we are steadily implementing and inte-
leveraging the know-how and expertise developed in the homes business in
grating the reform of strategic restructuring businesses and fundamental
Japan to establish new business models in the North American and
business structure transformation as a business portfolio transformation
Australian homes business in accordance with the attributes of each region,
measure. Beginning with businesses in the Exit category—including the
and will bolster the earnings base of this business by expanding areas of
aforementioned business transfer—we are advancing structural transfor-
operation. For GG10, we are making investments of ¥600 billion in total over
mation with the aim of implementation by fiscal 2024 for businesses that
the three years from fiscal 2022 to fiscal 2024, as initially planned. Through
had net sales totaling over ¥100 billion or more in fiscal 2021. The biggest
these investments, we aim to enable GG10 to generate operating income
issue we face in advancing fundamental business structure transformation
totaling ¥150 billion in fiscal 2024, accounting for more than 50% of the
is how to reorganize petrochemical chain-related businesses, which have
profits from our businesses. Although not all of the capital expenditure and
net sales of approximately ¥600 billion. Looking back, we closed our
M&A focused on GG10 in recent years will necessarily produce results by
naphtha cracker in the Mizushima area of Okayama Prefecture in fiscal
fiscal 2024, I am confident that these efforts will be a major driver of growth
2016 and switched to joint operation of a cracker with another company
over the medium to long term from fiscal 2025 onward.
considering the future supply and demand balance in Japan. In addition to
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optimizing the balance between supply and demand, petrochemical chain-
business portfolio we also need to turn ideas into new businesses by lever-
related businesses are facing the challenge of achieving carbon neutrality.
aging our sophisticated and diverse technologies for potential business
For this reason, we are examining the direction of such businesses to
opportunities. When we announced our MTP, I said that we would acceler-
determine whether making investments required to achieve carbon neu-
ate such transformation with an emphasis on the three elements of speed,
trality and bearing costs such as carbon taxes will allow them to make suf-
asset-light, and high value-added. This is based on my belief that quickly
ficient profits.
commercializing technologies and business ideas is indispensable to accel-
There are three major directions for structural transformation. The first is
erating transformation.
to explore and promote the potential for developing and adding value to
The way we use our intangible assets is key to commercializing technol-
technologies in relation to carbon neutrality. In addition to building an
ogies and ideas and offering them to society. It also shapes Asahi Kasei’s
appropriate balance between the supply and demand of petrochemical
unique identity. Despite having such an abundance of sophisticated intangi-
products, we must confront environmental issues head-on. With a focus on
ble assets, though, we struggle to bring them to commercialization. To me,
our technologies to mitigate environmental impact, such as technology to
this indicates that we have not made full use of our intangible assets at the
produce basic feedstocks from bioethanol, we need to explore all possible
business development and business building stages. Based on this analy-
solutions. To this end, we will proactively conduct verification trials aimed at
sis, we have begun developing businesses in fiscal 2023 centered on tech-
commercializing such technologies to establish them as the key to reorga-
nology to leverage the Asahi Kasei Group’s intangible assets with an
nization of the petrochemical industry in Japan. In addition to possibility, we
emphasis on the elements of speed and asset-light. This approach will
are considering operating businesses jointly with other companies or exit-
make maximum use of core technologies that have yet to be commercial-
ing from businesses as our second and third options. I would like to
ized but can contribute to society. They can also contribute to earnings
emphasize here that simply detaching petrochemical chain-related busi-
through a business model whereby Asahi Kasei provides core technologies
nesses from the Asahi Kasei Group would not solve this issue. I believe that
and receives license fees and royalties from clients that develop them into
companies involved in the petrochemical industry must advance verification
products. Making extensive use of digital technology, we will also build and
trials of outstanding technologies that contribute to achieving carbon neu-
promote the use of several frameworks to visualize and integrate our
trality while establishing cooperative relationships that allow them to bring
intangible assets.
such technologies to capitalize on each other’s strengths, to optimize the
Since I worked in the textile industry for many years, I will use a weaving
balance between supply and demand, and to achieve carbon neutrality. We
analogy. If the business operations of a company are the warp, intangible
will finalize the direction of each business and steadily implement actions in
assets would be the weft. Interweaving the two creates new fabric, in other
sequence by the end of fiscal 2024 as we continue to work toward struc-
words new value. For the Asahi Kasei Group, which manages a diverse
tural transformation.
Strengthening our business platform to accelerate business
portfolio transformation
array of businesses, nurturing an organizational culture that allows us to
move freely while strengthening vertical and horizontal coordination is inte-
gral to spurring innovation and bringing about transformation. Using terms
such as integrate and connect, we have long promoted horizontal practices
In addition to pursuing growth by capturing business opportunities that have
to achieve close communication and cooperation between sectors as well
already come to light, to sustainably advance the transformation of our
as internally and externally. Today, the results of such efforts are emerging,
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strengthening the Asahi Kasei Group laterally. However, I feel that issues
participation in meetings has enabled more multi-faceted discussions.
remain to be addressed vertically, in terms of sharing information within
Moreover, following the General Meeting of Shareholders in fiscal 2023,
organizations. Only by nurturing an organizational culture that allows all
the composition of the Board of Directors changed. Inside Directors are
employees to think, speak, and act uninhibitedly, without being hampered
now centered on Executive Officers responsible for corporate functions,
by superior-subordinate relationships, are we able to unlock their spirit of
and a higher proportion of Outside Directors is expected to further
taking on challenges. While I believe that the Asahi Kasei Group’s organiza-
enhance the effectiveness of the Board of Directors.
tion is open, as typified by the culture of referring to one another by name as
In fiscal 2022, we revised risk management as a whole from two per-
opposed to by title, I wonder if we have really nurtured an environment in
spectives: clarification of the risk management framework and roles of
which all employees can speak openly with each other. In fiscal 2023, we
involved parties, and enhancement of the risk management PDCA cycle. In
will again reform the environment and vision for our organization and work
my view, thoroughly pursuing and confirming the effectiveness of estab-
on improvement measures.
lished rules through an ongoing process of trial and error strengthens and
refines risk management. Although confusion may result regardless of how
Strengthening governance to enhance effectiveness
well the infrastructure has been developed for addressing risk, we pursue
I believe that we made great progress in strengthening governance and
enhanced risk management by making modifications each time an issue
risk management in fiscal 2022 by focusing efforts on enhancing their
occurs. There is risk of a delay when everyone thinks that someone else will
effectiveness. Holding in-depth discussions and drawing conclusions
respond, so we are striving to raise awareness to ensure that all involved
based on discussions is of the utmost importance to ensure proper, work-
parties take ownership of risk response to improve its effectiveness. In view
ing governance. Although fiscal 2022 saw many changes in Management
of fires, accidents, and other incidents in recent years, we endeavor in par-
Council membership, its meetings facilitated free and open discussions
ticular to deepen mutual understanding through dialogue between members
taking into account overall optimization, which contributed to in-depth dis-
of management, including myself, and employees on matters that are fun-
cussions at meetings of the Board of Directors. In addition, Rick Packer,
damental to what we do, such as workplace safety, quality assurance, and
Executive Officer for the Health Care Business Sector, became the first
employee well-being.
non-Japanese member of the Management Council in 2023. His
Making Steady Progress Toward Increasing Corporate Value
At present, and since May 2022, Asahi Kasei’s price-to-book (P/B) ratio—
investors to increase corporate value. Since we are advancing business
the ratio of our market capitalization to our net assets—remains less than
portfolio transformation without delay and accelerating initiatives designed
one. I deeply regret not being able to receive a more appropriate evaluation
to raise productivity, I am convinced of our ability to improve profitability and
in the stock market. In addition to improving our business results, we will do
capital efficiency. We are considering all possible shareholder return options,
everything in our power to raise the expectations of shareholders and
including dividend increases and share buybacks. Going beyond mere
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temporary improvement in return on equity (ROE), we aim to realize operat-
challenge of transformation to accelerate growth. In terms of future outlook,
ing income of ¥200 billion, ROIC of 6%, and ROE of 9% or higher in fiscal
in addition to the globally competitive critical care, global specialty pharma,
2024 by continuously increasing our earnings power.
and bioprocess businesses in the Health Care sector, we are investing pro-
I believe that we are underrated because many of our growth initiatives
actively in the growth of Digital Solutions and car interior material as niche
are still in progress, and have yet to be fully reflected in business results.
and high value-added businesses, and businesses making a major social
Another factor is that the stock market fails to appreciate the Asahi Kasei
contribution, such as the energy storage (separator business) business and
Group’s potential. As I have stated, we are determined to tackle the
hydrogen-related business in the Material sector. I strongly believe that we
have exceptionally high potential to increase our corporate value going for-
ward. Meanwhile, our inability to fully and precisely emphasize our growth
prospects and future outlook to capital markets is something I consider to
be a major challenge confronting me as President.
We will implement our growth strategies with a greater sense of urgency
to quickly achieve results that specifically demonstrate the Asahi Kasei
Group’s growth prospects and potential. I believe that initiatives currently
underway can demonstrate our future growth. By clearly defining points to
emphasize, such as the way in which we will develop technologies and
businesses that contribute to future growth, though they have yet to be
reflected in business results, I will continue to provide straightforward expla-
nations to shareholders and investors as we strive to earn proper evaluation
of the Group.
Koshiro Kudo
President
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Message from the CFO
Aiming for ongoing growth in corporate value
through efficient capital allocation and dialogue
with capital markets
12
Toshiyasu Horie, CFO
Representative Director,
Senior Executive Officer
Review of Earnings Performance in Fiscal 2022
In fiscal 2022, the Asahi Kasei Group saw solid performance in the
Homes sector, but it was a challenging year for the Material and
Health Care sectors, which were impacted by a worsening business
environment. In Material, business was significantly impacted by
decline in demand due to economic slowdown in Asia, especially
China, while in Health Care, the critical care business, which had
seen steady growth until now, was impacted by supply chain dis-
ruption, which hindered parts and materials procurement.
Consequently, we were unable to generate profits in a well-balanced
manner in these three sectors, and as a result, operating income fell
by 36.7% year on year, and ROIC decreased from 6.6% to 4.0%.
A major lesson learned from these results is that we did not act
quickly enough to improve productivity and inventory control in the
face of a rapidly deteriorating business environment, and we hope
to make significant improvement in that regard in fiscal 2023.
Additionally, in fiscal 2022, we recorded an impairment loss of
¥186.4 billion on the goodwill and other intangible assets related to
Primary Financial Metrics
Net sales (¥ billion)
2,170.4
2,151.6
2,106.1
2,461.3
2,726.5
FY2018
FY2019
FY2020
FY2021
FY2022
Profitability
Capital efficiency
Operating income (¥ billion)
Operating margin
EBITDA (¥ billion)
EBITDA margin
Net income (loss) (¥ billion)
EPS
ROIC
ROE
D/E ratio
Financial health
Net D/E ratio
209.6
9.7%
313.6
14.5%
147.5
¥106
8.8%
11.1%
0.31
0.17
177.3
8.2%
295.6
13.7%
103.9
¥75
6.6%
7.6%
0.52
0.36
171.8
8.2%
305.1
14.5%
79.8
¥57
4.9%
5.6%
0.45
0.30
202.6
8.2%
350.8
14.3%
161.9
¥117
6.6%
10.3%
0.45
0.31
128.4
4.7%
305.0
11.2%
(91.3)
¥(66)
4.0%
(5.5)%
0.57
0.41
Capital ratio
53.6%
48.2%
50.3%
50.4%
48.1%
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
13
Polypore International, LP, in the U.S. While apologizing to our
Meanwhile, in terms of growth strategies, we will focus invest-
and in the medium term we will efficiently increase productivity by
stakeholders for recording this large impairment, I would like to
ments on the GG10 businesses to drive our future growth, and
reviewing workstyles and organizations. In fiscal 2023, we will focus
explain the causes behind it.
thereby achieve sustained growth. Our traditional pattern of suc-
on cost reduction and have commenced some initiatives to improve
In the lithium-ion battery (LIB) separator business, to prepare for
cess consists of a business model that generates high profits by
productivity over the medium term, aiming for an annual cost reduc-
future expansion of the automotive market and to respond to trends
leveraging technologies honed in niche fields and making appropri-
tion effect of ¥20 billion in fiscal 2024.
and technical issues in the environment-friendly vehicle market, we
ate investments. GG10 include some fields in which that pattern
We believe that the current P/B ratio of less than one is a mes-
acquired Polypore in 2015, thus obtaining the Celgard™ dry-process
remains viable, and some in which it does not. In particular, the
sage from our shareholders and investors that their confidence in
LIB separator business and the Daramic™ lead-acid battery sepa-
businesses with growth potential such as LIB separators and
our capital efficiency and profitability is waning, and that they have
rator business. We integrated these with our Hipore™ wet-process
hydrogen-related are expected to see substantial market expansion
misgivings about our future. In order to regain trust, we will not only
LIB separator business, but changes in the automotive market
in the future, and we believe that maintaining and enhancing com-
improve our business performance in the short term, but also accel-
unexpectedly accelerated, causing earnings to fall far short of the
petitiveness will require a much higher level of investment than has
erate the transformation of our business portfolio over the medium
original plan. However, the Hipore™ separator business holds good
been conventional for us. We are therefore considering various
to long term and increase our ability to generate cash by efficiently
prospects for growing business opportunities in the automotive
options, including financing from other companies.
investing capital in growth areas.
market, and we have therefore decided to dissolve the Hipore-
Polypore asset grouping and concentrate resources on the
Hipore™ separator business. By doing so, we will pour our efforts
into further improving the future growth and profitability of the sepa-
rator business and quickly recovering corporate value.
Progress of the Medium-Term Management Plan
Initiatives for business portfolio transformation
As part of the MTP launched in fiscal 2022 focused on the theme
Working to improve capital efficiency and productivity
Starting in fiscal 2021, we have been evaluating our business port-
Capital Allocation Policy
When it comes to business portfolio transformation going forward,
folio, including the ROIC of each individual business, and reviewing
the importance of capital allocation cannot be overemphasized.
the business strategies based on these evaluations. The most
Due to diminished earnings, operating cash flow is expected to be
important and difficult point in promoting ROIC management is to
¥600 billion to ¥700 billion over the three years of our MTP. On the
fully instill an ROIC mindset among on-site personnel involved in the
other hand, cash flow from investing activities is expected to be
business. Through the company intranet, internal magazine, etc.,
¥800 billion to ¥900 billion, equal to the level anticipated when we
we share perspectives on management considerations using ROIC
formulated the MTP, as it includes cash outflows from projects
“Be a Trailblazer,” we consider business portfolio transformation our
as an indicator with business unit members, and management and
already decided. When making investment decisions, we of course
top priority, and will proceed with the restructuring of petrochemical
business unit members regularly discuss the ROIC status of each
carefully examine profitability and maintain a rigorous policy of
chain-related businesses. Not only our business divisions, but also
business and measures for improvement. As a result of these dis-
focusing on diligently selected projects. Specifically, we set and
corporate divisions, including Corporate Strategy, which I am
cussions, business unit members’ awareness of ROIC is also
then strictly apply a hurdle rate based on the cost of capital and
responsible for, are actively involved. Having worked for many years
changing. In fiscal 2023, in addition to proceeding with the transfor-
add a risk premium based on circumstances such as the region in
in the petrochemical business that now faces major challenges, I
mation of our business portfolio, we will work closely with business
which we operate and business characteristics. Furthermore, after
feel a sense of responsibility to see this restructuring through to
unit members and on-site personnel to speed up management
making an investment, we continue to conduct monitoring to deliver
completion. Petrochemical chain-related businesses have a diverse
decisions and improve capital efficiency.
substantial improvements in investment efficiency, including ave-
range of stakeholders, including raw material suppliers, customers,
In addition, in response to our fiscal 2022 results, starting in
nues to recovery when the business environment takes a downturn.
business partners, and employees. While building consensus
fiscal 2023 we are implementing the BT Project, which aims to
Financing for investments consists primarily of interest-bearing
through careful discussions with these various stakeholders, we will
improve productivity group-wide in order to quickly improve profit-
debt, and is expected to increase by ¥250 billion to ¥500 billion.
also take into account the outlook for profitability and capital effi-
ability. This is a company-wide project with the President as the
At the same time, in concentrating investment on GG10, for busi-
ciency based on the costs and investments required to achieve
project owner and me as the management team leader. We are
nesses with growth potential we will consider non-traditional fund-
carbon neutrality, and solidify our plans by fiscal 2024 year-end.
moving forward on two trajectories: in the short term we will review
ing options, such as utilizing capital from other companies.
indirect costs within our group and reduce duplication to cut costs,
We anticipate a D/E ratio of around 0.7 and a net D/E ratio of
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
around 0.6, and we believe that we will continue to maintain
Framework for Capital Allocation (three-year period FY2022–2024)
14
sufficient financial soundness.
Regarding shareholder returns as well, we maintain the same
assumptions that were made at the formulation of the MTP, and
target total returns of ¥150 billion to ¥180 billion over the three-year
period. We emphasize a policy of achieving stable shareholder
returns through dividends, and for fiscal 2022 we paid a dividend of
¥36 per share, an increase of ¥2 per share from fiscal 2021. We will
maintain this policy in fiscal 2023 and also study the repurchase of
shares based on comprehensive consideration of investment proj-
ects and share price levels in addition to capital structure
optimization.
Working Toward Mutual Understanding with
Shareholders and Investors
I have gained a renewed sense of how important it is for us to con-
sider our strategies and their execution from the perspective of
shareholders and investors, and to act promptly when areas for
improvement are identified. We will actively engage in dialogue in
order to reflect evaluations from such perspective in our business
management. Through recent dialogue with shareholders and
investors, it has been brought to our attention that our capital allo-
cation may be skewed, particularly toward capital expenditure and
M&A. Our ultimate objective is of course to steadily increase return
on investment, but whereas the primary interest of shareholders
and investors may be how to efficiently convert funds into cash,
we on the company side are concerned with building businesses
for future growth and fortifying our management foundation, and
the two perspectives can differ in terms of the timeframes involved.
To bridge that gap, the Asahi Kasei Group will continue to make
every effort to gain the understanding of our shareholders and
investors as we improve information disclosure to carefully explain
our thinking, and our vision for the future.
Operating cash flow
3-year total
¥600 billion to ¥700 billion
Borrowing capacity
Increase in interest-bearing debt
+¥250 billion to +¥500 billion
(D/E ratio of around 0.7, net D/E ratio of around 0.6)
+
Other cash sources
(Sale of businesses, use of other companies’
capital in investment projects, etc.)
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
Cash flows
(¥ billion)
300
200
100
0
（100）
（200）
（300）
（400）
212.1
124.5
13.1
253.7
183.3
95.9
90.8
（37.7）
（157.8）
（122.8）
（221.0
）
（213.6）
（198.9）
（193.7）
（318.2）
Dividends per share and dividend payout ratio
34
34
34
34
36
59.1
45.4
32.2
29.1
(¥)
40
30
20
10
0
(%)
80
60
40
20
0
1 株当たり変換配当金と配当性向
2019
2020
2018
2021
2022
(FY)
2018
2019
2020
2021
2022
(FY)
2022 年度
Operating cash flow
Investing cash flow
Free cash flow
1 株当たり年間配当金：36
Dividends per share (left scale)
Dividend payout ratio (right scale)
配当性向：（当期純利益が赤字の為、表示なし、折れ線は 2021 まで）
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Message from an Outside Director
15
“
Bolder and faster transformation needed for Asahi Kasei to
reach its full potential
Asahi Kasei’s Growth Potential
In the five years since becoming an Outside Director of Asahi Kasei
strength is shaped by the collective motivation of its employees. In the
MTP, Asahi Kasei set forth its policy of focusing investment in GG10-
in 2018, I have engaged in the supervision and advising of manage-
related businesses. However, senior management must also pay care-
ment. I have also served as Chair of the Remuneration Advisory
ful attention to employees working in roles that underpin businesses
Committee since fiscal 2018 and of the Nomination Advisory
other than GG10, maintaining and enhancing their motivation through
Committee since fiscal 2020. In my position as an Outside Director,
proper appraisal.
I am acutely aware of the need to monitor whether risk manage-
Meanwhile, the company must of course incorporate diversity
ment is sufficiently implemented as the company works to achieve
to secure talented human resources. We have now entered an era
global sustainable growth. The MTP unveiled by Asahi Kasei in April
in which Asahi Kasei would not be viable as a global company with-
2022 aims to realize the growth of businesses that contribute to
out ingraining diversity in its organization, to the extent that the
global development. I believe that the role of Outside Directors is to
company constitutes a harmonious whole in terms of everything
offer useful advice on promoting the plan from a risk management
from gender and nationality to age, career background, and work-
perspective.
style. I understand that Asahi Kasei is more advanced than other
The technologies accumulated by Asahi Kasei since its founding
companies, in that it proactively recruits mid-career hires and
are world class. No matter how much the business environment
adopts a variety of systems designed to increase diversity, such as
changes going forward, I am certain that the company can survive by
the Group Masters program. Nevertheless, without greater momen-
refining its technological capabilities. It must also have the ability to
tum for further diversity promotion, securing human resources to
adapt to change while transforming its operations with a focus on
maintain and grow businesses will likely become more difficult.
technology when navigating an era of volatility. Asahi Kasei, which
has grown by transforming its business portfolio, undoubtedly has
that ability. If it can leverage this strength, the company can turn the
Adopting a Bolder and Faster Approach to
Business Portfolio Transformation
global issue of addressing carbon neutrality to its advantage. I am
Measures implemented to evolve Asahi Kasei’s business portfolio
convinced that Asahi Kasei is richly endowed with the capabilities
are gradually beginning to bear fruit. In particular, transformation of
that companies need to navigate the coming era and achieve growth.
the Material sector’s business portfolio is advancing steadily, includ-
Energizing Human Resources and
the Organization as the Key to Growth
ing the transfer of the photomask pellicles business and the estab-
lishment of a joint venture for the spunbond nonwoven products
business. A recent move by senior management for transforming
I believe that people are a vital key to Asahi Kasei’s growth. No matter
the business portfolio that I rate highly is their decision regarding
how outstanding its technological capabilities, a company cannot fully
expansion of the separator business. The plan to expand the sepa-
utilize its strengths without the abilities and motivation of the people
rator business in North America has been the subject of lively dis-
who use that technology. It is no exaggeration to say that a company’s
cussions since 2022, which resulted in the company scrutinizing
Tsuyoshi Okamoto
Outside Director
Became an Outside Director of Asahi Kasei in June 2018 after serv-
ing in a variety of positions including President and Chairperson of
Tokyo Gas Co., Ltd., Vice Chair of Keidanren, and Chairperson of
The Japan Gas Association.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
16
risk factors and pausing the plan to reexamine it. Deciding to apply
management. If anything, the earning capabilities of each sector
Officers and non-Executive Officers came to five each and the
the brakes to a project once it has gotten underway is easier said
allow the Asahi Kasei Group to achieve stable earnings by diversifying
number of Inside Directors and Outside Directors came to six and
than done. Senior management’s decision will set an excellent prec-
risks. In addition, managing the three sectors has the benefit of
four, respectively, including two female Outside Directors. The
edent for Asahi Kasei in examining investments going forward. The
enabling group-wide management of their intangible assets, including
Board of Directors is currently transitioning from a management
same can be said of the decision—made at the same time—to
human resources. Owing to three-sector management, Asahi Kasei
system, whereby it passes a resolution on each agenda item relat-
record an impairment loss on the goodwill and other intangible
has the fundamental strength to drive forward structural transforma-
ing to business execution, to a monitoring system that monitors key
assets of Polypore. The fact that senior management agreed to a
tion of its businesses. For example, one might say that it enabled the
subjects for Asahi Kasei on a company-wide basis. The latest revi-
decision that entailed posting a consolidated loss demonstrates
company to maintain a sound financial standing even after the
sion to the membership of the Board of Directors strongly reflects
how serious they are about the separator business. I also applaud
recording of the aforementioned impairment loss on Polypore.
the determination to transition to this system. My own view is that
President Kudo’s prudent judgment in personally addressing and
Meanwhile, I am convinced that Asahi Kasei’s extensive tech-
the Board of Directors should aim for a monitoring system, so I rate
explaining these decisions to the public.
nologies and intellectual property will be increasingly utilized across
the revised composition highly.
In light of unparalleled changes in the external environment in
sectors group-wide, holding the key to the creation of synergies
Asahi Kasei has established the corporate governance configura-
recent years, Asahi Kasei must adopt a bolder and faster approach
among businesses. Currently, Asahi Kasei is promoting initiatives for
tion of a company with an Audit & Supervisory Board. In such a con-
to business portfolio transformation. By fiscal 2024, the company
bolstering the areas of green (G), digital (D), and people (P) to
figuration, the Nomination Advisory Committee and the Remuneration
will discuss further acceleration of reforms to implement structural
strengthen its business platform and for maximizing the use of its
Advisory Committee play important roles. Although fundamentally
transformation of businesses with net sales of more than ¥100 bil-
strengthened intangible assets. Active discussions are taking place
advisory—they have no authority under the Companies Act—the fact
lion based on fiscal 2021, and finalize a policy for structural trans-
at meetings of the Board of Directors on what Asahi Kasei needs to
that these committees are voluntary enables flexible operation with
formation of the approximately ¥600 billion petrochemical-related
do to make efficient use of its abundant intangible assets.
open and meaningful discussions. For example, it has given the
business with a view to carbon neutrality.
With the company enhancing management rationality and qual-
Remuneration Advisory Committee the authority to decide on
Capitalizing on the Unique Advantages of
Three-Sector Management
ity in these ways, I believe it is vital for Asahi Kasei to communicate
performance-linked remuneration. I believe it is appropriate to main-
its future growth potential to the capital markets, as well as steadily
tain the current configuration for the time being while continuing to
improve its business performance, in order to continuously enhance
study the company’s future governance structure.
Asahi Kasei has grown by adapting to change and transforming its
its corporate value going forward. The most effective form of com-
operations with a focus on technology. However, I feel that aspects of
munication with capital markets is messaging from senior manage-
its diversification are perceived negatively by the capital markets. The
ment. I believe that Asahi Kasei’s share price would be valued
company currently has three sectors: Material, Homes, and Health
properly if the President took the lead in engaging with the capital
Care. The essence of the matter is whether their respective corporate
markets to emphasize Asahi Kasei’s strengths.
values are maximized under collective management or when oper-
ated as individual businesses. I have supervised management as an
Outside Director of Asahi Kasei for five years. In that time, I have
Improved Monitoring Functions for Corporate Governance
As initiatives aimed at strengthening Asahi Kasei’s corporate gover-
never felt that the three sectors should be managed individually or
nance make steady progress, I feel that its governance configuration
that it would be better to separate one and leave its management to
has improved. In fiscal 2023, the company revised the composition
another company. Asahi Kasei is more than capable of managing the
of the Board of Directors, rearranging it to comprise the Chairman,
three sectors, and in-depth discussions to that end also take place at
President, and four Executive Officers responsible for corporate
meetings of the Board of Directors. The company pays careful atten-
functions as Inside Directors and adding another Outside Director.
tion to the operation of each sector, maintaining a firm grip on
With this revision, of the 10 Directors, the number of Executive
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
17
Value Creation
18 Addressing Social Issues and Transforming Our Business Portfolio
20 Asahi Kasei’s Technological Heritage and Path to Three Sectors
22 At a Glance
23 Financial Highlights
24 Non-Financial Highlights
25 Value Creation Model
26 Value Creation Mechanism
28 Materiality
Name
Gibran Sinoé Hernández Rocha
Company
Sage Automotive Interiors Juárez Plant
Country/region Mexico
02Asahi Kasei Report 2023 Addressing Social Issues and Transforming Our Business Portfolio
Value Creation
Corporate Information
Asahi Kasei Report 2023
18
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.
History of Business Portfolio Transformation and Growth
1922 –
1940s–
1960s–
1980s–
2000s–
Founding and Japan’s first
production of synthetic ammonia
Expansion into synthetic
resins and synthetic fibers
Expansion into petrochemicals,
homes, health care, and electronics
Progress in overseas business,
focus on business restructuring
Accelerated globalization through
M&A, expansion of health care business
Asahi Kasei’s evolution (composition of net sales)
Chemical fertilizers,
regenerated fiber,
explosives, etc.
FY1940
¥56
million
Others
Foods/Health care
Fibers
Health care
Others
Fibers
Health care
Chemicals
Foods
Fibers
Chemicals
Homes/
Construction
materials
FY1960
¥44.9
billion
FY1980
¥800.1
billion
FY2000
¥1,269.4
billion
Chemicals
Homes/
Construction
materials
Electronics
Homes
Others
Material
FY2022
¥2,726.5
billion
Business portfolio transformation
New business entry, M&A
Withdrawal, downsizing, divestment
• Ammonia
• Regenerated fiber
(cupro, viscose rayon)
• Chemical fertilizer
• Foods (monosodium glutamate)
• Polystyrene
• Synthetic fiber (acrylic fiber)
•• Saran Wrap™
•• Acrylonitrile
•• Synthetic rubber
•• Ethylene
(construction of naphtha cracker)
•• Autoclaved aerated concrete
•• Hebel Haus™ unit homes
•• Artificial kidneys
•• Pharmaceuticals
•• 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
•• 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
Growth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for Growth
Value Creation
Asahi Kasei Report 2023
19
History of Offering New Value that Addresses Social Issues
1922 –
1940 s–
1960 s–
Social needs and times
Growing as a modern nation,
Japan required technologies to
develop its agricultural and
industrial chemical sectors.
Asahi Kasei’s evolution
Helping bring stability to people’s lives from our roots
in businesses supporting food and clothing
• Successfully produced synthetic ammonia for fertilizer to raise agricultural productivity
• Began production of Bemberg™ artificial fiber as a substitute for silk
Sufficient supply of daily necessities
Promoting new businesses for better quality of life
was crucial to Japan’s transi tion
• Expanded into various new businesses, including synthetic resins and
from post-war recovery to high
Cashmilon™ synthetic fiber
economic growth.
In an era of high economic growth,
developing public infrastructure—
improving homes and expanding
medical technology—became
necessary.
Offering convenient and comfortable lifestyles as a diversified manufacturer
of products for food, clothing, and shelter
• Launched of homes business to meet homeownership demand
• Entered petrochemical business with operation of large-scale petrochemical complex
• Expanded into resins business following launch of sales of Saran Wrap™ cling film
• Launched medical devices business with artificial kidneys, etc.
1980 s–
Cell phones, personal computers,
audiovisual equipment, and
other technologies gained
Supplying key components for information devices integral to
modern living
• Leveraged chemical industry expertise to enter the field of electronics, including large-scale
popularity with the advent of the
integrated circuits (LSIs)
information age.
• Began sales of lithium-ion battery separators
2000 s–
Global environmental issues such
Contributing to life and living for people around the world
as global warming and the challenge
• Promoted sustainability through technological developments to achieve carbon neutrality
of aging populations in developed
and initiatives to reduce CO2 emissions
countries come to the fore.
• Strengthened Health Care sector, including expansion into critical care business through M&A
• Leveraged expertise with unit homes in Japan to enter homes business in North America and Australia
• Global expansion of pharmaceutical business with acquisition of U.S. pharmaceutical company
Growth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 20
Asahi Kasei’s Technological Heritage and Path to Three Sectors
Based on the chemical technology from the time of our founding with viscose rayon, BembergTM, and ammonia synthesis, we have developed diversified businesses while transforming our
portfolio with the technologies developed becoming the source of additional new technologies, resulting in the current three-sector configuration.
Food processing technology
Foods
Divested to Japan Tobacco Inc. in 1999
Basic chemicals
Chlorine, ammonia, hydrogen, etc.
Fermentation chemistry technology
Fermented products
Pharmaceuticals
Inorganic
chemistry
Electrochemistry
Electrolysis membrane
technology
Ion-exchange
membranes
Viscose rayon
Cellulose chemistry technology
Microcrystalline cellulose
Health Care
Fuel cells membranes
Membrane separation technology
Alkaline water electrolysis systems
Water treatment
membranes
Hollow fiber technology
Artificial kidneys, leukocyte reduction filters
Virus removal filters
Spinning technology
Synthetic fiber, nonwovens,
artificial suede
Critical care devices
Acquisition of ZOLL Medical
Corporation in 2012
Petrochemicals
Catalyst and manufacturing
process technology
Polymer design and
compounding technology
Fiber and plastic
processing technology
Glass fabric
Photosensitivity technology
Photosensitive resins,
photosensitive electronic materials,
dry film photoresist
CO2 conversion technology
Processed plastic products
Microporous membranes
Lithium-ion battery separator
Material
Hall elements
Electronic compasses
Thin film and microfabrication
technology
UVC LEDs
Semiconductor and LSI circuit
design technology
LSIs
Insulation panels
Homes
Autoclaved aerated concrete
Manufactured building
technology
High-strength concrete piles
Unit homes
Apartment buildings
Materials
chemistry
Structural
design
Concrete engineering
Note: Photos of discontinued products included
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
The Asahi Kasei Group’s Businesses
and Leading Products
Note: Percentages exclusive of “Others” category and “corporate expenses and eliminations”
18.3%
48.5%
26.4%
25.8%
Fiscal 2022 Net Sales
¥2,726.5
billion
Fiscal 2022 Operating Income
¥128.4
billion
47.8%
33.1%
Health Care
We contribute to progress in medical therapy by advancing
specialized leading-edge technology in new combinations and
addressing unmet medical needs, enabling patients to enjoy
a better quality of life.
Health Care
TeriboneTM autoinjector osteoporosis
drug
ZOLL AED 3TM automated external
defibrillator
PlanovaTM virus removal filters
LifeVestTM wearable defibrillator
Homes
We enable secure and enriched living through the provi-
sion of high-quality, highly durable homes and con-
struction materials, and various related services.
Home & Living
Hebel HausTM unit homes
Hebel MaisonTM apartment buildings
AtlasTM condominiums
North American and Australian homes
21
Material
Leveraging leading-edge technology, we provide high
value-added materials and products worldwide to open
new possibilities for the future.
