Final Phase of “For Tomorrow 2015” & Concept for the Next Initiative

November 2015Asahi Kasei Corporation

1

1. FY 2014 financial results and FY 2015 forecast

2. Progress of “For Tomorrow 2015”1) Financial performance and primary metrics2) Review of “For Tomorrow 2015” 3) Overview by business sector toward

accomplishment of “For Tomorrow 2015”4) Acquisition of Polypore International, Inc.

3. Outline of the next strategic management initiative1) Basic concepts2) Realignment of business sectors

Contents

2

3

Disclaimer

The forecasts and estimates shown in this document are

dependent on a variety of assumptions and economic

conditions. Plans and figures depicting the future do not

imply a guarantee of actual outcomes.

1. FY 2014 financial results

and FY 2015 forecast

4

(¥ billion)

Net sales 1,897.8 966.9 1,019.5 1,986.4 957.4 1,042.6 2,000.0

Operating income 143.3 70.9 87.0 157.9 84.4 79.6 164.0

Ordinary income 142.9 74.2 92.4 166.5 81.4 80.1 161.5

 Net income attributable to owners of the parent

101.3 49.5 56.1 105.7 47.2 43.8 91.0

FY 2014FY 2013

FY 2015 forecast1

H1 H2 Total H1H2

forecastTotal

Both net sales and operating income increased year-on-year in FY 2014, achieving the highest-ever figures for the second straight year

⇒ Aiming to reach new record highs in FY 2015for the third consecutive year

1 As of November 2015. Beginning with H1 2015, results of Polypore International, Inc. and its consolidated subsidiaries, acquired on August 26, 2015 (US Eastern time), etc. are included.

FY 2014 financial results and FY 2015 forecast (1)

5

(¥ billion)

FY 2013 FY 2014FY 2015(forecast)2

FY 2013 FY 2014FY 2015(forecast)2

Chemicals & Fibers 912.5 954.6 874.0 47.4 64.6 72.0

 Homes & Construction Materials 589.4 603.8 637.0 68.5 63.0 66.5

 Electronics3 145.0 150.4 182.0 14.2 14.3 9.0

Health Care 232.4 257.1 290.0 26.7 30.8 37.0

 Others4 18.5 20.5 17.0 (13.6) (14.9) (20.5)

Consolidated 1,897.8 1,986.4 2,000.0 143.3 157.9 164.0

Operating incomeSales

1 Beginning with FY 2014, the former Chemicals segment and the former Fibers segment are combined as a new Chemicals & Fibers segment, the former Homes segment and the former Construction Materials segment are combined as a new Homes & Construction Materials segment, and the former Health Care segment and the former Critical Care segment are combined as a new Health Care segment.

2 As of November 2015. 3 Beginning with H1 2015, results of Polypore International, Inc. and its consolidated subsidiaries, acquired on August 26, 2015 (US

Eastern time), etc. are included.4 Includes corporate expenses and eliminations.

Financial performance by segment1

6

FY 2014 financial results and FY 2015 forecast (2)

2. Progress of “For Tomorrow 2015”1) Financial performance and primary metrics

2) Review of “For Tomorrow 2015”

3) Overview by business sector toward

accomplishment of “For Tomorrow 2015”

4) Acquisition of Polypore International, Inc.

7

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 & Energy2) Residential Living3) Health Care

Basic Strategy

Framework of basic strategy

Streamlining for improved profit structure8

790.9 794.2 912.5 954.6 874.0

498.1 537.7 589.4 603.8

637.0

146.1 131.1

145.0 150.4 182.0 119.5

185.6

232.4 257.1 290.0

0.0

500.0

1,000.0

1,500.0

2,000.0

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

2,000.01,897.8

1,666.61,573.2

1,986.4 2,000.0（¥ billion）

Net sales under “For Tomorrow 2015”

forecastin November

2015

mid-terminitiativetarget9

Health Care

Electronics

Chemicals & Fibers

Homes & Construction Materials

47.627.0

47.464.6 72.0

48.2

58.2

68.5

63.066.5

6.42.8

14.214.3

19.0

8.823.2

39.7

44.4

51.9

-50

0

50

100

150

“Others” category and corporate expenses and eliminations

Amortization of goodwill, etc.1

Operating income under “For Tomorrow 2015”

1 Amortization of goodwill, etc. related to acquisition of ZOLL and Polypore is excluded from Health Care and Electronics respectively, and shown as “Amortization of goodwill, etc.”

（¥ billion）

FY 2013FY 2012FY 2011 FY 2015forecast

in November 2015

FY 2015mid-terminitiativetarget10

Health Care1

Electronics1

Chemicals & Fibers

Homes & Construction Materials

160.0157.9143.3

92.0104.3

164.0

FY 2014

Primary financial metrics

FY 2011 FY 2012 FY 2013 FY 2014FY 2015

(planned)1

 Dividends per share  ¥14  ¥14  ¥17  ¥19  ¥20 

 Payout ratio 35.1%  36.4%  23.5%  25.1%  30.2% 

 Net income per share (EPS) ¥39.89 ¥38.43 ¥72.48 ¥75.62

 Net income per total assets (ROA) 3.9%  3.3%  5.5%  5.4% 

 Net income per shareholdersʹ equity (ROE)2 8.1%  7.1%  11.7%  10.6%  8.2% 

 ROIC2 6.9%  5.7%  7.7%  7.5%  6.4% 

 D/E ratio2 0.26  0.47  0.33  0.25  0.45

1 As of November 2015.2 Approximate figures for FY 2015.

11

Aiming at continuous dividends increase, with basic standard

for payout ratio of 30%

Investmentfor

expansionR&D

M&A and

alliances

Investment for growth and shareholder returns

Shareholder returnsInvestment for growth

Consistently generating cash flow

12

Investment for growth under “For Tomorrow 2015”

