Asahi Kasei : Consolidated Results for Fiscal 2020

Asahi Kasei Corporation

Head Office: 1-1-2 Yurakucho, Chiyoda-ku, Tokyo, Japan

Security code: 3407

Contact: Corporate Communications, Phone [phone], Fax [phone]

May 13, 2021

Consolidated Results for Fiscal 2020:

April 1, 2020 - March 31, 2021

(All figures in millions of yen, rounded to the nearest million, unless otherwise specified)

I. Summary of Consolidated Results

1. Operating results (percent change from previous year in brackets)

		FY 2020			FY 2019
Net sales	2,106,051	[−2.1%]	2,151,646	[−0.9%]
Operating income	171,808	[−3.1%]	177,264	[−15.4%]
Ordinary income	178,036	[−3.2%]	184,008	[−16.4%]
Net income attributable to owners of the parent	79,768	[−23.2%]	103,931	[−29.5%]
Net income per share*	57.49		74.85
Diluted net income per share*		-		-
Net income/shareholders' equity	5.6%		7.6%
Ordinary income/total assets	6.2%		6.8%
Operating income/net sales	8.2%		8.2%
							* Yen

Notes:

• Comprehensive income was ¥157,941 million during fiscal 2020, and ¥37,167 million during fiscal 2019.

• Equity in earnings of affiliates was ¥3,451 million during fiscal 2020, and ¥7,138 million during fiscal 2019.

2. Financial position

At fiscal year end March	2021	2020
Total assets	2,918,941	2,822,277
Net assets	1,494,535	1,383,460
Net worth/total assets	50.3%	48.2%
Net worth per share*	1,057.61	979.69

* Yen

Notes:

• Net worth consists of shareholders' equity and accumulated other comprehensive income.

• Net worth was ¥1,467,476 million as of March 31, 2021, and ¥1,359,314 million as of March 31, 2020.

• Calculation of total assets as of March 31, 2020, previously based on provisional accounting treatment related to business combinations, has been finalized.

3. Cash flows

		FY 2020			FY 2019
Cash flows from operating activities	253,676		124,460
Cash flows from investing activities	(157,751)		(318,156)
Cash flows from financing activities	(95,869)		221,923
Cash and cash equivalents at end of period	216,235		204,771

Asahi Kasei	May 13, 2021
Consolidated Results	1/17

II. Cash Dividends

					Cash dividends per share*			Total annual			Dividends/			Dividends/
	Fiscal year		Q1			Q2		Q3		Q4			Total			dividend			consolidated			consolidated
									annual			amount			net income			net worth
2019		-	18.00		-	16.00		34.00		47,188		45.4%	3.5%
2020		-	17.00		-	17.00		34.00		47,187		59.1%	3.3%
2021		-		-		-		-	34.00					30.4%
	(forecast)

* Yen

1. Forecast for Fiscal 2021 (April 1, 2021 - March 31, 2022) (percent change from same period of previous year in brackets)

	For Q1-Q2	For the fiscal year
Net sales	1,149,000	[+16.1%]	2,375,000	[+12.8%]
Operating income	88,500	[+15.3%]	190,000	[+10.6%]
Ordinary income	91,500	[+18.1%]	196,000	[+10.1%]
Net income attributable to owners of the parent	87,000	[+86.0%]	155,000	[+94.3%]
Net income per share*	62.70	111.71

* Yen

Note:

Performance forecasts are based on the best information available at this time, but actual results may diverge from these forecasts due to a variety of factors which cannot be foreseen.

IV. Other Information

1. Changes in significant subsidiaries which affected scope of consolidation during the period:

Addition of one new subsidiary:

Sage Automotive Interiors Germany GmbH

1. Changes in accounting policies, changes in accounting estimates, and retroactive restatement: None
2. Number of shares outstanding

	2021	2020
Number of shares outstanding at end of period	1,393,932,032	1,393,932,032
Number of shares of treasury stock at end of period	6,396,867	6,440,327
Average number of shares outstanding during period	1,387,525,767	1,388,564,157

Asahi Kasei	May 13, 2021
Consolidated Results	2/17

1. Summary of Non-Consolidated Results

1. Results for fiscal 2020 (April 1, 2020 - March 31, 2021)

(1) Operating results (percent change from previous year in brackets)