Environment & Energy
HiporeTM and CelgardTM lithium-ion
battery separators
Ion-exchange membrane chlor-alkali
electrolysis process
Mobility
Engineering plastics
DinamicaTM artificial suede
Life Material
PimelTM photosensitive polyimide
Household products
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information At a Glance
Notable Facts (as of March 31, 2023)
Net Sales by Region
Note: Percentages of total consolidated net sales
Material
Homes
Health Care
Note: Graphs by sector exclusive of “Others” category and “corporate expenses and eliminations”
22
Employees
48,897
More than 40%
overseas
Global bases
More than
countries and regions
20
Consolidated subsidiaries
285
Europe
¥189.1
billion
6.9%
Overseas sales ratio
50.6 %
Credit rating
AA
Japan Credit Rating
Agency (JCR)
China
¥242.0
billion
8.9%
Asia
(excluding China)
¥285.2
billion
10.5 %
Japan
¥1,348.0
billion
49.4%
The Americas
¥503.4
billion
18.5 %
Other Regions
¥158.9
billion
5.8%
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information Financial Highlights
Net sales (domestic & overseas), operating income, operating margin
EBITDA1, depreciation and amortization, EBITDA margin
Net income attributable to owners of the parent, EPS,
EPS before goodwill amortization
(¥ billion)
3,000
2,400
1,800
1,200
600
0
2,170.4
209.6
2,151.6
2,106.1
177.3
171.8
2,726.5
2,461.3
202.6
9.7
8.2
8.2
8.2
128.4
4.7
(¥ billion) (%)
(¥ billion)
300
25
240
20
180
15
120
10
60
0
5
0
400
300
200
100
0
313.6
295.6
305.1
14.5
13.7
14.5
350.8
305.0
14.3
11.2
176.7
104.0
118.3
133.3
148.1
(%)
20
15
10
5
0
(¥ billion)
200
100
0
(100)
147.5
161.9
75.44
119.62
103.9
105.66
90.90
79.8
74.85
57.49
137.14
116.68
(91.3)
(38.66)
(65.84)
2018
2019
2020
2021
2022
(FY)
2018
2019
2020
2021
2022
(FY)
2018
2019
2020
2021
2022
(FY)
23
(¥)
200
100
0
(100)
Domestic sales
Operating income (right scale)
Overseas sales (left scale)
Operating margin (%)
EBITDA
EBITDA margin (%) (right scale)
Depreciation and amortization (tangible, intangible, and goodwill) (left scale)
Net income attributable to owners of the parent (left scale)
EPS before goodwill amortization
EPS (right scale)
Net sales increased significantly in fiscal 2022 due to expansion of existing busi-
nesses, the weakening yen, increased prices for petrochemical products, and the
effect of acquisitions. Operating income decreased with deteriorating perfor-
mance of the Material and Health Care sectors, mainly due to a worsened oper-
ating environment and temporary factors. Overseas sales increased to over half
of total net sales in fiscal 2022 due to expansion of overseas businesses, includ-
ing by M&A, and the weakening yen.
1 Operating income, depreciation, and amortization
Given the upward trend in depreciation and amortization due to proactive capital
expenditure and M&A, the Asahi Kasei Group positions EBITDA as a major KPI
signifying its ability to generate cash. Depreciation and amortization increased
significantly in fiscal 2022 with acquisitions in the Health Care sector and capital
expenditures in the Material sector.
Asahi Kasei incurred a net loss in fiscal 2022 due to the recording of an impair-
ment loss of ¥186.4 billion related to Polypore. As goodwill is amortized in accor-
dance with Japanese accounting standards, EPS before amortization of goodwill
is shown for reference.
ROE2, ROIC3
Capital expenditures, R&D expenses
Interest-bearing debt4, D/E ratio
(%)
20
10
0
(10)
11.1
8.8
7.6
6.6
5.6
4.9
10.3
6.6
4.0
(5.5)
(¥ billion)
200
150
100
50
0
154.1
153.7
136.2
186.6
174.9
90.1
91.0
89.7
98.7
105.0
(¥ billion)
1,000
750
500
250
0
939.5
0.57
703.8
0.52
659.0
766.3
0.45
0.45
424.9
0.31
0.8
0.6
0.4
0.2
0
2018
2019
2020
2021
2022
(FY)
2018
2019
2020
2021
2022
(FY)
2018
2019
2020
2021
2022
(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
generating profits. In fiscal 2022, ROE was negative as a result of recording a net
loss, and ROIC declined due to the decrease in operating income.
Capital expenditures
R&D expenses
Asahi Kasei proactively carries out capital expenditures geared toward achieving
growth over the medium to long term—including for expansion of growth busi-
nesses, and in relation to decarbonization, digital transformation, and other areas
to fortify its foundation—and R&D focused on the Health Care and Material sec-
tors. Capital expenditures declined in fiscal 2022 due to strict selection of invest-
ments considering deterioration in the operating environment.
Interest-bearing debt (left scale)
D/E ratio (right scale)
4 Amounts stated from fiscal 2019 exclude lease obligations.
Interest-bearing debt increased in fiscal 2022 as working capital such as
accounts receivable and inventories increased with higher market prices, and
demand for funds increased in conjunction with M&A centered on the Homes
and Health Care sectors. As a result, the D/E ratio also increased.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Non-Financial Highlights
24
Greenhouse gas (GHG) emissions (Scopes 1 and 2)
GHG emission reduction contributions through environmental
contribution products
Number of digital professional human resources
(Million tons CO2 equivalent)
4.16
3.99
3.91
4.03
3.68
3.58 or less
Target
100
−30% or more
−30%
or more
(compared with FY2013)
5
4
3
2
1
0
(Index)
250
200
150
100
50
0
30
91
31
100
33
32
117
120
29
38
Target
200 or more
(%)
50
40
30
20
10
0
3,000
1,500
1,000
500
0
30
56
55
230
Target
2,500
100
1,206
2018
2019
2020
2021
2022
2030
(FY)
2018
2019
2020
2021
2022
2030
(FY)
2018
2019
2020
2021
2022
2024
(FY)
Applicable range: Production sites of consolidated companies
Note: Fiscal 2022 figures are preliminary and may change after undergoing third-party verification.
Volume of GHG emission reduction contributions of environmental contribution products1 (left scale)
Portion of sales of environmental contribution products2 (right scale)
Note: Total figures up to fiscal 2020 include only human resources specializing in data analysis.
Applicable range: Total employees worldwide
The Asahi Kasei Group is targeting a GHG emission reduction of 30% or more by
fiscal 2030 compared with fiscal 2013 to clarify its path toward carbon neutrality.
Ongoing endeavors to reduce emissions are advancing in order to achieve this
target.
Note: Internal calculation of the volume of GHG emission reduction contributions from a life cycle
assessment perspective 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 contri-
bution products. We will work to develop environmental contribution products
with the goal of reducing society’s overall GHG emissions.
The Asahi Kasei Group promotes bottom-up human resource development to
enable all employees to engage in their work duties with a mindset conducive to
utilizing digital technology. In particular, we proactively promote the development
and recruitment of digital professionals who use advanced digital technology and
data to resolve business issues and create business models. These efforts have
led to the emergence of such professionals in a wide range of fields, including
through the Asahi Kasei DX Open Badge Program.
Number of Group Masters
Target
360
100
250
259
229
294
180
400
300
200
100
0
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
277
Target
10.0
309
277
257
212
231
2.3
2.8
3.4
3.7
3.9
400
300
200
100
0
15
100
12,000
10,618
10,669
10,776
10,779
10,271
12
9
6
3
0
9,000
6,000
3,000
0
30.0
30.1
30.5
30.6
31.6
277
Target
50.0
(%)
80
60
40
20
0
2018/10 2019/10 2020/10 2021/10 2022/10
2024
2019/6 2020/6 2021/6 2022/6 2023/6
2030
2018/12 2019/12 2020/12
2021/12
2022/12
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. Our
corporate value is enhanced by the development and recruitment of specialists in
various fields. For effective utilization, fields of technology and specialization for
the appointment of human resources as Group Masters are reviewed annually in
accordance with business strategy.
Number of women working as managers (left scale)
Percentage of women in the total number of managers and the Group Masters program (right scale)
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)
Applicable range: Results for personnel employed by Asahi Kasei Corp., Asahi Kasei Microdevices Corp.,
Asahi Kasei Homes Corp., Asahi Kasei Construction Materials Corp., Asahi Kasei Pharma Corp., and
Asahi Kasei Medical Co., Ltd.
Amid rapid change in the operating environment, the Asahi Kasei Group must
utilize the capabilities 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 real-
ize conditions that enable diverse human resources, including women, to thrive in
a variety of settings within the organization through the creation of an environ-
ment and requirements for achieving the KPI.
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.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Value Creation
Corporate Information
Asahi Kasei Report 2023
25
Value Creation Model
A vital key to value creation at the Asahi Kasei Group is to continuously transform
our business portfolio while maximizing the use of our abundant intangible assets.
In these efforts, we make full use of our ability to precisely connect wide-ranging
management resources, unite businesses, and appropriately control resource allo-
cation for value creation that is unique to the Asahi Kasei Group.
Input
Financial
Foundation
New business
creation
Business
evaluation
Output
Fields for provision of value
Material
Environment
& Energy
Business
enhancement
Mobility
Homes
Life Material
Outcome
Contributing to
sustainable society
FY2030 Target
Scope 1 and Scope 2 GHG emissions
Reduction of ≥30% (compared with FY2013)
2050: Goal to achieve carbon neutrality (net-zero emissions)
Volume of GHG emission reduc-
tion contributions of environ-
mental contribution products
At least double
(compared with FY2020)
Percentage of women among
managers and Group Masters 10%
Vision
Two Mutually
Reinforcing Aspects of
Sustainability
Human Resources
Customer Contact
Points
Resource
allocation
Restructuring
Business Portfolio
Management
Data
Trust, Brand
A-Spirit
Intellectual
Property
Core Technologies,
Digital Technology
Monitoring
Manufacturing
Know-How
Structural
transformation
Home & Living
Health
Care
Health Care
Sustainable growth of
corporate value
Long-term Outlook for Around FY2030
Operating
income
¥400 billion
ROE
ROIC
≥15%
≥10%
Growth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for Growth Value Creation
Asahi Kasei Report 2023
26
Value Creation Mechanism
Diverse intangible assets are the source of the Asahi Kasei Group’s growth
Development based on microporous membrane technology
Expanding to solution-oriented business
Care for People
• Extended to biosafety testing for
Cellulose fiber
Dialyzers (cellulose and polysulfone
hollow-fiber membranes)
Hydroelectric
power
Electrochemistry
Virus removal filters (cellulose
hollow-fiber membrane)
Virus removal filters (PVDF
hollow-fiber membrane)
Separation filtration membrane
(hollow-fiber membrane) for
water treatment etc.
Lithium-ion battery separators
(polyolefin film)
Next-generation alkaline water
electrolysis systems
Ion-exchange mem-
brane for chlor-alkali
electrolysis
Alkaline water electrolysis
systems
Care for Earth
biologics
• Entered biologics CDMO business
• Data-driven services for ion-
exchange membrane chlor-alkali
electrolysis process
• Full range of services for hydrogen
production, from components and
equipment to operation
• Service business utilizing knowl-
edge acquired in the separator
business
The source of the Asahi Kasei Group’s growth is our abundant intangible assets, such as human resources, core technologies, intellectual property, expertise, data, and other such assets that we have accumulated in the process of growing through the creation of diverse businesses. At the core of these intangible assets lies our A-Spirit, which epitomizes our heri-tage. This is the origin of our ability to transform by leveraging intangible assets in the creation of diverse businesses, and it comprises ambitious motivation, a healthy sense of urgency, quick decisions, and a spirit of advancement. We achieve growth by utilizing these abundant intangible assets along with our ability to transform in business operations. The ability to adapt to changes in the operating environment is crucial amid a business landscape characterized by dramatic change and an unpredictable future. By accumulating and maximizing diverse intangible assets, the Asahi Kasei Group is able to seize business opportunities that arise from changes in the operating environment and create new value. We treat all of the intangible assets we accumulate as assets to be shared throughout the entire Asahi Kasei Group, and we leverage them to their maximum potential by deploying and linking them across different sectors. Our accumulation and maximum utilization of intangible assets are firmly bolstered by the transfer of human resources across different sectors, the provision of opportunities for human resources within the Asahi Kasei Group to connect, and the fostering of a free and open organizational culture that accepts diverse ideas and takes on new challenges. Maximizing the Value of Intangible Assets through DX and Intellectual Property StrategiesBarriers between industries have become lower and activities tran-scending industry frameworks are accelerating. In order to create new value, naturally we must expand our accumulated intangible assets to other fields and explore and utilize unprecedented combinations, but amid an unpredictable operating environment, it is also vital to enhance the precision of strategy planning and decision-making by utilizing intan-gible assets in an integrated manner. Accordingly, the Asahi Kasei Group is promoting DX and intellectual property strategies. We have estab-lished Digital Value Co-Creation to spread DX throughout the Asahi Kasei Group as a whole, and the Intellectual Property Intelligence Department to utilize intellectual property in our management. In addition, to methodically track, manage, and analyze our accumulated intangible assets, we have accelerated the development of mechanisms such as a group-wide data management infrastructure, a “seeds and needs” matching system that links our core technologies with so-called emerg-ing technologies, and employee (expert) recommendation system. Leveraging Core Technologies to Extend BusinessBased on chemical technology, we have created several core technolo-gies through unique developments and combinations of technologies. The production of synthetic ammonia using hydroelectric power in Nobeoka, Miyazaki Prefecture, Japan, was one of our earliest busi-nesses. Following this, microporous membrane technology was continu-ally developed resulting in cellulose fibers and ion-exchange membranes for chlor-alkali electrolysis. Technologies for these have then been applied in several other businesses. Cellulose fiber technology is used as part of the Health Care sector, in dialyzers for blood purification and in virus removal filters. From virus removal filters we continued to create new products for the manufacture of next-generation pharmaceuticals. From ion-exchange membrane technology we developed businesses that are currently central to our growth strategy, such as lithium-ion bat-tery separators, water treatment filtration membranes, and membranes for alkaline water electrolysis systems. The accumulation of the Asahi Kasei Group’s unbroken succession of expertise and technology creates products that will provide solutions to future social issues. Going forward, we are also looking to leverage our core technolo-gies in solution-oriented businesses. For example, in relation to virus removal filters, we have expanded into the business of contract bio-safety testing services for pharmaceutical companies, and entered the biopharmaceutical contract development and manufacturing organiza-tion (CDMO) business. In addition, we are studying the creation of service-oriented businesses that utilize the knowledge and business foundations that we have cultivated in the separator business.Growth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information Value Creation
Strengthening of
Corporate Governance
Corporate Information
Asahi Kasei Report 2023
27
Business Portfolio Management
The Asahi Kasei Group has transformed its business portfolio and grown
evaluating mechanically, we perform comprehensive evaluation of
by capturing the changing needs of society in every era and providing
whether a business contributes to corporate value enhancement by
products and services that bring new value to society. Business Portfolio
discussing the formulation and revision of the MTP based on such
Management is an important management cycle for efficiently allocating
quantitative data and qualitative information.
the Asahi Kasei Group’s cash and diverse intangible assets among its
businesses, and leveraging business growth to achieve two mutually
reinforcing aspects of sustainability: “contributing to a sustainable soci-
Resource Allocation
We perform efficient investment of resources based on the results of
ety” and “sustainable growth of corporate value.”
business evaluations. Ongoing investment for growth is realized by allo-
cating stable cash flow generated by businesses with high cash-generating
whether returns on investment are forthcoming. For M&A and large-
ability, such as the Homes sector, to businesses with future growth
scale capital investments that require resolutions by the Management
Business Evaluation
Efficient allocation of resources depends on the results of proper busi-
potential, such as the Health Care and Material sectors.
ness evaluations. The Asahi Kasei Group conducts annual evaluations of
We also allocate necessary resources as circumstances require.
dozens of businesses from both financial and non-financial perspectives.
New business creation is pursued by commercializing seeds of technol-
From the financial perspective, we evaluate net sales, operating margin,
ogy gained through R&D and corporate venture capital (CVC) investment,
ROIC, sales growth rate, and free cash flow within a given time span. On
and by obtaining businesses through M&A. Business enhancement is
the non-financial side, we conduct evaluations from the perspectives of
performed by expanding production capacity and developing new prod-
competitiveness, achievement of carbon neutrality targets such as GHG
ucts in established businesses. When a business experiences a tempo-
Council and the Board of Directors, management and corporate depart-
ments conduct annual monitoring of each business for a certain period
of time following those resolutions. We have assembled a framework
that allows us to study necessary countermeasures in a timely manner
by conducting post-resolution regular monitoring of such businesses for
changes in the business environment, the status of profitability, the
status of risk manifestation, and other factors, and sharing status
emission reduction, relationships with other businesses in the value
rary decline in performance, strategic restructuring is conducted. When
reports with management and members of those businesses.
chain, and whether or not we are the best owner. Rather than simply
it becomes challenging for the Asahi Kasei Group to create value in a
Knowledge gained from the results of such monitoring is also used
Business Evaluation Framework
I
C
O
R
/
S
O
R
Net sales growth rate
Financial perspectives
• Net sales growth rate
• Operating margin
• ROIC
• Free cash flow, etc.
Non-financial perspectives
• Best owner
• Carbon neutrality
• Competitiveness, etc.
business on our own, we study structural transformation including the
when considering points to check when considering future M&A and
use of other companies’ capital, downsizing, or withdrawal to control
large-scale capital investments.
resources, in order to achieve efficient resource management across the
In addition, for major businesses, including those that do not fall into
entire business portfolio. Based on these criteria, under our MTP we
the above categories, on a quarterly basis, the President and the
have designated 10 businesses as “10 Growth Gears” (GG10) with the
responsible Executive Officers have direct discussions with members of
potential for further investment-driven earnings growth, and prioritize
those businesses on the status of earnings performance and KPIs, as
them for resource allocation. For more information on GG10, please see
well as on emerging challenges and countermeasures.
page 34
.
Monitoring
For businesses categorized for strategic restructuring as a result of busi-
ness evaluation, we conduct frequent monitoring and follow up on the
evaluation and progress of possible strategic options in a timely manner.
For GG10, we monitor whether the market is growing as expected and
Growth StrategyAsahi Kasei’s IdealsStrengthening Our Foundation for Growth
Materiality
28
Asahi Kasei’s Vision
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 aspects of sustainability by contribut-
ing to the creation of a sustainable society while leading to improved corporate value. We believe that providing value that contributes to ensur-
ing 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 challenges. Guided by this belief, we endeavor to provide products and services that correspond to
changes in the social climate. We will continue to offer such products and services, contributing to a sustainable society through the pursuit of
innovation while taking into account the lifestyles of people around the world.
Key Points
of the Asahi Kasei Group Sustainability Policy
• Realize the two mutually reinforcing aspects of sustainability of
“contributing to sustainable society” and “the sustainable growth
of corporate value”
• Pursue the optimal form of governance for realizing Asahi Kasei’s
In 2021, we established our Sustainability Policy to clarify the Asahi Kasei Group’s stance on sustainability and to heighten a mutual internal
sustainability vision
understanding for accelerated action toward creating a sustainable society. The policy sets forth specific and essential elements to approach
matters of sustainability in addition to basic concepts.
• Create value by contributing to sustainable society
• Carry out responsible business activities
• Facilitate the empowerment of personnel
Process for Identifying Materiality
In fiscal 2017, the Asahi Kasei Group identified important issues and subjects that it should prioritize as materiality through the process outlined
Integration into Management Strategies
Material issues are meaningful only when they are integrated into
below. We review these subjects and issues in accordance with changes in the operating environment.
Highest priority
as premise
Governance
Compliance/
sincerity
Human rights
Safety/quality
Identification of Issues
Extremely
important
s
r
e
d
l
o
h
e
k
a
t
s
r
o
f
e
c
n
a
t
r
o
p
m
I
P.82–88
P.94
P.93
P.92
Wastewater
Industrial waste
Business
Contribution to
P.36– 51
Global environment
Health and longevity
Comfortable life
Decarbonization P.57–63
Circular economy P.60
Supply chain management
Communication with stakeholders P.95
Biodiversity
Social contribution
Diversity P.73
Human resources P.68 – 73
Risk management P.89– 91
We identified issues in accordance with requirements of
society and our Group Mission, Group Vision, and Group
Values, in consideration of international guidelines and the
evaluation criteria of 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 perspectives, such
as through deliberations involving the leaders of various
divisions, discussions with outside companies, and consul-
tations with Outside Directors.
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
Extremely
important
Examination and Approval
The Board of Directors approved the material issues after
several deliberations by the Management Council.
management strategies to realize our vision. In the MTP we have
therefore established non-financial key performance indicators
(KPIs) pertaining to materiality and identified issues to be addressed
in the five fields for provision of value that will contribute to Asahi
Kasei’s value creation over the long term.
Materiality
Non-Financial KPIs(Benchmarks)
Vision (Targets)
Contributions to GHG emission
reduction
At least double by fiscal 2030
(compared with fiscal 2020)
Contribution
through businesses
GG10-related patents
Decarbonization
GHG emissions
Account for over 50% of total
patents by fiscal 2030
Reduction of 30% or more by
fiscal 2030
(compared with fiscal 2013)
Number of digital professional
human resources
Tenfold increase by fiscal 2030
(compared with fiscal 2021)
Human resources
Diversity
Number of Group Masters
360 by fiscal 2024
Percentage of women in the
total number of managers and
the Group Masters program
10% by fiscal 2030
For more information regarding KPIs and initiatives on material
issues, please access the links in the materiality diagram. The fol-
lowing page clarifies the process leading up to identifying opportu-
nities and creating value in each of the fields for provision of value.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
29
Process Leading Up to Value Creation in Each Field for Provision of Value
Operating environment
• Expansion of clean energy
• Transition to carbon neutrality and
a circular economy
• Progression of CASE and MaaS
• Increasing sophistication of
next-generation communications
technology
• Rising global population
• Diversification of lifestyles
• Intensification of natural disasters
• Labor shortages
• Advancement of a longevity society
Material issues to be
addressed through
businesses
Sectors and businesses
Global environment (decarbonization, circular economy)
Comfortable life
Health and longevity
Environmental Solutions
Mobility & Industrial
Life Innovation
Material
Homes
Health Care
Fields for provision of
value and issues
in the current MTP
Environment
& Energy
Mobility
Life Material
Home & Living
Health Care
Carbon neutrality/Circular economy
Safe, comfortable, and
eco-friendly mobility
More comfortable and
convenient lifestyles
Homes/communities enriching
people’s lives
Society of active 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
various technologies contributing to
carbon recycling
• Provision of products and services
contributing to GHG emission
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 envi-
ronmental impact
• Creation of innovative products with
strengths in competitive sensing
technologies in response to the
development 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
• Provision of medical device solu-
tions addressing unmet needs in the
critical care and cardiopulmonary
conditions fields
• Promotion of a global pharmaceuti-
cal business that reflects increasing
needs for better medical care and
the progression of aging societies in
various developed countries overseas
able to withstand disasters
• Provision of bioprocess-related
GG10 Businesses
• Hydrogen-Related
• CO2 Chemistry
• Energy Storage
• Car Interior Material
• Digital Solutions
• North American and Australian
Homes
• Environmental Homes and
Construction Materials
products and services that support
the safe and efficient manufacture of
pharmaceuticals
• Critical Care
• Global Specialty Pharma
• Bioprocess
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information Growth Strategy
31 Progress on Medium-Term Management Plan 2024—Be a Trailblazer
36 Strategies by Sector
36 Material
43 Homes
47 Health Care
30
Name
Katerina Kasalova
Company
Sage Automotive Interiors, Strakonice Fabrics
Country/region
Czech Republic
03Asahi Kasei Report 2023
Progress on Medium-Term Management Plan 2024—Be a Trailblazer
The Asahi Kasei Group is working to achieve the targets of its medium-term management plan (MTP) for fiscal
2024 focused on the theme “Be a Trailblazer” by promoting business portfolio management and strengthening
Contributing to
sustainable society
Vision
Two Mutually Reinforcing
Aspects of Sustainability
its business platform in accordance with the basic policy. We continuously take on challenges and pursue
Non-Financial KPIs
31
transformation to realize our vision.
Basic Policy
Fiscal 2022 Results
Business Portfolio Management
Challenging investment for growth
Focusing resources on 10 Growth Gears (GG10)
that will drive future growth and aiming to have them
provide more than 70% of operating income around
fiscal 2030
Implement both with an emphasis on speed,
asset-light, and high value-added
Cash generation from structural transforma-
tion and strengthening existing businesses
Integrated approach to structural transformation
comprising reform of strategic restructuring
businesses and fundamental business
structure transformation
Strengthening Business Platform
• Transformation in the key areas of green (G),
digital (D), and people (P)
• Maximum use of intangible assets
Financial KPIs
Operating income ¥128.4 billion
ROIC 4.0%
ROE −5.5%
Non-Financial KPIs
Scope 1 and Scope 2
GHG emissions
3.68 million t-CO2e1
Volume of GHG emission
reduction contributions of
environmental contribution
products
120 (index)2
Percentage of women
among managers and
Group Masters
3.8%
Number of digital profes-
sional human resources
1,206
Digital data usage
2.6 times (compared with FY2021)
Number of Group Masters
294
FY2024
FY2022
April 2022
1 Preliminary figure; may be revised due to third-party evaluation
2 Indexed to FY2020 baseline as 100
Scope 1 and Scope 2 GHG emissions
Reduction of ≥30% (compared with FY2013)
Volume of GHG emission reduc-
tion contributions of environmen-
tal contribution products
At least double
(compared with FY2020)
Percentage of women among
managers and Group Masters 10%
Long-Term Outlook for
Around FY2030
Sustainable growth
of corporate value
Financial KPIs
Operating income ¥400 billion
ROE
ROIC
≥15%
≥10%
Fiscal 2024 Targets
Financial KPIs
Operating income ¥200 billion
ROE
≥9%
ROIC ≥6%
Non-Financial KPIs
Number of digital professional human resources
2,500
Volume of digital data usage
10 times (compared with FY2021)
Number of Group Masters
360
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 32
Review of Fiscal 2022
In fiscal 2022, Asahi Kasei achieved record-high net sales of ¥2,726.5 billion, increasing sales across all
which produces battery separators. In light of these setbacks, we expect to achieve the initial fiscal 2024
business segments with expansion of existing businesses, continued weakening of the yen, and rising
target of ¥270 billion for operating income two or three years behind schedule. We will continue to seek
prices for petrochemical products. Meanwhile, operating income decreased to ¥128.4 billion, due in part
growth from a medium- to long-term perspective, targeting ¥200 billion in operating income as well as
to prolonged shortages of semiconductors, stagnant demand stemming from the impact of lockdowns in
return on equity (ROE) of 9% or more and return on invested capital (ROIC) of 6% or more for capital effi-
China, and surging feedstock and fuel prices. In addition, we incurred a net loss as a result of recording
ciency in fiscal 2024. We are determined to return to a trajectory of growth through steady implementation
an impairment loss of ¥186.4 billion in March 2023 on Polypore International, LP, our U.S. subsidiary
of our strategy set forth in the initial plan.
Fields for Provision of Value /
Sectors and Businesses
Fiscal 2022 Achievements and Issues
Direction for Fiscal 2030
Environment & Energy
Material sector
Environmental Solutions
In Environmental Solutions, we focused resources on three approaches—expediting green
solutions, cultivating energy storage businesses, and promoting actions to achieve carbon
neutrality—with the aim of realizing green transformation.
Operating income deteriorated significantly to an operating loss of ¥2.3 billion in contrast
with the original forecast of ¥42.3 million. This outcome was attributable to the sluggish perfor-
mance of the basic materials and separator businesses.
We recognize that revising the strategy of the separator business and further accelerating
the structural transformation of petrochemical chain-related businesses are pressing issues.
Mobility
Material sector
Mobility & Industrial
Life Material
Material sector
Life Innovation
In Mobility & Industrial, we enhanced our lineup of products in car interior material and next-
generation mobility. In particular, we advanced concept proposals combining a diverse range
of technologies and expertise in products for electric vehicles.
Operating income of ¥10.8 billion was well below the original forecast of ¥23.8 billion,
reflecting the impact of sluggish growth in the automobile industry as a result of semiconductor
shortages and other factors.
We recognize the need to carefully monitor automobile industry trends and to make prog-
ress toward restoration of earnings.
In Digital Solutions, we integrated the electronic components and electronic materials businesses
and proactively explored new business opportunities to address the needs of a digital society.
While operating of ¥27.8 billion was lower than the original forecast of ¥37.4 billion due to
factors including delays in the recovery of market conditions for certain products and the
impact of a plant fire in Comfort Life, Digital Solutions achieved adequate earnings.
We recognize that we must increase the production capacity of the electronic materials
business to expand Digital Solutions.
We will continue to make forward-looking investments in the separa-
tor business and in hydrogen-related businesses. For the separator
business, we will improve the earnings base of existing businesses
and revise our strategy to accelerate expansion considering the use
of outside capital and alliances. Although it will take time for hydrogen-
related businesses to contribute to profits, we will advance develop-
ment in preparation for future expansion of demand.
To accelerate structural transformation, we will consider drastic
measures with regard to commodity products centering on petro-
chemical chain-related businesses.
We are committed to accelerating the provision of innovative mate-
rials and solutions through the establishment of close partnerships
with key automobile manufacturers to clearly ascertain signs of
recovery in the automobile industry and restore earnings. We will
strengthen the business structure by focusing on improving cost
competitiveness and revising the product portfolio.
We expect Digital Solutions to deliver strong growth and maintain
high ROIC. In addition to expansion of existing products, we will
implement aggressive expansion measures for cutting-edge semi-
conductors and packaging processes by exploring co-creation
opportunities to provide new value.
For Comfort Life, we will focus on rebuilding the earnings base.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
33
Fields for Provision of Value /
Sectors and Businesses
Fiscal 2022 Achievements and Issues
Direction for Fiscal 2030
Home & Living
Homes sector
Health Care
Health Care sector
We pursued customer satisfaction by strengthening cooperation among business units amid
challenging business conditions in the domestic business, while proactively expanding opera-
tions in the overseas business. Despite a difficult operating environment in the order-built
homes business, including rising construction material costs, we increased net sales and oper-
ating income with higher average sales prices due to larger and higher value-added homes, as
well as reduction efforts. In the overseas business, we advanced forward-looking business
portfolio transformation by expanding the regions of operations through new acquisitions in
North America and Australia. As a result, we recorded operating income of ¥76.0 billion,
slightly exceeding the forecast at the beginning of the fiscal year. We recognize that the Homes
sector faces challenges in terms of raising the productivity and profitability of various busi-
nesses to ensure their continued and consistent cash generation.
In Health Care, we are advancing toward becoming a global health care company by capturing
a broad range of opportunities in global markets in both the pharmaceutical and medical
device businesses to drive overall income growth.
Despite strong sales growth for mainstay products in the pharmaceutical and medical
businesses, operating income was ¥41.9 billion compared to the original forecast of ¥58.0 bil-
lion. This was largely attributable to the difficulty of procuring components due to semiconduc-
tor shortages, and a slowdown in orders stemming from U.S. economic downturn, resulting in
a pause in growth in the critical care business.
We entered the biopharmaceutical CDMO business through an acquisition in the medical
business to achieve growth over the medium term.
Although results were below the original forecast in fiscal 2022, we expect the sector to
grow over the medium to long term. This will require steady implementation of the growth
strategy set forth in the MTP.
In the order-built homes business, we will instill marketing strate-
gies, including those for high-end customers. In addition, we will
promote high value-added strategies by raising our proportion of
homes compliant with Net Zero Energy House (ZEH) and ZEH
Mansion (ZEH-M) standards and work to realize a sustainable soci-
ety in various ways, such as achieving the goal of the RE100 initia-
tive. In the overseas business, we will build a business platform
resilient to material costs and fluctuations in demand with the aim of
improving efficiency through industrialization and providing high-
quality homes by raising productivity.
Identifying the critical care, global specialty pharma, and bioprocess
businesses as growth areas, we will seek to expand existing busi-
nesses and reap the benefits of proactive investments thus far. In
addition, we will continuously capture growth opportunities in the
global market by leveraging business development measures
including M&A and in-licensing to pursue further expansion of sales
and profit.
Challenging Investment for Growth
In fiscal 2022, we focused resources on the GG10 businesses to drive future growth. We aim for GG10
to account for over 70% of our overall operating income by around fiscal 2030. We are actively exploring
M&A opportunities and making bold investments to achieve this. While our approach of focusing
resources on GG10 will continue in fiscal 2023, we will further clarify the priority of resource allocation
among GG10 as we make investment decisions.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
34
Positioning of Investments
GG10
Investment Scale and Direction (FY2022–2024, decision-adopted basis)
Profit1 Growth Target
(increase in FY2024 compared with FY2021)
Health Care
Critical Care
First Priority
Global Specialty Pharma
Maintain proactive investments
for growth over the medium term,
increase focus on gaining income
from past investments
Growth Potential
Make upfront investments while
cooperating with other compa-
nies to strengthen competitive-
ness as drivers of future growth
Earnings Base Expansion
Explore and examine investment
opportunities to steadily expand
earnings scale, continue to con-
sistently generate earnings
Bioprocess
Life Material
Digital Solutions
Environment & Energy
Energy Storage
Hydrogen-Related
CO2 Chemistry
Home & Living
North American and
Australian Homes
Environmental Homes and
Construction Materials
Mobility
Car Interior Material
Up to ¥200 billion in investments is planned, including the acquisition of Bionova Scientific, LLC (Bionova),
a U.S. biopharmaceutical CDMO, in May 2022. We will continue to proactively explore investment opportu-
nities to achieve growth in Health Care.
Regarding previous M&A investments, sales at Veloxis Pharmaceuticals, Inc. (Veloxis), declined amid the
impact of the COVID-19 pandemic, and progress is delayed by one or two years from the initial plan.
Respicardia, Inc., and Itamar Medical Ltd., (Itamar), aim to expand sales by steadily creating synergies with
ZOLL Medical Corporation (ZOLL). Bionova has decided to increase its capacity for process development and
GMP2 manufacturing of next-generation antibody drugs while aiming to increase profits by expanding orders.
Approx. ¥15 billion
increase
We plan to invest up to ¥200 billion, including the fiscal 2022 decision to increase production capacity of
Pimel™ photosensitive polyimide. We will continue to seek growth through proactive investments, including
inorganic growth.
Approx. ¥10 billion
increase
We plan to invest over ¥200 billion, primarily in the separator business and hydrogen-related businesses,
which have high growth potential over the medium term, as upfront investments in future growth drivers.
For the separator business in particular, we are examining the possibility of making large-scale investments,
such as to establish manufacturing of Hipore™ LIB separators in the North American market.
—
We plan to make investments up to ¥100 billion, including the acquisitions of the Focus Companies of the
U.S. in November 2022 and Arden Homes Pty Ltd. of Australia in February 2023.