Existing businesses¥540 billion

Acquisition of Polypore

Approx. ¥260 billion FY 2015 budgetApprox. ¥110 billion

Non-linear growth ¥460 billion

FY 2011–FY 2013• Acquisition of Crystal IS• Acquisition of ZOLL• Construction of initial production

plant for UVC LEDs

Total approx. ¥200 billion

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

FY 2012• Acquisition of sales rights for

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

FY 2013• Acquisition of full ownership

of Tenac JV in China• Capacity increase for

polycarbonate diol(new plant in China)

• Overseas expansion of Hipore

FY 2011

FY 2012

FY 2013

FY 2014

FY 2015plan

FY 2014• Capacity increase for spunbond in

Thailand• Capacity increase for Roica in

Thailand• New plastic compound plant in US• New production facility for the active

ingredient of Recomodulin

13

Review of “For Tomorrow 2015”

Basic strategy of “For Tomorrow 2015” Outcome/Review

Pursuit of growth

1. Expansion of world-leading businesses

2. Creation of new value for society1) Environment & Energy2) Residential Living3) Health Care

3. Streamlining for improved profit structure

Acrylonitrile in Korea and Thailand, S-SBR in Singapore, Bemberg, Roica, spunbond in Thailand, Hipore in Korea, photosensitive dry film in China, etc.

1) Environment & Energy- Progress in UVC-LED- Acquisition of Polypore

2) Residential Living- Group-wide study centering on

“HH 2015” demonstration house- Development of innovative lifestyle proposals

corresponding to diversified residential needs3) Health Care

- Acquisition of ZOLL; entry into critical care

- Strengthening of petrochemical operations in Japan- Group-wide implementation of streamlining project

14

Position of FY 2015

Completing “For Tomorrow 2015” and preparingfor the next mid-term management initiative

Forging solid earnings base1) Maintenance/expansion of solid earnings 2) Completion of the streamlining project

Extension of businesses with growth prospects

Steps to create new businesses

15

Overview by business sector (1)Chemicals & FibersChemicals

Enhancement of profitability

Petrochemicals- Establishment of optimum production

configuration and enhancement of competitiveness

Performance polymers- Synthetic rubber

Overseas capacity increase in line with growth in demand

- Engineering plasticsCompounds to replace metal in vehicles

Performance chemicals- Focus on high value–added products such

as functional chemicals and additives

Consumables- Enhancement of profitability

FibersAdvancing global growth

Bemberg regenerated cellulose fiber- Application development as

one-of-a-kind product- Capacity increase

Roica elastic polyurethane filament- Global development of brand for high-

function/high-quality product- Expanding in hygienic applications- Strengthening Southeast Asian

operations

Nonwovens- Offering distinctive products for

wide range of applications- Capacity increase for spunbond in Thailand

Leona nylon 66 filament- Accelerating growth in airbags16

HomesContinuing enhancement of order-built homes and extending real estate and remodeling

Hebel Haus unit homes and Hebel Maisonapartment buildings- Pursuit of high-function/

high-durability homes for urban living

- Innovative lifestyle proposals- Apartment buildings for utilization of

property

Real estate and remodeling- Condominium business based on building

consensus- Leveraging existing Hebel Haus

customer base Enhancement of rental managementExpansion of remodeling

Construction MaterialsExtending insulation materials and foundation systems

Insurance materials- Capacity increase for Neoma high-

performance phenolic foam panels

Foundation systems- Expanding into civil engineering

works, railway stations, etc.,in addition to building construction

Autoclaved aerated concrete (AAC)- Enhancement of profitability

Overview by business sector (2)Homes & Construction Materials

17

UVC-LED- Quality improvement and cost reduction- Studying various applications

Water analysis, water sterilization, medical applications, food applications, etc.

Electronic devicesExtending into automotive and infrastructure applications from consumer electronics and smartphone-related markets

LSIs/compound semiconductors- Delivering value to customers through

solution-proposal approach

Electronic materialsAdvancing global growth and pursuing high added value

Hipore Lithium ion battery separator- Capacity increase- Promotion of high-end products- Overseas processing facilities

Photosensitive dry film (DF)for printed wiring boards- Market development in China

(production bases in Suzhou and Changshu)

- Continuing expansion

Photoproducts- Advancing strategy as Asian market leader,

setting the trend for printing plates

Overview by business sector (3)Electronics

18

February 2015 decision to acquire PolyporeFocusing on growth strategy in high-potential battery separator business

- R&D and production technologies- Marketing- Human resouces, corporate culture

Polypore International, Inc.

