COMPANY PROFILE

February 2013 Filtration Industry Analyst7

Asahi Kasei Corp, JapanProfileAsahi Kasei Corp is a Japanese industrial conglomerate with seven operating segments several of which include filtration activities. Its Chemicals segment has a Specialty Products section that includes UF and MF membranes and systems, and, ion-exchange membranes. The company’s Health Care division, formerly known as Pharma, contains virus removal filters and leukocyte reduction filters. The Fibers segment produces yarns and nonwovens used in a range of filtration applications including air conditioning, oil-water separation and medical applications, while the Electronics unit includes Hipore membrane products used in lithium-ion rechargeable batteries.

AnalysisAsahi Kasei had a mixed fiscal 2012 (year ending 31 March 2012) with its consolidated net sales up 1.1% on the previous year at ¥1573.2 billion, while its operating income fell 15.2% to ¥104.3 billion and its net income was down 7.5% to ¥55.8 billion. The company said that although Japanese manufacturing had generally recovered from the stagnant period following the Great East Japan Earthquake the overall economy remained challenging. Asahi Kasei said sales were also impacted by the sovereign debt crisis in Europe, while those to China and other emerging markets declined during the second half of the year having been relatively solid in the first six months. Sales in its Chemicals segment decreased 2.8% from the 2011 figure to ¥680.1 billion, while operating income fell 30.9% to ¥44.5 billion. In Health Care, sales increased 2.7% from the year earlier to ¥119.5 billion, with operating income up 25.0% to ¥8.8 billion. In devices-related operations, shipments of the company’s Planova virus removal filters increased, but operating income was largely unchanged as the strong yen impacted performance in each product group. Sales in Asahi Kasei’s Fibers segment grew 1.9% on the 2011 comparator to ¥110.8 billion, but operating income fell 25.2% to ¥3.1 billion. In the Electronics segment, sales decreased 7.7% to ¥146.1 billion, and operating income decreased by ¥7.8 billion (55.0%) to ¥6.4 billion. Although sales of Hipore Li-ion battery separator increased, operating income in electronic materials fell with declining product prices and high feedstock costs. The company acquired two US-based companies during the year, Artisan Pharma and ultraviolet LED business Crystal IS Inc.

Key Figures (¥ billion)Asahi Kasei Corp Year ended 31.3 2012 2011 2010 2009 2008

Net Sales 1573.2 1555.9 1392.2 1521.2 1663.8

Of Which:Chemicals 680.1 699.8 580.7 657.4 846.2Health Care 119.5 116.4 113.2 119.6 111.2Fibers 110.8 108.8 101.2 116.4 114.1Electronics 146.1 158.3 142.7 129.7 113.3

Operating Income 104.3 122.9 57.6 35.0 127.7Of Which:Chemicals 44.5 64.4 26.1 n/a n/aHealth Care 8.8 7.0 4.0 n/a n/aFibers 3.1 4.2 (2.8) n/a n/aElectronics 6.4 14.3 7.2 n/a n/a

Net Income 55.8 60.3 25.3 4.7 69.9

Contact DetailsChair: Ichiro ItohPresident: Taketsugu FujiwaraAddress: 1-105 Kanda Jinbo-cho

Chiyoda-ku Tokyo 101-8101 Tel: +81 3 3296 3000 Japan Web: www.asahi-kasei.co.jp

COMMENTIn April 2011, Asahi Kasei launched a five-year strategic programmed called “For Tomorrow 2015”. The two main growth strategies in the programme are the expansion of its best performing established businesses and a focus on developing products to tackle emerging social needs. For the former, Asahi Kasei is targeting its resources on business where it believes it has an established a number one or two global position, with a particular emphasis on growth in developing countries. For the later, the company plans to target its resources on businesses relating to the environment and energy, residential living and health care. Several of Asahi Kasei’s filtration-based products will form part of these “For Tomorrow” plans. In its Chemicals segment, this includes expanding its water treatment membrane business, particularly through its operations in China. In Health Care, targeted markets include blood purification, where Asahi Kasei plans to further develop its APS polysulfone membrane artificial kidneys, as well as biotherapeutics where the company will continue to evolve its Planova hollow-fibre membrane filter for virus removal. With regards to its Fibers segment, Asahi Kasei’s strategy includes developing its Eutec oil-water separation filter for a range of applications. ■