“For Tomorrow 2015”Mid-term Management Initiative

(FY 2011–2015)progress and outlook

May 27, 2014Toshio Asano

PresidentAsahi Kasei Corporation

1

1. Position of FY 2014(1) Advancing “For Tomorrow 2015”(2) Considering growth strategy for

FY 2016 onward“Contributing to the World through Innovation”

2. Actions taken on April 1, 2014(1) Governance configuration enhanced (2) R&D configuration reorganized

2

Strategic overview

Megatrends Group Mission and Values

Creating for Tomorrow – the Asahi Kasei Group is creating new things for the future based on the perspectives of “living in health and comfort” and “harmony with the natural environment.”

1. Business Strategy 2. Reformation of corporate systems

Promotion of “one AK” management

1. Global business expansion

2. Creation of new businesses

3. Propagation of our mission, values, and vision

4. Human resource policies

5. Management control, resource allocation

Pursuit of growth1. Expansion of world-leading

businesses2. Creation of new value for society

Promotion of businesses based on living in health and comfort and harmony with the natural environment

1) Environment/energy-related2) Residential living-related3) Health care-related

Basic Strategy

Framework of basic strategy

Streamlining project for improved profit structure3

Enhanced governance configuration

Health CareHomes &

ConstructionMaterials

Chemicals & Fibers

Electronics(electronic materials,electronic devices)

Synergy Synergy

SynergySynergy

Increasing earningsAccelerating innovation4

(¥ billion)

FY 2012 FY 2013 FY 2014 forecast

Total H1 H2 Total H1 H2 Total

Net sales 1,666.6 919.0 978.8 1,897.8 973.0 1,043.0 2,016.0

Operating income 92.0 74.3 69.1 143.3 67.0 83.0 150.0

Ordinary income 95.1 72.9 70.0 142.9 67.0 84.0 151.0

Net income 53.7 46.6 54.6 101.3 39.0 51.0 90.0

5

FY 2013 results and FY 2014 forecast (1)

61 In the Critical Care business category, results for FY 2012 were included beginning on April 27, 2012, while results are subject to consolidation

throughout the entire period beginning with FY 2013.

Sales (¥ billion)FY 2012Total H1 H2 Total H1 H2 Total

Chemicals & Fibers 794.2 456.8 455.7 912.5 476.0 500.0 976.0Homes & Construction Materials 537.7 266.2 323.2 589.4 287.0 324.0 611.0Electronics 131.1 74.7 70.3 145.0 76.0 76.0 152.0

Pharmaceuticals & devices 133.5 75.8 76.8 152.5 76.0 82.0 158.0Critical Care1 52.1 37.5 42.3 79.8 46.0 52.0 98.0

Health Care 185.6 113.3 119.1 232.4 122.0 134.0 256.0Others 18.0 8.0 10.5 18.5 12.0 9.0 21.0

1,666.6 919.0 978.8 1,897.8 973.0 1,043.0 2,016.0

Operating incomeFY 2012Total H1 H2 Total H1 H2 Total

Chemicals & Fibers 27.0 27.6 19.9 47.4 26.5 32.5 59.0Homes & Construction Materials 58.2 29.6 38.9 68.5 28.5 32.5 61.0Electronics 2.8 9.3 4.9 14.2 7.0 8.0 15.0

15.9 16.4 13.9 30.3 13.0 16.0 29.0Gross operating imcome before PPA impact 7.3 4.6 5.0 9.6 5.6 7.0 12.6PPA impact2 (11.0) (6.6) (6.4) (13.1) (6.1) (6.0) (12.1)

(3.7) (2.0) (1.5) (3.5) (0.5) 1.0 0.5Healthe Care 12.3 14.3 12.4 26.7 12.5 17.0 29.5Others 2.2 0.8 0.9 1.7 0.5 1.0 1.5Corporate expenses and eliminations (10.5) (7.3) (8.0) (15.3) (8.0) (8.0) (16.0)

92.0 74.3 69.1 143.3 67.0 83.0 150.0

FY 2014 forecast

FY 2014 forecast

Pharmaceuticals & devices

Critical Care1

Consolidated

Consolidated

FY 2013

FY 2013

2 Impact of amortization and depreciation of goodwill, other intangible assets, etc. from purchase price allocation revaluation.