Applications- Mobile electronics- Power tools- Eco-friendly vehicles- Energy storage systems

Energy Storage Segment1

Sales: $450 millionOperating income: $87 million (segment income before corporate expenses)

Lithium-ion battery separatorSales: $127 million

Lead-acid battery separatorSales: $323 million

Applications- Automobiles, trucks, and buses- Forklifts- Backup power

Acquisition of Polypore

1 Polypore results for 2014. 19

Consumer electronics(compact storage batteries)

Portable devices Including laptop PCs, tablets, and audio players

Mobile communication devices Cellphones and smartphones

Appliances and tools(storage batteries)

Vacuum cleaners and other appliances Electric bicycles Lawnmowers and gardening tools

Automotive Storage batteries for eco-friendly vehicles Hybrid, plug-in hybrid, and electric vehicles

Energy storage systems

Grid management Backup power

Celgard’s Business Overview

Massive growth potential

Market overview

Notes

Manufacturer of separators for lithium-ion batteries, leveraging advanced technologiesHas strong footing in dry-process separatorsFocusing on eco-friendly vehicles with high growth potential Greater demand for hybrid and electric vehicles in

response to tighter emissions controls and fuel efficiency requirements

Increasing motorization, particularly in emerging countries20

Daramic’s Business Overview

Market environment

Notes

Has firm footing in lead-acid battery separator market Strong supply capability through broad product lineup and global operations

Million units

Global Vehicles in Use/Parc1994–2019 CAGR = 6%

Replacement demand accounts for 80%1 of automotive battery sales Ongoing battery replacement revenues

1 Polypore estimates as of February 2015.

0250500750

1,0001,2501,500

1994 1999 2004 2009 2014 2019

(source: BMI)

E

21

E

PharmaceuticalsExpansion of operation centering on new drugs

Teribone osteoporosis drug- Continuing expansion

Recomodulin recombinant thrombomodulin- Accelerating global clinical study

Advancing new drug development

Critical CareAdvancing global growth

LifeVest wearable defibrillator- Expansion in the US- Accelerating operations in Japan and

Europe

Expansion of acute critical care businesses

Continuing strong growthMedical devices

Strengthening constitution of dialysis-related business and extending bioprocess business

Blood purification (dialysis-related and apheresis products)- Enhancing competitiveness

Bioprocess- Accelerating global growth

0

50

100

150

Sales of ZOLL

FY 2012

Overview by business sector (4)Health Care

(billion ¥)

22

FY 2013 FY 2014 FY 2015forecast

(As of Nov. 2015)

3. Outline of the next strategicmanagement initiative1) Basic concepts

2) Realignment of business sectors

23

Creating new value for society Change in market needs leading to growth

Asahi Kasei- Broad scope of business

- Diverse technologyand human resources

Market- Value for society

- Business fields with growth potential

Pursuing diversified business

24

Ishin-05FY 2003–2005

Selective diversification

Creation ofcash flow

Growth Action – 2010FY 2006–2010

Business portfolio realignment for expansion and growth

Strategic investment(Shifting to growth)

For Tomorrow 2015FY 2011–2015

Expansion of world-leading businesses

Creation of new value for society

Pursuit of growth

Next strategic initiative

FY 2016–2018Pursuit of growth and

profitabilityCreation of new businesses

Growth through diversity

Basic concepts of the next initiative

25

Current Asahi Kasei Corp.

Asa

hi K

asei

E-m

ater

ials

Asa

hi K

asei

C

hem

ical

s

Asa

hi K

asei

Fib

ers

Asa

hi K

asei

Con

stru

ctio

n M

ater

ials

Asa

hi K

asei

Pha

rma

Asa

hi K

asei

Med

ical

ZOLL

Med

ical

Asa

hi K

asei

Hom

es

Asa

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asei

Mic

rode

vice

s

Asahi Kasei Corp.Operating holding company

Operating function Holding company function

Material Homes Health Care

(From April 2016)

Transformation of business sector and corporate configuration (1)

26

Enhancing competitiveness through advancement/integration of “knowledge and technology” and “human resources” within the group, and further accelerating “challenge and creation” toward increased corporate value

Advancement/integration for- Accelerated growth- Enhanced ability to create

new businesses - Heightening specialization and

efficiency

Deploying management in 3 new business sectors with different assignments

Assignment by business sector

Material: Increaced profitability

Homes: Continuous stable growth

Health Care: High growth

Across the group: Enhanced ability

to create new businesses

Transformation of business sector and corporate configuration (2)

27

Toward growth through innovation

1. Growth of businesses Contribution to the world Creation of new value focusing on businesses with

high growth potential

2. Growth of human resources Further promoting “diversity” with respect for

employee individuality Providing a wealth of opportunities for growth,

experience, and self-development Encouraging trans-organizational interactions

3. Compliance and safety Compliance and safety as prerequisites for business

operation28

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.”

29

Reference

30

Chemicals

Health Care

Homes

Fibers

Electronics

Others

ConstructionMaterials

Sales: 2,000.0 Operating Income: 164.0

25.0

5.0

13.0

62.0

59.0

12.0

0.5

587.0

142.0

50.0

17.0

148.0

134.0740.0

(¥ billion)

FY 2015 sales and operating income forecast1by business category2

Chemicals & Fibers44%

Homes & Construction

Materials32%

Electronics 9%

Health Care & Critical Care

15%

Share of sales by segment3

182.0

Critical Care

9.0

31 Share of operating income by segment3

Homes & Construction

Materials36%

Electronics 5%

Health Care & Critical Care

20%

Chemicals & Fibers39%1 As of November 2015.