Regarding previous investments, we expect Synergos Operations LLC, our North American homes
business, to see persistently firm demand, reflecting acute shortages of homes in the regions where it oper-
ates. NXT Building Group Pty. Ltd., our Australian homes business, will accelerate growth by streamlining
construction processes and improving efficiency.
Approx. ¥10 billion
increase
We plan to invest up to ¥100 billion, including the fiscal 2022 investment to expand car interior material in
the U.S. We will concentrate on reaping the benefits of previous investments while focusing on investments
with a high degree of certainty going forward.
Although the performance of Sage Automotive Interiors, Inc., (Sage) stagnated due to sluggish growth
in the automobile market, it will return to a growth trajectory in line with market recovery.
Approx. ¥10 billion
increase
1 Profit: Operating income + amortization from PPA
2 Good Manufacturing Practice, a collection of regulations related to manufacturing with which manufacturers of pharmaceuticals are required to comply. The manufacture of pharmaceuticals according to strict GMP regulations is referred to as GMP-compliant manufacturing.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
35
Cash Generation from Structural Transformation and Strengthening Existing Businesses
We will further accelerate the structural transformation of businesses in response to underperformance
Discussions on petrochemical chain-related businesses are proceeding with particular emphasis on
compared with the initial targets set forth in the MTP. At the outset of the MTP, we advanced such trans-
whether such businesses can be sufficiently profitable considering the investments required to achieve
formation under the two approaches of reform of strategic restructuring businesses—which saw a deteri-
carbon neutrality and related costs including carbon taxes.
oration in recent performance due to the impact of the COVID-19 pandemic and other factors—and
We have established three major options for the direction of business structure transformation:
fundamental business structure transformation, in terms of both performance and compatibility with our
1) collaborative operation with other companies through joint ventures and other arrangements, 2) exit
medium-term vision. As these efforts involve businesses with interdependent supply and demand relation-
from the business, and 3) developing carbon-neutral technologies and increasing added value. We are
ships, such as for raw materials, we are currently examining ways to achieve structural transformation
exploring the possibility of the third option while also examining the first and second options. We have
through the integration of the two approaches. Net sales of businesses to be targeted for structural trans-
already confirmed the direction and taken concrete action for several businesses, such as seeking suitable
formation totaled more than ¥700 billion in fiscal 2021. Of these, we aim to complete the structural trans-
partners from the best-owner perspective and advancing negotiations, and will finalize the direction and
formation of multiple businesses with net sales totaling ¥100 billion or more by fiscal 2024, including those
steadily implement the structural transformation of the remainder by fiscal 2024. Although the removal of
identified as Exit businesses in the reform of strategic restructuring businesses. Meanwhile, we will under-
some businesses from the scope of consolidation due to business withdrawal or the launch of joint ven-
take the structural transformation of petrochemical chain-related businesses, which we have designated
tures with other companies will result in a decline in the operating income of petrochemical chain-related
as businesses handling commodity chemicals, the earnings volatility of which has once again become
businesses, we will seek to transition to an earnings structure that enables stable earnings growth. In
prominent. Although there is some overlap with the aforementioned businesses with net sales totaling
addition, we aim to achieve carbon neutrality throughout our supply chain and to generate profits through
¥100 billion or more, net sales of petrochemical chain-related businesses total approximately ¥600 billion.
a licensing business by developing technology related to bio-based feedstocks.
Directions of Business Structure Transformation Under Consideration
Policy of Structural Transformation of Petrochemical Chain-Related Businesses
• Planning to implement structural transformation of businesses with sales of
more than ¥100 billion during FY22–24 (incl. those designated as Exit in the
Strategic Restructuring Business)
• Examining the medium-term direction of the petrochemical chain-related business
with sales of approximately ¥600 billion with a view to carbon neutrality
Sales of subject businesses
(FY21 results)
¥700 billion or more
Approaches
Example of Initiatives
1)
Collaborative
operation with other
companies through
joint ventures, etc.
• Raising competitiveness
• Sharing required investment and
cost burden
• Mutual utilization of innovations for
carbon neutrality
Established JV for
spunbond nonwovens
2) Exit from the
business
• Plant downsizing/closure
• Sale of the business to the best
owner
Divestiture of
photomask pellicles
3)
Developing carbon-
neutral technology
and increasing added
value
• Using proprietary or licensed tech-
nology for carbon neutrality
• Transformation of product portfolio
with value for customers
Developing proprietary
technology for basic
feedstocks from bioethanol
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information Strategies by Sector
Material sector
36
Message from the
Head of the
Material Sector
Koshiro Kudo
Executive Officer
for Material Business Sector
President & Representative Director
Presidential Executive Officer
Asahi Kasei Corp.
“
Addressing society’s ever-changing needs with diverse
technologies and innovation
We operate three businesses in the Material sector: Environmental Solutions,
Mobility & Industrial, and Life Innovation. These correspond to the Environment
& Energy, Mobility, and Life Material fields for provision of value, addressing
society’s ever-changing needs with a lineup of high value-added materials and
products unique to Asahi Kasei.
In fiscal 2022, the performance of the basic materials business in
Environmental Solutions in particular declined sharply, reflecting a generally
harsh operating environment. I believe this decline highlighted again the need
for structural transformation centered on the petrochemical chain-related busi-
nesses. In the separator business, we made clear our policy of focusing
resources on growing the Hipore™ business and recorded an impairment loss
on Polypore International, LP. Fiscal 2022 was also a year that saw us
advance transformation focused on the medium-term direction of the sector,
such as transferring the photomask pellicles business and establishing a joint
venture for the spunbond nonwoven products business, taking into consider-
ation the best-owner perspective.
In fiscal 2023, despite continuing uncertainty in the operating environment,
including a slowdown in demand due to an economic recession centered on
China, we will strive to expand growth businesses, such as separators, car
interior material, and Digital Solutions. At the same time, we will continue to
advance the business reforms we have been studying, including withdrawal
from the general-purpose tire cord business, to increase profitability.
Promoting Business Portfolio Transformation to
Focus Resources on Future Growth Businesses
The Material sector is targeting net sales of ¥1.53 trillion and operating income
of ¥110 billion for fiscal 2024, the final year of the MTP. Although achieving the
target for operating income will require a significant improvement from the level
of fiscal 2022, we will execute a range of measures, such as those for raising
productivity and reducing costs, and clarify our resource allocations, including
for business portfolio transformation, to expand growth businesses focused
on GG10.
Asahi Kasei has established three categories for GG10 according to busi-
ness direction. We regard Digital Solutions, which we have positioned as a first
priority area, as a business with the potential to aim for high growth while main-
taining a high return on invested capital (ROIC). Accordingly, in addition to achiev-
ing growth in individual products such as Pimel™, whose production capacity
we decided to expand for leading-edge semiconductors, Digital Solutions will
seek to offer unique value drawing on its combined strengths in electronic com-
ponents and electronic materials and pursue inorganic growth opportunities.
Life Innovation
Environmental Solutions
Digital Solutions
Comfort Life
• Mixed-signal LSIs, electronic
• Bemberg™ cupro fiber, Roica™
compasses
• Magnetic sensors
• Gas sensors
• Pimel™ photosensitive polyimide/
PBO precursor
premium stretch fiber
• Saran Wrap™ cling film
• Ceolus™ microcrystalline cellulose
pharmaceutical and food additive
• Photopolymers and platemaking
• Sunfort™ dry film photoresist
systems
• Glass fabric
• Hipore™ and Celgard™ lithium-ion battery separators,
Daramic™ lead-acid battery separators
• Chlor-alkali electrolysis systems,
Microza™ hollow-fiber filtration membranes
J
a
• Synthetic rubber, elastomers
Material Sector
FY2022 Net Sales
¥1,316.6
billion
p
a
n
4
0
.
3
%
O
v
e
r
s
e
a
• Acrylonitrile (AN) and other petrochemical-related products
Mobility & Industrial
• Car interior fabric
• Dinamica™ artificial suede
• Leona™ nylon 66 filament
• Duranate™ curing agent for polyurethane coatings
• Leona™, Tenac™, and Xyron™ engineering
plastics, SunForce™ foamed beads, Asaclean™
purging compound for molding machines
s
5
9.7%
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
37
Message from the Head of the Material Sector
KPIs
FY2021
(after reconfiguration1)
FY2022
FY2024 target
(announced in Apr. 2023)
Net sales (¥ billion)
1,210.0
1,316.6
1,530.0
Operating income (¥ billion)
Operating margin
EBITDA (¥ billion)
EBITDA margin
ROIC2
106.0
8.8%
183.0
15.1%
6.7%
41.0
3.1%
128.5
9.8%
2.4%
110.0
7.2%
187.0
12.2%
6.0%
Note: Shaded rows are management KPIs in the Material sector
Operating income, operating margin
(¥ billion)
120
100
80
60
40
20
0
(20)
Others in Material
Life Innovation
Mobility & Industrial
Environmental
Solutions
2019
2020
After reconfiguration1
2021
Operating income (left scale)
Operating margin (right scale)
(%)
12
10
8
6
4
2
0
(2)
66.1
41.0
4.7
3.1
2022
(FY)
2023
Forecast
(announced in May 2023)
We have positioned the energy storage business—which includes separa-
tors—the hydrogen-related business, and the CO2 chemistry business as
growth potential areas. Given their high potential for growth over the long
term, we will make strategic upfront investments in these three businesses,
including utilizing the capital of other companies. In the hydrogen-related busi-
ness, we are conducting verification trials to commercialize an alkaline water
electrolysis system and examining potential business models. As we are
receiving many inquiries in response to global trends, we are working to accel-
erate commercialization of the system.
We have positioned the car interior material business as one of our earnings
base expansion areas. Although the business has been affected by the downturn
in production in the automobile industry in recent years, sales volumes are recov-
ering and a structure for achieving expansion while generating stable earnings,
including the results of measures for raising productivity, is once again taking
shape. We will aim for further growth by firmly benefiting from market recovery.
Meanwhile, we must examine structural transformation of the petrochemi-
cal chain-related businesses with an eye to achieving carbon neutrality. The
frame of reference of the examinations will come down to whether meeting the
costs required to address environmental issues will allow the businesses to
make sufficient profits. We will consider a variety of options, such as promot-
ing the development of technology and the creation of products with high
added value in relation to addressing environmental issues, as well as the
establishment of joint ventures with other companies and withdrawal from
businesses, if required, after carefully examining the profitability and competi-
tiveness of each business.
Pursuing High Added Value and Earnings Growth by Creating
New Business Models
The Material sector operates a diverse range of businesses. Although it faces
challenges related to business structure transformation and decarbonization,
the sector also has a purpose and the potential to continuously spur innova-
tion, creating new materials and new business models to realize the Group
Mission. Under the concept of Product-based Platform as a Service (P-PaaS),
which provides a platform that helps increase customer value, the Material
sector will expand solution-oriented businesses that do not simply sell prod-
ucts. For example, it will offer data-driven services, such as predictive mainte-
nance and optimal operation proposals, using smart electrolyzers for the
ion-exchange membrane electrolysis process.
Through these efforts, we will promote business expansion by shifting man-
1 Figures have been recalculated to reflect the revision of business categories in FY2022
agement resources to future growth fields with the aim of establishing a high
value-added profit structure that is resilient to changes in market conditions.
2 ROIC = operating income (1 − tax rate) / (fixed assets + working capital, etc.)
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
38
GG10 Hydrogen-Related
Environment & Energy
Helping to 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
Operating Environment
Global progress in hydrogen-related technology development aimed at
realizing a decarbonized society
As hydrogen is gaining attention as an essential material for a decarbonized society, projects related to green hydro-
gen produced using renewable energy are being launched around the world.
There are several methods for producing hydrogen. Among them, Asahi Kasei is developing alkaline water elec-
trolysis technology, which is suited for large-scale systems and is expected to enable low-cost, mass production of
hydrogen. As seen not only in highly environmentally conscious Europe, but also with the Inflation Reduction Act that
went into effect in 2022 in the U.S. and the 2023 revision of the Basic Hydrogen Strategy in Japan, the movement to
adopt green hydrogen production and usage is gaining momentum worldwide, and the market for electrolysis sys-
tems for hydrogen production is expected to grow significantly going forward.
Strengths of the Asahi Kasei Group
Steady verification of alkaline water electrolysis systems based on
chlor-alkali electrolysis technology
Asahi Kasei’s alkaline water electrolysis systems are based on the ion-exchange membrane chlor-alkali electrolysis
technology that we commercialized in 1975. In the chlor-alkali electrolysis field, we have the ability to provide mem-
branes, electrolytic cells, electrodes, operating technology, and monitoring systems, and we have a high global market
share in ion-exchange membranes. We are leveraging the expertise we have accumulated in this area to develop
large-scale alkaline water electrolysis systems that can be used with renewable 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 is underway at the Fukushima Hydrogen
Energy Research Field of the New Energy and Industrial Technology Development Organization (NEDO). In addition,
our joint verification project with JGC Holdings Corporation was adopted as a NEDO Green Innovation Fund project,
specifically for hydrogen production through electrolysis using renewable energy. 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 has accumulated operating expertise and data through participation in the ALIGN-CCUS proj-
ect and its successor, the TAKE-OFF project. Additionally, in 2023, our “verification research on alkaline water electrol-
ysis systems to expand the supply of green hydrogen (Europe)” was selected as a NEDO research project*. We will
continue to work with partner companies to acquire knowledge for commercialization.
* NEDO’s international verification project on Japanese technology for promoting energy consumption efficiency, which aims to study the technology’s satis-
faction of verification requirements (pre-verification study and verification research)
Business Strategies
Becoming a leading supplier of alkaline water electrolysis systems through swift
commercialization and supply chain development
While performing trials to enhance safety, durability, and performance, and achieve
high-reliability alkaline water electrolysis systems, we are working to reduce the costs
for practical application with commercialization targeted in 2025. We will start by intro-
ducing these systems in regions that are ahead of other markets in this regard, but in
the future, we aim to capture a major global market share of electrolysis systems, and
are considering involvement in operations and monitoring as well.
In 2022, with funding from NEDO, we broke ground on a pilot facility at our Kawasaki
Works to conduct verification tests to control multiple electrolyzer modules. We also joined
the Hydrogen Council, a global initiative involving approximately 150 companies and orga-
nizations, as a steering member. In 2023, we joined the Japan Hydrogen Forum, which
supports decarbonization in the U.S., and we have been deepening our collaboration with
various government agencies, companies, and organizations.
Our hydrogen-related business requires the development of new supply chains
through collaboration with various companies, ranging from upstream energy suppliers
to downstream hydrogen users. We are already receiving many inquiries regarding our
alkaline water electrolysis systems. Accordingly, we will be seeking out ideal partners
as we drive the development of the supply chain, and we will accelerate the global
expansion of our hydrogen-related business to meet rapidly growing demand.
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)
• Cost reduction of alkaline water electrolysis systems
• 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
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
39
GG10 CO2 Chemistry
Environment & Energy
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
Business Strategies
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 (CO2 chemistry). We thereby aim to contribute to reduced CO2 emissions through various efforts spanning from CO2
recovery to usage.
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 mate-
rial, since the 1980s. In 2002 we began licensing our polycarbonate manufacturing technology which was the first in the world
to utilize CO2 while also not using toxic phosgene, and our technology is used for 16% of global polycarbonate production
capacity. Based on this technology and our commer-
cialization expertise, we started licensing a technol-
ogy that uses CO2 as a raw material for lithium-ion
battery (LIB) electrolyte in 2021. We are also develop-
ing various isocyanates for use as materials for pro-
ducing polyurethane. The Asahi Kasei Group enjoys
world-leading R&D capability and a track record of
commercialization in these fields.
CO2 chemistry
(Use of CO2 as a
raw material)
CO2 separation/recovery
Materials for LIB electrolyte
Other chemical products
Chemical feedstocks
Polycarbonate
Isocyanates
CO2
Verification trials for CO2 separation and recovery technology, and
advancement of business for CO2 utilization technology
Asahi Kasei is considering verification trials for CO2 separation and recovery
technology using actual gas with the aim of commercializing the technology
by fiscal 2027 for processes using biogas or other gases. In Europe, the trend
toward encouraging the use of biogas is picking up pace. Reflecting this
trend, we are seeing the announcement of a variety of policies, programs, and
investment plans, such as the European Commission’s REPowerEU plan,
which incorporates the use of biogas to replace natural gas from Russia. We
are considering verification in Europe where growing demand is forecasted for
separating CO2 from biogas to recover methane. We are also developing sys-
tems for power plants, factories, and other facilities.
As for CO2 chemistry, we are focused on licensing the technology we have
commercialized for LIB electrolyte material. At the same time, we are acceler-
ating the development of isocyanate production technology. We are targeting
the commercialization of a special isocyanate expected to be used as a next-
generation automotive paint material in 2026. The performance of the material
has received a strong reception in sample evaluations conducted at paint
manufacturers, automobile manufacturers, and other potential customers.
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
contribute to the increased utilization of CO2 and to the reduced use of
fossil resources.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
40
GG10 Energy Storage
Environment & Energy
Responding to rising energy storage demand associated with decarbonization, expanding contributions centered on LIB
separators; pursuing new business opportunities related to next-generation energy storage devices
Operating Environment
Rising importance of LIBs as energy storage devices widely adopted
throughout society
The need for energy storage is accelerating along with the trend toward decarbonization. While various new
technologies are being developed, we believe lithium-ion batteries (LIBs) will remain an important device in
this field for the foreseeable future, and the market is expected to grow substantially due to the rapidly
advancing move toward vehicle electrification. The U.S. Inflation Reduction Act, which went into effect in
2022, is also expected to stimulate the further proliferation of electric vehicles.
Current mainstream LIBs use either ternary or lithium iron phosphate (LFP) cathode materials. LIBs that
use ternary cathode materials are characterized by high capacity, and mainly use wet-process separators,
while those that use LFP cathode materials mainly use dry-process separators.
In addition, rapidly rising global demand for LIBs is also projected to stimulate increased demand for LIB
reuse and recycling solutions, which should give rise to new markets.
Strengths of the Asahi Kasei Group
Addressing diverse needs based on accumulated expertise and
industry-leading technological capabilities
The LIB separator business operated by the Asahi Kasei Group is based on technology and knowledge that
we have cultivated since the 1970s, and includes LIB research and the development of prototypes that would
evolve into the LIBs of today.
Our strengths in this business include the quality, safety and high performance of our separators backed
by our technological expertise, and reliable supply capability, plus our experience with both wet-process and
dry-process separators. We have earned particular recognition 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. Sales volumes for our wet-process Hipore™ separators grew at a
compound annual growth rate (CAGR) of 17% from 2000 to 2021. Additionally, our strengths include world-
class environment-friendly technology, high productivity powered by accumulated production technologies,
and a comprehensive patent portfolio.
In China, where the LIB market is expanding, the dry-process separator joint venture established by our
subsidiary Polypore International, LP, and Shanghai Energy New Materials Technology Co., Ltd. (SEMCORP)
to tap into the market for energy storage system LIBs, commenced operations in the second half of fiscal
2022.
Business Strategies
Pursing growth in the separator business while exploring new business opportunities
With the growth of the separator business as its focus, the Asahi Kasei Group is pursuing fur-
ther possibilities in energy storage-related businesses.
We have decided to concentrate resources on the growth potential of Hipore™ in the sep-
arator business, and in this pursuit with North America as our main target market going for-
ward, we are considering means such as alliances to strengthen our supply framework.
Currently, none of the major separator manufacturers have wet-process production facilities in
North America, with each company competing under the same conditions. Therefore, we aim
to establish a solid position by leveraging the strengths of Hipore™, namely its high perfor-
mance, quality, safety, productivity, and environment-friendly technology.
Meanwhile, we are working toward the development of next-generation energy storage
devices. In fiscal 2023 we commenced full-fledged licensing activities for innovative lithium-
ion capacitors featuring improved energy density and reduced costs. We are also working to
commercialize the technology that is currently under development for innovative electrolyte
material utilizing high ion-con-
ductivity solvents.
Outlook for automotive LIB separator demand
In addition, for longer-term
business development, we are
leveraging the knowledge we
have cultivated in the separator
business to create solution-ori-
ented business and develop
next-generation innovative bat-
teries to meet the needs of a
vast energy storage market.
2021-2025
(billion m2)
年平均成長率 35%
35
28
21
14
7
0
Source: Asahi Kasei estimates
Others
China
Europe
North
America
Japan
(Year)
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
41
GG10 Car Interior Material
Mobility
Supplying proprietary, differentiated, high value-added solutions to the automotive interior material 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 interior needs
Changes to Automotive Interiors Driven by CASE
Due to the advancement of CASE and MaaS trends in the automotive industry and the growing awareness of sustainability,
needs regarding automotive interiors are becoming more diverse. These trends are creating needs for functions and character-
istics in materials and components that
differ from conventional expectations.
As a result, the automotive interior
material market is projected to grow at
a faster rate than vehicle production
volumes. The broadening range of
automotive interior needs presents a
substantial business opportunity for us,
with our diverse lineup of products and
technologies.
antibacterial properties
• Enhancement and diver-
sification of performance
• Noise reduction
• Thermal management
• Weight reduction
• Soundproofing, vibra-
tion proofing, thermal
insulation
• Recognition and
monitoring of
passengers
• Diversification of
seat design and
layout
New needs for
interior parts/
components
• Public use
• Availability for various
• Greater comfort
• Innovative designs
Changes in
automotive
interiors
technologies
• Smart textiles
• Easy cleaning, antifouling
vehicle environment
• Odor resistance,
living room or office
• Transition to new
• Use as in-vehicle
• Monitoring of in-
Autonomous
Connected
• Monitoring
Electric
properties
Shared
purposes
materials
Strengths of the Asahi Kasei Group
Meeting customer needs with high-quality sustainable materials and strong design
proposal capabilities
Sage Automotive Interiors, Inc., which joined the Asahi Kasei Group in 2018, enjoys strengths in its design and customer pro-
posal capabilities. By using these strengths to deploy regional and material strategies on a global scale, we have secured a
position as a leading global supplier in the seat fabric* market. In 2023, we rebranded our artificial suede material by integrat-
ing Lamous™ with Sage’s Dinamica™, and we are focusing on integrated promotion from raw fabric to finished products.
Our artificial suede has been well received as a high-quality sustainable material that uses no organic solvents during the
production process. Combining this with Sage’s design capabilities has enabled us to create distinctive high value-added
products that have been increasingly adopted around the world. To respond to the resulting robust demand, in fiscal 2022 we
added production capacity in Nobeoka City, Miyazaki Prefecture, Japan.
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 transformation, 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)
Business Strategies
Becoming an automotive interior solutions provider by offering value
that meets new needs
In our car interior material business, we are targeting net sales exceeding
¥100 billion in 2024. In addition to artificial suede, demand is growing for PVC
synthetic leather as an alternative to natural leather, and to expand the prod-
uct lineup to meet customer needs, we have begun producing this material in
China, with expansion to other regions planned in the future. We continue to
raise production capacity for Dinamica™ products while reinforcing sustain-
ability initiatives. Additionally, in parallel with business expansion, we will
strengthen our production through means including factory closure and con-
solidation, and develop frameworks for regional supply in accordance with
regional demand. By so doing, we will further solidify our position as a leading
supplier.
Our growth strategies for meeting diversifying automotive interior needs
include the further differentiation of our solutions. We will acquire foundations
for direct involvement in and contribution to the development activities of auto-
mobile manufacturers in specific automotive interior fields, and develop vegan
leather and other plant-derived materials, highly recyclable monomaterials,
and materials featuring greater comfort. In addition, effective key account
management practices will be adopted to gain a better understanding of auto-
mobile production processes so that we can provide unique, comprehensive
solutions through development proposals matched to current trends and
needs.
By honing superiority for solutions in terms of design, sustainability, and
comfort, we aim to become a distinctive automotive interior solutions provider
by developing materials and components, and by offering services, with a
focus on user experience.
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42
GG10 Digital Solutions
Life Material
Leveraging a unique position of having both electronic components and electronic materials; addressing the needs of the
digital society with distinctive components, materials, and solutions
Operating Environment
Accelerated evolution of digital technologies and solutions in response to
diversification of needs stimulated by social change
Digital technologies and solutions are constantly evolving along with the accelerated digitalization of society, including the prog-
ress of AI technology, leading to continued market growth. As needs become more diverse in a variety of fields, digital technolo-
gies and solutions have become imperative to providing new value in response to changes in the operating environment.
The market is expected to continue to undergo substantial growth as a result of the advancement of digital technologies
and solutions. It is expected that continuous significant market expansion will be especially driven by rapid market change
toward electric vehicles amid rising environmental awareness; digitalization as seen in the spread of 5G, 6G, and other high-
speed communications systems; and the rising desire for 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
components and electronic materials
Business promotion reflecting market trends for both electronic components and materials is a major strength of the Asahi Kasei Group.
In our electronic components business, we draw on our years of experience in analog signal processing technology to
propose optimal solutions for markets related to energy conservation and healthy and comfortable lifestyles—including electric
vehicle applications—centered on sound quality control, and magnetic, electric current, infrared, and other sensing devices.
Leading the industry in terms of mixed-signal large-scale integrated circuit design technology for bridging the gap between
analog and digital information, Asahi Kasei offers a number of products with world-leading market shares, building strong,
trust-based relationships with customers as an innovative and distinctive electronic components manufacturer.
In addition to its sophisticated development capabilities, manufacturing technology, and quality control, our electronic
materials business builds on its strength in accommodating customer requests to underpin the growth of the cutting-edge
semiconductor market by maintaining a lineup
of high-performance and highly competitive
products. World-leading market shares have
been maintained along with high evaluation
globally for products including Pimel™ photo-
sensitive polyimide precursor, a semiconductor
buffer coating; dry film photoresist used in etch-
ing circuits on printed wiring boards; and ultra-
thin glass fabric for printed wiring boards.
• High-density wiring (photosensitive dry
film and photosensitive buffer coat)
• Low transmission loss (low-dielectric
glass fabric and plastic optical fiber)
• High-precision adhesion (latent epoxy
Creating innovative products with com-
petitive sensing technology in the xEV,
energy conservation, and comfort
markets
Providing highly competitive materials and
solutions for cutting-edge semiconductor
and packaging process innovations
• Analog signal processing
• Software algorithms
• Sensing (magnetic, current, infrared, and
Electronic components
Electronic materials
millimeter wave)
hardener)
Business Strategies
Provision of unique solutions matched to new market needs through the
integration and unified management of the electronic components and
materials businesses
The unified management of the electronic components and materials businesses
will allow Asahi Kasei to accurately identify market trends and create solutions using
its various acquired technologies, thereby accelerating growth through distinctive
products and services. We will aim to achieve operating income of ¥70 billion for
Digital Solutions by around 2030.
In electronic components, we established a project to expand our business for
electric current sensing devices with high-speed response and high sensitivity, ideal
for next-generation power device applications that are seeing an expansion in
demand related to electric vehicles. With a focus on China, we also set up garage-
style laboratories at several global bases, where customers can experience noise
cancellation technology, high-precision CO2 sensors, and other solutions that
enhance the sound and air quality of spaces, such as living rooms and car interiors,
to accelerate sales expansion. In addition, we will pursue further business opportu-
nities for Hall elements that contribute to the environment and to energy conserva-
tion and explore opportunities to offer solutions based on environmental sensing.
In electronic materials, we are seeking to expand our provision of highly com-
petitive electronic materials and solutions, to spur technological innovation in 5G,
6G, and other communication systems that support the development of digital
society and in cutting-edge semi-conductors and packaging processes used in
data servers and other equipment. To this end, we have decided to increase pro-
duction capacity for Pimel™.
Meanwhile, we are promoting the acceleration of product development utilizing
digital transformation and activities to spur innovation to achieve future growth. In
addition to autonomous growth, we will advance value creation, including through
the adoption of outside technologies and through M&A, to strengthen and expand
our business domain.
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43
Strategies by Sector
Homes sector
Message from the
Head of the
Homes Sector
Fumitoshi Kawabata
Executive Officer
for Homes Business Sector
Vice-Presidential Executive Officer,
Asahi Kasei Corp.
President & Representative Director,
Asahi Kasei Homes
Director,
Asahi Kasei Construction Materials
“ Celebrating half a century of the homes business, striving forward as an
essential company of true value for all stakeholders
“Long Life” Concept Focused on the Future
In fiscal 2022, we celebrated the 50th anniversary of Asahi Kasei’s homes
business. I would like to express my sincere appreciation to all of our stake-
holders, including customers, employees, shareholders, and investors, for
helping us achieve record-high net sales and operating income in such a
major milestone year.
With the support of such customers, Hebel Haus™ has established a
solid position in Japan’s urban housing. In addition, the business has grown
steadily in step with changes in society, including remodeling, leasing, broker-
age, and condominium businesses, and promoted overseas homes busi-
nesses in recent years. The construction materials business has also played a
role in realizing high value-added homes by making full use of the technologi-
cal capabilities of Asahi Kasei’s materials.
The homes business seeks to offer long-lasting homes where people can
continue to live with peace of mind. Passed on since our founding, this aspira-
tion precisely aligns with the concept of sustainable homes for the future. I am
confident that we will see increasing demand in the coming era for the “Long
Life” products and services that we provide to support life, well-being, and
living for customers.
Profit Growth by Strengthening Domestic Businesses and
Expanding Overseas Businesses
The growth of the Homes sector has contributed to society and raised the
cash-generating capability of the Asahi Kasei Group. The current MTP
targets net sales of ¥1 trillion and operating income of ¥95 billion for the
Homes sector in fiscal 2024. While domestic businesses are securing earn-
ings despite a challenging operating environment, including a declining pop-
ulation, our challenge is to firmly grow the overseas businesses, which are
projected to see an increase in demand, in order to achieve these targets.
In recent years, we have made higher value-added proposals in the order-
built homes business, such as homes for seniors and homes that protect the
environment. We also promoted new marketing strategies for high-end prod-
ucts and conducted organizational reforms to fully leverage the strengths of
Asahi Kasei Homes. As a result, despite greater-than-anticipated change in
our operating environment—including higher construction material costs as an
effect of global affairs—we were able to increase operating income from the
previous fiscal year.
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
. 6 %
2
ersea s 2
v
O
Homes Sector
FY2022 Net Sales
¥899.0 billion
n 7 7.4%
Homes
Order-Built Homes
• Hebel Haus™ unit homes
• Hebel Maison™ apartment buildings
Remodeling
• Maintenance, renovation, etc.
J a p a
Real Estate
• Apartment rental network,
real estate brokerage
• Atlas™ condominiums
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
In the overseas business in recent years we have made acquisitions in
North America and Australia, where we aim to enhance the quality of homes
and raise productivity using the know-how in industrialized housing develop-
ment which we cultivated in Japan. In fiscal 2022, satisfaction with our prog-
ress in establishing new business models in both countries—where demand
for homes is steady—led us to expand our North American business with the
acquisition of the Focus Companies, a construction work supplier in Nevada,
and our Australian business with the acquisition of Arden Homes Pty Ltd., a
housebuilder in Victoria.
A Leader in Environmental Protection, Promoting Sustainability
Together With Customers
In fiscal 2019, Asahi Kasei Homes joined RE100, an initiative for companies
committed to sourcing 100% of the electricity used in their operations from
renewable energy, in order to achieve decarbonization. Using a system
whereby we purchase electricity generated primarily through solar power from
customers, we expect to achieve our goal significantly earlier than initially
anticipated. This achievement is based on the trust and expectations that cus-
tomers place in the Asahi Kasei Group, and I feel that promoting sustainability
together with them is highly meaningful. In addition, in fiscal 2023 our GHG
emission reduction targets were approved by the Science Based Targets initia-
tive (SBTi), a global body promoting GHG emission reductions, as consistent
with the 1.5ºC target, and we expressed our support for the recommendations
of the Task Force on Climate-related Financial Disclosures (TCFD). As one of
the few companies to address all three of the TCFD, SBTi, and RE100, we are
committed to faithfully fulfilling our role in society.
The vision of the homes business is to be an essential company of true
value for customers, society, and employees as we embark on a new chapter
following our 50th anniversary. People remain the source of value creation for
the homes business in any era. We will therefore unstintingly invest in the
growth of our employees to build an organization where all can feel proud and
happy to work. We also aim to remain a company that is loved and depended
on by all our stakeholders.
KPI
KPIs
Net sales (¥ billion)
Operating income (¥ billion)
Operating margin
EBITDA (¥ billion)
EBITDA margin
Free cash flow ratio
ROIC2
Operating income, operating margin
Construction Materials
Others
Overseas Business
Remodeling
Real Estate
Order-Built Homes
(¥ billion)
80
60
1,500
1,200
900
40
600
300
20
0
0
44
Message from the Head of the Homes Sector
FY2021
(after reconfiguration1)
FY2022
FY2024 target
(announced in Apr. 2023)
822.4
72.9
8.9%
87.3
10.6%
4.5%
33.2%
899.0
76.0
8.5%
93.4
10.4%
1.3%
27.2%
1,000.0
95.0
9.5%
115.0
11.5%
4.0%
24.0%
Note: Shaded rows are management KPIs in the Homes sector
(%)
20
15
10
5
0
76.0
77.7
8.5
8.5
2022
2023
(FY)
Forecast
(announced in May 2023)
2019
2020
After reconfiguration1
2021
Operating income (left scale)
Operating margin (right scale)
1 Figures have been recalculated to reflect the revision of business categories in FY2022
2 ROIC = operating income (1 − tax rate) / (fixed assets + working capital, etc.)
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
45
GG10 Environmental Homes and Construction Materials
Home & Living
Together with our customers, contributing to sustainability through homes
Operating Environment
Rapidly rising requirements for improved energy efficiency and decarbonization
Business Strategies
Although Japan has a sufficient quantity of housing units relative to the number of households, only a small percentage of homes
fully meet energy efficiency performance standards. Updating to comfortable homes that can be passed on to the next genera-
tion has therefore become an urgent priority. Meanwhile, the Japanese government has declared its aim to achieve carbon neu-
trality by 2050 and to reduce GHG emissions by 46% by fiscal 2030 (compared with fiscal 2013). Against this backdrop, changes
to relevant laws and revisions of programs are proceeding rapidly to
further improve energy efficiency performance in homes and expand
the introduction of renewable energy.
Spread of ZEH-compliant newly ordered unit homes
(Homes)
Government vision for homes in 2030
• New housing to have ZEH-level energy efficiency performance
• 60% of newly ordered unit homes to be equipped with solar
power generation systems
At the same time, ZEH-compliant homes account for less than
30% of order-built unit homes and only a small percentage of
ready-built unit homes. As a result, the role of home manufacturers
with an already high proportion of ZEH compliance is becoming
ever-more significant. In addition, installations of solar power gener-
ations systems and insulation materials are projected to expand in
both the remodeling and new housing markets, and demand in the
insulation materials market is expected to increase.