FY 2013 results and FY 2014 forecast (2)

forecastin May 2013

790.9 794.2 912.5 976.0

498.1 537.7 589.4

611.0 146.1 131.1

145.0 152.0

119.5 185.6

232.3 256.0

0

500

1,000

1,500

2,000

FY 2011 FY 2012 FY 2013 FY 2014 FY 2014 FY 2015

2,0002,016.01,897.8

1,666.61,573.2

Health Care

Electronics

Chemicals & Fibers

Homes & Construction Materials

1,800.0

（¥ billion）

Net sales under “For Tomorrow 2015”

7

latest forecast target

47.627.0

47.559.0

48.2

58.2

68.561.0

6.42.8

14.215.0

8.823.2

39.741.5

-50

0

50

100

150

160.0150.0143.3

92.0104.3

Health Care*

Electronics

Homes & Construction Materials

135.0

“Others” category and corporate expenses and eliminations

8

Amortization of goodwill, etc.*

Operating income under “For Tomorrow 2015”

Chemicals & Fibers

* Health Care includes operating income of Critical Care excluding amortization of goodwill from FY 2012.Amortization of goodwill etc. related to acquisition of ZOLL is shown as “Amortization of goodwill, etc.“

（¥ billion）

FY 2013FY 2012FY 2011 FY 2014latest forecast

FY 2015target

FY 2014forecast

in May 2013

FY 2014–2015 actions toward completion of “For Tomorrow 2015”

Chemicals & Fibers

Achieving results from measures to expand business and to strengthen foundations of petrochemicals• Chemicals: Reaping fruits of investment in world-leading

businesses. Unification of naphtha crackers at end of March 2016.

• Fibers: Growing in hygienic materials. Growing in materials for ethnic garments and in functional materials.

Homes & Construction

Materials

Advancing growth with new lifestyle proposals• Homes: Expanding sales of products with higher degree of

freedom in design such as NEXT HEBEL HAUS™.• Construction Materials: Growing insulation material business.

ElectronicsReinforcing overseas business and expanding applications• Devices: Growth in automotive and infrastructure applications.• Materials: Growth in lithium-ion battery (LIB) separator for both

consumer electronics and automotive applications.

Health Care

Accelerating growth through expansion of ZOLL• Pharmaceuticals: Expanding sales of Teribone™ and

Recomodulin™. • Devices: Advancing global growth.• Critical Care: Global growth of LifeVest™, etc.

Completing “For Tomorrow 2015” to achieve ¥160 billion operating income

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10

Steps toward further growth from FY 2016 onward

* Comprising upper management of Asahi Kasei Pharma, Asahi Kasei Medical, ZOLL, and the holding company.

Chemicals & Fibers

Advancing portfolio transformation• Accelerating growth in performance polymers, performance

chemicals, and consumables.• Development of new process technology.• Development of new applications for existing products.

Homes & Construction

Materials

Adapting to changes in society• Materializing results from HH2015 demonstration house.• Establishment of Residential Synergy Initiative.• Expansion of peripheral operations (remodeling, real estate, other

services for owners, etc.)

ElectronicsCommercializing businesses from “For Tomorrow” project• Developing applications and advancing commercialization.• Full-scale business expansion for both devices and materials in

automotive field.

Health Care

Growing to become the 3rd main pillar of business with Chemicals and Homes• Advancing growth strategy through Health Care Council*.• Advancing drug discovery research, reinforcing the product

pipeline.

Reorganized R&D configuration

From FY 2011“For Tomorrow” projects

• Environment & Energy

• Residential Living

• Health Care

From FY 2014• “New Business Development” changed

to “Corporate Research & Development”• “Group Synergy” projects• R&D at core operating companies

Newfields

Peripheralto

establishedbusiness

Near-term FutureDegree of certainty of market growth

“Group Synergy”projects

Energy & Environment R&D Center

Residential Synergy Initiative

Healthcare R&D Center

Core operating company R&D

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Core operating company R&D

"For Tomorrow"

projects

Advanced research

laboratories

Newfields

Peripheralto

establishedbusiness

Near-term Future

FY 2011

FY 2012

FY 2013

FY 2014 plan

Non-linear growth

measures (FY 2011–FY 2013)

Strategic investment for growth

Investment in existing businesses

¥550 billion

Concept for ¥1 trillion of investment during “For Tomorrow 2015”(total for 5 years)

Further growth(new operations, M&A)

¥250 billionFY 2014 budget (decision-adopted basis)approx. ¥120 billion

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¥450 billion

Decisions adopted in FY 2011–FY 2013• Acquisition of ZOLL• Acquisition of Crystal IS;

construction of initial production plant for UV LEDs

• Establishment of joint venture for lithium ion capacitors (LICs)

