Material Sector Business Briefing - Asahi Kasei · company) Asahi Kasei Microdevices Material Asahi Kasei Construction HealthMaterials Homes Asahi Kasei Homes Care Asahi Kasei Pharma

Material SectorBusiness Briefing

September 8, 2016 Asahi Kasei Corporation

2

1. Asahi Kasei Group Overview

2. Strength of Asahi Kasei

3. Basic policy and strategic focus of Material business sector

4. Investment for growth

Contents

3

ZOLL

Asahi Kasei Group configuration from Apr. 2016

Operating function

Fibers & Textiles SBU

Petrochemicals SBU

Performance Polymers SBU

Performance Materials SBU

Consumables SBU

Separators SBUAsahi Kasei

Constructio

n Materials

Asahi Kasei M

edical

Asahi Kasei Hom

es

Asahi Kasei Corp.(change from holding company to operating holding company)

Promotion of greater integration and collaboration

Material Homes Health Care

Three business sectors and operating holding company configuration from April 2016

Asahi Kasei M

icrode

vices

Asahi Kasei Pharm

a

4

Financial performance by segment (1)

Operating income

19%

38%

43%

Net sales

¥1,940.9billion 52%

15%

33%

Material¥165.2billion

Health Care

Homes

FY 2015 Asahi Kasei Group financial results

Material

Health Care

Homes

Note: Percentages calculated excluding the Others category and corporate expenses.

5

Financial performance by segment (2)(¥ billion)

FY2015 FY2016 forecast

Net sales Operating income1

Operating margin Net sales Operating

income1Operating margin

Fibers 132.1 13.9 10.5% 130.0 13.5 10.4%Chemicals 750.7 60.8 8.1% 713.0 59.0 8.3%Electronics2 121.6 4.4 3.6% 137.0 (2.5) ‐1.8%

Material 1,004.4 79.2 7.9% 980.0 70.0 7.1%Homes 583.0 65.4 11.2% 573.0 61.0 10.6%

Construction Materials 49.4 5.8 11.8% 51.0 4.0 7.8%

Homes 632.4 71.0 11.2% 624.0 65.0 10.4%Health Care3 144.9 24.3 16.8% 134.0 15.0 11.2%Critical Care 140.5 11.9 8.5% 146.0 13.5 9.2%

Health Care 285.4 36.2 12.7% 280.0 28.5 10.2%Others 18.7 3.8 20.3% 26.0 4.0 15.4%

Corporate expenses and eliminations － (25.0) －－ (22.5) －

Consolidated 1,940.9 165.2 8.5% 1,910.0 145.0 7.6%1 Figures for operating income by business category include intrasegment transactions which are eliminated from the segment totals.2 Fiscal 2016 operating income forecast for Electronics includes a ¥6.9 billion decline from the previous year due to the impact of stronger yen and increased amortization of goodwill and other intangible assets, etc. related to the acquisition of Polypore International, LP.

3 Fiscal 2016 operating income forecast for Health Care includes a ¥9.3 billion decline from the previous year ago in the pharmaceuticals business due to the impact of reduced reimbursement prices and decreased shipments of Flivas agent for treatment of benign prostatic hyperplasia due to competition from generics.

6





Contents

7

History of portfolio transformation

1960 1970 1980 1990 2000 2010

売上高

営業利益

2,000

1,500

200

150

100

50

Net sales (¥ billion)

Operating income(¥ billion)

Early diversification Advanced diversification Selection & focus

Oil shock Collapse of economic bubble Global financial crisis

New challenges

Styren

e

Viscose rayon

Saran Wrap

Acrylonitrile

AAC (con

st. m

aterials)

Artificial kidne

ys

Hebe

lHaus

Pharmaceu

ticals

Acrylic fibe

r

Polyester

Food

s

ZOLL

Polypo

re

Hall elemen

ts

LSIs

Hipo

re

Petroche

micals

Boldly taking challenges with new businesses to achieve growth under changing operating climates

Start of production/sale Withdrawal/downsizing

Toyo

Jozo

Synthe

tic ru

bber

1,000

500

Planova

Electron

ic com

pass

Phen

olic fo

am insulatio

n

Cond

ominiums

Net sales

Operating income

(FY)

Holding/core operating company configuration

8

Connecting technology, business, and human resources

Asahi Kasei Group

Asahi Kasei Corp.(operating holding

company)

Asahi Kasei Microdevices

Material

Asahi Kasei Construction Materials

HomesAsahi Kasei Homes

Health CareAsahi Kasei Pharma

Asahi Kasei Medical

ZOLL Medical

0

500

1,000

1,500

2,000

FY11 FY12 FY13 FY14 FY15

(¥ billion)Net sales (domestic and overseas)

1,573.21,666.6

1,897.81,986.4 1,940.9

• Expanding a selectively diversified portfolio with the strength of superior businesses in each sector• While global businesses are further expanded, homes and pharmaceutical businesses will be steadily

extended based on competitiveness in the domestic Japanese market• Creating a new value unique to Asahi Kasei by leveraging diversities in technology, businesses, and human

resources

Each product and each business leverages its

respective market strengths

9





Contents

10

Organization of Material business sector

Material

Fibers & Textiles SBU

Vice‐Presidential Executive Officer

Yuji Kobayashi

Petrochemicals SBU

Performance Polymers SBU


Consumables SBU

Separators SBU

Asahi Kasei Microdevices Corp.

Asahi Kasei Advance Corp.