300,000
250,000
200,000
150,000
100,000
50,000
80.8%
79.7%
76.0%
73.3%
98.7%
98.7%
97.5%
97.4%
0
19.2%
Order-
built
1.3%
Ready-
built
2018
20.3%
Order-
built
1.3%
Ready-
built
2019
24.0%
Order-
built
2.5%
Ready-
built
2020
Non-ZEH
ZEH
26.7%
Order-
built
2.6%
Ready-
built
2021
(FY)
Source: Survey presentation materials from Sustainable open Innovation Initiative
Strengths of the Asahi Kasei Group
Housing units and customer relationships built through our “Long Life Home” concept
In addition to high levels of seismic and fire resistance, Hebel Haus™ homes have outstanding energy efficiency and
power generation performance. In recent years, we have rapidly increased the number of ZEH-compliant Hebel Haus™
homes through our own unique value-added proposals, such as utilizing our Neoma Foam™ next-generation insulation, which
maintains its superior insulation performance over the long term, and improving disaster resilience by encouraging the installa-
tion of solar power generation systems and storage batteries.
Another of our strengths is that many of the buildings we have constructed in the half-century since our founding remain
standing thanks to the durability of our buildings and maintenance support with a periodic inspection service for 60 years free
of charge. Leveraging synergies among businesses beginning from the order-built homes business, such as remodeling pro-
posals tailored to the life stages of customers, support for moving and selling, and insurance and infrastructure proposals for
approximately 290,000 housing units, we aim to pursue lifetime customer satisfaction.
Aiming to promote the spread of ZEH- and ZEH-M-compliant homes and
achieve RE100 as a leading company in environmental protection
ZEH-compliant %
(revised contract basis)
The order-built homes business promotes unique initiatives, such as Eco
ResiGrid, to increase the proportion of ZEH-M-compliant apartment buildings.
For this product, Asahi Kasei Homes leases the roofs of Hebel Maison™
buildings to install, own, maintain, and operate solar power generation sys-
tems and storage batteries. In addition, the remodeling business seeks to pro-
mote the spread of solar power generation
systems and storage batteries, and the apart-
ment rental network aims for apartment build-
ings to provide greater value by promoting the
use of clean electricity by tenants, as well as by
owners and ourselves.
While promoting the spread of homes that
protect the environment through these cross-
business efforts, through our Hebel Electric
Power business we purchase surplus electricity
from customers who have installed solar power
generation systems, allotting the purchased
electricity for use in the business operations of
the Asahi Kasei Group. Asahi Kasei Homes
expects to achieve its RE100 goal of sourcing
100% of the electricity used in its operations
from renewable energy during fiscal 2023.
ZEH-M compliant %
(order contract basis)
2025
Target
85%
70%
62%
44%
67%
81%
2022
2022
2021
2021
2025
Target
Hebel Haus™
Hebel Maison™
Electricity retail business:
Asahi Kasei
Purchase and supply of
renewable electricity
Intermediary:
Asahi Kasei Homes
Use as renewable
energy in the Asahi Kasei
Group’s operations
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
46
GG10 North American and Australian Homes
Home & Living
Providing high-quality homes suited to each region; improving efficiency and productivity through industrialization
Operating Environment
Steady demand for homes owing to population increases and substantial
opportunities created by labor shortages, long construction periods, and
sluggish adoption of industrialized housing development
Given the sizes of their economies and population growth rates, we have promoted the overseas expansion of our homes
business with a focus on North America and Australia. While housing demand has grown in recent years, the need to
rationalize construction processes and reduce costs is becoming more acute amid chronic labor shortages and rising
costs associated with increasing material prices.
U.S. Market
Australian Market
• The millennial generation represents a large portion of the
population and has reached house-buying age. As such,
residential housing demand is expected to remain firm
over the medium to long term. Arizona and Nevada, our
main operating regions, are states where an increasing
number of businesses are located and where the popula-
tion inflow from other states is particularly high.
• Although we began to see a slowdown in the market as
a whole due to sharply rising inflation and mortgage rates
in the second of fiscal 2022, newly built homes are on a
recovery track in fiscal 2023, helped in part by a shortage
of previously owned homes.
• Through a combination of natural growth and immigration, the pop-
ulation is projected to continue to increase by at least one million
over the next three years. Accordingly, Australia is expected to
enjoy steady growth in the housing industry over the medium to
long term.
• Unprecedented construction demand stemming from subsidy mea-
sures triggered by the COVID-19 pandemic has led to a sharp rise in
material and labor costs. Although the housing industry as a whole
experienced financial difficulty in fiscal 2022, with construction delays
due to adverse weather and other factors, resumed immigration is
expected to alleviate labor shortages from fiscal 2023.
Strengths of the Asahi Kasei Group
Industrialized housing development, design, and construction expertise
fostered through Hebel Haus™
With quality controlled through the use of standardized components and materials and of prefabricated modules, Japan’s
industrialized housing is established as an exceptional form of industry compared with other countries. Above all, Asahi
Kasei has developed frameworks for the efficient supply of high-quality homes, including developing Japan’s first system-
atic three-story homes. As the development, design, and
construction expertise fostered through these efforts spurs
innovation in construction industries overseas, where con-
struction periods can be nearly twice as long as those in
Japan, it helps streamline construction processes and
improve the quality of house building.
Business Strategies
Asahi Kasei improves and increases the effi-
ciency of construction processes and enhances
quality by working together with local compa-
nies with a strong understanding of the market,
rather than simply introducing Hebel Haus™ in
its Japanese format. In fiscal 2022, the over-
seas business achieved its fiscal 2025 target of
net sales of ¥200 billion ahead of schedule.
Going forward, we aim to achieve an operating
margin on par with the level of 10% or more in
our domestic business.
Net sales and operating income of
overseas business
(¥ billion)
(¥ billion)
250
200
150
100
50
0
203.4
210.0
146.3
8.6
7.5
2021
2022
11.4
2023
Target
20
16
12
8
4
0
Net sales (left scale)
Operating income (right scale)
North America Establishing a supplier model to streamline a wide range of processes in
manufacturing and on construction sites
In North America, we have acquired several companies in the homebuilding industry, most
notably Erickson Framing Operations LLC, a building component supplier that manufactures
and installs walls and roofs for wooden houses. We also acquired companies that perform
electrical, concrete, and HVAC work, as well as plumbing work. With these acquisitions, we
are working to make construction processes more efficient and enhance quality.
In fiscal 2022, we expanded our operating regions to include Las Vegas, Nevada, by
acquiring the Focus Companies, a construction work supplier. In addition to a promising outlook
for continuously steady demand for homes due to a chronic housing shortage in Nevada, we
expect to create synergies with our existing business in Arizona.
Australia Establishing a highly competitive business model in Australia that
builders or suppliers could not achieve alone
We are steadily growing our market share with a focus on NXT Building Group Pty. Ltd., a major
unit homes company, by expanding our business regions to include New South Wales, where it
was founded, and to other states through such methods as new acquisitions of builders.
In fiscal 2022, we advanced into Victoria for the first time with the acquisition of Arden
Homes, a housebuilder in that state. Accounting for approximately 30% of the unit homes
market—the largest share—Victoria is expected to enjoy a continuous demand for homes
thanks to population increases, an abundant supply of building sites, and other factors.
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Strategies by Sector
Health Care sector
Message from the
Head of the
Health Care Sector
Richard A. Packer
Executive Officer
for Health Care Business Sector
Primary Executive Officer,
Asahi Kasei Corp.
Chairman & Board Director,
ZOLL Medical Corporation
Board Director,
Veloxis Pharmaceuticals, Inc.
“
Toward a global healthcare company with diverse growth drivers
The Health Care sector is diversified, operating in fields ranging from critical
care to pharmaceuticals and bioprocess. Four core operating companies,
ZOLL Medical, Asahi Kasei Pharma, Veloxis Pharmaceuticals, and Asahi Kasei
Medical, each aims to grow while pursuing the mission of “Improve and save
patients’ lives.” The leaders of the core operating companies and I work
closely together through the Healthcare Business Unit Meetings, where we
discuss management issues, strategies, and prioritizing resource allocation
from the perspective of the entire sector, in order to achieve medium- to long-
term expansion as the growth driver of the Asahi Kasei Group.
Fiscal 2022 presented us with various challenges. There were macro fac-
tors such as raw material supply constraints and a slowdown in the U.S. bio-
tech industry, along with challenges in managing our sales force and
responding to fluctuating customer demands. As a result, net sales and oper-
ating income fell short of our targets.
In fiscal 2023, we have the opportunity to take a big step forward, over-
coming the challenges of the previous year, particularly in critical care, and
achieving a significant recovery in the Health Care sector as a whole. We are
all focused on doing the work necessary, and making the hard decisions
needed, in order to realize further growth.
Pursue High Growth and Improved Profitability by
Leveraging Strengths of Each Business
Our MTP goal is ¥590 billion in revenue and ¥60 billion in operating income for
fiscal 2024, and in the long term, we aim to ensure an operating margin over
20%. This is an ambitious target which sets our agenda of expansion and
growth while improving profitability, and we will develop strategies in each of
our businesses to move us toward this goal.
By leveraging ZOLL’s recent acquisitions of Respicardia and Itamar
Medical, we will create new growth engines in critical care. We will maximize
our opportunities by generating synergies between these companies and
LifeVest™ in providing diagnostic and therapeutic solutions for sleep-disor-
dered breathing related to cardiology. In addition, with TherOx™, which pro-
vides supersaturated oxygen therapy for acute myocardial infarction, we are
working to create new markets with new solutions. We are accumulating data
through clinical trials, promoting the therapeutic effects, and raising awareness
among clinicians.
In pharmaceuticals, we aim to build a global specialty pharmaceutical
business utilizing the foundations of Asahi Kasei Pharma and Veloxis.
Combining the best knowledge of each organization in business development
and clinical development, we will maximize our growth potential in core dis-
ease areas such as immunology and transplantation, and further expand our
Acute Critical Care
• LifeVest™ wearable defibrillator
• Defibrillators for professional use
• Automated external defibrillators (AEDs)
• Ventilators
• Thermogard System™ temperature management
system
• Supersaturated oxygen therapy
• Implantable neurostimulator devices for central
sleep apnea
• Home-based testing and diagnostic solutions for
sleep apnea
Japa
n
2
1
.
8
%
Health Care Sector
FY2022 Net Sales
¥496.9 billion
O
v
e
r
s
e
a
s
7
8.2%
Pharmaceuticals
• Teribone™ and Reclast™
• Kevzara™ rheumatoid arthritis drug
osteoporosis drugs
• Plaquenil™ immunomodulator
• Recomodulin™ anticoagulant
• 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
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
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Message from the Head of the Health Care Sector
FY2021
FY2022
FY2024 target
(announced in Apr. 2023)
business scale. We will build globally while maintaining our strength in local
geographies.
KPIs
Another critical aspect of our medium-term strategy is to establish a bio-
process business that offers a unique value proposition to the biopharmaceu-
tical industry. By combining our products and services including CRO and
CDMO, we can make significant contributions especially in terms of improving
the safety and efficiency of pharmaceutical manufacturing. As we anticipate
the recovery of the U.S. biotech industry, we will position ourselves intelligently
to ensure product and service supply capability that enables us to move
swiftly ahead when the market rebounds. We will continue to pursue growth in
areas where we have strengths.
In implementing these strategies, we must prioritize investments and con-
centrate our resources on the businesses that will lead to growth which is sus-
tainable over the long-term. With regard to DX, Asahi Kasei Pharma’s digital
marketing has received high acclaim, winning the Grand Prize in the Nikkei
BtoB Marketing Awards, for example. The embrace of DX across all of our
businesses will allow us to increase productivity while improving our ability to
anticipate changing markets.
New Structure to Realize Further Innovation
Looking beyond the immediate horizon, our vision extends to becoming a truly
global healthcare company. As a step in this direction, in 2023 we established
our headquarters for the sector in the U.S. By locating the headquarters in the
world’s largest healthcare market and the forefront of innovation, we can
accelerate our growth through swift business development in anticipation of
industry trends. Furthermore, from fiscal 2023, the Health Care sector is being
led by a non-Japanese executive based in the U.S. This is a unique structure
within Asahi Kasei and speaks to our commitment to change and grow as a
Group. We continue to actively seek opportunities to address global issues in
the healthcare industry and contribute to making a difference in the lives of
patients worldwide, helping them in their pursuit of a healthier and more
fulfilling life.
Net sales (¥ billion)
Operating income (¥ billion)
Operating margin
EBITDA (¥ billion)
EBITDA margin
ROIC*
415.9
52.2
12.5%
101.7
24.5%
6.2%
496.9
41.9
8.4%
106.4
21.4%
4.2%
590.0
60.0
10.2%
126.0
21.4%
6.0%
Note: Shaded rows are management KPIs in the Health Care sector
EBITDA, EBITDA margin
(¥ billion)
120
90
60
30
0
Acute Critical
Care
Pharmaceuticals
& Medical Care
106.4
111.5
21.421.4
20.920.9
(%)
40
30
20
10
0
2019
2020
2021
2022
2023
Forecast
(announced in May 2023)
(FY)
EBITDA (left scale)
EBITDA margin (right scale)
* ROIC = operating income (1 − tax rate) / (fixed assets + working capital, etc.)
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49
GG10 Critical Care
Health Care
Contributing to health by pursuing further growth in the field of serious cardiopulmonary diseases
and saving as many lives as possible
Operating Environment
Substantial market potential in the field of cardiopulmonary disease
Business Strategies
Heart disease is the leading cause of death in the U.S. and many other developed countries. There are increasing
needs for critical care devices such as defibrillators to treat sudden cardiac arrest, as well as equipment for
diagnosing and treating cardiopulmonary disease. Defibrillators include those implanted in the body and those
that are used externally. External defibrillators include those used by healthcare institutions, automated external
defibrillators (AEDs) placed in public facilities, and wearable defibrillators that are worn at all times by individuals
at elevated risk of sudden 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 lives.
Additionally, in the field of cardiopulmonary diseases, as society ages and medical technology becomes more
sophisticated, there is a growing potential market for products and services that respond to unmet medical needs in
clinical settings.
Strengths of the Asahi Kasei Group
A unique product lineup and strong network with medical institutions
Our subsidiary ZOLL Medical Corporation is a global medical device manufacturer specializing in medical devices
and solutions for critical care, including cardiopulmonary resuscitation, and cardiopulmonary diseases. Since joining
the Asahi Kasei Group, ZOLL has continued to grow its existing operations while acquiring new technologies and
businesses through M&A, and its sales have risen approximately four-fold with a CAGR of 13% from 2012 to 2022.
One of ZOLL’s strengths is its unique product
lineup, which includes the LifeVest™ wearable defibril-
lator. The potential market for wearable defibrillators is
estimated at $3 billion in the U.S. alone, and a solid
position has been built for LifeVest™ as a bellwether
for developing new markets. LifeVest™ has been worn
by more than 1 million people around the world and
has saved thousands of lives. Another strength is a
strong network with hospitals with a rich lineup of
products for medical professionals, including defibrilla-
tors for medical institutions.
ZOLL’s growth trajectory (sales)
($ million)
2,500
2,000
1,500
1,000
500
0
19.2%
10-year CAGR
Increased demand
for ventilators due to
COVID-19
13%
2012
2014
2016
2018
2020
2022
(FY)
Business development and product portfolio expansion in
cardiopulmonary diseases and related acute care fields
Patient services
While we aim to continue increasing market penetration of LifeVest™
and establishing it as a standard treatment, ZOLL has also expanded into new fields. In fiscal 2021,
through the acquisitions of Respicardia and Itamar Medical, it acquired groundbreaking devices for
the diagnosis and treatment of sleep apnea, which often occurs in patients with heart disease. Each
has a potential market worth billions of dollars, and we will aim to achieve solid results by realizing
synergies with existing businesses and accelerating entry into the sleep apnea market while develop-
ing and expanding these two companies.
Healthcare infrastructure
As a market leader in critical care products such as defibrillators for
healthcare professionals and AEDs for public facilities, we will continue to invest in technological
innovation and product and service development. In addition to diversifying our product portfolio, we
aim to expand by steadily capturing global market growth outside the U.S.
Patient services business
• Global potential market of
over $10 billion
• Current market penetration of
less than 10%
• Business growth rate in mid-teens
• 70–80% gross profit margin
Healthcare infrastructure business
• Global market potential of
over $5 billion
• Leading positions in multiple
product categories
• Business growth in high
single digit range
• 50–60% gross profit margin
LifeVest™ wearable defibrillator
Arrhythmia management system
Heart failure management system
At-home testing solution for sleep apnea
Implantable neurostimulator device for central sleep apnea
Ventilators
Defibrillators for professional use
Automated external defibrillators (AEDs)
Automated CPR device
Acute myocardial infarction
treatment system
Thermogard System™ temperature
management system
Software solutions
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
50
GG10 Global Specialty Pharma
Health Care
Accelerating our transformation 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 pharmaceuticals business
The global pharmaceutical market is expected to grow to the scale of $1.6 trillion by 2025, with a compound annual growth
rate (CAGR) 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 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 coordinate with other parties. Accordingly, our acqui-
sition of a business platform in the U.S. market is expected to facilitate the further growth of our pharmaceuticals business.
Asahi Kasei focuses on 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 transplants are
performed each year, and this number is projected
to increase.
U.S. Kidney Failure and Kidney Transplant Market
Approx. 500,000
dialysis patients
Treatments for
end-stage renal failure
Approx. 200,000 kidney
transplant patients
(over 25,000 new transplants
every year)
Dialysis
Kidney
transplant
Hemodialysis
Peritoneal
dialysis
Living
donor kidney
transplant
Deceased
donor kidney
transplant
1 Source: Global Medicine Spending and Usage Trends Outlook to
Source: National Kidney Foundation
2025, IQVIA Holdings, Inc.
Immunosuppressant administered
for life following transplant to
prevent rejection
Strengths of the Asahi Kasei Group
Veloxis immunosuppressant Envarsus XRTM steadily expanding market share
We supply Envarsus XR™, an immunosuppressive drug for kidney transplant patients, through our subsidiary Veloxis
Pharmaceuticals, Inc. 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, which allows the drug to be effective with a single daily dose. Another advantage is that our
small group of highly skilled medical representatives (MRs) has acquired sales channels with spe-
cialists at major U.S. hospitals in the fields of immunology and transplantation. 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 for this product
with a fiscal 2022 share of more than 15% of tacrolimus applications and at least 30% of new
kidney transplant patients. Sales volume growth slowed temporarily due to restrictions on MR
activities during the COVID-19 pandemic, but has been steadily rising since fiscal 2022.
Business Strategies
Aiming for sales of ¥200 billion in the pharmaceuticals business,
specializing in diseases related to immunology and transplantation
We will continue to pursue higher sales of Envarsus XR™, positioning this drug as a growth driver for the
pharmaceuticals business on a global scale. We also aim to grow as a Global Specialty Pharma business
by focusing on pharmaceuticals for large hospitals, with priority areas of immunology and transplantation,
and related disease areas such as infectious diseases, renal diseases, and specialty areas. In addition, by
deepening the collaboration between Asahi Kasei Pharma and Veloxis, we will further strengthen clinical
development and business development functions 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 strengthen-
ing our clinical and business development functions in the
U.S., the world’s largest pharmaceutical market and the
forefront of pharmaceutical innovation.
Pharmaceuticals sales growth targets
200.0
150.0
150.0
93.3
(¥ billion)
200
150
100
At the same time, in the Japanese market, we plan
to grow sales of existing pharmaceuticals while actively
expanding our pipeline through in-licensing. For the phar-
maceuticals business as a whole, we are targeting sales
of ¥150 billion in 2025 and ¥200 billion in 2030.
50
0
2021
2025
2030
(FY)
Targets
Region
Core Treatment Areas
Products
Global Specialty Pharma Targets
Asahi Kasei Pharma
Orthopedics
• Teribone™
• Reclast™
Japan
Critical care/hos-
pital based
• Recomodulin™
Immunology
• Kevzara™
• Bredinin™
• Plaquenil™
Veloxis Pharmaceuticals
U.S.
Transplantation
• Envarsus XR™
• VEL-101 (former FR104)
1
2
Disease areas adjacent to
immunology/transplantation,
specialty focused
Hospital based
(large number of beds)
Infection
Immunology/
transplantation
Renal
diseases
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51
GG10 Bioprocess
Health Care
Evolving into a premium partner that contributes to biologics safety and manufacturing efficiency
for pharmaceutical companies
Operating Environment
Expansion of bioprocess-related markets with rapid growth of
biopharmaceutical market
The emergence of more diverse and sophisticated drug discovery technologies is driving biopharma-
ceutical market growth in areas such as genetic recombination and cell culture drug development,
and the market is expected to see a CAGR of 8% from 2022 to 2030. Furthermore, there is a shift to
next-generation treatments such as cell therapy, gene therapy, and medium molecular weight drugs,
and the bioprocess-related market continues to expand.
In these areas, the market for virus removal filters, which are used to reduce the risk of virus con-
tamination during the pharmaceutical manufacturing process, a high rate of growth is expected to
continue. 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. For pharmaceutical companies, the presence of filter man-
ufacturers that offer a broad product lineup and high product quality will become even more impor-
tant going forward.
Strengths of the Asahi Kasei Group
Firm position staked out by our Planova™ virus removal filter
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 a major global market share for this product. Our technology, which separates viruses
with a high level of precision based on the size of membrane pores, has earned a strong reputation in
the manufacturing process of biopharmaceuticals and plasma derivatives, and has expanded its
market share. Moreover, we are able to offer technical support
backed by scientific insight, the ability to make product propos-
als that accommodate customer needs, and the ability to pro-
vide stable product supply. This has enabled us to gain the trust
of, and build a strong network among, pharmaceutical compa-
nies and key opinion leaders in the industry.
* According to research by Asahi Kasei
Business Strategies
Continuing to expand business by leveraging the customer base and brand
Investing in development and capacity expansion for Planova™
In fiscal 2022, we launched Planova™ S20N, a new product that aims to improve the operational efficiency of
pharmaceutical processes in addition to its excellent filtration flow rate and superior virus removal properties.
Additionally, to meet growing demand, we are currently constructing a new Planova™ assembly plant in
Nobeoka City, Miyazaki Prefecture, scheduled for completion in fiscal 2023. The new plant will be a “smart fac-
tory” that fully utilizes automation and digital technology to significantly improve quality and production efficiency.
Expanding into the CRO and CDMO businesses
Bionova Scientific LLC, a U.S. company acquired in May 2022, is a biopharmaceutical CDMO (contract devel-
opment and manufacturing organization) that provides contract manufacturing process development and con-
tract manufacturing services to pharmaceutical companies. Its strength lies in its extensive track record with
complex next-generation antibody drugs, which are particularly difficult to manufacture. Bionova continually
receives more inquiries from drug discovery startups located in its home state of California and other parts of
the West Coast. Such inquiries tend to begin with small-scale R&D projects which major CDMO companies
are unsuited to handle. To meet forecasted demand growth, we have decided to quadruple Bionova’s phar-
maceutical manufacturing capacity.
Virus removal filters
Purification filters
Fluid management
Synergies of
Synergies of
customer base,
customer base,
brand, etc.
brand, etc.
Biosafety
testing
services (CRO)
Synergies of
Synergies of
customer base,
customer base,
brand, etc.
brand, etc.
CDMO
Advanced therapy medical products
(gene therapy, cell therapy, regenerative
medicine, next-generation vaccines, etc.)
Biopharmaceuticals
Plasma derivatives
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Strengthening Our
Foundation for Growth
53 New Business Creation
57 Green Transformation
61 Disclosure Based on the TCFD Recommendations
64 Digital Transformation
68 Transformation of HR
74 Health and Productivity Management
76 Maximum Use of Intangible Assets
Asahi Kasei Report 2023
52
Name
Dong Xiaolin
Company
Asahi Kasei (China)
Country/region
China
04 53
New Business Creation
New Business Creation Overview
The Asahi Kasei Group primarily adopts three approaches—in-house R&D, investment in startups and
To strengthen the business platform underpinning these approaches to new business creation, we are
other promising companies, and collaboration/M&A—to the creation of new businesses. We take steps
focusing on green (G), digital (D), and people (P)—GDP—transformation and the full utilization of
including eliciting and advancing research subjects, corporate venture capital (CVC) activities, and
intangible assets.
strengthening the implementation of M&A in order to promote and accelerate each of these approaches.
Businesses
Technologies underpinning
businesses
Measures
Business platform
Life Innovation
Environmental
Solutions
Material
Homes
Health Care
Homes
Acute Critical
Care
Mobility &
Industrial
Construction
Materials
Pharmaceuticals &
Medical Care
Businesses in three sectors
Fruitful trees
In-house R&D
P.54
Investment in startups and other promising companies
P.55
Collaboration/M&A
P.56
Planting seeds
Nurturing saplings
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)
CVC activities
• More than 50 investments and two acquisitions
• Building a system for speedy decision-making
• Strengthening ties with startups (including
recruitment of local employees)
Strengthening
of the imple-
mentation 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
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54
In-House R&D
Corporate R&D Mission
Based on the degree of novelty of the field of business and the market growth potential, R&D at the Asahi
Initiatives to Accelerate Commercialization
We use a stage-gate system for R&D project management and appropriate resource allocation. We refine
Kasei Group, is divided into group-wide corporate R&D on medium- to long-term subjects and R&D
business models, business strategies, and patent strategies by clarifying requirements at each stage of
focused on specific subjects for the enhancement of each existing businesses. The mission of Corporate
exploration, research, development, business development, and preparation for commercialization, while
Research and Development is to continually generate new value that leads to new business creation at
specifying the stage-based positioning of each project. In addition, as part of our R&D and commercializa-
the technological frontier of the Asahi Kasei Group, fulfilling the following three roles.
tion efforts aimed at the three elements of speed, asset-light, and high value-added, we pursue business
development with technology value in order to quickly and effectively maximize the value the intangible
assets (intellectual intangible assets such as technology, know-how, and processes) of the Asahi Kasei
Group and leverage them for business contribution. This initiative is a new co-creation strategy approach
that aims to build a profit model different from the traditional product sales business and monetize proj-
ects at the development stage.
Aiming for World-Changing Innovations
Guided by its slogan “Let’s create innovations that change the world,” Corporate Research & Development
is working to build mechanisms and foster a corporate culture that encourages the spontaneous growth
of highly specialized human resources. Specifically, we are implementing a variety of bottom-up measures,
such as a system by which up to 20% of work assignments are decided at the individual’s discretion (20%
rule), a poster presentation event aimed at providing opportunities for free and lively communication to
create new businesses and core technologies (idea fest), and a registration system for those wishing to
experience work at a startup or work on secondment outside the company for a limited time (cross-
border learning). By effectively combining these with top-down measures, we aim to foster a culture that
encourages growth and constantly taking on challenges, both as an organization and as individuals.
Mission of Corporate Research and Development
Evolution and acquisition of
core technologies
Evolving core technologies, acquiring and cultivating external technolo-
gies to develop highly differentiated and superior products and services
New value creation
Creating new value with a future-oriented perspective that captures
potential customer and social needs
Deepening and evolution of
platform technology functions
Deepening and evolving platform technology functions that support the
Asahi Kasei Group
Areas of Strategic Priority
In three strategic areas—carbon neutrality (decarbonization and use of hydrogen, energy storage and
conservation), the circular economy (resource recycling), and health care—and we are prioritizing resource
allocation on R&D subjects that contribute to the realization of a sustainable society. The main sustainability-
related subjects are green hydrogen production, CO2 separation and recovery, CO2 chemistry, polyamide
66 using biomass-derived intermediate, and the development of polyamide recycling technology.
Strengthening Platform Technology Functions (Active Use of DX and Open Innovation)
In advancing R&D, we actively utilize digital technology and open innovation, aiming both to accelerate
R&D and raise added value. Specifically, with regard to DX, we utilize materials informatics, IP landscap-
ing, and digital platforms to raise the efficiency of R&D, while actively formulating technology strategies
and anticipating market trends.
In open innovation, we aim to deepen our core technologies and acquire new technologies through
future-oriented backcasting. To that end, we are engaged in multifaceted activities such as joint research
with leading universities and research institutes both in Japan and overseas, collaboration with startups,
and co-creation with new partners using external platforms.
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55
Investment in Startups and Other Promising Companies
Corporate Venture Capital (CVC) Activities
The Asahi Kasei Group established a CVC Office in 2008 to pursue new business creation. Since 2011,
from bases in the U.S., we have taken measures to evolve our business portfolio by acquiring
cutting-edge technologies and businesses through investment and collaboration with startup companies.
also pursuing CVC activities as an option to be involved from the development stage. Collaborating with
startup companies at the development stage allows us to deepen our understanding of new markets and
technologies, and to gain corporate knowledge on the appropriate timing of decisions to proceed to the
next step. Additionally, investing in startup companies enables us to secure future potential acquisition
Currently, in addition to Silicon Valley and Boston in the U.S., we have expanded the scope of our global
candidates and build up a pipeline for new business creation.
CVC
Japan, and other countries in various fields among the Asahi Kasei Group’s three business sectors. We
activities by adding bases in Germany in 2019, China in 2020, and Japan in 2023. At each base,
dispatched personnel and local employees select investment targets according to the regional
characteristics of each startup, with further dedicated personnel in Japan to enhance internal
collaboration.
Business
unit
Organizational
management functions
Local Investment Committee (2016)
Acquired entity
Managers who understand
business development and
investment functions
Technology managers
CVC General Manager
Professional human resources
(business managers)
Hiring
Investment professionals
Dispatch of business
development personnel
Business
development functions
Exploration and
investment functions
Human resources
(dispatched personnel) who
are familiar with the
in-house business and have
internal networks
Human resources who are
investment specialists with
local networks
Hiring
Local human resource pool
Investment professionals
Return to promote
innovation with
insight on CVC
activities
CVC functions
In the U.S., where the “outside-in” approach of incorporating other companies’ technology and
business is widespread among major corporations, different players handle the three stages of research,
development, and business. At the research stage, research institutions such as universities develop tech-
nologies, and at the development stage, startup companies develop products from those technologies
and verify business models. At the business stage, major corporations acquire promising targets from
To advance these activities, Corporate Venture Capital seeks out startup companies that are compati-
ble with the Asahi Kasei Group, disseminates information to related departments, conducts investment-
related operations, and supports investee companies to promote commercialization. We operate a system
that enables speedy decision-making and investment-related procedures suited to local business cus-
toms. We have allocated $90 million for investment over the three years through fiscal 2024, and the
investment committee is given discretion to make decisions regarding investments up to $5 million per
company. To date, we have invested in more than 50 startup companies in the U.S., Europe, China,
have played a role in creating new innovations, including the acquisition of two companies, Crystal IS, Inc.,
and Senseair AB.
In April 2023, we established a “Care for Earth” investment framework as a new initiative to achieve
carbon neutrality. Over the five-year period through fiscal 2027, we have allocated $100 million globally to
invest in startup companies working to solve environmental issues in areas such as hydrogen, batteries,
carbon management, and biochemicals. In addition to direct investment, we will also engage in indirect
Original CVC investment framework
Newly CVC investment framework
Care for People
Care for Earth
Scope
DX, Health Care sector, Homes sector
Objectives
Aiming to create new businesses, partnerships,
and acquisitions based on corporate and divi-
sion strategies
Parallel
Effort
Time frame
Aiming for commercialization within 5 years
Scope
Areas related to decarbonization centered on
hydrogen, carbon management, biochemicals,
and batteries
Objectives
(1) Reduction of GHG emissions for Asahi Kasei
and society
(2) Creation of new businesses related to
decarbonization
(3) Participation in sustainable ecosystem
Time frame
Aiming for commercialization within 5–10 years
among a large number of startups and deploy their businesses. In addition to undertaking all three stages
CVC investment categories
ourselves through in-house development and conducting the final business stage through M&A, we are
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56
investment through venture capital (VC) firms, which specialize in the management of funds collected from
investment framework dedicated to this area, we aim not only to create new businesses but also to
investors. By utilizing a portion of our investment budget to include external professionals and expand
reduce our own GHG emissions and the GHG emissions of society. Additionally, through participation in
access to deal sources (sources of information on investment projects), we can also obtain information
the ecosystem of carbon neutrality, this investment framework also serves as a starting point for portfolio
regarding regulations. Aiming toward carbon neutrality in 2050, the “Care for Earth” framework has differ-
transformation in the Material sector.
ent time frames and different decision criteria compared to conventional investments. By allocating an
Collaboration/M&A
M&A Target Fields
Since acquiring ZOLL Medical Corporation in 2012, the Asahi Kasei Group has actively pursued business
Post-Merger Integration
From the initial M&A consideration stage, we conduct due diligence in anticipation of the following three
expansion through full-fledged M&A. In our current MTP, we are promoting M&A to accelerate growth and
points with a view to post-merger integration (PMI).
achieve results, mainly in the growth fields of GG10. In the Health Care sector, we have positioned M&A
as a means of strategic growth in the critical care and bioprocess fields, and are expanding existing busi-
nesses and entering new fields. In the Homes sector, we have positioned the overseas housing business
• Post-acquisition governance (management structure, approval authority at acquired company)
• Post-acquisition operational framework (method for providing services to customers)
as a new pillar of earnings and are conducting M&A in the U.S. and Australia. Regarding our future M&A
• Acquisition scenario to accomplish envisioned operations
trajectory, we will continue to use it as a means of strategic growth in the Health Care sector, while in the
Material sector, we will position it as an important means of expanding our business in future mainstay
By incorporating the results into a concrete PMI plan, we are able to implement PMI that maximizes
fields such as Digital Solutions.
post-M&A synergistic effects.
M&A Selection Criteria
Criteria we emphasize when selecting candidates for M&A include compatibility with our growth strate-
gies. With limited management resources in terms of both finances and human resources, we are concen-
trating on M&A in GG10 and other growth areas. Based on our experience with several successful cases
of M&A, we have positioned the following four points as keys to success, and conduct thorough checks
when selecting companies to invest in, and this has given us a solid track record.
• Strong business foundation and clear business strategy
• Management that runs operations with full command over the business
• Management that understands and accepts Asahi Kasei Group philosophy, management policies,
and business operations
• Trust cultivated through business activities prior to acquisition
In addition, to maximize synergistic effects, we appoint a suitable person responsible for PMI imple-
mentation, and thoroughly monitor the status of synergy creation both quantitatively and qualitatively.