Total approx. ¥200 billion

Decisions adopted in FY 2011• Capacity increase for S-SBR in Singapore• Capacity increase for acetonitrile in Korea• Capacity increase for insulation panels• Research complex for pharmaceuticals

Decisions adopted in FY 2012• Acquisition of sales rights for

overactive bladder therapeutic drug• Capacity increase for Bemberg™• Overseas expansion of Hipore™

Decisions adopted in FY 2013• Acquisition of full ownership of

Tenac™ JV in China• Capacity increase for polycarbonate

diol (new plant in China)• Overseas expansion of Hipore™

Bemberg™ regenerated cellulose fiber• Application development as a world-only productDevelopment of markets in ethnic garments, major apparel brands, Europe, China

• Expansion of plant (Nobeoka), 10% capacity increase

Acrylonitrile (AN) material for ABS resin and acrylic fiber• Start of commercial production at propane-process plant in Thailand

• Start-up of additional line in Korea• Closure of older lines in Japan• Strengthening of position as the top supplier in Asia

2010 2012 2014

Asahi Kasei production capacity for AN

200 kt in Thailand

245 kt in Korea750 kt

965 kt 960 kt

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Capturing market growth, strengthening market position

Roica™ elastic polyurethane filament• Global development of brand for high-function/high-quality product

• Expanding in hygienic applications, strengthening Southeast Asian operations

Roica™ plants

Japan

TaiwanThailand

GermanyChina

Development of world-leading businesses (1)

2010 2014

14

Asahi Kasei plants for DF

Fuji(coating/slitting)

Suzhou and Changshu(coating/slitting)

Taiwan(slitting)

S-SBR synthetic rubber for fuel-efficient tires• Plants in SingaporePhase 1: completion of 50 kt/y plantPhase 2: new 50 kt/y plant under construction

• Receipt of Pirelli Supplier Award 2013

Asahi Kasei production capacity for S-SBR

Domestic plants

Phase 1 plant in Singapore

Phase 2 S’poreplant und. const.

Global market forecast: 490 kt

Production capacity 62 kt

130 kt

50 kt

Hipore™ lithium-ion battery separator• Start-up of new line in Hyuga• Growth in high-function products• Expanding overseas supply capabilityExpansion of processing capacity in KoreaCompletion of processing facility in China

Photosensitive dry film (DF)for printed wiring boards• Development in ChinaEstablishment of technology center in SuzhouStart-up of new plant in Changshu(120 million m2/y capacity)

• Continuing expansion of sales and production in line with market growth

0

10

20

30

2011 2015forecast

2020forecast

2025forecast

2030forecast

(million/year)

Fuel cell (FCV)

Battery electric (BEV)

Plug‐in hybrid (PHEV)

Hybrid electric (HEV)

Development of world-leading businesses (2)

Global electric-driven vehicle demand forecast (Asahi Kasei est.)

Strengthening foundations in petrochemicals, transforming the portfolio

Strengthening foundations of petrochemical operations in Japan• Unification of naphtha crackers with Mitsubishi Chemical Corp.

(end of March 2016)• Structural improvement of styrene monomer, acrylonitrile-butadiene-styrene

(ABS) resin, and styrene-butadiene latex businesses (during FY 2015)• Closure of AN plant in Kawasaki (August 2014)

Concept for domestic operations• Optimized production infrastructure • Developing leading-edge petrochemical technology

Measures to secure stable, high earnings in Chemicals• Investing in new businesses, application development, and growth fields• Advancing world-leading businesses: AN and S-SBR• Further expansion in Asia and North America: intermediates for high-

performance polyurethanes (Duranate™ and Duranol™), plastic compounds, etc.

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Chemicals & Fibers (1)

Residential LivingStrengthening consumables

Alignment with new values

Regenerated cellulose fibersFunctional material:Bemberg™

Facial masks:Bemliese™

Health CareStrengthening pharma-related business

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Business base for various developments

Environment & Energy (automotive-related)

• Intermediates• Functional chemicals for drug manufacture

• Drug packaging

Expanding in diaper applicationsSpunbond nonwovens and Roica™Meeting needs of the ageing society

Reducing vehicle weight Enhancing comfort and safety• Engineering plastics

Compounds to replace metal• Nonwovens

Reducing weight of seats

• Leona™ filamentGrowth in airbags

• Duranate™Material for low VOC paint

Cellulose nanobeads for diagnostics

Chemicals & Fibers (2)

Homes & Construction Materials

Residential Living

17

New lifestyle proposals

0

50

100

150

200

2010 2011 2012 2013 2014forecast

Real estateRemodeling

2011 2012 2013 2014

Expansion of insulation material businessAnnual growth ≥10%

Enhancing Hebel Haus™ businessLifestyle proposals

•Proposals for urban living, earthquake resistance, inheritance strategy

•Studying overseas business

Further expansion of real estate and remodeling operations

Expansion of other peripheral operations•Other services for owners•Materializing results from HH2015 demonstration house

Expanding construction materials businessMeeting needs for enhanced infrastructure

•Demand from reconstruction from earthquake

•Preparation for Tokyo Olympics•Meeting needs of urbanization, ageing society, etc.