2 Corresponding to the former operating segments. Figures for operating income by business category include intrasegmenttransactions which are eliminated from the segment totals.

3 Pie charts exclude “Others” category and“corporate expenses and eliminations.”

History of business portfolio transformation, change in sales composition

Bembergregenerated cellulose

Viscose rayon fiber

Acrylic fiber

Nylon fiber Chemicals

Homes & Const. Mat.

Health CareElectronics

Expansion into synthetic fiber businesses

• Construction of petrochemical complex

• Start of housing business

• Start of LSI and photosensitive dry film businesses

• Formation of pharmaceuticals business unit and consolidation with Toyo Jozo Co., Ltd.

• Development of housing business

• Business portfolio restructuring

• Expansion of global businesses

Further growth by adapting to

changing needs of society

Fibers

Homes & Const. Mat.

Chemicals

32

Homes & Const. Mat.

1950 1965 1980

19952010

FY 2014 financial results and FY 2015 forecastby business category1

(¥ billion)

FY 2013 FY 2014FY 2015(Forecast)2

FY 2013 FY 2014FY 2015(Forecast)2

Chemicals 791.6 824.3 740.0 38.9 54.2 59.0

Fibers 120.9 130.3 134.0 8.6 10.5 13.0

Homes 534.4 551.8 587.0 63.0 59.2 62.0

 Construction Materials 55.0 52.0 50.0 5.5 4.1 5.0

 Electronics3 145.0 150.4 182.0 14.2 14.3 9.0

Health Care 152.5 146.5 148.0 30.3 26.7 25.0

 Critical Care 79.8 110.6 142.0 (3.5) 4.1 12.0

 Others4 18.5 20.5 17.0 (13.6) (15.2) (21.0)

Consolidated 1,897.8 1,986.4 2,000.0 143.3 157.9 164.0

Operating incomeSales

1 Corresponding to the former operating segments. Figures for operating income by business category include intrasegmenttransactions which are eliminated from the segment totals.

2 As of November 2015. 3 Beginning with H1 2015, results of Polypore International, Inc. and its consolidated subsidiaries, acquired on August 26, 2015

(US Eastern time), etc. are included. 4 Includes corporate expenses and eliminations.

33

34

Primary investments by business category1

(¥ billion)Depreciation and

FY 2013 FY 2014FY 2015

forecast3FY 2013 FY 2014

FY 2015

forecast3FY 2013 FY 2014

FY 2015

forecast3

Chemicals 30.8 31.9 33.0 31.1 28.8 15.2 15.2

Fibers 8.0 9.8 16.0 5.9 6.8 3.1 3.0

Homes 8.7 9.2 8.0 5.9 6.5 2.2 2.3

Construction Materials 6.4 1.7 1.0 2.2 3.0 0.9 0.8

 Electronics 14.6 11.6 18.0 14.3 13.9 16.4 17.1

Health Care 9.5 6.5 6.0 10.0 8.9 19.7 21.4

 Critical Care 8.7 10.1 15.0 10.0 11.2 6.2 8.3

 Others 1.4 1.4 1.5 1.0 1.1 0.1 0.1 Corporate expenses, assets, and eliminations

4.5 6.9 7.5 5.7 5.9 7.5 7.3

Total 92.4 89.1 106.0 86.1 86.1 94.0 71.1 75.5 85.0

Amortization of goodwill 8.8 9.3     

amortization2Capital expenditures R&D expenditures

1 Corresponding to the former operating segments.2 Amortization of goodwill is excluded and shown separately below the table.3 As of November 2015.4 Beginning with H1 2015, results of Polypore International, Inc. and its consolidated subsidiaries, acquired on August 26, 2015 (US

Eastern time), etc. are included.

4

Petrochemicals Performance polymers

Caustic soda Leona nylon 66 Membranes

Chlorine Tenac POM

Nitric acid Xyron mPPE

Ethylene ABS, SAN Duranate HDI-based polyisocyanate

Propylene Synthetic rubber & elastomer Polycarbonatediol (PCD)

Acrylonitrile Aluminum paste

Styrene SB latex

Cyclohexanol Functionaladditives

Ceolus microcrystalline cellulose

MMA Explosives Explosives

Polyethylene Metal cladding

Polystyrene Saran Wrap cling film

Packaging products

1 Based on results for FY 2014.

Specialty products

Microza MF/UF membranes

Ion-exchange membranes & systems

Share of sales1

Approx. 80% Approx. 20%

Performance chemicals

Consumables

Business portfolio of ChemicalsChemicals & Fibers

35

Main monomer products within Chemicals

Asahi Kasei Chemicals Main competitors

Main applications Asahi Kasei’s position/strengthsCapacity

(kt/y) Company Capacity(kt/y)

Share(%)

Acrylonitrile 960 Ineos 1,345 20 Acrylic fiber, ABS resin; captive use for ABS, adiponitrile

2nd largest producer in the world(150 kt/y plant in Kawasaki closed in Aug. 2014, 100 kt/y plant in Mizushima dedicated to another product)

Styrene 710(currently)

Sinopec Group

Styrolution

Shell

4,222

3,652

2,720

13

11

8

EPS, ABS, SB latex, unsaturated polyester, SBR; captive use for PS, ABS, SB latex, SBR

320 kt/y plant in Mizushima to close in Mar. 2016, business to focus on domestic market and captive use

390(after strengthening3)

Methyl methacrylate

170 Mitsubishi Rayon

1,554 37 MS, MBS, coating materials; captive use for PMMA

Proprietary, cost-competitive C4 process

Adipic acid 170 Invista

Rhodia

650

525

16

13

Polyurethane; captive use for nylon 66

Top-tier producer in Asia

Cyclohexanol 170 BASF

DSM

812

595

8

6

Adipic acid, caprolactam; captive use for adipic acid

Mainly for captive use

1 Asahi Kasei estimate. 2 Share of production capacity, Asahi Kasei estimate.3 Strengthening of petrochemical operations in Japan announced in February 2014.