Approach to Future M&A
We regularly review previous M&A cases and accumulate knowledge in the form of an M&A Management
Book, including cases of failure, which is used to educate personnel involved in M&A projects. In addition,
by reporting reviews of M&A to the Board of Directors, the Management Council, and business unit lead-
ers, we receive diverse opinions and take steps to increase the probability of successful M&A, thereby
contributing to inorganic growth going forward.
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Green Transformation (GX)
57
Overview of GX for Realizing Two Mutually Reinforcing Aspects of Sustainability
Guided by its Group Mission and Group Vision, the Asahi Kasei Group seeks to improve corporate value
business level through discus-
through optimal business portfolio management. Specifically, this entails achieving sustainable growth of
sions focused on the environ-
Board of Directors
corporate value by contributing to a sustainable society from the perspective of life and living for people
ment by the heads of
around the world, having these two aspects of sustainability be mutually reinforcing rather than advancing
businesses. The Sustainability
independently. To this end, we are promoting GX as a priority theme under our MTP focused on the theme
Committee reports the results of
(Management Council)
President
Oversight and advice
Reports
“Be a Trailblazer.”
its discussions to the Board of
Asahi Kasei understands that issues in relation to climate change have a particularly significant impact
Directors, receiving advice from it
on entire social systems. We are therefore promoting initiatives aimed at creating a carbon-neutral society
as appropriate.
by 2050 while transforming our business portfolio and improving productivity. At the same time, we are
We are also working on a
steadily reducing our GHG emissions (Scope 1 and Scope 2) and proactively working to reduce GHG
specific scenario for achieving our
emissions throughout our supply chain, including Scope 3.
GHG emission reduction targets
The Board of Directors deliberates and decides on matters of the highest priority, such as sustainabil-
through the Carbon Neutrality
Administrative
departments
Strategic Business Units,
Core Operating
Companies
Coordination
Policy, shared
measures
Sustainability Committee
Global Environment Committee
Risk Management &
Compliance Committee
Carbon Neutrality Project
ity policy and targets for reducing GHG emissions, and the Management Council does so on individual
Project and creating new businesses focused on realizing carbon neutrality in strategic business units and
measures and other efforts.
core operating companies to accelerate our contribution to reducing society’s GHG emissions.
The Sustainability Committee, chaired by the President, communicates these decisions to the
heads of sectors and other bodies to ensure promotion on a group-wide basis. In addition, the Global
Environment Committee, a subcommittee of the Sustainability Committee, facilitates promotion at the
Blue enclosures indicate Asahi Kasei’s major areas of contribution
• Biomass utilization
technology
• Resource-saving
• Energy-saving processes
• Recycling technology
• Improved recovery rate
(changes in consumer behavior)
Renewable energy
(solar, wind,
hydroelectric power)
• Storage batteries
• Alkaline water electrolysis system
Household electricity
consumption
Industrial electricity
consumption
Electric vehicles
Green
fuel
Green
methanol
Biomass-
derived raw
materials
Basic
feedstocks
Recycling
Separation
Reduce
Recycle
H2
CO2
Chemical products
(manufacturing)
• Material recycling
• Chemical recycling
• CO2 separation / recovery
• CO2 chemistry
• Greater durability
• Biodegradable technology
(research subsidy)
• Elucidating mechanism of microplastic formation
Outflow
Recovery
Consumers
(use)
Reuse
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Reducing GHG Emissions from Business Activities
Asahi Kasei is reducing GHG emissions in its business activities to address climate risks. Under the MTP,
we are working on reductions primarily through our established technologies, positioning the period up to
Activities for Achieving Carbon Neutrality
Achieving carbon neutrality by 2050 is a major challenge for the Asahi Kasei Group. We recognize that
2030 as a first step in the road map to achieve carbon neutrality by 2050. In fiscal 2023, we are working
fundamental technological innovation, business model change, and other large-scale endeavors, as well
on reducing GHG emissions using two approaches: group-wide activities to achieve carbon neutrality, and
as steady energy-saving activities and continued efforts to reduce GHG emissions, are integral to achiev-
activities by individual product, such as calculating the carbon footprint of products (CFP).
ing carbon neutrality.
Progress Toward Achieving Our Targets
For Scope 1 (direct GHG emissions) and Scope 2 (indirect GHG emissions from the use of electricity, heat,
In fiscal 2023, we are continuing to identify every possible reduction measure, examining specific
measures and reduction scenarios from a variety of perspectives, such as the low-carbonization and
decarbonization of energy, and improved efficiency and innovation of production processes. We are also
and steam supplied by other companies), we have adopted targets to reduce GHG emissions by 30% or
considering structural transformation of petrochemical chain-related businesses that takes into account
more by 2030 compared with fiscal 2013 and achieve carbon neutrality (net-zero emissions) by 2050.
investments and costs for achieving carbon neutrality going forward.
In fiscal 2021, our GHG emissions were 21% lower than in fiscal 2013, and in fiscal 2022 they were
28% lower owing to measures including the low-carbonization of energy. We established a Carbon
Neutrality Project in fiscal 2022 to strengthen initiatives for reducing group-wide GHG emissions. Under
Investment framework for CVC focused on the environment
The Asahi Kasei Group performs corporate venture capital (CVC) activity to acquire innovative technolo-
the guidance of the responsible Executive Officer, the project examines specific emission reduction mea-
gies and create new businesses. In April 2023 we established a “Care for Earth” investment framework
sures and scenarios for achieving the 2030 and 2050 targets. The project will continue to examine mea-
with up to $100 million allocated over the five-year period to fiscal 2027 targeting early-stage startups
sures and scenarios and proactively promote initiatives to achieve the targets.
working to solve issues in the field of the environment.
Systematizing calculations of the carbon footprint of products
Asahi Kasei works to calculate CFP as an approach to address customer needs and achieve carbon neu-
trality. With more than half of the business units in the Material sector already conducting calculations, our
efforts to calculate CFP are proceeding steadily. In fiscal 2023, we will promote further calculations using a
newly developed group-standard CFP calculation system, which we also plan to use in considering GHG
emission reduction measures.
Targets and results
GHG emissions (Scopes 1 and 2)
(Million tons CO2 equivalent)
2021–2030 1st Step
2031–2050 2nd Step
Reduction centered on
established technologies
Reduction centered on
new technologies
–21%
–28%
–30% or more
5.11
4.03
3.68
<3.58
2013
Base Year
2021
Result
2022
Result
2030
Target
Note: Preliminary figures shown for fiscal 2022; subject to revision as a result of third-party verification.
Carbon
neutral
0
2050
Goal
(FY)
6
5
4
3
2
1
0
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Contributing to Reductions in Society’s GHG Emissions
The Asahi Kasei Group believes that its diverse technologies and businesses have the potential to contrib-
ute to reduced GHG emissions in society. Viewing this potential as a business opportunity, we focus on
developing products that contribute to GHG emission reductions throughout the value chain. Designating
Examples of Environmental Contribution Products
Process for manufacturing dimethyl carbonate using CO2 as feedstock
Demand for dimethyl carbonate (DMC) is increasing sharply as a feedstock for polycarbonate and as a
products certified internally for their contribution to improving the environment or reducing the impact on
component of lithium-ion battery (LIB) electrolyte. Asahi Kasei licenses technology for a process to manu-
the environment across the entire life cycle of the product or service as Environmental Contribution
facture DMC using CO2 for half of the feedstock. This not only utilizes CO2 that would be released into the
Products
, we have established targets and work to balance business growth with environmental con-
atmosphere from other plants, it further reduce CO2 emissions by also being an energy-saving process.
tribution. Meanwhile, most GG10 businesses will create business opportunities through both climate
change adaptation and mitigation. We have therefore decided to focus our allocation of resources on
GG10, including investment of approximately ¥600 billion over the three-year period from fiscal 2022 to
fiscal 2024.
CO2
Ethylene
EO
Progress Toward Achieving Our Targets
Regarding Environmental Contribution Products which we internally certify, we have fiscal 2030 targets of
at least doubling the volume of their contributions to GHG emission reduction from the fiscal 2020 level,
and increasing the proportion of their sales relative to our total net sales excluding the Health Care sector.
A total of 23 products have been certified as Environmental Contribution Products as of fiscal 2023,
Ethylene
manufacturers
Ethylene oxide (EO)
manufacturers
Ethylene carbonate (EC)
and DMC manufacturers
EC
DMC
Electrolyte recipe
and their contribution to reduced GHG emissions rose to 1.2 times the fiscal 2020 level, and their sales
LIB
License
Asahi Kasei
process technology
CO2
Lithium salt
Additive
were 32% of the total. In certifying Environmental Contribution Products, we confirm the rationality by
receiving advice from outside experts on the method of calculating environmental contribution and on the
suitability of our approach.
Targets and results
GHG reduction by Environmental Contribution Products
Sales proportion of Environmental
Contribution Products
200 or more
100
117
120
(Index)
200
100
0
(%)
FY2021
33%
FY2022
32%
FY2030 Target
2020
Base Year
2021
Result
2022
Result
2030
Target
Note: Percentage of total net sales excluding the
Health Care sector
EV
manufacturers
LIB
manufacturers
Electrolyte
Electrolyte solution
manufacturers
UVC LEDs
UVC LEDs are small devices that sterilize water, air, and surfaces by emitting ultraviolet (UV) light that
deactivates viruses and bacteria. UVC LEDs have been incorporated into a wide range of products,
including water purification systems, medical devices, and air purifiers.
Unlike mercury lamps (UV lamps) which have been used in UV disinfection, UVC LEDs contribute to
energy-saving as they emit the necessary light as soon as they are switched
on. Another advantage of UVC LEDs is that they do not use mercury, which
is an environmentally harmful substance.
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Building a Circular Economy
The Asahi Kasei Group regards transitioning to a circular economy as a priority for creating a sustainable
chain. In September 2022, in partnership with FamilyMart Co., Ltd., ITOCHU Corporation, and ITOCHU
society from perspectives including sustainable use of finite resources, reduction of GHG emissions, and
Plastics Inc., we conducted a demonstration trial of a service utilizing a bin for collecting post-use plastic
mitigation of the impact on the global environment and ecosystem caused by product disposal.
bottles at a FamilyMart store in Tokyo. The service allowed consumers using a smartphone app to track
Accordingly, we develop technology and promote businesses in relation to recycling used plastics,
the process of plastic bottles from collection to final recycled material. Going forward, we will make use of
using biomass materials, extending the service life of products, enhancing recyclability, and other environ-
the platform to promote further resource recycling of plastics.
mental benefits.
Working to Achieve the Practical Application of Biomass Feedstock
The Asahi Kasei Group is developing technology to create basic feedstocks, such as ethylene and propyl-
ene, from bioethanol. Creating multiple basic feedstocks at a similar rate to when a traditional petrochemi-
cal feedstock (naphtha) is used, this technology enables the use of existing petrochemical complexes and
manufacturing processes while reducing GHG emissions in the manufacturing process. Although there are
General consumers
• Recording of collection activities
• Viewing of personal collection
records
• Plastic bottle recycling info after
collection
App
Blockchain
many issues to be addressed before it can be commercialized, we are focusing efforts on developing this
technology in light of its potential to make sustainable, through the use of biomass-based feedstocks, a
variety of chemical products in people’s daily lives.
In fiscal 2022, we obtained ISCC PLUS certification—a global system operated by International
Sustainability and Carbon Certification (ISCC) to certify sustainable products—for several products as part
of our efforts to promote the expansion of products using biomass feedstocks. ISCC PLUS is a certifica-
tion system that tracks and ensures that biomass-based and renewable feedstocks and products are
sustainable and deforestation-free in supply chains. Under this system, a third-party institution verifies and
certifies that biomass and recycled feedstocks are managed properly using the mass balance approach1
across the supply chain, including product manufacturing.
1 A control method attributing biomass-based feedstock characteristics to a portion of the production volume of a product according to the ratio
of such feedstock introduced when blending biomass-based feedstocks and petrochemical-based feedstocks to manufacture a product.
Recycle into
Recycle into
new products
new products
Collection
Recyclers
FamilyMart stores
Collection
service providers
Incoming and
Incoming and
outgoing info,
outgoing info,
other blockchain
other blockchain
records
records
Features
• Secure traceability
• Encourage changes in consumer behavior
Biodiversity
Recycling plastic as a resource
With the aim of achieving practical implementation at an early stage, PS Japan Corporation, an Asahi
Kasei Group company, has entered the final planning phase to verify the chemical recycling of post-use
polystyrene back to styrene monomer by thermal decomposition.
At the same time, Asahi Kasei has promoted the development of recycling technology for post-use
The Asahi Kasei Group maintains a policy of mitigating its impact on biodiversity in its business activities
and endeavoring to make sustainable use of natural resources.
In April 2022, we joined the 30by30 Alliance for Biodiversity, a coalition established by government
agencies including the Ministry of the Environment, companies, non-profit organizations, and other
bodies, to preserve biodiversity. As part of these efforts, we are advancing preparations to apply for the
polyethylene in cooperation with parties involved in the supply chain—including consumer goods manu-
Asahi Woods of Life, where we have conducted activities and research aimed at preserving biodiversity
facturers, molded parts manufacturers, and recycling operators—and universities. However, society-wide
since 2007, to be recognized as an OECM2 area.
efforts, including by consumers, are crucial to ensuring that post-use plastics are utilized as a resource
instead of discarded. To this end, the Asahi Kasei Group is developing a platform visualizing the resource
loop of recycled plastics to promote consumer understanding and change behavior by displaying the ratio
of recycled content in recycled plastic products and to visualize the companies involved in the recycling
2 Abbreviation for “other effective area-based conservative measures” applicable to
areas, other than protected areas such as national parks, that contribute to the
preservation of biodiversity.
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Disclosure Based on the TCFD1 Recommendations
61
Awareness of Climate Change
The Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report, published in March
2023, stated that the world will not achieve the Paris Agreement target of limiting temperature rises to
Strategy
Basis of analysis
We examined the impact on our current businesses and the new opportunities leading up to 2050 based
1.5ºC compared with pre-industrial revolution levels during the 21st century, even if every country meets
on a +1.5ºC scenario in which CO2 emissions have been significantly curbed in order to rein in tempera-
its GHG emission reduction targets. In addition, the G7 Ministers’ Meeting on Climate, Energy and
ture rises (WEO, Net Zero Emissions by 2050 Scenario (NZE)2) and a +4ºC scenario in which global warm-
Environment, held in April 2023, emphasized the steadfast commitment of G7 countries to taking immedi-
ing countermeasures have not adequately progressed (IPCC, SSP3-7.03).
ate, short-term, and medium-term actions over the coming critical decade. As the sense of urgency
Note: Our analysis is based on a variety of assumptions. Changes to these assumptions may result in actual risks and opportunities differing
regarding continuous global warming increases throughout the world, the Asahi Kasei Group recognizes that
significantly from the analysis.
government policies and initiatives for adapting to and mitigating global warming are accelerating.
Our Stance
Over the century since its founding, the Asahi Kasei Group has tackled social issues that change with the
times, promoting its business activities while continuously transforming itself. In a major transitional period,
when climate change is an issue for the entire social system, we conduct initiatives for achieving a carbon
neutral society by 2050 while transforming our business portfolio and raising productivity through our
MTP
. We are also steadily reducing our own GHG emissions (Scope 1 and Scope 2) and working to
reduce GHG emissions throughout our supply chain, including Scope 3.
Corporate Governance
The Asahi Kasei Group works to achieve Green Transformation (GX), which is regarded as an important
management task and positioned as one of the core themes of management strategy (please see page 57
for a diagram and details on GX).
Opportunities
The Asahi Kasei Group transforms its business portfolio with a view to the transition to a carbon neutral
society and other megatrends. Specifically, our MTP established “10 Growth Gears” (GG10) that are
growth-driving businesses in which we will focus investments. Over the three years of the plan, we will
target investments in GG10 of approximately ¥600 billion. The plan also set targets of at least doubling the
volume of GHG emission reduction contributions from Environmental Contribution Products
(products
and services that contribute to a reduction in GHG emissions in society) by 2030 compared with fiscal
2020 while increasing their sales ratio. We believe that the direction of our business promotion can provide
various products and services as business opportunities for mitigating and adapting to climate change.
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 World Energy Outlook (WEO) 2022, prepared by the International Energy Agency (IEA). NZE is a scenario for achiev-
ing global net-zero emissions by 2050 in order to limit temperature rises to 1.5ºC by 2100.
3 A scenario outlined in the IPCC Sixth Assessment Report. The Shared Socio-economic Pathway (SSP) 3-7.0 assumes a scenario whereby
measures to address climate change are not adopted and temperatures rise 4ºC in 2100 under development marked by regional rivalries.
Megatrends
Fields for provision of value
GG10 Businesses
Relationship with
climate change scenarios
4ºC
1.5ºC
Operating Income of GG10 (¥ billion)
400
Decarbonized society
Environment & Energy
Digital society
Society of healthy longevity
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 2022
Although not as strong as the above, expected to be broadly related
GG10
202.6
Approx. 35%
Over 70%
Investment of
Investment of
approx. ¥600600 billion
billion
approx. ¥
(based on fiscal 2022–2024
investment decisions)
Other
businesses
2021
result
Around
2030
(FY)
Note: Proportion of business income from GG10, excluding corporate
expenses and eliminations
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62
Opportunities
Important Changes
Main Opportunities
Major Initiatives
• Promotion of the spread of ZEH1 and ZEH-M1 through
• Decarbonization of homes and urban environments through the expansion of ZEH-compliant Hebel Haus™
Transition to a carbon neutral
society
government policies
• Expansion of demand for renewable energy
• Increase in need for energy saving
• Expansion in demand for carbon-free products
and Hebel Maison™
• Transition to carbon neutral energy • Energy saving and process innovation • Expanded use of biomass-based raw materials
• Chemicals made with CO2 as material • Expansion of Environmental Contribution Products
• Promotion of carbon neutrality and improvement of product competitiveness through measurement of carbon footprints2
+1.5ºC scenario
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 system to manufacture green hydrogen and promotion of its commercialization
Transition to a circular economy
• 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 • Provision of long-life homes
Expansion of the digital market
• Growth in demand for decarbonization-related digital solutions
• Promotion of electronic components, such as current sensors and CO2 sensors, and semiconductor- and substrate-related
(industry and society)
electronic materials businesses
Serious storm and flood damage
• Increase in need for disaster-resilient housing
• Greater emphasis on resilience in home construction and urban development, such as expansion of Hebel Haus™
and Hebel Maison™
+4ºC scenario
Rise in temperature
• Increase in need for insulation performance
• Provision of insulation material and homes with superior insulation performance
Increase in heatstroke and infec-
tious diseases
• Expansion in demand for existing and new pharmaceuticals
and acute critical care products
• Provision of related pharmaceuticals and medical devices
Risks
Under the +1.5ºC scenario, in addition to tightened regulations through carbon pricing and other govern-
Under the +4ºC scenario, we primarily anticipate physical risks, such as intense heat, heavy rain,
and flooding. In particular, we perceive damage to production sites caused by the effects of increasingly
ment policies primarily aimed at achieving decarbonization, we anticipate a shift in demand to materials
severe storms and floods and the resultant cost of such damage to be a risk for our major sites in
suitable for decarbonization as a risk. We also anticipate market structure changes resulting from an
Japan and overseas.
acceleration in the transition to a circular economy and the emergence of innovative technologies
While the degree of these risks varies, we are advancing risk mitigation initiatives based on the view
designed to create a decarbonized society as risks.
that all may manifest as the climate changes going forward.
Risks
Important Changes
Main Risks
Major Initiatives
+1.5ºC scenario
Transition to a carbon neutral
society
Changes in market structure
• Rise in costs due to stricter regulations (manufacturing and
raw material costs)
Estimate: Current GHG emissions (Scope 1 and Scope 2)
× Carbon costs = Increase of approx. ¥55 billion per year3
• 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
• Expanded use of biomass raw materials
• Acceleration of product decarbonization by ascertaining carbon footprint
• Revision of management resource allocation (including business portfolio transformation)
• Development of material and chemical recycling technologies and promotion of their practical application
• Adoption of biomass feedstock
• Revision of management resource allocation (including business portfolio transformation)
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.)
+4ºC scenario
Rise in temperature
“Human” production risks
• Deterioration of working environment and productivity at
construction sites
• Promotion of heatstroke countermeasures at construction sites
• Promotion of industrialization and utilization of IT in housing construction
1 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
2 GHG emissions of a product from material extraction to production
3 In fiscal 2022, the Group’s GHG emissions (Scope 1 and Scope 2) came to 3.68 million t-CO2e (preliminary figure). Referencing the 2030 CO2 price level and other criteria in WEO2022’s NZE scenario, we expect a rise in costs of approximately ¥55 billion per year in the case of carbon costs of
¥15,000 per ton of CO2 emissions.
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63
Risk Management
The Asahi Kasei Group prioritizes the management of climate change risks, which it positions as one of its
Material Group Risks.
The Asahi Kasei Group implements independently assured tracking of its GHG emissions on an
annual basis. The Sustainability Committee and its subcommittee, the Global Environment Committee,
share information on the tracking results and the level of progress toward achieving targets, and discuss
and verify future initiatives.
The committees also verify initiatives and other efforts for reducing GHG emissions during the formu-
lation and annual review of the MTP, linking the results to business strategies and measures. In addition,
the committees monitor related matters on a quarterly and monthly basis.
For capital expenditures, we assess profitability and make decisions in light of internal carbon pricing.
In July 2023, we raised our internal carbon price per ton of CO2 emissions from ¥10,000 to ¥15,000 in
order to promote further action for achieving carbon neutrality.
Metrics and Targets
The Asahi Kasei Group has positioned the following metrics as being relevant to climate change risks and
opportunities.
Target
Significance of Metric
GHG emissions*
GHG emissions*/
operating income
2030: Reduce by 30% or more (compared with fiscal 2013)
2050: Achieve carbon neutrality
(Fiscal 2022 result: 2,900 t-CO2e/100 million yen)
ROIC
Around 2030: Achieve ROIC of 10% or more
(Fiscal 2022: 4.0%)
Operating income of
GG10
Around 2030: 70% or more of total operating income
(Fiscal 2021: 35%)
Decline signifies reduction of
carbon tax risk
Increase indicates progress toward
becoming high earnings enterprise
capable of adapting to change
Signifies growth of related busi-
nesses capable of contributing to
addressing climate change
Others
Internal carbon pricing (ICP)
Make investment decisions based on ¥15,000/t-CO2e and utilize in
awards program
Reflection of climate change issues in
executive remuneration
Reflect the level of achievement of sustainability promotion, including
initiatives related to climate change, in performance-linked remuneration
Global greenhouse gas emissions by segment (ESG data)
* 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 Asahi Kasei Group’s Response to Climate Change
Various climate change scenarios
From curtailing temperature rises through government policies and social changes to intense heat,
flood damage, and ecosystem destruction 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.
Asahi Kasei Group initiatives
Reduction of Asahi Kasei’s emissions
(Scope 1 and Scope 2)
Reduction of society’s emissions
(Scope 3)
Business portfolio transformation
Physical risks
Business continuity plan initiatives
• Damage to supply chain
due to flooding and other
adverse weather events, etc.
etc.
Opportunities
Climate change mitigation
and adaptation
• Hydrogen business
• CO2 separation, recovery,
and utilization
• EV-related business
• ZEH and resilient homes
• Digital-related products
and services
• Healthcare business, etc.
Control
Proactive
advancement
Promotion of new MTP focused on the theme “Be a Trailblazer”
KPIs
GHG emissions, GHG emissions/operating income, ROIC, GG10 operating income
Progress management
Quarterly meetings, rolling review of MTP, monthly monitoring,
Global Environment Committee
For more details, please see “Disclosure based on TCFD Recommendations.”
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Digital Transformation
Asahi Kasei DX Vision 2030
Co-creating “healthy living” and “a future world full of smiles” through borderless connections enhanced by digital innovation
64
In accordance with the Asahi Kasei DX Vision 2030, we promote digital transformation (DX) of all
aspects of business activities, including development, manufacturing, and marketing.
Digital technology is merely a means to an end; I believe that people, data, and organiza-
tional culture are the three factors that hold the key to achieving transformation. In fiscal 2023,
the second year of our Digital Creation Period, we will sharpen our focus on these three factors
for success to accelerate transformation. In addition, we will aim to create an even stronger
company-wide business platform by fully utilizing intangible assets spanning our three sectors to
create new businesses and strengthen existing ones.
With transformation extending beyond the Asahi Kasei Group to include the supply chain,
competitors, and other entities, we continuously promote initiatives with a focus on collaboration
with external parties. Moreover, we offer digital education support for students, who will lead the
future of industry, and community members.
We look forward to further transcending organizational, corporate, and national boundaries
to co-create value with our partners using digital technology.
Kazushi Kuse
Director, Primary Executive Officer, Oversight for Digital Transformation (DX)
Senior General Manager, Digital Value Co-Creation
Toward Achieving the Asahi Kasei DX Vision 2030
The Asahi Kasei Group proactively promotes the utilization of digital technology as a means of leveraging its
Strengthening the DX Framework
We have worked continuously to strengthen our framework to accelerate the promotion of DX across the
diverse intangible assets to transform business models and drive value creation. In promoting the utilization
Asahi Kasei Group as a whole. In April 2021, we consolidated DX promotion and IT-related organizations
of digital technology, we formulated a digital transformation road map. Designating the period beginning in
in R&D, production, and manufacturing to establish Digital Value Co-Creation. In April 2022, we over-
fiscal 2022 as the Digital Creation Period—which followed the Digital Introduction Period and the Digital
hauled DX promotion organizations in sales and marketing and for cultivating digital human resources on a
Deployment Period—we are currently advancing initiatives to realize management innovation through DX in
company-wide basis, enhancing management, and achieving business transformation. We are imple-
accordance with this road map. We will then to transition to the Digital Normal Period, in which all employ-
menting company-wide activities matched to the operational challenges faced in our business sectors. In
ees utilize digital technology as a matter of course. The company’s initiatives to date have received a strong
addition, we established an independent organization for cultivating digital human resources in January
reception. Asahi Kasei has been selected as a DX Stock for three consecutive years—2021, 2022, and
2023. This organization is accelerating initiatives designed to reinforce digital foundations, such as manag-
2023—a selection that the Ministry of Economy, Trade and Industry (METI) makes jointly with Tokyo Stock
ing the curriculum for cultivating human resources, including the plan to train all employees as digital
Exchange, Inc. and the Information-technology Promotion Agency, Japan (IPA). Our DX initiatives were also
human resources and the DX Open Badge program.
featured in the 2023 Monozukuri White Paper, which is produced jointly
by the METI, the Ministry of Health, Labour and Welfare, and the Ministry
of Education, Culture, Sports, Science and Technology.
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65
Digital Creation Period
In our Digital Creation Period which began in fiscal 2022, we aim to realize
management innovation through DX based on three pillars: reinforcing digital
foundations, enhancing management, and achieving business transformation.
On the basis of our reinforced digital foundations, we will enhance manage-
ment and achieve business transformation as we enter the phase for reaping
the benefits of our efforts from fiscal 2023.
We established “DX-Challenge 10-10-10” as KPIs targeting fiscal 2024,
and we are making good progress on each indicator. In terms of specific ini-
tiatives, we aim to achieve a tenfold rise in the number of digital professional
human resources compared with fiscal 2021 (approximately 2,500 employees
worldwide), a tenfold increase in the volume of digital data usage compared
with fiscal 2021, and an increase in the profit contribution through high prior-
ity projects of ¥10 billion (cumulative total over three years up to fiscal 2024),
in addition to profit contribution through the utilization of DX in normal activi-
ties. As of March 31, 2023, the number of digital professional human
resources stood at 1,206 employees, the volume of digital data usage had
increased 2.6 times, and profit contribution amounted to ¥2.8 billion.
Digital Transformation Road Map
Fiscal 2024 KPI: DX-Challenge 10-10-10
Digital professional
human resources
10 times
Approximately 2,500
employees worldwide to be
digital professional human
resources
(tenfold increase compared with
fiscal 2021)
2,500
Volume of digital
data usage
10 times
Tenfold increase in digital data
usage throughout the
Asahi Kasei Group
(compared with fiscal 2021)
Profit contribution through
high priority projects
¥10 billion
In addition to normal activities, contribution
to profit increase of ¥10 billion through high
priority projects*
* Three-year total, including strength-
ening of existing businesses, new
businesses, and enhancement of
management platform
2021
2022
2023
2024
(FY)
2021
2022
2023
2024
(FY)
2022
2023
2024
(FY)
Note: • Total DX-related investment of approximately ¥30 billion planned (IT investments and cloud usage fees for digital transformation)
• Graphs are for illustrative purposes only.
FY2016
FY2018
FY2020
FY2022
FY2024
Digital Introduction Period
Digital Deployment Period
Digital Creation Period
Digital Normal Period
Foundations of functional DX
• Materials informatics, production technology
innovation, IP landscaping, etc.
About 400 projects
Acceleration of group-wide
DX promotion
• Formulation of the Asahi Kasei DX
Vision 2030
• Digital Value Co-Creation, co-creation
laboratories, etc.
Management innovation through DX
40,000 digital human resources
01 Reinforcing Digital Foundations
02 Enhancing Management
03 Achieving Business Transformation
All employees gain a mindset of
digital utilization
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01 Reinforcing Digital Foundations
We will reinforce digital foundations, such as accelerating the cultivation and recruitment of digital human
resources, instilling agile development, and promoting data utilization in preparation for the Digital Normal
Period, when all Group employees will use digital technology as a matter of course.
Accelerating the Cultivation and Recruitment of Digital Human Resources
Cultivation of all employees as digital-utilizing personnel
In fiscal 2021, we launched the Asahi Kasei DX Open Badge program, which comprises five levels (Level
Cultivating digital professional human resources on the front lines
We are accelerating the cultivation and recruitment of digital professional human resources capable of uti-
lizing advanced digital technology and data to address issues and create models with business applica-
tions. In addition to materials informatics personnel in the R&D domain and personnel utilizing data (power
users) in production and manufacturing domains, we have recognized employees who have completed
Level 4 and 5 of the newly established Asahi Kasei DX Open Badge program as digital professional human
resources. We will further promote their individual growth to bring their number to 2,500 by the end of fiscal
1 to Level 5), as a measure to train and develop 40,000 personnel as digital human resources. On com-
2024. In the business sectors, we are seeing the emergence of communities centered on experienced digi-
pleting each level, employees are issued a blockchain-managed digital badge, which they can use in their
tal professionals, which is leading to further development of personnel and already generating solutions to
email signatures and on social media. As of March 31, 2023, a total of 16,000 employees of the Asahi
many frontline issues and delivering results for initiatives aimed at improving business process value.
Kasei Group in Japan have acquired the Level 3 badge verifying that they understand the importance of
and can utilize digital technology and data. We are also building frameworks conducive to a culture of digi-
tal transformation throughout the Group, awarding the Asahi Kasei DX Open Badge Level 3 “9 Mastered”
Instilling Agile Development
We implement Asahi Kasei Garage, a method of approaching and a program for supporting the spurring of
badge to employees who complete all nine courses in Level 3, and holding events for dialogue between
innovation and the achievement of digital transformation. As a combination of design thinking, which incor-
corporate officers and “9 Mastered” badge holders.
porates new user experiences from a customer perspective, and agile development, which forms concepts
Overseas, more than 4,000 employees have acquired Level 1 and 2 badges, the courses for which
by using digital technology to quickly implement various ideas, the program promotes activities creating
are available in several languages. We are also accelerating the development of external activities, such as
new value and services through co-creation on the subjects of enhancing management and spurring busi-
providing instruction of the Asahi Kasei DX Open Badge program at a senior high school in Miyazaki
ness model innovation, based on products and expertise across Asahi Kasei’s diverse business domains.
Prefecture, as we continue to promote next-generation digital education activities transcending organiza-
tional, corporate, and national boundaries.
Level 1
Knowledge
Novice level
Level 2
Skill
Intermediate
level
Level 3
Experienced
Target for all
employees
Level 4
Expert
True digital
professional
Level 5
Thought Leader
Transformation
driver
Targeting 40,000 digital human resources
Promoting Data Utilization
We established the data exploration and exchange pipeline (DEEP), a data management platform for
employees to easily search, link, and utilize the Asahi Kasei Group’s shared data assets. The platform was
fully launched in April 2022. DEEP reduces the lead time required to utilize data, increases efficiency, and
raises productivity by visualizing internal data. It will also enhance data governance and foster a data utili-
zation culture within the Asahi Kasei Group. We are already advancing efforts that include consolidating
the sales data of automotive-related businesses, visualizing the carbon footprint of our products, and pro-
viding data to customers through initiatives using DEEP. In addition, we are establishing a digital platform
(DPF) that can continuously consolidate and utilize information gained through R&D activities as data.
Going forward, we will coordinate DEEP and the DPF to promote further data utilization. With the increas-
ing implementation of information sharing on examples of data utilization on the front lines and of internal
community activities, we are gradually fostering a culture to underpin the Digital Normal Period.
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02 Enhancing Management
03 Achieving Business Transformation
Asahi Kasei will increase the speed of management decision-making and improve development efficiency
Business innovation through DX, such as business model innovation and new business creation, will con-
in various ways, such as pursuing data-based management, visualizing the carbon footprint of products
tribute to the growth of businesses, including GG10, which are positioned as the drivers of future growth
(CFP) to realize sustainability management, transforming R&D, and converting to smart factories.
in the MTP.
DX Case Studies
DX Case Studies
Promoting the Development of a CFP Calculation System
Asahi Kasei is promoting the development of a CFP calculation system for visualizing CO2 emis-
Cross-Industry Resource Recycling Project: Launching Demonstration Trials
of Plastic Recycling
sions to achieve carbon neutrality by 2050. As a first step, we are calculating the CFP of each
We are advancing a project using blockchain technology to develop a platform to manage and
mainstay product in the Material sector. We also began providing information to a portion of our
visualize the resource loop of recycled plastics. The project is developing an open digital platform
customers to realize decarbonization in the supply chain. In fiscal 2023, we will develop a
for use not only by a wide variety of companies involved in the recycling chain, but also by con-
company-wide standard CFP calculation system, using the information gained through the
sumers to realize a circular economy. Demonstration trials were launched in fiscal 2022 to verify
visualization of emissions as the basis for formulating strategies.
Optimization
(minimization)
Regional
revitalization,
community
contribution
Prediction
Visualization
changes in consumer attitude and behavior with a view to practical application of the platform. In
fiscal 2023, the number of corporate partners has increased and verification is continuing through
comprehensive demonstration trials ranging from the collection of plastic bottles to the manufac-
turer of the final product.