Insulation materials

•Completion of new Neoma™ production line

•Energy efficiency and comfort

Sales in ¥ billion

forecast

FY

FY

Environment & EnergyDevices

Electronics

New business

18

Providing solutions, transforming the portfolio

Analyticalapplications

Greater weight in automotive/ infrastructure fields to balance with consumer electronics/smartphones•Sensor technology•Analog-digital conversion technology

Start-up of UV LED businessInitial production plant in Fuji

Expansion in battery field

•Next-generation battery materials •Fuel cell membranes

Development and commercialization of new materialsWire-grid polarization film, etc. based on microfabrication and optical technology

Lithium ion capacitor (LIC) business• JV with FDK Corp.•Next-generation energy storage device

•Growth of Hipore™•Development of other LIB materials

Materials

Water

Air

Food

Health

Air purification,preventing airborne infection

Pure laboratory

water

Waterqualitytesting

Energy Drinkingwater

Industrial andconsumer use

Sterilizationof general

merchandise

Foodapplications

Water sterilizationapplications

Medical applications

Fuel cells,water purification

Health Care

Health Care

19

(Q4 2011 = 100)

(FY 2010=100)

Reinforcement as an engine of growth, becoming the third main pillar of operations

Critical CarePositive consolidated operating income in FY 2014 after amortization of goodwill etc.•Approval of main products in Japan—Thermogard™ temperature management system, LifeVest™ wearable defibrillator, X Series™ defibrillators for professional use

•Continued strong growth for LifeVest™

Accelerated drug discovery and development• Smooth expansion of Teribone™

• Accelerating global Phase III study for Recomodulin™

• Strengthening of product pipeline; Phase III study in Japan for zoledronic acid*

Hemodialysis and therapeutic apheresis:Accelerating expansion with product lineups aligned with needs in different countries and regions

Planova™ virus removal filters and Sepacell™ leukocyte reduction filters:Accelerating development of emerging markets

* bisphosphonate agent for once-yearly injection

FY

Financial metrics after “For Tomorrow 2015”

Execution of “For Tomorrow 2015”

FY 2015 net sales ¥2 trillionFY 2015 operating income ¥160 billionFY 2011-2015 strategic investment ¥1 trillion

20

FY 2012 FY 2013FY 2014(planned)

FY 2015(outlook)

Payout ratio 36.4%  23.5%  26.4% 

Net income per share (EPS)1 ¥38.43 ¥72.48 ¥64

Net income per total assets (ROA)1 3.3%  5.5%  5% 

Net income per shareholdersʹ equity (ROE)1 7.1%  11.7%  9%  10% 

Shareholdersʹ equity per share (BPS)1  ¥581.05   ¥653.15  ¥695 

ROIC1 5.7%  11.7%  7%  7% 

D/E ratio1 0.47  0.33  0.3 0.5

Dividends per share  ¥14  ¥17  ¥17 

1 Approximate figures for FY 2014 and FY 2015.

Toward sustainable growthAdvancing Responsible Care (RC)Environmental protection, product safety, operational safety, workplace safety & hygiene, and employee health as paramount management issues

Streamlining project (enhancing the profit structure)Measures to heighten profitability through greater energy efficiency, higher yield, review of procurement, etc. (from FY 2012)

NEXT project (adoption of new information system)Enhancement and establishment of infrastructure to facilitate greater synergy within the Asahi Kasei Group

Respect for employee individuality• “Action Win-Win”

Reformation of way of working to embody the corporate philosophy• “Share The Values”

Initiative to share the Group Values

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Opening a new phase of growth through “For Tomorrow 2015”

22

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Creating for TomorrowThe commitment of the Asahi Kasei Group:

To do all that we can in every era to help the people of the world

make the most of life and attain fulfillment in living.

Since our founding, we have always been deeply committed to contributing to the development of society,

boldly anticipating the emergence of new needs.

This is what we mean by “Creating for Tomorrow.”