				FY 2020			FY 2019
		Net sales	548,149	[−8.6%]			599,972 [−9.9%]
		Operating income	6,374	[−69.1%]		20,648 [−59.6%]
		Ordinary income	64,546	[−15.9%]		76,768 [−28.0%]
		Net income	67,717	[+17.0%]		57,873 [−35.2%]
		Net income per share*	48.80		41.68
		Diluted net income per share*		-					-
										* Yen
(2) Financial position
		At fiscal year end, March		2021			2020
		Total assets	2,289,241	1,919,199
		Net assets	790,312		744,199
		Net worth/total assets	34.5%			38.8%
		Net worth per share*	569.58			536.36
								* Yen

VI. Overview of Consolidated Results

1. Consolidated group results

Operating income increased in the Health Care segment with firm performance of operations related to the treatment of COVID-19, while the Material segment was impacted by the global economic deterioration caused by the coronavirus pandemic and the Homes segment was impacted by a consumption tax increase in Japan and by the pandemic. Consolidated net sales decreased by ¥45.6 billion from a year ago to ¥2,106.1 billion, operating income decreased by ¥5.5 billion from a year ago to ¥171.8 billion, and ordinary income decreased by ¥6.0 billion from a year ago to ¥178.0 billion. Net income attributable to owners of the parent decreased by ¥24.2 billion to ¥79.8 billion with extraordinary loss incurred due to a semiconductor plant fire and income tax expenses temporary elevated due to reconfiguration of organizations related to Veloxis Pharmaceuticals, Inc.

2. Results by operating segment

The Asahi Kasei Group's operations are described by major business classification: three reportable segments of Material, Homes, and Health Care, together with an "Others" category.

MATERIAL

Sales decreased by ¥101.9 billion from a year ago to ¥991.2 billion, and operating income decreased by ¥25.9 billion from a year ago to ¥66.5 billion.

Performance recovered from the second quarter with recovery of automotive-related markets and recovery of petrochemical market prices, but there was a significant impact from the pandemic especially in the first quarter.

HOMES

Sales decreased by ¥11.8 billion from a year ago to ¥692.6 billion, and operating income decreased by ¥9.2 billion from a year ago to ¥63.5 billion.

Although real estate operations performed well, order-built homes operations and remodeling operations were impacted by a consumption tax increase in Japan and COVID-19 restrictions.

Asahi Kasei	May 13, 2021
Consolidated Results	3/17

HEALTH CARE

Sales increased by ¥70.1 billion from a year ago to ¥407.9 billion, and operating income increased by ¥24.1 billion from a year ago to ¥67.6 billion.

Although sales activities were restricted due to COVID-19, critical care operations had a large-scale increase in demand for ventilators and pharmaceutical and medical device operations performed well.

OTHERS

Sales decreased by ¥2.0 billion from a year ago to ¥14.3 billion, and operating income increased by ¥0.6 billion from a year ago to ¥3.8 billion.

Asahi Kasei	May 13, 2021
Consolidated Results	4/17

VII. Consolidated Financial Statements

1. Balance sheets

			At end of			At end of
			March 2020			March 2021
	Assets
	Current assets
	Cash and deposits	207,957		221,779
	Notes and accounts receivable-trade	330,999		338,640
	Merchandise and finished goods	216,463		203,159
	Work in process	160,064		166,494
	Raw materials and supplies	101,313		111,798
	Other	92,153		97,131
	Allowance for doubtful accounts	(1,519)		(2,225)
	Total current assets	1,107,430		1,136,776
	Noncurrent assets
	Property, plant and equipment
	Buildings and structures	563,110		598,675
	Accumulated depreciation	(305,259)		(319,144)
	Buildings and structures, net	257,851		279,531
	Machinery, equipment and vehicles	1,466,958		1,535,326
	Accumulated depreciation	(1,243,780)		(1,286,057)
	Machinery, equipment and vehicles, net	223,179		249,269
	Land	67,024		70,577
	Lease assets	9,645		8,615
	Accumulated depreciation	(8,964)		(7,687)
	Lease assets, net	681		928
	Construction in progress	75,487		84,463
	Other	172,674		182,414
	Accumulated depreciation	(143,210)		(149,920)
	Other, net	29,464		32,495
	Subtotal	653,686		717,262
	Intangible assets
	Goodwill	365,680		351,921
	Other	349,566		342,454
	Subtotal	715,246		694,374
	Investments and other assets
	Investment securities	244,581		286,517
	Long-term loans receivable	7,951		1,241
	Long-term advance payments-trade	20,467		29,390
	Deferred tax assets	44,466		21,116
	Other	28,883		32,709
	Allowance for doubtful accounts	(435)		(445)
	Subtotal	345,914		370,529
	Total noncurrent assets	1,714,846		1,782,165
	Total assets	2,822,277		2,918,941

Asahi Kasei	May 13, 2021
Consolidated Results	5/17