Asahi Kasei will continue to promote further recycling of plastics by confirming the value of
traceability using digital platforms through a series of initiatives.
Use
Disposal
Creating a culture
of recycling
Final
product
Collection
Recycling certification
CO2 emissions reduction &
strategy formulation
Visualization
strategy revision
Molding
Pelletization
Sorting
Achieved with
digital platform
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Transformation of HR
Developing platforms that support
the autonomous growth of employees
and facilitate contributions from a
diverse range of individuals
Satoshi Nishikawa
Lead Executive Officer
Executive Officer for Human Resources,
Deputy Oversight for Health & Productivity Management
68
all employees and executives as a guideline for our
human resources, to ensure that they relish taking
on challenges. I am convinced that these elements
can further refine and fully leverage our intangible
assets, such as our Group Values of sincerity, chal-
lenge, and creativity, and our diversity and open and
dynamic corporate culture, all of which we have culti-
vated over a century. We must reawaken the A-Spirit
and promote the cultivation of human resources who
boldly embrace change and continuously take on
challenges and enhance our organizational strength if
we are to further advance transformation. To this
end, the MTP promotes human resource strategies
focused on lifelong growth and co-creativity to culti-
vate individuals and enhance organizational strength.
Lifelong growth is that which all employees
autonomously envision their own careers and con-
tinuously learn, take on challenges, and achieve
growth. The ability of leaders to draw out individual
In the period between its founding in 1922 and the celebration of its centennial in 2022, the Asahi Kasei
and team capabilities to their fullest extent is vital to achieving such lifelong growth, and to that end we are
Group has grown continuously while transforming its business portfolio. Realizing the two mutually rein-
focusing on measures to enhance management capabilities. Co-creativity entails leveraging the diversity
forcing aspects of sustainability of “contributing to sustainable society” and “the sustainable growth of
of the Asahi Kasei Group to promote collaboration. We believe that we can create unique value by organi-
corporate value” will require us to promote further transformation.
cally connecting our diverse technologies, businesses, and human resources. Based on this belief, we will
To support such transformation, Asahi Kasei set up a human resource strategy project headed by the
examine and promote measures from the two perspectives of expanding and connecting diversity.
President in fiscal 2021, and began formulating human resource strategies linked to the MTP in fiscal
Asahi Kasei has adopted three KPIs pertaining to human resources. The first is the number of Group
2022. Our Executive Officer with Oversight of General Affairs and Human Resources serves as a Board
Masters. Group Masters are human resources who play a proactive role in creating new businesses and
Director to ensure that such strategies are constantly in alignment with management and business strate-
strengthening existing ones through highly specialized industry-leading skills. As cultivating advanced spe-
gies. In addition, monthly meetings with the President and regular meetings with the heads of business
cialists in a diverse range of businesses helps advance both lifelong growth and co-creativity, we are focus-
units are held, which I attend in my capacity as Executive Officer for Human Resources. We are pursuing
ing efforts on the cultivation of Group Masters. The second is the Asahi Kasei Group’s original growth
both shared company-wide measures and measures by business unit to enable us to address a wide vari-
behavior index. We use this index, which indicates the extent to which employees are pursuing efforts to
ety of issues unique to each business while incorporating matters of management, including our business
portfolio transformation, into those relating to human resources.
enable growth and take on challenges, for its suitability in gaining an overview of the state of lifelong growth.
The third index is the proportion of women working as managers and Group Masters, particularly in leader-
In the MTP, we adopted the term “A-Spirit”—derived from the first letter of Asahi Kasei—to express
ship positions. We have adopted a target of 10% for the whole Asahi Kasei Group by fiscal 2030, as a KPI
the attitude we expect from employees. With a strong emphasis on its four elements of ambitious motiva-
to measure the active participation of our diverse human resources. We aim to create value by enabling not
tion, a healthy sense of urgency, quick decisions, and a spirit of advancement, we are instilling A-Spirit in
only women but a diverse array of human resources to actively participate and realize co-creativity.
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69
Overview of Measures Based on Human Resource Strategies
The Asahi Kasei Group promotes measures enhancing both lifelong growth and co-creativity based on its
system that centrally manages information on employees, which line managers have begun utilizing as a
human resource strategies to cultivate human resources who contribute to value creation. Regarding life-
tool to improve their organizations.
long growth, we pursue a number of initiatives—such as operating an open position posting system and
With respect to co-creativity, Asahi Kasei operates the Group Masters program to cultivate human
providing various career guidance programs—to encourage employees to take on challenges in new
resources with a variety of specialized skills, and implements measures to promote the active participation
environments and develop their careers autonomously. In fiscal 2022, we introduced Co-Learning
of women to expand diversity. At the same time, we are developing an environment enabling diverse
Adventure Place (CLAP), an online learning platform, to support employees taking on challenges of their
workstyles tailored to work duties and individual circumstances by allowing for remote work from home or
own accord and reskilling in response to business portfolio transformation. CLAP supports upskilling for
satellite offices. We are also bolstering our recruitment of richly experienced mid-career human resources
all employees—of all ages—through a system allowing them to study from a library of more than 10,000
to ensure that we maintain the talent necessary to strengthen our businesses and transform our business
internal and external items. Particularly in regard to senior personnel, to whom the concept of lifelong
portfolio. In fiscal 2022, 328 mid-career recruits and 267 new graduates joined Asahi Kasei, with the
growth also applies, we support taking on challenges and achieving growth even beyond the age of 60,
former accounting for more than half of all new recruits. Moreover, we promote to executive positions
and accordingly in fiscal 2023 extended the option of retirement through age 65. As we also emphasize
those who have joined the Asahi Kasei Group through overseas M&A activities. In terms of connecting
the enhancement of management capabilities, we have put in place a foundation for line managers to
diversity, we transfer human resources across business sectors to combine and integrate knowledge. In
work on improving their own organizations by visualizing the vitality and growth behavior of workplaces
addition, we are working to build our own system to accurately identify the human resources that the
through KSA surveys, a measure we developed to improve engagement. Meanwhile, we are taking steps
Asahi Kasei Group needs. In this way, we are promoting efforts enabling human resources with knowledge
to facilitate the lifelong growth of management executives, such as advancing initiatives for managers to
of various technologies and businesses to interact with each other.
enhance their own management capabilities by assigning coaches, and arranging for selected next-
The Asahi Kasei Group’s business sectors are wide-ranging. Mindful of this, we promote human
generation leader candidates to participate in special development programs. In fiscal 2022, we pro-
resource measures headed by business leaders to ensure that such measures are aligned with issues
moted efforts to visualize our human resources by introducing Career Management Place (CaMP), a
faced by each business. In particular, Homes takes many measures unique to the sector incorporating
Outline of Human Resource Strategies
Main company-wide measures
Measures by business unit
Lifelong
growth
Autonomous career development and
realization of growth
Improvement of management capabilities to
draw out the strengths of individuals and teams
• Autonomous learning platform “CLAP”
• Promoting active participation of senior personnel, extension of
retirement age
• Open position posting system
• Employee work engagement survey (KSA)
• Nurturing and obtaining management executives
• Strengthening next-generation leader development
• Executive remuneration linked to Human Resource KPIs
Expanding diversity
Diverse expertise, individuality, and workstyles
Connecting diversity
Combination and integration of knowledge
Co-creativity
• Nurturing professional human resources as “Group Masters”
• Promoting active participation of women
• Strengthening mid-career recruitment
• Flexible workstyles not bound by time and place
• Obtaining human resources through M&A
• Personnel transfers across business sectors
• Active recruitment of outstanding overseas human resources
• Employee (expert) recommendation system
• Visualization of human resources “CaMP”
• Maximum utilization of IP
With business leaders taking
ownership of human resource
measures, each business
enacts its own measures in
alignment with company-
wide policies
Examples
• Career development programs
matched to changes in the
operating environment of the
Material sector
• Human resource system con-
struction and operation unique
to the Homes sector
industry-standard approaches.
Further transformation will be indispens-
able to improving the Asahi Kasei Group’s
corporate value. A wide range of measures
are being applied to accelerate this transfor-
mation. High-priority measures among them
are introduced on the following pages.
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Measures to Strengthen Lifelong Growth
KSA: Measure to Enhance Engagement
KSA, an engagement survey assessing employee empowerment and growth, is an initiative that effectively
CLAP: Measure to Support Reskilling
Co-Learning Adventure Place (CLAP), the Asahi Kasei Group’s own learning platform, is a system that
runs a plan-do-check-act (PDCA) cycle by visualizing the state of individuals and organizations to encour-
freely allows employees to learn using materials needed to improve their own specialist skills or career
age employee work engagement and behavior conducive to taking on challenges and achieving growth.
development from a library of more than 10,000 internal and external e-learning items. Using this system,
Asahi Kasei conducts KSA surveys on an annual basis and shares each organization’s results with line
each organization support employees in learning essential skills and reskilling in response to operating envi-
managers. Based on these results, each organization takes the lead in working to address issues. While
ronment changes and business portfolio transformation. In the period between its introduction in December
gauging three indicators—supervisor–subordinate relationships and workplace environments; employee
2022 and March 31, 2023, 15,500 out of 19,000 eligible employees used CLAP, equivalent to 81%. With
empowerment; and a growth behavior index—KSA surveys focus on the growth behavior index as a KPI.
12,300 users completing one or
The score for this KPI is steadily rising, having stood at 3.65 in fiscal 2020 when we launched this initia-
more of the e-learning items, a sig-
tive, and 3.71 in fiscal 2022, and we will continue to increase it further (on a five-point scale from 1 to 5).
nificant number of employees are
Items Gauged through KSA Engagement Surveys
Supervisor–subordinate relation-
ships, workplace environments
• Support from supervisors
• Interpersonal relationships
supporting work
• Encouragement of ingenuity
• Respect for diversity
• Workplace openness (psychological safety)
Employee empowerment
Growth behavior index
developing activities that allow
• Ability to maintain a positive stance
(individual capabilities)
- Confidence, feeling of self-efficacy
- Strength to overcome adversity
• Experience-based learning
• Contributions to organization
• Problem-solving/
improvement efforts
- Capacity for plotting course toward achieving goals
• Job crafting
- Optimism
• Motivation toward work (work engagement)
employees to learn from in-house
specialists or connect with each
other through learning, in addition to
enabling continuous learning by
employees to develop their own
careers and learn autonomously.
engaging in autonomous learning.
Through CLAP, we incorporate
the concept of learning together,
Not a Lesson. An Adventure. Welcome to CLAP.
Co-Learning Adventure Place
The name is inspired by the idea of taking enjoyment in learning together as if going on an adventure.
CLAP offers an extensive library of learning items and ways to connect with a variety of colleagues.
The real joy of adventure is learning about an unknown world.
But what you discover after that is up to you.
Find your own ways to learn and connect with others.
Step outside your comfort zone when your curiosity is excited, even just a little bit.
Don’t worry if it doesn’t work out—having the courage to try is what matters.
Praise others if you think they’re having a great adventure.
Reach out and make a connection to those you aspire to emulate.
Asahi Kasei has many amazing people you haven’t met.
CLAP belongs to you. Success depends on enjoying it.
The CLAP Concept
Comments from Employees Who Utilized the KSA Survey
“ I reviewed the order of work priorities to reduce total labor hours. As a result, each employee’s work-
“ I addressed issues raised at discussion meetings with supervisors. First, we raised the headcount on
load decreased and overtime hours were clearly reduced. ”
three shifts and increased personnel with mid-career hires to alleviate the burden on each worker.
Second, we are devolving some authority to supervisors, a position that line workers can aspire to, as
part of the effort to foster a culture in which employees proactively aim to advance their careers. ”
“ Reflecting input from organization members, we reclassified business unit meeting participants from
general manager or above to assistant manager or above. We created opportunities for young employ-
ees to make presentations at the meeting every two months, which we plan to use to increase their
“ The survey helped unite our department, deepening our understanding of our own organization and
sense of participation and improve their skills. ”
inspiring us to maintain our current positive workplace culture. ”
Comment from an Employee Using CLAP
“ The Osaka Sales Department of Asahi Kasei Construction Materials began activities
using CLAP in June 2023. Members recommend to one another the videos they like
from the CLAP video menu. Using Microsoft Teams, we take turns every Monday to
recommend videos, and those who watched them then give their feedback. We
hope this activity will lead to autonomous learning as well as learning together. ”
Makoto Kai
Osaka Sales Department
Asahi Kasei Construction Materials
123Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
71
Energizing Senior Personnel in Response to Extending the Retirement Age
In fiscal 2023, Asahi Kasei raised the retirement age in Japan from 60 to 65 to support the lifelong growth
Cultivating Managers to Enhance Management Capabilities
Asahi Kasei is working to improve training programs targeting general managers, who hold the key to
of employees. Analyzing afresh the framework of expectations for what they will, can, and must achieve,
organizational management. The program comprises a variety of elements, including group training and
we match employees reaching the age of 60 to work assignments in accordance with analysis results to
e-learning on management as well as 360-degree feedback evaluating their behavior from multiple per-
further draw out the capabilities of senior personnel who still seek to refine their specialist skills and con-
spectives, a one-on-one course to improve their skills for communicating on an individual basis with sub-
tinuously take on new challenges matched to a changing environment. Asahi Kasei expects that assigning
ordinates, and a course for using KSA surveys. In addition, we began incorporating an individual coaching
senior personnel to environments where they can tackle their work enthusiastically and demonstrate their
program in fiscal 2020, which approximately 200 out of 680 applicable personnel had completed as of
full capabilities will enhance their job satisfaction while stimulating younger employees.
February 2023.
Using the Open Position Posting System to Realize Autonomous
Career Development
We are also focusing efforts on cultivating and recruiting management executives. To this end, we
have introduced coaching with the aim of facilitating the growth next-generation leader candidates and
operate programs to improve leadership and teamwork. Selected from among General Managers and
In fiscal 2003, the Asahi Kasei Group adopted an open position posting system, through which dozens of
Senior General Managers, certain candidates each year are promoted to the position of Group Executives1
human resources each year transfer of their own accord to different departments to take on challenges in
through the program. As of April 2023, there were 36 Group Executives and 76 candidates to become
new environments. The number of personnel transferring to other departments through the open position
Group Executives. We will continue aiming to secure candidates and further raise the quality of human
posting system has been trending upward in recent years, at 53 in fiscal 2021 and 67 in fiscal 2022. We
resources.
will continue striving to improve the system—which supports employees in developing their careers auton-
omously to realize lifelong growth—in various ways, such as expanding the scope of concurrent assign-
ments to allow employees to experience work in departments other than their own for set periods of time.
1 Group Executives are appointed by resolution of the Board of Directors from among Executive Officers as individuals with responsibility and
authority for improving the corporate value of the Asahi Kasei Group as a whole. Specifically, Group Executives include Lead Executive
Officers and above at Asahi Kasei Corporation and Executive Officers at equivalent positions in core operating companies.
External Recognition and Awards Related to the Asahi Kasei Group’s Human Resources
Examples of Human Resource Initiatives Included in the Ito Report
OpenWork: Workplace Review Site
The Asahi Kasei Group’s human resource strategies were included as useful examples when
In rankings compiled independently by OpenWork, a website providing
considering policies on human capital management in the Ito Report on Human Capital
employee reviews of companies, Asahi Kasei was ranked eighth for job
Management 2.0, which was published by the Ministry of Economy, Trade and Industry in May
satisfaction in fiscal 2021 and first overall in the chemical, petroleum, glass,
2022. The report highlighted our original measures for enhancing engagement (the KSA survey)
and ceramic industries in fiscal 2022.
and the Group Masters program.
Excellence Award at HRX of The Year 2022
Ranked in the Top 25 in LinkedIn Top Companies
Organized by the HR Executive Consortium to promote human resource transformation (HRX)
LinkedIn, a U.S.-based social media platform focusing on careers, extracts and
among Japanese companies, HRX of The Year recognizes companies conducting innovative ini-
independently analyzes data based on collected user profile information for its Top
tiatives in the field of human resources. In December 2022, at the inaugural awards, the Asahi
Companies list, ranking the most attractive 25 companies that promote the professional
Kasei Group’s system for cultivating digital human resources received the Excellence Award.
growth of employees. The Asahi Kasei Group was ranked 22nd in fiscal 2023 and 7th
among Japanese companies.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 72
Measures to Strengthen Co-Creativity
Cultivating Professional Human Resources through Expansion of the Group
Masters Program
Asahi Kasei needs to draw on the diverse capabilities of its human resources, including in technology,
marketing, sales, manufacturing, environmental safety, and intellectual property, to accelerate the creation
of new businesses and the reinforcement of existing ones, while cultivating and recruiting many special-
ists in various fields, which is essential for improving corporate value. The Group Masters program is a
system that allows Asahi Kasei to secure industry-leading, highly specialized human resources, cultivat-
ing and rewarding those expected to proactively take part in and contribute to such business creation
and reinforcement. Tasked with the development of the next generation, among other roles, Group
Masters help improve Asahi Kasei’s organizational strength, as well as enhancing and demonstrating their
own specialized skills. We track the number of Group Masters as a KPI. There were 90 when we revised
the program in fiscal 2016, and this has steadily increased to 294 as of fiscal 2022. Our MTP, which
began in fiscal 2022, set a target of 300 Group Masters by fiscal 2024. However, given the pace of
increase, we have raised that target to 360. In all our businesses, including the 10 Growth Gears (GG10)
we have designated as drivers of future growth, Group Masters will not only propel technological devel-
opment but also contribute to business expansion and the creation of new businesses by taking the lead
in enhancing the Asahi Kasei Group’s abundant intellectual property and co-creating human resources.
Group Master Ranks and Roles
Ranks
Roles
Executive Fellow
(Status Equivalent to Executive Officer)
Person who newly developed or consider-
ably expanded a field of technology
Principal Expert
(Status Equivalent to Managing Executive or
Senior Managing Executive)
Person who takes the lead in a field of
technology
Senior Fellow
(Status Equivalent to Managing
Executive, Senior Managing
Executive, or Executive Officer)
Person whose term as Executive
Fellow or Principal Expert expires
after retirement age but who is
expected to continue the roles
shown at right
Person ranked below Principal Expert (candidate to be Principal Expert)
Lead Expert
Person ranked below Lead Expert (candidate to be Lead Expert)
Expert
1. Actively participating in and
contributing to new business
creation and strengthening
operations by cultivating and
enhancing their skills and
abilities as a leading specialist
2. Fostering younger personnel in
the relevant areas
Actively participating in and
contributing to new business
creation and strengthening opera-
tions by cultivating and enhancing
their skills and abilities
Comments from Group Masters
“ I am determined to contribute to the growth of Global Specialty Pharma through
alliances with partners in Japan and overseas based on my specialization in phar-
maceutical licensing alliances. ”
Kazuko Yokota
Principal Expert
Business Development and Licensing Pharmaceutical R&D, Business and Strategy Division
Asahi Kasei Pharma
“ I will drive the development of innovative technologies in relation to hydrogen with
a focus on water electrolysis to contribute to the creation of a carbon- neutral society
and the sustainable improvement of corporate value. ”
Yosuke Uchino, Ph.D.
Lead Expert
Clean Energy Project and Green Solution Project, Environmental Solutions SBU
Group Masters Fields in Fiscal 2023
Business unit-specific fields
87 Group Masters
Material
Homes
Health Care
Core technologies
132 Group Masters
• Fibers and polymers (design, polymeriza-
• Compound
tion, processing, and application)
semiconductors
• Membranes and separation
• Electrochemistry (electrolysis and batteries)
• Catalysts, chemical processes, and
• Analysis and computer
simulation
• Biotechnology
inorganic synthesis
R&D
Support functions
Digital innovation
Core platforms
75 Group Masters
• Chemical processing technologies
• Polymer processing technologies
• Computer-aided engineering technologies
• Measurement, control, and
machine systems
• Design and construction
technologies
• Plant engineering
Environmental preservation
Quality assurance
Note: Fields in bold were revised in fiscal 2023
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 73
Diversity, Equity, and Inclusion
Co-creativity that capitalizes on the diversity of human resources to co-create businesses is indispensable
Promoting Co-Creation by Transferring Human Resources Across Business
Sectors and Visualizing Human Resources
to addressing dramatic changes in the operating environment and continuously creating new value.
The Asahi Kasei Group cultivates human resources with broad viewpoints and elevated perspectives by
Positioning diversity, equity, and inclusion (DE&I) as one of its management strategies, the Asahi Kasei
proactively implementing transfers across business sectors to give people experience in a diverse range of
Group establishes and expands systems and provides support to realize rewarding work environments
businesses. The overseas expansion of the Homes business is a prime example of the cultivation of
friendly to a diverse range of human resources.
human resources with experience of a variety of businesses leading to business expansion. The Homes
business swiftly expanded overseas by making use of human resources with extensive experience in over-
Promoting the active participation of women
Along with seminars on preparing for childcare leave and returning from leave to support the active partici-
seas expansion and M&A know-how from the Health Care sector. The growth of its overseas business
has improved the performance of the Homes business, raising its ability to generate cash. Transferring
pation of female employees through events in their personal lives, including childbirth and childcare, Asahi
human resources across business sectors truly enables us to maximize our abundant intangible assets,
Kasei has conducted a variety of initiatives, such as a mentoring program to support the career develop-
such as diverse businesses and technologies, which are strengths of the Asahi Kasei Group. We will fur-
ment of female managers. As a result of these efforts, the number of female managers increased from
ther promote this measure going forward.
three in 1994 to 309 as of June 1, 2023. In addition, women account for two Directors, one Audit &
Supervisory Board Member, and two Executive Officers among senior management.
In fiscal 2022, we introduced Career Management Place (CaMP) to promote the visualization of
human resources. This system digitalizes and centrally manages a range of information, such as the
In fiscal 2022, we adopted as a KPI a target to increase the percentage of female managers, particu-
career approaches, specializations, and experience of employees. We will accelerate co-creativity by con-
larly in leadership positions (managers and Group Masters), to 10% by fiscal 2030 (the figure in fiscal 2022
solidating necessary human resource information to support growth effectively, such as the appropriate
was 3.8%). Targeting 5% in fiscal 2024, we have also linked achievement of the percentage to executive
allocation of human resources, and their cultivation.
remuneration.
Senior management, the Diversity Promotion Office—the organization promoting diversity—and busi-
ness units are acting as one, implementing concrete initiatives tailored to issues in each business unit to
Promoting Overseas Human Resources
As the proportion of overseas sales has risen, the percentage of overseas employees increased to over 40%
achieve this target. We are also enhancing our system to tackle the company-wide issues of long working
as of March 31, 2023. We are expanding the promotion of non-Japanese and locally hired human resources
hours for managers and the gap in experience between men and women in core positions, while the com-
to major positions at overseas sites and cultivating the most talented individuals into human resources who
mitment and leadership of senior management is providing strong support for activities on the front lines.
contribute not only to their respective businesses but also the Asahi Kasei Group as a whole. As one exam-
Creating an environment supporting the active participation of all motivated human resources
The Asahi Kasei Group promotes extensive support measures to create an environment accommodating
the individual circumstances of employees, thereby allowing all human resources to properly demonstrate
their talents and play an active role. For example, we are working to create an inclusive environment by
introducing a variety of systems. These include a work rehabilitation system supporting a seamless return
to work after receiving medical treatment, a system ensuring time for outpatient medical care to balance
treatment and work, and a system allowing a leave of absence to employees whose spouses have been
transferred overseas.
In its corporate governance report, Asahi Kasei has stated its commitment to promoting women, non-
Japanese, and mid-career recruits to key positions. For information on initiatives and various data pertain-
ing to the recruitment of people with disabilities, please refer to our sustainability report
.
ple, we arranged for discussions on the Asahi Kasei Group’s vision for 2030 between the next generation of
leaders from the U.S., Europe, China, and Japan when considering the MTP to begin in fiscal 2022. An
opinion offered during the discussions became the basis for “Be a Trailblazer,” the concept for the MTP. We
are also proactively promoting talented human resources who became Asahi Kasei Group employees
through overseas M&A to the position of Executive Officer, advancing their participation in group-wide man-
agement. As of March 31, 2023, Asahi Kasei Corporation had seven non- Japanese Executive Officers.
Comments from an Overseas Employee
“ My transfer from Crystal IS (which joined the Asahi Kasei Group in fiscal 2011) to Corporate
Venture Capital symbolizes the bold spirit of Asahi Kasei. I am committed to using the
expertise I have developed and the Group’s network to contribute to the transformation
of Asahi Kasei’s business portfolio and the achievement of “Be A Trailblazer.” ”
Jeff Chen
Corporate Venture Capital, Asahi Kasei America, Inc.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
74
Health and Productivity Management
The Asahi Kasei Group works to develop dynamic
human resources and workplaces based on the
well being of employees and their families
Masatsugu Kawase
Director, Senior Executive Officer
Chief Health and Productivity Officer
In fiscal 2020, the Asahi Kasei Group issued a Statement on Management for Health, indicating its con-
viction that maintaining and promoting the physical and mental health of employees and their families is
an important management task. In fiscal 2021, we began developing a framework to facilitate the inte-
grated group-wide promotion of health and productivity management to create an environment that
empowers employees to play an active role in good mental and physical health.
Today, amid rapidly changing work conditions, including the rise of telecommuting, the number of
people on leave of absence for mental health purposes is increasing in society as a whole. Asahi Kasei
views measures to improve mental health as a priority task in health and productivity management.
Based on this view, we have established the percentage of employees on leave of absence for mental
health purposes as one factor in determining Director remuneration. Maintaining and improving the
physical and mental health of employees raises productivity and invigorates our organizations, which
leads to improved corporate value.
Human resources are everything when it comes to the sustainable improvement of corporate value.
With this in mind, we will strengthen our support for not only our employees but also their families, to allevi-
ate any anxieties and burdens in relation to their well-being or in their personal lives, with the aim of creat-
ing an environment that allows all employees to work enthusiastically in good physical and mental health.
Overview of Health and Productivity Management Initiatives
Contributing to sustainable society and sustainable growth of corporate value
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
Selected as a “White 500” Enterprise
The Asahi Kasei Group proactively promotes various measures and activities focused on mental health,
serious lifestyle-related illnesses, cancer, smoking, and sleep to support the success and growth of
each individual, foster greater working satisfaction and fulfillment, and create a vibrant and strong
organizational climate.
In recognition of such initiatives, in fiscal 2022 Asahi Kasei was selected as
a “White 500”1 enterprise for the first time under the 2023 Certified Health &
Productivity Management Outstanding Organization Recognition Program.
1 The Certified Health & Productivity Management Outstanding Organization Recognition Program honors
companies and other organizations practicing exceptional health and productivity management based on
their initiatives addressing community health-related issues and efforts implementing the health promotion
efforts of the Nippon Kenko Kaigi. The top 500 companies in the large enterprise category are selected as
“White 500” enterprises.
Health and Productivity Management Targets
Asahi Kasei revitalizes individuals and organizations while striving to reduce the number of employee
absence days. Efforts to increase the quality and quantity of sleep—cited as an important indicator from
the perspective of raising productivity—are a distinctive feature of our targets.
Company-wide KPIs and Targets
KPIs
Results
Targets
2019
2020
2021
2022
2023
2024
Percentage of employees on
leave of absence for mental
health purposes
Percentage of employees with
serious lifestyle-related illnesses
Percentage of employees
affected by metabolic syndrome
Number of days absent by
employees due to cancer-
related illnesses
Percentage of employees
affected by smoking habits
Percentage of employees
affected by insufficient rest
from sleep
0.91
0.98
1.00
1.07
0.80
0.64
11.0
11.0
10.7
10.7
11.1
11.4
11.1
10.7
8.9
8.9
7.7
7.8
79.2
68.1
87.5
88.6
67.3
67.3
25.8
24.7
23.5
22.5
18.5
15.5
32.4
28.5
27.2
28.0
24.2
22.7
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Priority Measures
Measures to improve mental health
In addition to care by line managers as has long been implemented, Asahi Kasei conducts and strength-
ens training in relation to mental health to promote understanding of strategies for coping with stress and
mental health issues. In May 2023, we conducted mental health self-care education for all employees to
enable them to quickly identify and address personal concerns regarding stress and mental health.
In fiscal 2020, the Asahi Kasei Group began conducting KSA surveys (engagement surveys assessing
employee empowerment and growth), which allow for the analysis and visualization of work engagement
among employees in terms of enthusiasm, immersion, and vitality. We conduct surveys each July in con-
junction with stress checks. Currently, we are working to improve work engagement in various ways to
further revitalize individuals and organizations. These include ensuring that each workplace comprehen-
sively uses the analysis results of both surveys to promote communication among employees.
Measures to address lifestyle-related illnesses
Specific health guidance and the Slim Up Challenge
Asahi Kasei promotes measures to prevent and address
lifestyle-related illnesses among its employees. Since fiscal
2022, we have stipulated that employees diagnosed with
metabolic syndrome must, as a general rule, undergo spe-
cific health guidance. We also offer the Slim Up Challenge
as a program for those at risk of metabolic syndrome.
Creating opportunities for exercise
In addition to walking events and other activities, each
manufacturing site hosts meetings to help assess the
75
Encouraging employees to undergo cancer screening
We offer financial assistance to encourage employees to undergo cancer
screening in regular medical checkups and health screening. Aside from this
assistance, we have a program providing support for treatment when employ-
ees develop cancer and an internal program to help them on their return to
work. Awareness of these programs among employees is promoted.
In recognition of such initiatives, in fiscal 2022 Asahi Kasei received the
Silver Award in the Cancer Ally Awards 2022.
Smoking
Group no-smoking policy
The Asahi Kasei Group has set forth a basic approach of supporting efforts to quit smoking habits and protect-
ing employees from unwanted exposure to secondhand smoke. Under this basic approach, we will gradually
transition from a total ban on smoking during work hours (working toward a target to remove indoor smoking
areas) in April 2024 to a total ban on smoking within company premises and during banquets in April 2025. In
addition to traditional no-smoking challenge projects arranged by our health insurance association, we hold
seminars and other events on quitting smoking habits and support the efforts of employees to stop smoking.
Sleep
We conducted a questionnaire on sleep with the goal of improving sleep quality and raising the productivity
level of work and daily life. Following the questionnaire, we identified employees with severe insomnia and held
a trial sleep improvement program for those who wished to take part. In light of the high level of satisfaction
among participants and its effectiveness in improving sleep quality to a certain degree, we will operate the pro-
Yoga class for employees
gram on a group-wide basis going forward. In addition, we hold online seminars to increase literacy on sleep.
physical stamina of employees and arranges events to monitor changes over the years. Asahi Kasei also
We are also studying the establishment of sub-KPIs that gauge the effectiveness of such measures for
creates fitness opportunities by posting videos to its employee website with exercises that can be prac-
achieving the KPIs to verify whether they are functioning effectively.
ticed in any location by anyone.
Cancer
Conducting company-wide e-learning on cancer prevention and support for work–treatment balance
Asahi Kasei holds company-wide, simultaneous e-learning to encourage employees to acquire a correct
understanding of cancer, improve their lifestyles to prevent cancer, and increase the cancer screening rate
to facilitate early detection and early treatment.
Medium- to Long-Term Approach for Fiscal 2025 and Beyond
FY2020–2021
FY2022–2024
FY2025–
• 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 tangible performance
improvements
• Commence initiatives at major
• Launch global initiatives
domestic sites
• Group no-smoking policy
• Evolve practices to undertake
well-being management
• Tackle new challenges
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Maximum Use of Intangible Assets
76
Guiding Principle for Use of Intangible Assets
In its MTP, Asahi Kasei adopted the maximum use of intangible assets as one of its key areas for transfor-
1
Rights-focused
perspective
Extending the Exclusive Marketing Period for Teribone™ (Freeze-Dried Preparation)
mation to strengthen its business platform. We aim to improve our corporate value by organically connect-
ing our intangible assets, which we view as a vital management resource.
Four Key Areas for Transformation to Strengthen Our Business Platform
Overview of Intangible Assets
G
Green
Green Transformation
Green Transformation
Maximum
Use of Intangible
Assets
P
People
D
Digital
Digital Transformation
Digital Transformation
Transformation of HR
Transformation of HR
Connecting
organically
Human
Resources
Customer
Contact Points
Data
Trust, Brand
A-Spirit
Intellectual
Property
Core Technologies,
Digital Technology
Manufacturing
Know-How
Improving corporate value through value creation
Using Rights to Maximize the Value of Intellectual Property and Intangible Assets
The Asahi Kasei Group leverages intellectual property rights from both a rights-focused perspective and
an informational perspective to maximize the value of its intangible assets. In terms of the former, we pro-
tect our businesses from imitation by other companies and grant intellectual property licenses to other
companies to earn royalty income by obtaining patents and leveraging them to secure exclusive rights.
For the latter, we gain insights on industrial trends and the intellectual properties and business strategies
of other companies by analyzing publicly available intellectual property information, and utilize these
insights to develop our business and management strategies.
1
Rights-focused
perspective
Patent rights bestow the enforceable right of exclusivity
(Creates barriers to entry, allows monetization through licensing, etc.)
Use of Rights
2
Informational
perspective
Patents represent the largest available source of technological
information, enabling access to information on the strategies of
other companies
Use of Information
(IP landscaping)
With the conclusion of the patent reexamination period for Teribone™ (freeze-dried preparation) in 2017, the
entrance of generic drugs was expected to lead to a sharp decline in sales. In response to this risk, Asahi Kasei
Pharma launched the Teribone™ subcutaneous autoinjector, which enables self-administered injection at home,
and has endeavored to protect Teribone™ businesses through a set of patents. Specifically, we have succeeded
in maintaining sales by effectively extending the exclusive marketing period of Teribone™ (freeze-dried prepara-
tion)—as a result of efforts to ensure multifaceted protection through dosage and administration patents pre-
scribing the drug’s distinctive feature, namely, its use for patients at high risk of bone fracture, and patents
emphasizing its features for enhancing quality. Furthermore, in September 2023, a provisional injunction was
issued preventing the manufacture, sale, or application for sale of a generic version of Teribone™ (freeze-dried
preparation) in a provisional injunction against infringement of patent rights based on Asahi Kasei Pharma’s man-
ufacturing process patent.
2
Informational
perspective
Investigating the Possibility of Combining Nonwoven Business with that of Industry Peer
The Asahi Kasei Group uses its intangible assets to strengthen established businesses and achieve structural
transformation as well as to create new businesses. When deciding to establish a joint venture for our spunbond
nonwoven business, we used IP landscaping. The map on
the right provides an overview of the patents of both the
Asahi Kasei Group and an industry peer. In addition to
objectively demonstrating the existence of technological
synergies between the two companies through this over-
view, we conducted a simulation of advantages over other
companies in the event of combining forces, thereby identi-
fying a path to success. We made a strategic decision using
this approach, which achieved structural transformation that
enables the growth of the nonwoven business.