As of May 27, 2015

1

Chemicals & Fibers

2

36

2010 2012 2013 2015

4

5

6

'09 '10 '11 '12 '13 '14 '15

Acrylonitrile

Global demand forecast (Asahi Kasei estimate)

Basic strategyStrengthening of position as No. 1 supplier in Asian market by establishing optimum production configuration in Asia and enhancing competitiveness

Major growth in Asia

750 kt200 kt in Thailand

245 kt in Korea

Asahi Kasei Group annual production capacity

Current status Future outlookTechnological strength

- No. 1 catalyst technology for propylene process and propane process

- Environmentally superior, efficient production process technology

Further enhancement of catalyst technology for propane process, etc.

Cost-competitiveness

Top level- Plant in Thailand, using

low-cost propane as feedstock

- Tongsuh Petrochemical in Korea (earnings from by-product)

Enhancement of cost-competitiveness including derivative products

Supply capacity No. 1 in Asia Establishment of optimum production configuration in Asia: Japan, Korea, and Thailand

Customer service

No. 1 in the Far East and ASEAN

(million tons)

965 kt total

1,210 kt total

960 kt total

FY

Plant at Tongsuh Petrochemical, AN subsidiary in Korea

Chemicals & Fibers

37

Synthetic rubber: S-SBR

0

50

100

150

200

250

300

2010 2013 2015 20200.0

0.5

1.0

1.5

2010 2015 2020

(million tons)Global demand forecast for S-SBR for fuel-efficient tires

(Asahi Kasei estimate)

In-house production by tire manufacturers

Open market

1 SBR is mainly used for tire tread. S-SBR is the optimum material to enable high fuel efficiency to be achieved while maintaining high grip performance.

Top share in Asian market for solution-polymerized SBR (S-SBR)1 for fuel-efficient tires

Continuous-polymerization process to provide S-SBR with well-balanced fuel efficiency and grip performance

Growing demand for fuel-efficient tires with more stringent environmental standards, especially in developed countries

Capacity expansion mainly overseas, in line with demand growth; new plant in Singapore—50 kt/y in 2013 and 50 kt/y expansion in 2015

Asahi Kasei production capacity for S-SBR for

fuel-efficient tires

Tread

Additional capacity(overseas)

Phase 2Singapore plantPhase 1Singapore plant

Domestic capacity

(thousand tons)

38

Chemicals & Fibers

Global promotion of growth strategy; reinforcement of auto-related businesses- Enhancement of global operations for production (compounding), sales, and technical service (e.g. Construction of second plant for plastic compounds in the US, establishment of sales

subsidiary in Mexico)- Sales expansion for competitive grades of Leona, Tenac, and Xyron for automotive applications

Engineering plasticsChemicals & Fibers

Strategy by product1. Leona nylon 66

Strengthening of businessstructure and enhancement of product and application development

2. Tenac POMProduction and sales expansion of low-VOC products in both Mizushima, Japan, and Zhangjiagang, China.

3. Xyron mPPEDevelopment in OA, PV, automotive, and new applications

4. Stylac ABS, ASCompletion of structuralimprovement

5. PP compoundSales expansion leveraginglaunch of 2nd plant in US andsales subsidiary in Mexico

6. Sunvieo TPV (Thermoplastic vulcanizate)

Accelerating sales activities

Operating sites

Development of global operations2013: Acquisition of full ownership of Tenac JV in Zhangjiagang, China

Jun. 2015: Establishment of sales subsidiary in Mexico

Jan. 2016: Start of operation of second conpound plant in the US (scheduled)

2016 onward: Capacity increase (new plant and/or expansion under study)

Resin plantCompound plantContracted compound plantTechnical service, R&DSales office

Belgium

SuzhouGuangzhou

Hong Kong

Thailand Shanghai

Zhangjiagang

2nd plant in US

Mexico

US

Singapore: XyronJapanKawasaki: SAN Mizushima: Tenac, ABS resinsNobeoka: Leona

39

Business field Product Position

Membranes Microza UF and MF membranes Top-tier world share: No.1 share in the US municipal water treatment market

Aciplex ion-exchange membranes No. 1 world share

Membrane-process electrolysis plants

No. 1 world share (cumulative installed basis)