Identifying the nonwoven domain as one
with promising technological synergies
Industry peer
Asahi Kasei
2
Informational
perspective
Strengthening Communication with Automobile Manufacturers
In the automotive domain, the Asahi Kasei Group fosters
business communication with automobile manufacturers by
using IP landscaping to visualize relationships between our
technologies and those of automobile manufacturers. Using
IP landscaping to objectively identify common domains with
manufacturers and potential for co-creation to realize sus-
tainability, we gain opportunities to introduce our products
in business negotiations.
Structure
(Space Design)
Sensor
Battery
Plastic (material)
Automobile manufacturers
Asahi Kasei
Patents related to
carbon neutrality and the
circular economy
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information Constructing a Corporate Value Improvement Narrative through IP Activities
In fiscal 2022, the Asahi Kasei Group analyzed the correlation between indices of management and indices of
The Cabinet Office’s Intellectual Property/Assets/Capital and Other Intangible Assets Governance
Guidelines ver. 2.0 calls on companies to clarify how they link investment in and utilization of intellectual
intellectual property and intangible assets as an initiative to visualize the corporate and business contribution of
property and intangible assets to management indices at the corporate level, and how this contributes to
IP activities. Results of a review of the correlation between several indices of management (such as net sales,
improving corporate value. The Asahi Kasei Group’s corporate value improvement narrative meets the
profit, operating margin, and ROIC) and various indices of intellectual property and intangible assets (such as
requirements set out in the guidelines.
77
numbers of patents, overseas patent applications, and forward patent citations, and a variety of patent scores),
confirmed a correlative relationship between EBITDA and patent value in the chemical industry.
Corporate management index
Intellectual capital index
Corporate management index
Intellectual capital index
EBITDA
Patent Value
Patent Asset Index
EBITDA
(Asahi Kasei)
Patent Value
Patent Asset Index
Correlation between EBITDA and patent value in the chemical industry
Note: Analysis of data of 20 companies in the chemical industry over the last ten years
(Millions of yen)
600,000
A
D
T
B
E
I
400,000
200,000
0
0
Correlation observed
between EBITDA and
Patent Asset Index
R2 = 0.53
5,000
10,000
15,000
20,000
Patent Value (Patent Asset Index)
Change of EBITDA and Patent Asset Index of Asahi Kasei
200
(%)
150
100
50
0
EBITDA trending upward
Patent value (patent asset
index) trending upward
EBITDA growth rate (left scale)
Growth rate of Patent Asset Index (right scale)
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
116
(%)
110
104
98
92
In fiscal 2023, we examined the possibility of creating a specific road map (corporate value improvement
narrative) for reflecting intellectual property measures in corporate value based on the assumption of a corre-
lation between intellectual property measures (investment and utilization) and management indices.
In the examination, we organized our intellectual property measures into strategic activities and intel-
lectual property procedures and utilization. The examination led us to a narrative in which strategic activi-
ties and intellectual property procedures and utilization supported by our intellectual property platform
improve corporate value in ways that include optimizing our business portfolio and increasing Group profit.
Asahi Kasei’s Intellectual Property Report 2023
reports on the corporate value improvement narrative
pertaining to the Asahi Kasei Group’s three business sectors.
Strategic activities
Corporate value
Intellectual property strategy briefings
Contribution to corporate strategies
Market analysis through IP landscaping
Contribution to business strategies
Higher ratings for intellectual
property strategies
Intellectual property
procedures and utilization
Proper clearance
Formulation of intellectual
property strategies
Construction of strategic
patent portfolio
Strategic utilization of
patent rights
Increase in Group profit
Intellectual property platform
Four-region global structure
More efficient intellectual
property operations
Development of intellectual
property experts
Company-wide intellectual
property training
Verifying the Appropriateness of Corporate Value Improvement Narrative
With the cooperation of external experts, we are working on objective and qualitative verification of the
correlation between the elements constituting the corporate value improvement narrative described on the
left. In one business, we identified a significant correlation between intellectual property procedures and
utilization (patent score) and net sales of the business, thereby verifying the probability of the narrative.
Examples of KPIs Based on the Corporate Value Improvement Narrative
Asahi Kasei improves corporate value by promoting intellectual property activities aligned with its corpo-
rate value improvement narrative. We have established KPIs as a way to verify the extent to which promo-
tion of intellectual property activities fuels contributions to management and business. The KPIs focus in
particular on IP activities with a close connection to financial indicators. We will continue to pursue further
corporate value improvement by promoting IP activities while regularly optimizing the KPI and confirming
our progress toward achieving it.
Level of contribution to management and business strategies of IP landscaping
We established a KPI on the contribution to management and business strategies of IP landscaping, an IP
activity closely connected to the improvement of corporate value. The KPI measures the contribution level of
IP landscaping with a focus on the three essential elements of quantity, quality, and productivity. Specifically,
quantity demonstrates the number of IP landscaping cases, quality is assessed in terms of the percentage of
repeats1 and actions2, and productivity is calculated
using the number of IP landscaping cases conducted
Number of IP landscaping cases
Targets
per person. Incorporating the perspective of quality
makes for an indicator that more accurately expresses
the level of contribution to business activities and, in
turn, corporate activities. By fiscal 2025, we aim to
more than double the level of contribution compared
by meeting this KPI target.
1 IP landscaping requests from the same organization
2 Cases where the outcome of IP landscaping has led to decision or
action on the management, business, or development side of the
requesting organization
40
30
20
10
0
Number of repeats
Number of actions
2018–21
average (half year)
2022
H1
2022
H2
2023
H1
2025
H2
Optimization of
business portfolio
Improvement of
corporate value
with fiscal 2022. We aim to improve corporate value
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Strengthening of
Corporate Governance
79 Directors
80 Directors and Audit & Supervisory Board Members
82 Corporate Governance
84
Discussing Asahi Kasei’s Corporate Governance:
Interview with New Outside Director Chieko Matsuda
89 Risk Management
92 Environmental Protection
93 Human Rights
94 Compliance / Information Security
95 Communication with Stakeholders
Asahi Kasei Report 2023
78
Name
Choi Jaeho
Company
Asahi Kasei Microdevices Korea
Country/region
Korea
05
Directors (as of June 27, 2023)
79
Back row, from left
Masatsugu Kawase
Hiroki Ideguchi
Toshiyasu Horie
Chieko Matsuda
Tsuneyoshi Tatsuoka
Kazushi Kuse
Front row, from left
Tsuyoshi Okamoto
Koshiro Kudo
Hideki Kobori
Yuko Maeda
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 80
Directors and Audit & Supervisory Board Members (as of June 27, 2023)
Directors
Hideki Kobori
Chairman & Director
Koshiro Kudo
President &
Representative Director
Presidential Executive Officer
Kazushi Kuse
Director
Primary Executive Officer
Toshiyasu Horie
Representative Director
Senior Executive Officer
Hiroki Ideguchi
Director
Senior Executive Officer
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,
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
Joined Asahi Kasei
Asahi Kasei Fibers Executive Officer
April 1987
April 2005
Joined IBM Japan
IBM Japan Executive Officer
Asahi Kasei Lead Executive Officer
January 2008
IBM Vice President
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)
January 2017
IBM Japan Chief Technology Officer
July 2020
April 2021
April 2022
June 2022
Joined Asahi Kasei, Asahi Kasei
Executive Officer, Asahi Kasei
Executive Fellow
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 1985
April 2015
April 2016
April 2019
April 2020
April 2022
June 2022
April 2023
Joined Asahi Kasei
Asahi Kasei Chemicals Corporate
Planning & Coordination
General Manager
Asahi Kasei Petrochemicals SBU
Planning & Coordination
Senior 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)
Asahi Kasei Representative Director
(position held at present)
April 1985
April 2016
April 2017
April 2019
April 2020
April 2022
June 2023
Joined Asahi Kasei
Asahi Kasei Pharma Corporate Planning
& Coordination Senior General Manager
Asahi Kasei Pharma Executive Officer
Asahi Kasei Executive Officer
Asahi Kasei Corporate Strategy Senior
General Manager
Asahi Kasei Lead Executive Officer
Asahi Kasei Senior Executive Officer
(position held at present)
Asahi Kasei Director
(position held at present)
Masatsugu Kawase
Director
Senior Executive Officer
Tsuneyoshi
Tatsuoka
Outside Director
Tsuyoshi Okamoto
Outside Director
Yuko Maeda
Outside Director
Chieko Matsuda
Outside Director
April 1990
April 2016
April 2018
Joined Asahi Kasei
April 1980
Asahi Kasei Chemicals Basic Chemicals
Division Senior General Manager
Asahi Kasei Production Center Planning
& Coordination Senior General Manager
Joined Ministry of International Trade
and Industry
January 2010
Councilor, Cabinet Secretariat
August 2011
Deputy Vice-Minister of Economy, Trade
and Industry
April 2020
Asahi Kasei Senior Managing Executive
June 2013
April 2023
June 2023
Asahi Kasei Production Center Senior
General Manager
Asahi Kasei Senior Executive Officer
(position held at present)
Asahi Kasei Director
(position held at present)
July 2015
June 2016
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
April 1987
Tokyo Gas Co., Ltd. Executive Officer
September 2003 Tokyo Medical and Dental University
Joined The Long-Term Credit Bank of
Japan, Limited
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)
Director of Technology Transfer Center
and Intellectual Property Manager of
Intellectual Property Right Department
Tokyo Medical and Dental University
Visiting Professor
October 2009
October 2011
Kyoto Prefectural University of Medicine
Specially Appointed Professor
May 2013
April 2014
Bridgestone Corporation
Executive Officer
Japan Agency for Marine-Earth Science
and Technology Auditor
(position held at present)
January 2017
CellBank Corp. Director
(position held at present)
October 2020
Kyushu University Executive Vice
President (position held at present)
June 2021
Asahi Kasei Director
(position held at present)
October 1998
Joined Moody’s Japan K.K.
September 2001 Corporate Directions, Inc. Partner
October 2006
Booz & Company, Inc.
Vice President (Partner)
April 2011
Tokyo Metropolitan University Faculty of
Economics and Business Administration
Professor (position held at present)
Tokyo Metropolitan University Graduate
School of Management Professor
(position held at present)
June 2023
Asahi Kasei Director
(position held at present)
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
81
Takuya Magara
Audit & Supervisory Board
Member
Akemi Mochizuki
Outside Audit & Supervisory
Board Member
Haruyuki Urata
Outside Audit & Supervisory
Board Member
Yoshikazu Ochiai
Outside Audit & Supervisory
Board Member
Joined Asahi Kasei
October 1984
Joined Aoyama Audit Corporation
April 1977
Asahi Kasei Homes Executive Officer
March 1988
Certified as a Certified Public Accountant
Joined Orient Leasing Co., Ltd.
(currently ORIX Corporation)
Asahi Kasei Homes Director
August 1996
Asahi Kasei Homes
Senior Executive Officer
Asahi Kasei Homes
Primary Executive Officer
Asahi Kasei Homes Vice-Presidential
Executive Officer
Asahi Kasei Homes Advisor
Asahi Kasei Audit & Supervisory Board
Member (position held at present)
Joined Tohmatsu Audit Corporation
(currently Deloitte Touche Tohmatsu LLC)
June 2001
Tohmatsu Audit Corporation Partner
July 2018
June 2021
Akahoshi Audit Corporation Partner
(position held at present)
Asahi Kasei Audit & Supervisory Board
Member (position held at present)
February 2005 ORIX Corporation Executive Officer
August 2006
ORIX Corporation Managing
Executive Officer
April 1986
Appointed as Public Prosecutor
October 2015
Tokyo District Public Prosecutors Office
Deputy Superintending Prosecutor
April 2017
Saitama District Public Prosecutors
Office Chief Prosecutor
June 2007
ORIX Corporation Managing Director
February 2018 Supreme Public Prosecutors Office
January 2008
January 2009
January 2011
June 2015
June 2020
June 2021
June 2022
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)
July 2020
June 2022
Director of Criminal Affairs Dept.
Supreme Public Prosecutors Office
Deputy Prosecutor-General
Tokyo High Public Prosecutors Office
Superintending Prosecutor
January 2023
Retired as Public Prosecutor
April 2023
Certified as an attorney-at-law
June 2023
Nishimura & Asahi law firm Of Counsel
(position held at present)
Asahi Kasei Audit & Supervisory Board
Member (position held at present)
Audit & Supervisory Board Members
Yutaka Shibata
Audit & Supervisory Board
Member
Joined Asahi Kasei
Asahi Kasei Executive Officer
Asahi Kasei Lead Executive Officer
Asahi Kasei Kuraray Medical President &
Representative Director, Presidential
Executive Officer
Asahi Kasei Medical President &
Representative Director, Presidential
Executive Officer
Asahi Kasei Primary Executive Officer
Asahi Kasei Pharma President &
Representative Director, Presidential
Executive Officer
Asahi Kasei Director
Asahi Kasei Vice-Presidential
Executive Officer
Asahi Kasei Audit & Supervisory Board
Member (position held at present)
April 1979
April 2008
April 2009
April 2011
April 2016
April 2017
June 2018
April 2019
June 2021
April 1982
April 2012
April 2014
April 2016
April 2018
April 2022
June 2023
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Corporate Governance
82
Changes to Strengthen Corporate Governance (fiscal 2003–2020)
Fiscal
2003
Number of Directors reduced from 30 to 7
(maximum number also changed from 45 to 15)
2015
Establishment of Nomination Advisory Committee
and Remuneration Advisory Committee
Working to Strengthen Corporate Governance
Basic Policy
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
Reduction of Directors’ term of office to 1 year
Adoption of an Executive Officer system
Establishment of Strategic Management Council
Election of 2 Outside Corporate Auditors out of
4 Corporate Auditors
Transition to a holding company structure
Asahi Kasei separated management and execution by
operating companies and oversight by the holding com-
pany through transition to a holding company structure
and adopted an Executive Officer system to clearly sep-
arate execution and oversight at the holding company.
In addition, we reduced the number of Directors and
lowered the maximum number to facilitate quick deci-
sion-making and established a framework to hold
Directors to account on an annual basis, including for
results, by setting their term of office at one year.
the world and help resolve social issues by enabling “living in health and comfort” and
2007
Election of 2 Outside Directors
“harmony with the natural environment.” 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 inte-
gration of our diverse range of businesses.
To that end, we will continuously pursue the optimal corporate governance framework
for ensuring transparent, fair, timely, and resolute decision-making in accordance with
changes in the business environment.
2008
Election of 3 Outside Directors
Adoption of takeover defense measures
In 2003, we established the Group Advisory
Committee to enhance the soundness and transpar-
ency of management by having advice from outside
experts reflected in all aspects of management. In
2007, we began nominating Outside Directors for
election, with their number increasing to three in 2008.
2011
Renewal of takeover defense measures
2014
Ratio of Outside Directors increased to one-third
of all Directors
Majority of Corporate Auditors comprise
Outside Corporate Auditors
Discontinuation of takeover defense measures
We increased the ratio of Outside Directors to one-third
by composing the Board of Directors of six Inside
Directors and three Outside Directors while appointing
those responsible for business operations as
Representative Directors.
Holding of regular meetings between Outside
Directors and Independent Auditors
Holding of regular meetings between Outside
Directors and Corporate Auditors
Formulation of policies for the nomination of
Director and Corporate Auditor candidates, of
criteria for the independence of Outside Directors
and Outside Corporate Auditors, and of policy
regarding strategic shareholdings
Asahi Kasei established the Nomination Advisory
Committee and Remuneration Advisory Committee as
part of its response to Japan’s Corporate Governance
Code and formulated policies for the nomination of
Director and Corporate Auditor candidates, criteria for
the independence of Outside Directors and Outside
Corporate Auditors, and policy regarding strategic
shareholdings. In addition, we started to hold regular
meetings between Outside Directors and Independent
Auditors and between Outside Directors and
Corporate Auditors. In 2016, we began disclosing the
results of evaluations of the effectiveness of the Board
of Directors.
2016
Transition from holding company to operating
holding company configuration
2017
Introduction of stock-based remuneration
system
Asahi Kasei introduced a stock-based remuneration
system using a share grant trust to clarify the linkage
between its share price and the remuneration of
Directors and enable them to enjoy the benefits of rising
share prices as well as bear the risks of falling share
prices, so that they share such benefits and risks with
shareholders.
2020
Delegation of authority to Remuneration Advisory
Committee to determine remuneration
We delegated authority to determine amounts of per-
formance-linked remuneration for individual Executive
Directors from the Board of Directors to the
Remuneration Advisory Committee considering it
appropriate for such judgment to be made taking a
comprehensive view of Asahi Kasei Group results as a
whole while maintaining a highly independent, objec-
tive, and transparent standpoint.
Board of Directors
Audit & Supervisory Board
Other
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 83
Changes to Strengthen Corporate Governance (fiscal 2021–2022)
2021
2022
Introduction of Interim Reviews at Meetings
of Independent Officers
In fiscal 2021, Asahi Kasei began holding interim reviews
evaluating the effectiveness of the Board of Directors by
arranging discussion meetings of Independent Officers
attended solely by Outside Directors and Outside Audit &
Supervisory Board Members to incorporate more objective
viewpoints and enhance the effectiveness of the Board of
Directors. At the meetings, participants discuss the role of
the Board of Directors, the nature of explanations and delib-
erations at meetings of the Board of Directors, and ways to
evaluate the effectiveness of the Board of Directors, from an
objective standpoint to identify issues at the Board of
Directors and steadily improve its effectiveness.
Improvement of Meeting Proceedings through
Better Organization of Discussion Points
We standardized the organization of discussion points in
materials for meetings of the Board of Directors, thereby pro-
moting better deliberations and more efficient discussions
during meetings, with a focus on priority discussion points.
Revision of Remuneration System for Directors
Given that remuneration of Directors is a key constituent element of corporate governance, we revised the remunera-
tion system for Directors to provide appropriate incentives for both those charged with business execution and those
conducting oversight for the continuous growth of the Asahi Kasei Group and increased corporate value over the
medium to long term. Specifically, we aligned indicators for the performance-linked remuneration of Directors with
indicators in the MTP and linked stock-based remuneration with the level of achievement of non-financial indicators.
Introduction of Matters to Be Discussed in Relation to Important Management Matters
In addition to matters to be resolved and reported, Asahi Kasei introduced matters to be discussed in fiscal 2022 to
enable more in-depth discussions at meetings of the Board of Directors. This move allows important management
matters to be deliberated in greater detail.
Enhancement of the Setting of Agenda Items at Meetings of the Board of Directors
Asahi Kasei enhanced the setting of agenda items at meetings of the Board of Directors, taking into consideration the
circumstances of businesses and social trends. The Board of Directors improves its oversight function by proactively
taking up various issues for discussion, such as business portfolio management, reviews of major M&A and significant
investments, and management risks in relation to economic security and the global supply chain.
Improvement of Management of Meeting Proceedings through Pre-Meeting Briefings
In fiscal 2022, we reduced the time spent on explaining materials at meetings of the Board of Directors by providing
pre-meeting briefings to enhance the quality and ensure the efficient progress of discussions at the meetings.
Introduction of Surveys to Receive Feedback from Employees
In fiscal 2022, we began anonymous surveys for Executive Officers and employees (excluding Directors and Audit &
Supervisory Board Members) who attend meetings of the Board of Directors to assist with proposals and reporting. We
use the results of the surveys to gauge expectations of and issues facing the Board of Directors and make improvements.
Revision of the Composition of the Board of Directors
Asahi Kasei decided to revise the composition of the Board of Directors with Inside Directors focused on Executive Officers
responsible for corporate functions and an increased number of Independent Outside Directors and female Directors.
Note: Please refer to the section pertaining to our corporate governance configuration on page 85
for the ratio of independent members
and female members among the Board of Directors and Audit & Supervisory Board in fiscal 2023.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information Discussing Asahi Kasei’s Corporate Governance: Interview with New Outside Director Chieko Matsuda
84
Q
Viewed from the outside, what impressions do you have of
Asahi Kasei’s corporate governance configuration?
My connection with Asahi Kasei began in the early 2000s through discussions in
my capacity as an analyst for a credit rating agency, and I subsequently had the
opportunity to work with Asahi Kasei as a management consultant. Over this
long relationship, I sense that Asahi Kasei has been focused on strengthening
corporate governance these last few years in particular.
Japanese companies tend to adopt U.S. and European models of corporate
governance when strengthening their governance. In my view, however, blindly
imitating the U.S. and Europe will not lead to a fundamental strengthening of
governance. In that respect, I have the impression that Asahi Kasei carefully con-
siders its own way of governance, and improves it step by step.
Q
What expectations do you have for Asahi Kasei at present?
While I personally have a fondness for diversified companies, I understand that
unwarranted diversification is viewed negatively from an investor’s perspective.
I believe that companies with extensive business portfolios such as Asahi Kasei
can offer a compelling explanation to investors by outlining the process and
background to the reorganization and consolidation of their businesses as a
story, from origins to the present. Honorary Fellow Dr. Akira Yoshino once gave
me a firsthand explanation of the course of Asahi Kasei’s businesses. I was very
interested to hear about the origins and subsequent offshoots of businesses
through his explanation, which was very persuasive. Given its wealth of such sto-
ries, I think that Asahi Kasei should put more emphasis on its own narrative.
Q
In light of your experience and expertise, in what ways do you aim
to contribute as an Outside Director?
There are three main ways I aim to contribute. The first is to offer opinions from an
investor’s perspective. In doing so, I will draw on my experience at a bank assess-
ing the creditworthiness of companies, and my work as a securities analyst.
My perspective differs from that of those in charge of business execution
due to our different standpoints, so our opinions may diverge from time to time.
Nevertheless, I hope to play a part in enhancing the quality of management
through discussions from multiple perspectives.
The second is to offer opinions on company-wide strategy. I am keen to
engage proactively in discussions on business portfolio management in my
capacity as a professor currently researching corporate management, primarily
company-wide strategies.
The third is diversity. For a company such as Asahi Kasei, which is expected
to spur innovation, ensuring task-oriented diversity in terms of career back-
grounds and other roles, as well as of gender and nationality, is also crucial.
I intend to make use of my position as someone who has had many career roles
to share my views.
Q
On what points do you intend to focus in supervising management
as an Outside Director?
A key role of outside directors is to supervise management from the perspective
of someone who can see things in a certain way precisely because they are on
the outside. With that said, having a discussion would be impossible without
knowing anything about a company’s businesses. As an outside officer at other
companies over the years, I have endeavored to develop my intuition by visiting
many sites and plants, including overseas, for a firsthand sense of working envi-
ronments and the mood of the people. Talking in person with frontline employees
often brings business model issues to light, highlighting their essence from a
management perspective. I hope to proactively visit Asahi Kasei’s front lines and
communicate in a similar manner.
Chieko Matsuda
Outside Director
Following roles at The Long-Term Credit Bank of Japan,
Limited, Moody’s Japan K.K., Corporate Directions, Inc.,
and Booz & Company, Inc., Chieko Matsuda teaches as
a professor at Tokyo Metropolitan University’s Faculty of
Economics and Business Administration and its Graduate
School of Management. She became an Outside Director
of Asahi Kasei in June 2023.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
85
Corporate Governance Configuration (as of June 27, 2023)
Status of Activities in Fiscal 2022
Shareholders Meeting
Meeting
No. of
Meetings Held
Average
Attendance
Main Subjects of Agenda
Audit
Election
Oversight
Election
Audit & Supervisory Board
(5 Members, including 3 Independent
Outside Members)
Cooperation
Independent Auditors
Audit
Board of Directors
(10 Directors, including 4 Independent
Outside Directors)
Nomination Advisory
Committee
Remuneration Advisory
Committee
Execution of operations
Audit
Report
Oversight
Cooperation
President
Internal Audit Department
Management Council
Audit
SBUs, core operating companies, administrative functions
Ratio of Independent Officers
Ratio of Women
Independent
Women
Directors and Audit &
Supervisory Board Members
Nomination
Advisory Committee
Remuneration
Advisory Committee
Directors and Audit &
Supervisory Board Members
7
8
2
4
2
4
3
12
Note: 7 out of 15 Directors and Audit & Supervisory Board Members are independent
Note: 3 out of 15 Directors and Audit &
(4 out of 10 Directors are independent)
Supervisory Board Members are women
(2 out of 10 Directors are women)
Board of
Directors
Chair: Hideki Kobori
Nomination Advisory
Committee
Chair: Tsuyoshi Okamoto
Remuneration
Advisory Committee
Chair: Tsuyoshi Okamoto
Audit & Supervisory
Board
Chair: Masafumi Nakao
15
5
6
19
99%
(Directors and
Audit &
Supervisory
Board
Members)
• Medium-term management plan, annual management plan
• Quarterly and annual results
• Examinations, decisions, and follow-up of large investments, M&A,
and reorganization
• Analysis and disclosure for TFCD
• Enhancement of risk management, follow-up on plant accidents, and
influence of the situation in Ukraine
• Effectiveness evaluation of the Board of Directors, review on the offi-
cer remuneration system, nomination of officers
100%
(committee
members)
• Election of chair
• Committee schedule
• Nomination of officers for fiscal 2023
100%
(committee
members)
• Review on the officer remuneration decision-making policy
• Review on the performance-linked remuneration system
• Review on the stock-based remuneration system
• Decision of individual performance-linked remuneration amounts
98%
(Audit &
Supervisory
Board
Members)
• Audit plans
• Opinion exchange on agenda of the Board of Directors meetings
• Checks of financial statements
• Opinion exchange sessions with Outside Directors
• Evaluation of Independent Auditors
Fields in Which Expectations of Directors and Audit & Supervisory Board
Members Are Particularly High
We have identified the knowledge, experience, and capabilities required to advance Group management
and its supervision and auditing at a higher level in a discontinuous and uncertain business environment,
and have considered the composition of the Board of Directors with consideration to the balance of its
diversity and independence.
In addition to “corporate management & strategy,” “finance & accounting,” “legal affairs, intellectual
property & risk management,” and “R&D, manufacturing & technology,” which are indispensable for pur-
suing opportunities and reducing risks, we also emphasize “global” to align with the internationalization of
markets and businesses, “digital” to advance digital transformation, “environment & society” to respond to
changes in the social environment and the status of stakeholders with agility, and “human resource man-
agement” to utilize people as the foundation of business management.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
To further enhance the monitoring capability of the Board of Directors, we decided to adjust the com-
position so that Inside Directors mainly comprise Executive Officers responsible for corporate functions.
We expect that each Director and Audit & Supervisory Board Member will demonstrate their knowl-
edge, experience, and capabilities, and will accordingly carry out important decision-making of group
management and appropriate supervision and auditing comprehensively from diverse perspectives.
Skill Matrix (configuration from June 27, 2023)
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
Kazushi Kuse
Toshiyasu Horie
Hiroki Ideguchi
Masatsugu Kawase
Tsuneyoshi Tatsuoka
Independent
Tsuyoshi Okamoto
Independent
Yuko Maeda
Independent
Chieko Matsuda
Independent
Yutaka Shibata
Takuya Magara
Akemi Mochizuki
Independent
Haruyuki Urata
Independent
Yoshikazu Ochiai
Independent
Audit &
Supervisory
Board
Members
86
Results of Evaluation of Effectiveness of the Board of Directors (fiscal 2022)
The Board of Directors of the Company conducts regular evaluations of its own effectiveness every fiscal
year. The evaluation method and measures in fiscal 2022 and issues recognized for the future are as follows:
Effectiveness evaluation method
In the middle of the fiscal year, based on the previous fiscal year’s evaluation as well as institutional inves-
tors’ demands and capital market trends, the chair of the Board of Directors took the lead in examining
the future direction of the Company’s Board of Directors. Independent officer meetings, which were
attended only by Outside Directors and Outside Audit & Supervisory Board Members, also conducted
interim reviews on the effectiveness of the Board of Directors and exchanged opinions. Then, the Board of
Directors discussed the matters to organize and categorize them into issues that require improvement
within the current fiscal year and ones that require continuous consideration. After these steps, at the start
of the new fiscal year, the Board of Directors again deliberated on the effectiveness of the Board of
Directors, as well as checking the progress of improvement actions in the fiscal year.
Main measures implemented in fiscal 2022
The Board of Directors of the Company implemented the following measures in fiscal 2022 based on eval-
uation of the previous fiscal year.
(1) The composition of the Board of Directors
To keep a higher level of the Group management and supervision and auditing on the management in this
discontinuous and uncertain business environment, we have discussed the composition of the Board of
Directors considering the balance of its diversity and independence. We decided that the following rectifi-
cations will be made on the member composition to further enhance the monitoring capability of the
Board of Directors and facilitate discussions in the Board of Directors:
i. A rectification to ensure that Inside Directors are mainly composed of officers responsible for corpo-
rate departments
ii. Increases in Independent Outside Directors and female Directors
(2) Receiving feedback from employees
Anonymous surveys were conducted for officers and employees (who are not Directors or Audit &
Supervisory Board Members) who attended the Board of Directors meetings as assistants for proposing
or reporting. The surveys are intended to know what expectations or issues the officers and employees
have with the Board of Directors. The surveys found that employees and other staff generally recognize
the value in deliberations by the Board of Directors from perspectives different from those of internal dis-
Note: Up to four fields with particularly high expectations are noted for each individual. The table above does not represent all of the knowledge,
cussions. The survey also helped us identify issues with how to propose and report matters in the Board
experience, and capabilities of each individual.
of Directors meetings with an awareness of differences from internal meetings, including the Management
Council. These issues have led to the following improvements for facilitating meetings.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
87
(3) Improvements for facilitating meetings
Starting from fiscal 2022, the agenda includes matters to be discussed in addition to matters to be
resolved and reported, and a procedure is established for the Management Council meetings and other
Remuneration for Directors
(1) Decision-making policy
As one of the corporate governance mechanisms to ensure that the Asahi Kasei Group achieves sustain-
internal meetings to share their discussions with the Board of Directors. With such measures, the Board of
able growth and enhances corporate value over the medium to long term, the Board of Directors sought
Directors can discuss important management matters more deeply. In addition, the meetings of the Board
the advice of the Remuneration Advisory Committee on the decision-making policy. Respecting the con-
of Directors provide a more concise explanation of materials while enabling outside officers to receive a
tents of the committee’s report, the Board of Directors passed a resolution on the decision-making policy,
preliminary explanation. The executive summary is utilized to organize discussion points. These improve-
which includes the following basic policy.
ments helped the Board of Directors have more effective discussions. Furthermore, a guidance document
was created to clarify basic points so that meetings can be facilitated more effectively, considering the
composition and role of the Board of Directors.
Basic policy
Issues recognized for the future
Based on measures implemented in fiscal 2022, the Board of Directors has confirmed a common aware-
ness of the following issues for the future.
(1) Methods to evaluate the effectiveness of the Board of Directors
We continue to scrutinize evaluation methods with objective perspectives, such as working with third parties.
(2) The way that the Board of Directors should be
As our business environment is changing, we continuously pursue the ideal Board of Directors (in terms of
independence, diversity, and organizational structure).
Officer Remuneration
Remuneration for Officers in fiscal 2022
The amount of remuneration, etc., of Directors and Audit & Supervisory Board Members in fiscal 2022
Classification
Directors
of which, Outside Directors
Audit & Supervisory Board Members
of which, Outside Audit &
Supervisory Board Members
Amount Paid
(Millions of Yen)
Breakdown by Remuneration Type (Millions of Yen)
Basic
Remuneration
Performance-linked
Remuneration
Stock-based
Remuneration
Number of Directors
and Audit &
Supervisory Board
Members Paid
528
53
154
53
379
53
154
53
95
—
—
—
54
—
—
—
11
3
6
4
Composition of remuneration for Executive Directors in fiscal 2022
Basic remuneration
56.5%
(Paid monthly)
Performance-linked
remuneration
27.7%
Stock-based
remuneration
15.8%
(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.
The Directors’ remuneration of the Company is one of the important components of corporate gover-
nance. The Company designs this system to provide appropriate incentives to both executives and super-
visors for achieving sustainable growth and improving medium- to long-term corporate value.
Remuneration for Non-executive Directors* including Outside Directors, who supervise the manage-
ment of the Company, solely comprises fixed basic remuneration at a level determined in consideration of
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 management, with levels of remuneration amounts and proportions of types of remuneration
adjusted as appropriate for each role according to management strategy and tasks, in consideration of
third-party survey data.
To ensure the optimal way of remunerating Directors and the design of the remuneration system, the
Board of Directors and the Remuneration Advisory Committee regularly deliberate and continually confirm
their appropriateness and make improvements.
* Non-executive Directors include the Chairman.
(2) Basic design
1) Performance-linked remuneration
• 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 achievement 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
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88
• Standards for financial incentives selected from the perspectives of appropriateness as clear
(3) Decision-making process
and objective evaluation criteria based on earnings results as well as awareness for increased
• As authorized by the Board of Directors, the Remuneration Advisory Committee confirms the reason-
capital efficiency
• The formula required to calculate individual performance-linked remuneration is outlined as follows:
Index calculated by
evaluation1
Basic amount
by rank
Individual performance-linked
remuneration amount
1 Coefficient comprehensively considering achievement of financial targets and non-financial targets
• Target figures / standard figures and actual figures of management indicators to be used for the calcu-
lation of performance-linked remuneration in fiscal 2022
ableness 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 con-
ferred 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 indi-
cators at the end of each fiscal year in relation to stock-based remuneration).
• The Remuneration Advisory Committee comprises a majority of Outside Directors and regularly
Fiscal 2022 Target Figure /
Standard Figure
Fiscal 2022 Actual Figure
reports to the Board of Directors on the process of confirmation and determination described above.
Consolidated net sales
Consolidated operating income
Consolidated ROIC2
¥2,731.0 billion
¥2,726.5 billion
¥210.5 billion
¥128.4 billion
6.0%
4.0%
2 (Operating income–income taxes) / average annual invested capital
2) Stock-based remuneration
• Designed to reinforce a common perspective with shareholders, including both the benefits of share
price increases and the risk of share price decreases
Strategic Shareholdings
The Company is continuing to reduce its holdings of shares held for purposes other than pure investment
(strategic 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
evaluated 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
• A trust established by Asahi Kasei acquires shares of the Company and grants them to eligible
shares judged to be no longer compatible with the purpose of holding them or deemed to have costs
Directors. Based on the Share Grant Regulations adopted by the Board of Directors, eligible
and risks that outweigh the benefits of holding them, taking into consideration the conditions of the
Directors are conferred points in accordance with their rank (maximum of 150,000 points per fiscal
company concerned.
year) and the shares are granted to eligible Directors corresponding to the accumulated number of
points at the time of their retirement as Director and as Executive Officer of the Group (one share of
Strategic holdings of listed shares
Sales of strategic shareholdings
stock per point).
• The following table describes the status of the performance targets above, which are defined by the
Board of Directors, for fiscal 2022.
Indicator
Indicator Calculation Method
Fiscal 2022 Target Figure /
Standard Figure
Fiscal 2022 Actual Figure
Job satisfaction Percentage of employees absent due to
mental illness
DX
Diversity
Total number of digital professionals
Percentage of female employees working
as managers and Group Masters
0.80%
1,000
3.9%
1.07%
1,206
3.8%
(¥ billion)
(stocks)
(¥ billion)
200
150
100
50
0
178.6
156.4
61
123.2
123.2
60
117.7
56
88.1
43
33
80
70
60
50
40
30
40
30
20
10
0
20.5
18.1
7.4
38.1
Cumulative total for
five fiscal years
¥112.9 billion
28.8
2018 2019 2020
2021
2022
(FY)
2018 2019 2020
2021
2022
(FY)
Fiscal year-end amounts of strategic sharehold-
ings on the balance sheets (left scale)
Number of stocks (right scale)
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Risk Management
89
Basic concept
We are accelerating the global expansion of the Asahi Kasei
Group’s diverse operations in three sectors. Meanwhile, the operat-
ing environment has become highly volatile. The emergence of new
and more complex risks threatens to have a substantial impact,
which makes it necessary for us to grasp and manage risks from
the broader perspective of group management. In fiscal 2022 we
adopted a major revision to our risk management framework.
Risk Management Framework and Roles of Constituents
Audit &
Supervisory Board
Audit
Coordination
Reporting
Internal Audit
Department
Reporting
Board of Directors
Reporting
Oversight
President
Hiroki Ideguchi
Director, Senior Executive Officer
Executive Officer for Risk
Management & Compliance
My role in the risk management framework
Our Risk Management Team, which reports directly to me as the
responsible Executive Officer, keeps track of the activities of each
business unit. In addition to providing direction and support regard-
ing individual risk countermeasures, this team functions as the
organizer for the Risk Management & Compliance Committee, chaired by the President, and ensures
that decisions and instructions from upper management are fully conveyed to each business unit.
Reporting
Instructions
Organizational
functions
Chair:
President
Executive Officer for Risk Management & Compliance
Risk Management Team
Risk Management & Compliance, General Affairs;
Corporate Strategy, etc.
Risk Management
& Compliance
Committee
By having a Risk Management Team comprising members from General Affairs and members
Reporting
Instructions
Reporting
Instructions
from Corporate Strategy, we are able to respond not only to pure risks but also to business opportuni-
ties and risks.
Strengthening risk management in line with business characteristics
Our basic policy is for each organization to manage its own risks autonomously. Among the various
risks, those requiring regular monitoring by the Board of Directors are defined as Material Group Risks,
and those which could impede the annual plans of business units are categorized as Material Business
Risks to be addressed through concerted effort within a given fiscal year.
Flexible management commensurate with individual circumstances is required. In the Material
sector, there is substantial overlap between Material Group Risks and Material Business Risks, and in
the Homes and Health Care sectors, there are many cases in which the business unit directly handles
industry-specific risks such as permits and regulations.
To prevent inadequate risk response due to administrative functions and business units each
expecting the other to take the lead, we have clarified each of their roles and responsibilities, and
strengthened communication among administrative functions and between administrative functions and
business units, ensuring quick and proper response both in normal times and in emergencies.
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
Raising
awareness
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90
Risk Management PDCA Cycle (Material Group Risks and Material Business Risks)
Selection
Criteria
Response
Process
Material Group Risks
Material Business Risks
Material risks with the potential to impede the fulfillment of the Group Mission or the accomplish-
ment 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
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 the Executive Officer for Risk Management
& Compliance, and by the Risk Management Team, through discussion with
corporate administrative functions and business units
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 respon-
sible for specific risk subjects
• 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
Selection
Countermeasure
planning
• Examination of possible risks by business units, incorporation into annual
management plans, and approval by the Board of Directors at the beginning of
the fiscal year
• Planning of risk countermeasures by business units based on management plans
• Support for risk countermeasures from corporate administrative divisions
and the Risk Management Team
Implementation /
reporting
• Implementation of risk countermeasures by business units, 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 & 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
Enhancement Policy for Fiscal 2023
Strengthening risk response capabilities in each organization
Clarification of scope of responsibility
Enhancement of execution
Importance of
strengthening mutual
communication
Risk Management Team as a hub to
strengthen inter-organizational coordination
Business units
Responsibility for responding to risk
occurrences
• Greater sensitivity to risks
• More effective risk countermeasures
Corporate administrative
functions
Responsibility for guidance and
supervision in areas of responsibility
• Heightened awareness as second line of defense
• Enhanced coordination to address risks that span
different areas and to eliminate overlapping
countermeasures
Business units
Risk Management Team
Corporate administrative functions
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 91
FY2023 Material Group Risks and thrust of main initiatives
Material Group Risks
Thrust of Main Initiatives
Risks related to accidents at production sites
(environmental abnormalities, industrial accidents, injuries)
• Reinforcement and enhancement of Life Saving Actions (adherence to activity prohibitions for eliminating serious accidents)
• Improvement of fire prevention technology at individual production sites
• Reinforcement of workplace safety auditing functions and cultivation of environmental safety experts
• Identification of hazard sources at individual production sites, conveyance and education of process safety techniques, thorough implementation of
For more information, see
“Environmental Protection” on page 92
PDCA in response to abnormalities
Risks related to quality-associated misconduct
(data falsification, etc.)
• 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 domestic
and international laws,
regulations, certification
requirements, etc., regard-
ing the environment, safety,
and quality assurance
Risks related to
economic security and
global supply chains
Risks related to cybersecu-
rity and technological infor-
mation management
Environment and safety
Quality assurance
Risks related to tightening of
economic sanctions and export
restrictions (including both
upstream and downstream)
• 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
• 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
Risks related to corporate activi-
ties due to geopolitics
• Setting of risk scenarios for geopolitical emergencies and studying of impacts on business activities such as employee safety, procurement, and sales
• Specification of initial responses and BCP to be carried out under task force in the event of emergency
Human rights risks (including
both upstream and downstream)
• Promotion of business activities in accordance with the Asahi Kasei Group Human Rights Policy
• Fostering an awareness and culture of respect for human rights through human rights due diligence, education and awareness activities, etc.
For more information, see
“Human Rights” on page 93
Feedstock/material
procurement risks
Risks related to cybersecurity
and communications
infrastructure
• Transparency for raw material procurement risks and countermeasure priorities for each business, strengthening of support systems on corporate side
• Diversification of procurement routes and maintenance of appropriate inventory levels for feedstocks used in major products and businesses
• 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
• Implementation of swift and flexible countermeasures to combat ever-evolving cyberattacks through technical measures made possible by installing
security systems and raising and reinforcing awareness regarding security via employee education, etc.
• Planning and implementation of BCP measures aimed at achieving minimum level of IT usage (communication, information access) in the event of
large-scale disaster
Risk of technological
information leakage
• Formulation of technological information management rules and implementation of leak prevention measures based on those rules
• Strengthening of group-wide unified monitoring systems for leak prevention measures
For more information, see
“Information Security” on page 94
Risks related to natural
disasters, pandemics, and
terrorism or conflicts
Headquarters and office districts
( domestic and overseas)
Production sites
(domestic and overseas)
• Recompilation of response policies and manuals based on past cases such as large-scale natural disasters and pandemics, implementation of
training simulating risk actualization
• 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
“Disclosure Based on the TCFD
Recommendations” on page 61
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information 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 around the world.” Based on this mission, we implement environment, safety, and health (ESH)
September, leading to fires that took time to extinguish. In
and quality assurance (QA) activities that recognize health maintenance, process safety, workplace safety
addition, there were 14 minor incidents involving small
and hygiene, quality assurance, and environmental protection as the most important management tasks
fires, smoke, and minor leaks of hazardous materials and
in all business activities. In July 2022, we revised the Asahi Kasei Group ESH & QA and Health &
other substances within plant grounds. In total, 19 indus-
Productivity Management Policy
. Under this revision, we strive for stable and safe operation while
trial accidents, including serious ones, have occurred over
preventing workplace accidents and securing the safety of personnel and members of the community,
the past 10 years.
and are strengthening our environmental safety initiatives.
In light of these circumstances, the ESH & QA
We aim to gain public understanding and trust by ensuring legal compliance and adopting self-imposed
Committee convened in July 2023, reaffirming the impor-
targets to achieve continuous improvement while proactively disclosing information and communicating.
tance of measures to address industrial accidents and
Occurrences of industrial accidents
and serious industrial accidents
(As of July 2023)
Serious industrial accidents
Industrial accidents
4
3
2
1
0
4
3
2
2
2
2
1
1
1
1
’13
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
0
Current Status and Fiscal 2023 Improvement Policy
In fiscal 2022, industrial accidents occurred in April and
92
Management Framework
PDCA Cycle for Safety Management
ESH & QA
Policy
ESH Targets
Targets of Core
Operating Companies,
Regions, Etc.
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
Review
Audit
Review
Audit
Sustainability Report
The Asahi Kasei Group, which aims to realize the two mutually reinforcing aspects
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 per-
spectives of public trust, consideration for the environment, the safety of employ-
Masatsugu Kawase
Director, Senior Executive Officer
Oversight for ESH, QA,
Regional Offices, Manufacturing,
Production Technology Functions
ees and local communities, and our own growth. To prevent such critical
accidents, we are striving 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.
prevent the spread of fires. At the same time, the committee determined on a policy to work toward
understanding conditions at work sites and taking effective measures, given that there is no immediate
remedy. In fiscal 2023, we are prioritizing the following three measures based on this policy.
1) Prevention of industrial accidents through company-wide promotion and establishment of activities to impart
Plan
process safety technology
2) Prevention of the spread of fires, drawing on standards for the installation of fire prevention and extinguish-
Implement
ing equipment in areas at high risk of indoor fires
3) Implementation of a PDCA cycle of activities at work sites with the support and collaboration of experts
In addition, we will focus on developing a culture that strengthens two-way communication with the
goal of fostering a culture of safety among all employees. To this end, we will promote and ingrain the Life
Saving Actions program, a uniform, company-wide safety initiative.
FY2023
Target
Priority Initiatives and Measures
ESH
Process
Safety
Nurture a culture of
safety
• Promotion and ingraining of the Life Saving Actions program (thorough adherence to
rules on prohibited behaviors to eradicate serious occupational accidents)
• Strengthening of two-way communication between management and work sites
Develop human resources
with expertise in ESH
• Establishment of Group Masters in ESH and formulation and implementation of
succession plans for them
Achieve zero serious
industrial accidents
• Company-wide promotion of prioritized activities for imparting process safety technology
• Implementation of highly effective expert audits of work sites
Prevent the spread of
fires
• Promotion of standards established with the participation of experts for installation of
fire prevention and extinguishing equipment
• Implementation of effective emergency drills in cooperation with public fire departments
Please see “Process Safety”
for details on these initiatives.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Compact as well as the UN Guiding Principles on Business and Human Rights and the Children’s Rights
platform to discuss and determine our approach to
and Business Principles. Guided by these frameworks, we will strive to identify and appropriately address
human rights, and to promote the Asahi Kasei Group
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 activities. The Asahi Kasei Group Human Rights Policy, which was established with the
approval of the Board of Directors in fiscal 2021, complies with the International Bill of Human Rights and
the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. The
Asahi Kasei Group has also pledged its support for the Ten Principles of the United Nations (UN) Global
human rights issues in our business activities.
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
(corporate initiatives)
• Compliance with laws and regulations (including on
working hours, wages, safety and hygiene, and
protection of personal information)
• Prohibition of unacceptable conduct (including
discrimination and harassment)
• Respect for the human rights of all people in society
(including customers and communities)
• Education
• Implementation of human rights due diligence
• Commitment to engage with affected stakeholders
• Grievance mechanisms
• Disclosure
93
and human rights among all employees. We will continuously carry out activities to raise awareness of
human rights and strengthen our initiatives going forward.
Management Framework
Establishment of Human Rights Committee
We established a Human Rights Committee as a
Human Rights Policy. The first meeting of the com-
mittee was held in 2022. With public interest in
human rights issues growing each year and various
countries adopting related laws and regulations, the
committee will continually share information pertain-
ing to human rights initiatives.
Board of Directors
(Management Council)
President
Sustainability Committee
Human Rights Committee
Administrative
departments
Strategic
business units
Global Environment Committee
Risk Management & Compliance
Committee
ESH & QA Committee
Due Consideration for Human Rights in Procurement
At the Asahi Kasei Group, Corporate Procurement & Logistics, the Sustainability Strategy Planning
Department, and Group companies work in collaboration to foster awareness of corporate social respon-
sibility (CSR), including respect for human rights. Our Supplier Guidelines stipulate that all suppliers must
respect human rights. In addition to thorough propagation of this knowledge, we conduct a CSR procure-
ment questionnaire on an annual basis to ascertain the status of initiatives in relation to human rights and
labor practices at suppliers.
In fiscal 2022, we also conducted a survey of suppliers regarding procured materials containing tanta-
lum, tin, tungsten, gold, cobalt, and mica in response to the issue of conflict minerals, which have been
identified as a possible source of funding for armed groups linked to inhumane acts. The results of the
survey confirmed that none of the materials procured came under the category of conflict minerals.
Regarding the supply chain, the Asahi Kasei Group’s procurement policy
states that it is a policy
to consider suppliers as important partners. In addition, we formulated Supplier Guidelines
in 2021 to
promote understanding and cooperation among suppliers.
FY2022 CSR Procurement Questionnaire Results (raw material suppliers)
Overall Evaluation
Rank D: 7 3%
Average Scores by Category
1. Corporate
governance
Human Rights Education and Training
The Respect for Human Rights and Diversity section of the Asahi Kasei Group Code of Conduct clearly
Rank C: 28 13%
Rank B: 60 28%
expresses a firm policy against all forms of discrimination and harassment. In fiscal 2022, we held human
* Major suppliers
rights seminars by outside experts for training and raising awareness among senior executives. In addi-
tion, we promoted understanding of respect for human rights through e-learning on the topic of business
Responding
companies*
214
Rank A: 119 56%
9. Harmony with the
local community
8. Supply chain
7. Information
security
100
80
60
40
20
2. Human rights
3. Labor
4. Environment
6. Product safety and
quality assurance
5. Fair corporate activities
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
94
Compliance / Information Security
Compliance
Policy and Management Frame
The Asahi Kasei Group positions compliance as a priority issue of materiality from the perspective of value
creation. 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 violations, and the operational status of the Compliance Hotline.
Awareness of the Code of Conduct
Group companies in Japan maintain an understanding of the status of compliance through questionnaires on the issue
and regular exchanges of opinions in small groups—such as sections and subsections—using examples of compliance
violations, which help promote awareness and understanding of compliance. In fiscal 2021, the compliance 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 expand and strengthen compliance
activities globally.
Establishment of the Group Principles
As Asahi Kasei’s business becomes more diversified and global, legal requirements and public expectations around the
world are increasingly complex and demanding. The Group Principles were established as basic principles to be applied
to each business and region based on these common standards. The Group Principles form the basis of ongoing efforts
to develop the optimal system of Group management.
Compliance Hotline
The Asahi Kasei Group operates a Compliance Hotline in order to promptly collect information on compli-
ance violations and take measures in response. A wide variety of reports and consultations are received,
including from suppliers and their employees, with the designated office or an investigation and response
team carrying out investigations depending on the nature of the reports or consultations. The Executive
Officer for Risk 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 2022):
85 reports (2 of which were in relation to human rights issues, such as discrimination and harassment)
Prevention of Bribery
The Asahi Kasei Group has endorsed the United Nations Global Compact and declared that it will work to
prevent 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 pre-
consistently across the entire Asahi Kasei Group. Accordingly, Group companies around the world formulate rules suited
vention 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
Cybersecurity
Cybersecurity measures have become increasingly important due to the sharp rise and growing sophisti-
digital transformation (DX). Accordingly, we formulated the Asahi Kasei Group Information Security
cation of cyberattacks. The Asahi Kasei Group began operating a security operation center (SOC)1 utilizing
Policy
with the aim of ensuring and further enhancing information security. Regarding the information
advanced security systems, such as endpoint detection and response (EDR),2 to prevent such cyberat-
security framework, we have established a specialized internal organization (the Security Center) for the
tacks. In addition, we devote efforts to employee awareness activities, including carrying out targeted
implementation of information security measures at all Group companies in Japan and overseas from the
email attack drills several times a year, as most cyberattacks originate from suspicious emails, and imple-
perspectives of both corporate governance and technology.
menting regular information security training.
1 A SOC is an organization that monitors security. It receives alerts and other intelligence from security tools and investigates the impact
scope and severity of attacks.
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 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Communication with Stakeholders
95
The Asahi Kasei Group’s businesses are built on relationships of trust with stakeholders. We believe that understanding the requirements and meeting the expectations of a diverse range of
stakeholders—including customers, shareholders and investors, suppliers, community members, the general public, and employees—will improve our corporate value. Accordingly, we
have created a variety of communication opportunities to ensure that dialogue with stakeholders further enhances our business activities.
Main Stakeholders and Communication Opportunities
• Support by marketing and sales personnel
• Provision of information on products
and services via website
• Addressing of telephone, website,
and other inquiries
Customers
• General Meetings of Shareholders,
various briefings for investors
• Individual meetings, information disclosure
via website
Shareholders
and investors
• Addressing of telephone, website,
and other inquiries
• Safety discussion forums
and other gatherings, CSR questionnaires
• Whistle-blowing system
(Compliance Hotline)
Suppliers
Communities
and society
• Various training programs and meetings,
communication between employees
and management
• In-house magazine and intranet
Employees
• Whistle-blowing system
(Compliance Hotline)
Promoting Dialogue Focused on Improving Corporate Value
Led by its senior management, Asahi Kasei proactively endeavors to disclose information and engage in two-way communication to allow
shareholders and investors in Japan and overseas to gain an understanding of its road map, including the Asahi Kasei Group’s vision,
management strategies, and corporate governance, for achieving sustainable growth of corporate value.
In fiscal 2022, we held briefings on sustainability (such as our response to climate change and human resource strategies), intellectual
property strategies, DX strategies, and other topics, in addition to management briefings, earnings results briefings (quarterly), and business
briefings, disclosing details of them on our website. We conduct approximately 277 individual meetings annually, engage in dialogue with
passive investors on the topic of shareholder relations, and hold many meetings and other forums on non-financial information, such as ESG,
intellectual property, and intangible assets. We strive to improve information disclosure based on the views of shareholders and investors by
receiving feedback in response to various briefings, meetings, disclosure materials, and other documents. For overseas investors, we provide
full disclosure in English on our website and proactively conduct meetings, primarily online conferences.
Senior management proactively promotes communication to improve corporate value over the medium to long term by making presenta-
tions at briefings and through meetings, small meetings, and other forums. In these ways, we accelerate the transformation of our business
portfolio and improve KPIs while taking into account the disposition of the stock market—such as for further improvement of capital effi-
ciency—which are identified through dialogue.
Establishing the Miyazaki Prefecture Digital Human Resource Development Consortium
ment of digital human resources across industry, government, and academia.
Although issues including the ageing population and labor shortages are becoming increasingly
serious in Miyazaki Prefecture, it has abundant tourism resources and thriving industries, such as
agriculture, forestry, fisheries, and livestock. The consortium believes leveraging digital technology
can further enhance the prefecture’s appeal.
The consortium will begin by operating programs for students and working adults, respectively,
and expand the scope of its activities by promoting this initiative through a concerted industry–
government–academia effort, with each organization utilizing engagement and its own strengths to
develop human resources who will drive digitalization within Miyazaki Prefecture.
• Regular community networking events
• Community contribution activities
In May 2023, five organizations, including Asahi Kasei, established a consortium to develop digital human resources in Miyazaki Prefecture,
where our company was founded and a main location of our manufacturing sites. The consortium aims to address issues in the prefecture and
contribute to regional revitalization by promoting efforts to popularize, spread, and improve the quality of digital technology through develop-
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Corporate
Information
97 Consolidated Financial Statements
102
Corporate Profile / Stock Information
103
Information Disclosure
Asahi Kasei Report 2023
9696
Name
Suriyawong Pramsamai
Company
Daramic (Thailand)
Country/region
Thailand
06 97
Consolidated Financial Statements
Consolidated Balance Sheets
Asahi Kasei Corporation and Consolidated Subsidiaries
March 31, 2023 and 2022
ASSETS
Current assets:
Millions of yen
2023
2022
Cash and deposits
Notes and 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
¥ 251,181
442,692
310,380
162,255
169,918
154,335
(2,567)
1,488,195
¥ 244,641
434,595
252,521
146,120
141,608
117,195
(2,471)
1,334,209
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
663,642
(347,877)
315,765
1,611,495
(1,313,694)
297,801
69,232
12,017
(6,457)
5,560
120,299
188,994
(125,950)
63,045
871,701
368,089
368,695
736,784
212,611
8,466
28,267
25,836
45,916
37,248
(498)
357,846
1,966,332
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
Thousands of
U.S. dollars*
2023
$ 1,880,942
3,315,052
2,324,247
1,215,029
1,272,413
1,155,721
(19,223)
11,144,189
4,969,612
(2,605,040)
2,364,572
12,067,508
(9,837,457)
2,230,051
518,436
89,988
(48,353)
41,635
900,846
1,415,261
(943,163)
472,106
6,527,640
2,756,395
2,760,933
5,517,328
1,592,115
63,397
211,674
193,470
343,837
278,928
(3,729)
2,679,691
14,724,667
Total assets
¥ 3,454,526
¥ 3,349,075
$25,868,848
Detailed Consolidated Financial Statements are available at the following link:
https://www.asahi-kasei.com/ir/library/financial_briefing/pdf/2303statements.pdf
LIABILITIES AND NET ASSETS
Liabilities:
Current liabilities:
Notes and accounts payable–trade
Short-term loans payable
Commercial paper
Current portion of bonds payable
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
(2023—7,864,299 shares, 2022—6,640,935 shares)
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on other securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Commitments and contingent liabilities
Total liabilities and net assets
Millions of yen
2023
2022
¥ 180,560
196,032
124,000
40,000
6,766
147,163
17,491
72,948
80
8,410
4,240
3,788
110,683
912,163
170,000
409,424
28,526
27,767
339
4,309
15,910
128,708
22,703
38,671
846,355
1,758,517
103,389
79,841
1,142,325
(7,426)
1,318,129
52,310
72
265,013
25,397
342,793
35,087
1,696,009
¥ 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
Thousands of
U.S. dollars*
2023
$ 1,352,104
1,467,965
928,561
299,536
50,666
1,102,014
130,979
546,263
599
62,977
31,751
28,366
828,838
6,830,635
1,273,027
3,065,928
213,614
207,930
2,539
32,267
119,140
963,816
170,009
289,584
6,337,839
13,168,466
774,217
597,881
8,554,179
(55,609)
9,870,668
391,718
539
1,984,521
190,183
2,566,969
262,745
12,700,382
¥3,454,526
¥3,349,075
$25,868,848
* 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 ¥133.54 = US$1 prevailing on March 31, 2023, has been used.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Consolidated Statements of Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2023 and 2022
Consolidated Statements of Comprehensive Income
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2023 and 2022
98
Net income (loss)
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
2023
2022
Thousands of
U.S. dollars*
2023
¥ (89,370)
¥163,834
$(669,238)
(13,706)
414
95,343
30,593
2,544
115,188
¥ 25,818
¥ 23,452
2,367
(25,746)
5
114,406
5,403
3,599
97,668
¥261,502
¥258,322
3,180
(102,636)
3,100
713,966
229,092
19,050
862,573
$ 193,335
$ 175,618
17,725
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
Foreign exchange loss
Costs associated with idle portion of facilities
Other
Total non-operating expenses
Ordinary income
Extraordinary income:
Gain on sales of investment securities
Gain on sales of noncurrent assets
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
Business structure improvement expenses
Total extraordinary loss
Income (loss) before income taxes
Income taxes—current
—deferred
Total income taxes
Net income (loss)
Net income (loss) attributable to non-controlling interests
Millions of yen
2023
¥2,726,485
1,952,709
773,776
645,424
128,352
2022
¥2,461,317
1,691,549
769,769
567,122
202,647
3,896
4,021
923
5,210
14,050
5,907
2,287
3,300
9,371
20,867
121,535
32,201
729
8,814
–
41,744
2,805
12,517
189,446
7,092
13,326
225,186
(61,906)
56,118
(28,654)
27,464
(89,370)
1,942
1,364
4,332
8,878
7,088
21,663
3,643
–
850
7,764
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
Thousands of
U.S. dollars*
2023
$20,416,991
14,622,652
5,794,339
4,833,189
961,150
29,175
30,111
6,912
39,015
105,212
44,234
17,126
24,712
70,174
156,260
910,102
241,134
5,459
66,003
–
312,595
21,005
93,732
1,418,646
53,108
99,790
1,686,281
(463,576)
420,234
(214,572)
205,661
(669,238)
14,542
Net income (loss) attributable to owners of the parent
¥ (91,312)
¥ 161,880
$ (683,780)
* 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 ¥133.54 = US$1 prevailing on March 31, 2023, has been used.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2023 and 2022
99
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
¥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
Millions of yen
Balance at March 31, 2022
Changes during the fiscal year
Dividends from surplus
Net income (loss) attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
Capital increase of consolidated subsidiaries
Net changes of items other than shareholders’ equity
Restated balance
Changes during the fiscal year
Dividends from surplus
Net income (loss) attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Capital increase of consolidated subsidiaries
Net changes of items other than shareholders’ equity
(48,575)
(91,312)
(139)
25
0
(46)
(1,414)
208
(48,575)
(91,312)
(1,414)
208
(139)
25
(46)
(48,575)
(91,312)
(1,414)
208
(139)
25
(46)
(13,977)
(13,977)
¥52,310
414
414
97,789
97,789
30,538
30,538
114,764
114,764
3,682
3,682
118,446
(22,806)
¥ 72
¥265,013
¥ 25,397
¥342,793
¥35,087
¥1,696,009
Millions of yen
Total changes of items during the period
–
(46)
(140,000)
(1,207)
(141,253)
Balance at March 31, 2023
¥103,389
¥79,841
¥1,142,325
¥(7,426)
¥1,318,129
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
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
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
(47,187)
161,880
(371)
0
245
(412)
125
(47,187)
161,880
(412)
125
(371)
245
(47,187)
161,880
(412)
125
(371)
245
(25,600)
(25,600)
5
5
116,763
116,763
5,274
5,274
96,443
96,443
4,347
4,347
100,789
215,069
Total changes of items during the period
–
245
114,321
(287)
114,279
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
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2023 and 2022
100
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
$774,217
$598,225
$ 9,602,554
$(46,570)
$ 10,928,418
$ 496,383
$(2,554)
$1,252,247
$ (38,505)
$1,707,571
$235,173
$12,871,162
Thousands of U.S. dollars*
Balance at March 31, 2022
Changes during the fiscal year
Dividends from surplus
Net income (loss) attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
Capital increase of consolidated subsidiaries
Net changes of items other than shareholders’ equity
(363,749)
(683,780)
(1,041)
187
(363,749)
(683,780)
(10,589)
(10,589)
1,558
1,558
(1,041)
187
(344)
0
(344)
(104,665)
(363,749)
(683,780)
(10,589)
1,558
(1,041)
187
(344)
886,970
(170,780)
3,100
3,100
732,282
228,681
859,398
732,282
228,681
859,398
27,572
27,572
Total changes of items during the period
–
(344)
(1,048,375)
(9,038)
(1,057,758)
(104,665)
Balance at March 31, 2023
$774,217
$597,881
$ 8,554,179
$(55,609)
$ 9,870,668
$ 391,718
$ 539
$1,984,521
$190,183
$2,566,969
$262,745
$12,700,382
* 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 ¥133.54 = US$1 prevailing on March 31, 2023, has been used.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information Consolidated Statements of Cash Flows
Asahi Kasei Corporation and Consolidated Subsidiaries
Years Ended March 31, 2023 and 2022
Millions of yen
Thousands of
U.S. dollars*
2023
2022
2023
Millions of yen
Thousands of
U.S. dollars*
2023
2022
2023
101
Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
¥ (29,778)
¥ 65,632
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
Proceeds from share issuance to non-controlling interests
Cash dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase (decrease) in cash and cash equivalents resulting from
changes in scope of consolidation
Cash and cash equivalents at end of year
11,000
209,648
(75,461)
50,000
(3,665)
(1,415)
208
(48,575)
1,499
(1,371)
(163)
(149)
111,780
15,744
4,744
242,948
29,000
896
(51,094)
50,000
(2,298)
(412)
125
(47,187)
–
(2,190)
–
(152)
42,321
21,027
25,600
216,235
$ (222,989)
82,372
1,569,927
(565,082)
374,420
(27,445)
(10,596)
1,558
(363,749)
11,225
(10,267)
(1,221)
(1,116)
837,053
117,897
35,525
1,819,290
212
¥ 247,903
1,112
¥ 242,948
1,588
$1,856,395
Cash flows from operating activities:
Income (loss) before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in provision for grant of shares
Increase (decrease) in provision for periodic repairs
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for removal cost of property,
plant and equipment
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expense
Equity in earnings of affiliates
(Gain) loss on sales of investment securities
(Gain) loss on valuation of investment securities
(Gain) loss on sale of property, plant and equipment
(Gain) loss on disposal of noncurrent assets
(Increase) decrease in notes and accounts receivable–trade,
and contract assets
(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable–trade
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Other, net
Subtotal
Interest and dividend income, received
Interest expense paid
Income taxes (paid) refund
Net cash provided by (used in) 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 of loans receivable
Collection of loans receivable
Other, net
¥ (61,906)
138,956
189,446
37,695
(279)
2,585
198
2,951
(5,838)
(7,917)
5,907
(923)
(32,201)
2,805
(729)
12,517
8,405
(84,053)
(7,949)
(5,167)
8,040
(8,982)
193,563
13,666
(5,859)
(110,565)
90,804
(5,209)
3,702
(151,973)
7,796
(20,185)
(7,352)
43,200
(78,420)
(6,661)
2,132
(613)
¥ 215,121
119,738
6,811
28,391
60
(502)
233
(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
$ (463,576)
1,040,557
1,418,646
282,275
(2,089)
19,357
1,483
22,098
(43,717)
(59,286)
44,234
(6,912)
(241,134)
21,005
(5,459)
93,732
62,940
(629,422)
(59,525)
(38,693)
60,207
(67,261)
1,449,476
102,336
(43,874)
(827,954)
679,976
(39,007)
27,722
(1,138,034)
58,380
(151,153)
(55,055)
323,499
(587,240)
(49,880)
15,965
(4,590)
Net cash provided by (used in) investing activities
(213,584)
(221,019)
(1,599,401)
* 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 ¥133.54 = US$1 prevailing on March 31, 2023, has been used.
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information
Corporate Profile / Stock Information (as of March 31, 2023)
Corporate Profile
Company Name
Asahi Kasei Corporation
Paid-in Capital
¥103,389 million
102
Employees
48,897 (consolidated) 8,787 (non-consolidated)
Founding
May 25, 1922
Establishment
May 21, 1931
Asahi Kasei Group Offices
Asahi Kasei Corporation
Core Operating Companies
Tokyo Head Office
Hibiya Mitsui Tower
1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006 Japan
Tel: +81-(0)3-6699-3000 Fax: +81-(0)3-6699-3161
Asahi Kasei (China)
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 No. 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
Room#1705-1706, 17th Floor Singha Complex Building,
1788 New Petchaburi Road, Bang Kapi,
Huai Khwang, Bangkok 10310 Thailand
Tel: +66-(0)21-634-944
Asahi Kasei Microdevices
Hibiya Mitsui Tower
1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006 Japan
Tel: +81-(0)3-6699-3933
Asahi Kasei Homes
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
205,670
Largest shareholders
Percentage of
equity (%)
The Master Trust Bank of Japan, Ltd. (trust account)
Custody Bank of Japan, Ltd. (trust account)
JP Morgan Chase Bank 385632
Nippon Life Insurance Company
Asahi Kasei Group Employee Stockholding Assn.
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
Meiji Yasuda Life Insurance Company
Note: Percentage of equity ownership after exclusion of treasury stock
15.49
6.14
3.41
2.95
2.71
1.83
1.73
1.43
1.43
1.33
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information Information Disclosure
103
Investor Relations
In addition to financial results and management briefing materials, the For Investors section of our website features a wide variety of infor-
mation for investors in an easy-to-understand format.
https://www.asahi-kasei.com/ir/
Sustainability
The Sustainability section of our website presents information on our sustainability from the aspects of the environment, society, and gov-
ernance (ESG). It covers initiatives, systems, and data regarding ESG issues.
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/
CDP Climate Change Reporting
https://www.asahi-kasei.com/jp/sustainability/environment/climate_change/pdf/climate_change_01.pdf
CDP Water Security Reporting
https://www.asahi-kasei.com/jp/sustainability/environment/water_use/pdf/water_use_01.pdf
Inclusion in Socially Responsible Investment Indexes (as of 2023)
• FTSE4Good Index
• MSCI ESG Leaders Indexes
• FTSE Blossom Japan Index
• MSCI Japan ESG Select Leaders Index
• FTSE Blossom Japan Sector Relative Index
• MSCI Japan Empowering Women Index (WIN)
• S&P/JPX Carbon Efficient Index
• Morningstar Japan ex-REIT Gender Diversity Tilt Index
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 “company
with particularly advanced environmental programs.”
2022
Selected as a DX Stock
In 2023, Asahi Kasei was selected as a Digital Transformation (DX) Stock, in an initiative con-
ducted jointly by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange, for
the third consecutive year.
Recognized as “White 500” for 2023 (Large Enterprise Category)
Asahi Kasei was selected as a “White 500” enterprise under the 2023 Certified Health &
Productivity Management Outstanding Organizations Recognition Program, conducted by the
Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi.
Hibiya Mitsui Tower 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006 Japan
https://www.asahi-kasei.com/
Asahi Kasei Report 2023Value CreationGrowth StrategyAsahi Kasei’s IdealsStrengthening of Corporate GovernanceStrengthening Our Foundation for GrowthCorporate Information