Performance chemicals

Duranate HDI-based polyisocyanate No. 1 domestic share

Polycarbonatediol (PCD) No. 1 domestic share

PVDC latex, Polydurex silicone-modified acrylic latex

PVDC latex, No. 2 world share: 20%

Acetonitrile No. 1 domestic share

Functional additives Ceolus microcrystalline cellulose No. 1 domestic share

Specialty products in ChemicalsChemicals & Fibers

40

Bemberg regenerated cellulose• Only producer in the world• Global development for wide range of applications such as

linings, functional innerwear, and ethnic garments• Capacity expansion in Nobeoka; start-up in June 2014,

capacity increase by 10%

Roica high-function spandex• Global development of high-function and high-quality brand;

production plants in Japan, Taiwan, China, Thailand, and Germany

Functional nonwovens produced with proprietary technology• Offering distinctive nonwovens made of different materials and by different

production processes for wide range of applications• Capacity expansion for spunbond in Thailand to meet growing

demand in hygienic applications; start-up of additional 20 kt/y line in November 2015, with total capacity doubling to 40 kt/y

Leona nylon 66 filament with superior strength and thermal resistance

• Sales expansion in automotive airbag application in addition to tire cord application

Main products in FibersChemicals & Fibers

41

0

200

400

600

2005 2010 2011 2012 2013 2014 2015

Financial performance and actions in Homes

Unit-homes & apartment buildings• Extension of superiority in three-

story homes and two-generation homes

• Establishment of No.1 position in innovative lifestyle proposals

• Community-specific proposals• Greater product variation• Distinctive products suited to urban

needs

(¥ billion)

Remodeling and other operations• Enhanced product proposal

capability; i.e. remodeling for energy conservation

• Renovation

Operating income¥28.2 B

Sales growth trendIncreased operating income through cost reductions in home construction

businesses and expansion of housing-related operations

Remodeling, etc.

Real estate-related

Unit homes andapartment buildings

FY

Homes & Construction Materials

42

Real estate-related operations• Maximum utilization of land value

with operations focused on obtaining accord, etc.

Operating income¥36.5 B

Operating income¥54.3 B

Operating income¥59.2 B

Operating income¥46.3 B

Operating income¥63.0 B

forecastIn November

2015

Operating income¥62.0 B

“Long Life Home” strategy Hebel Haus high-end urban homes Exceptional resistance to earthquake and fire Substantial after-sale service (60-year inspection system)

Development of unique concept homes • A pioneer of three-story and two-generation homes• Market launch of two-generation homes with innovative features;

adapting to various family compositions and newer lifestyles Strategic marketing

• Development of urban markets from Kanto westward• Focus on rebuilding demand

More than 7 million houses in 3 major areas in Japan are non-compliantwith current earthquake resistance standards

• Promotion with Hebel Haus “street-corner showrooms” Services for the 300,000 units sold to date

• Steady increase in orders at remodeling business• Increased units under rent guarantee at real-estate business

Homes & Construction Materials

43

Sales1 and order trends in HomesHomes & Construction Materials

1 Product categories are revised from FY 2012. A portion of sales previously included in pre-built homes is now included in order-built homes, etc. Otherwise, sales in the previous pre-built homes category are now included in real estate.

2 As of November 2015.

(¥ billion, % indicates year‐on‐year comparison)

44

Othersales

Orderbacklog

FY11 189.4 (+4.2%) 145.9 (+16.3%) 1.5 40.6 (+8.3%) 200.0 (+15.2%) 403.0

182.5 (+5.6%) 193.7 (+9.7%) (+14.2%) 252.0 (+6.9%) 391.8

annual 371.9 (+4.9%) 339.6 (+12.4%) (+11.8%) 452.0 (+10.4%)

Pre‐builthomes

Rentalhousing

Other Total

FY12 207.5 (+9.5%) 4.4 23.3 1.1 28.8 1.2 213.0 (+6.5%) 441.5

204.9 (+12.3%) 16.2 24.5 1.1 41.9 0.7 273.1 (+8.4%) 444.6

annual 412.4 (+10.9%) 20.6 47.8 2.2 70.6 1.9 486.2 (+7.6%)

FY13 251.9 (+21.4%) 181.0 (+12.1%) 4.5 26.2 1.4 32.1 0.8 238.4 (+11.9%) 519.9

169.4 (‐17.3%) 213.1 (+3.5%) 24.8 27.9 1.1 53.7 1.1 296.0 (+8.4%) 481.5

annual 421.3 (+2.2%) 394.1 (+7.3%) 29.3 54.1 2.5 85.8 1.9 534.4 (+9.9%)

FY14 217.6 (‐13.6%) 187.9 (+3.9%) 9.8 29.3 1.4 40.6 1.1 256.0 (+7.4%) 516.3

208.0 (+22.8%) 216.2 (+1.5%) 18.0 31.8 1.6 51.4 0.9 295.8 (‐0.1%) 514.5

annual 425.7 (+1.0%) 404.2 (+2.6%) 27.8 61.1 3.1 92.0 2.0 551.8 (+3.3%)

FY15 217.3 (‐0.2%) 183.8 (‐2.2%) 10.4 33.5 1.7 45.6 0.9 258.0 (+0.8%) 554.6

218.4 (+5.0%) 230.2 (+6.5%) 29.1 39.0 1.3 69.4 1.1 329.0 (+11.2%) 547.2

annual forecast2 435.7 (+2.4%) 414.0 (+2.4%) 39.5 72.5 3.0 115.0 2.0 587.0 (+6.4%)

21.6

24.7

(‐14.7%)

46.3

11.8

11.9

205.9

Sales of real estate

(+26.5%)

(‐35.7%)

Sales of order‐builthomes, etc.

367.3

23.7

Consolidated

Value  of new ordersduring the  term

Sales of order‐builthomes

Sales  of pre ‐built homes

Orderbacklog

46.5

88.7

Sales ofremodeling

Othersales

Value  of new ordersduring the  term

Consolidatedsubsidiaries

Consolidated

161.4

53.6

27.3

24.5

28.1

52.6

  H2

  H2

  H1

  H1 26.3  H2

  H1 27.8

 H2

 forecast228.2

56.0

  H1

  H2

  H1

Hebel autoclaved aerated concrete (AAC)- No. 1 share in Japan- Lightweight and highly durable with outstandingflame-resistance and thermal insulation

Neoma and Jupii insulation panels - Long-lasting, world-leading insulation performance - Eco-friendly material with no CFCs used during production

- High flame resistance; carbonizes without spreading flame- Capacity expansion; start-up in March 2014

Eazet and ATT Column- Eco-friendly piling systems installed with minimal noise,

vibration, and soil for disposal- Widely adopted in construction and civil engineering works,

with high reliability and adoptability to construction sites

Hebel

Neoma foam

Eazet

Main products in Construction MaterialsHomes & Construction Materials

45

Business field Product PositionElectronic devices

Mixed-signal LSIs World’s No. 1 share in 3-axis electronic compasses

Hall elements (magnetic sensors) World’s No. 1 share: 70%Electronic materials Hipore Li-ion rechargeable battery

separator World’s No. 1 share

Photosensitive dry film World top-3 share: 30%

Glass fabric World’s No. 1 share in ultra-thin glass fabric

Pimel semiconductor buffer coats World top-3 share in photosensitive products

Photomask pellicles World top-3 share, and world’s No. 1 share for LCD panels

APR photosensitive resin, AFP photosensitive plates, printing plate making systems

World’s No. 2 share in photosensitive resin

Electronic products Electronics

46

Electronic materials (1) Hipore lithium-ion battery separator

Electronics

47

Basic strategy● Proactive expansion in line with market

growth• Expansion in mobile applications• Capturing demand in automotive

applications

Mobile applications

Further growth in separator market through proactive launch of new products and expansion of production capacity

Automotive applications

Growth in rapid-growing automotive applications, utilizing technical strength and customer service capability established in mobile applications

Technological development• Development of high-function membranes suited to

various customer needs• Utilizing technology to produce lower cost separator

ProductionMoriyama: production of high-function membranes, “mother factory” for production technology innovationHyuga: capacity expansion as high-volume production site Overseas: reinforcement of processing functions in Korea and China

Marketing1. Mobile applications

• Reinforcement of local sales functions in key markets2. Automotive applications

• Proactive establishment of supply to LIB producers for automotive applications

Global demand forecast for LIB separator (Asahi Kasei estimate)

Fiscal year0

100

200

300

400

500

600

'13 '14 '15 '16 '17

Mobile Applications10% Annual Growth

Mobile applicationsAutomotive applications

Growing market in

automotive applications

(million m2)

Sunfort photosensitive dry film for printed wiring boards• World top-3 share of 30%, domestic share above 50% • Production bases are the world’s largest plant in Suzhou,

China, plant in Fuji, Japan, and new plant in Changshu, China, started up in Oct. 2013; total capacity exceeding400 million m2/y

• Establishment of technology center in Suzhou in March 2012 to meet various needs of Chinese customers

Expansion of ultra-thin glass fabric businessPimel semiconductor buffer coats

• World top-3 share in photosensitive type• Increasing share with new gradesPhotomask pellicles for LSIs and LCDs

• Full lineup of pellicles compatible with all exposure sources from g-line to ArF

• World top-3 share, and world’s No. 1 supplier for large LCDs

• Provision of pellicles for 10G LCD panels

Electronic materials (2)

Pellicles

Photosensitive dry film

Electronics

48

Audio and voice solutions• Automotive AVN, premium audio systems,

portable audio devices, etc.

Sensing solutions• World’s No. 1 share in electronic compass

Widely adopted in smartphones, tablet PCs,and other portable terminals

• World’s No. 1 share in Hall elements (magneticsensors)

• Unique solutions, such as human sensors, gas sensors, and coreless electric-current sensors

Strengthening of overseas marketing bases• North America, China, Korea, Taiwan, and Europe

Plant in Nobeoka

ElectronicsElectronic devices (1) Analog/digital mixed-signal LSIs

49

Electronic devices (2)

2005 2010 2015

Infraredsensor

Ultra-compact and high-speed responseApplications- Non-contact

temperature measurement

- Detection of human body

- Gas sensors

“For Tomorrow 2015” initial image of sales path (as of 2011)

Accelerating overseas developmentPursuing high quality

Pursuing high profitability and firm presence in specific areas, though small scale in semiconductor industry

Coreless electric-current

sensor

Geographic breakdown

Breakdown by application

Infrared sensors, coreless electric-current

sensors, magnetic sensors for automobile,

etc.

Strengths of our electronic device business Weaknesses Opportunities

• Analog signal processing • Strong record in magnetic sensors• Compound semiconductor

technology

• Mainly limited to consumer electronics

• Inadequate development of overseas business

Large undeveloped

market

JapanChina & Taiwan

Europe & US

Japan

Europe & US

China &Taiwan

Mobile electronicsOther

consumer electronics

Industrial/infrastructure

Automotive

Magnetic sensors

LSIs

Power management

LSIs

Electronic compass

(among LSIs)

Creation and addition of new businesses

Creation of new businesses

FY FY FY

Electronics

50 Geographic breakdown

Breakdown by application

Sales (¥ billion)

Generic name Mechanism/substance class

Indication Formulation FY12 FY13 FY14 FY15forecast1

Teribone Teriparatide acetate

Synthetic human parathyroid hormone (PTH)

Osteoporosis with high risk of fracture

Injection 17.0 26.9 25.4 27.4

Recomodulin Recombinant thrombomodulinalpha

Anticoagulant Disseminated intravascular coagulation

Injection 9.4 12.6 11.7 12.9

Flivas Naftopidil Selective α-1 blocker Benign prostatic hypertrophy

Tablet 14.2 14.2 13.2 9.3

Elcitonin Elcatonin Eel calcitonin derivative

Osteoporosis pain Injection 10.0 7.9 6.1 5.3

Bredinin Mizoribine Immunosuppressant Rheumatoid arthritis, kidney transplantation, nephroticsyndrome, lupus nephritis

Tablet 6.0 6.3 5.6 5.3

Main products

Pharmaceuticals (1)Health Care

51

1 As of November 2015.

Pharmaceuticals (2)Health Care

Product pipelineDevelopment stage

Code name, form, generic name Remarks Classifications Indication Origin

ApprovedXIAFLEXAK-160, injection

New biologicCollagenase clostridium histolyticum

Dupuytren’scontracture Licensed

Pending approval

AK156, injection, zoledronic acid

New efficacy, new dose; once-yearly administration

Bisphosphonate Osteoporosis Licensed

Phase II HC-58, injection, elcatonin Additional indication Calcitonin Shoulder hand

syndrome In-house

Phase III(overseas)

ART-123, injection, recombinant thrombomodulinalpha

New biologic Recombinant human thrombomodulin

Severe sepsis with coagulopathy

In-house

HE-69, mizoribine Additional indication ImmunosuppressantLupus nephritis, nephroticsyndrome

In-house

Phase II (overseas) AK106 New chemical entity Anti-inflammatory Rheumatoid

arthritis In-house

52

Hemodialysis-related products- Leading position in hemodialysis-related products market in Japan

No. 1 share in dialyzers: approx. 40%1

- Business alliance with JMS Co., Ltd. Advancing and developing the field of hemodiafiltration (HDF) leveraging respective strengths

- Accelerated overseas development to meet needs in different countries and different regions

Development of alliance strategy leveraging competitiveness of dialyzer - Strengthening of strategic alliance with NxStage Medical, Inc.Expansion of treatment options with advancement of therapeutic

apheresis2

- Leukocytapheresis (LCAP) indicated for ulcerative colitis, etc.- Cell-free and concentrated ascites reinfusion therapy (CART)3

Medical devices (1) Hemodialysis and therapeutic apheresis

Health Care

531 Asahi Kasei estimate.2 A therapy to remove pathogenic substances from blood through extra-corporeal circulation.3 Availability of ascites filters and ascites concentration columns for CART is currently limited to Japan.

Planova virus removal filters- World’s No. 1 share; contributing to improved viral safety and productivity in manufacturing processes for biopharmaceuticals and plasma derivatives

Expansion of global demand for bioprocess products- Medium-term to long-term market growth for biopharmaceuticals and plasma derivatives ≥10% per year

- Tightening regulations for virus removal, proliferation ofbiosimilar products

- Growth in emerging markets (China, India, South America)

Proactive development of business responding to increasing demand

- Reinforced development of markets in China and other Asian countries inaddition to main markets of Europe and US

- New spinning plant for Planova BioEX; start-up in August 2016

Medical devices (2) Planova / Bioprocess operations

Health Care

54

Entry into critical care business through acquisition of ZOLL Medical Corporation of the US in April 2012

- Establishment: 1980- Head office: Massachusetts, US- A specialized manufacturer of medical devices for acute critical care, with

resuscitation technology as core technology- No. 1 share in the world in defibrillators

ZOLL Medical Corporation

Critical Care (1)Health Care

AEDautomated external defibrillators

LifeVestwearablecardioverterdefibrillator

Defibrillators for hospitals and EMS

RescueNetdata management suite for fire and EMS

AutoPulsenon-invasive cardiac support pump

Thermogardtemperature management systems

Unique, innovative medical device

Only player in intravascularcooling

No. 1 sharein the US

No. 1 share in the world

Main products

55

• The only product of its kind to receive regulatory approval- Wearable external defibrillator for patients at risk of sudden cardiac arrest

(average usage duration 2 months)- Features a noninvasive configuration (removable)

• Superior service-based business model in US: ZOLL rents the device to patients and provides them with healthcare services (including explanations on use). ZOLL receives reimbursement from health insurance providers.

• In the US alone, there are over 300,000 cardiac patients per year. Their need for cardiac arrest protection during high-risk periods leaves ample room for extending the LifeVest sales growth trend over the long term.

• Sales in Germany and other European countries are growing; has been used by over 100,000 patients worldwide.

• Start of service offering the device in Japan in April 2014.

Health Care

56

Critical Care (2) LifeVest growth potential