Primary Executive OfficerToshio Takanashi

Senior Executive OfficerTsuneo Takemoto

PresidentSatoru Tamura

PresidentYasushi Asano

Executive OfficerRyuma Yamazaki

Senior Executive Officer Kenji Hamai

Lead Executive Officer Hiroshi Yoshida

Senior Executive Officer Shigeki Takayama

11

Main products of Material sector (1)

SBU Division/affiliate Main products

Fibers & Textiles

Bemberg Bemberg

Roica Roica

Non‐woven Fabrics Eltas, Bemliese, Lamous

Leona Filament Leona (airbags, tire cord)

Petrochemicals

Basic Chemicals Caustic soda, nitric acid, styrene, adipic acid, cyclohexanol

Asahi Kasei Mitsubishi Chemical Ethylene Corp. Ethylene, propylene, butadiene

Acrylonitrile AN, sodium cyanide

MMA MMA, CHMA, PMMA

Polyethylene HDPE, LDPE, Sunfine

PS Japan Corp. Polystyrene (HIPS, GPPS)

Performance Polymers

Synthetic Rubber S‐SBR, elastomer

Performance PlasticsLeona, Tenac, Xyron, Stylac, Thermylene (PP compound)

Compound & Marketing

12

SBU Division/affiliate Main products

Performance Materials

Performance Coating Materials Duranate, Duranol (PCD), aluminum paste

Functional Additives Ceolus, acetonitrile, MAN

Explosives Metal clads, explosives

Microza & Water Processing Microza UF/MF

Ion Exchange Membranes Ion‐exchange membranes, electrolyzers

Electronics & Functional Products APR, AFP, Pimel, pellicles, Novacure

Electronics Interconnecting Materials Sunfort (photosensitive dry film)

Electronics Insulation Materials Glass fabric

Consumables

Asahi Kasei Home Products Corp. Saran Wrap, Ziploc, Frosch

Fabricated Products PS/PS film, PVDC latex, Asaclean

Asahi Kasei Pax Corp. Beverage cups, food packaging

SeparatorsBattery Materials Hipore

Polypore International, LP Daramic, Celgard

Asahi Kasei Microdevices Corp. LSIs, electronic compasses, magnetic sensors, IR sensors, UVC LEDs

Main products of Material sector (2)

13

Basic policy and strategic focus

• Work to enhance profitability of established businesses and expand key businesses

• Develop and implement business strategies to achieve synergiesamong the businesses within the Material sector

• Develop and implement strategic investments toward the targets for FY 2025

Basic policy

Strategic focus

• Expand environment/energy and automotive‐related businesses• Strengthen healthcare/hygiene‐related businesses• Review the business portfolio and develop new businesses• Advance global strategy by region

14

FY 2018 target and FY 2025 outlook

79.1

70.0

100

140

0

50

100

150

200

0

500

1,000

1,500

2,000

FY2015 FY2016 FY2018 FY2025

Net Sales

Operating income

Net sales(¥ billion)

Operating income(¥ billion)

1,250

980.01,004.4

1,650

Performance products

Earnings base

FY 2018 target

FY 2025 outlook

Membranes, coating

materials, electronic materials, electronic devices,etc.

Automotive, battery‐related, healthcare/ hygiene

Fibers, petrochemicals, consumables

ROS 7.9% 7.1% 8.0% 8.5%

15

Strategic focus: automotive‐related businesses (1)

Creating new products and solutions by integrating various businesses/products/technologies in the Material sector

• Unparalleled proposal capability made possible by our broad range of materials including plastics, fibers and textiles, battery materials, electronic devices, etc.

• Creating new value through integrated proposals

Key strategy 1

Key strategy 2

Key strategy 3

Enhancing our ability to respond to the needs of customers• Deepening relationships with customers by key account marketing• Offering advanced solutions as a combined Asahi Kasei Group• Reinforcing our capability to offer better technology and development support

Heightening our presence around the world• Advancing various programs to build the Asahi Kasei brand on a global scale

FY 2025 sales target: ¥300 billion→ Enhance value for customers through comprehensive proposals of our products

and technologies in the Material sector

Connect, Communication, Create

Connect, Communication

Create, Challenge

16

To enhance sector‐wide comprehensive approach to customers, Automotive Marketing Department was established in April 2016

Automotive Marketing Dept. for greater internal coordination

Sensors for electric motors

Synthetic rubber for fuel‐efficient tires

Li‐ion battery separator for electric vehicles, lead‐acid

battery separator

Resin for exteriors

Resin for interiors

Resin for parts around the engine

Functional materialfor paint

Artificial suede for upholstery

Filament for airbags

Speech recognition system for navigation, audio LSIs

Resin for taillights

Polymer exchange membranefor fuel‐cell vehicles

Glass fabric and photosensitive dry film for printed wiring boards

Plastic optical fiber, polarizing film

Tire cord

Raise customer satisfaction and create new value through combined marketing

Fibers

Performancepolymers

Performancematerials

Batteryseparators

Electronics

Strategic focus: automotive‐related businesses (2)

17

The Americas¥180 billion

9%

The Americas¥180 billion

9%

Europe¥80 billion

4%

Europe¥80 billion

4%

Southeast Asia¥80 billion

4%

Southeast Asia¥80 billion

4%

East Asia (China)¥310 billion (¥180 billion)

16% (10%)

East Asia (China)¥310 billion (¥180 billion)

16% (10%)

Net sales(¥ billion) % of total Material sector

sales (¥ billion) % of total

Japan 1,261.2 65.0% 504.3 50.2%

Overseas 679.7 35.0% 500.1 49.8%

Total 1,940.9 ‐ 1,004.4 ‐

Overseas net sales of Asahi Kasei Group (FY 2015)

Strategic focus: global strategy by region (1)

18

Strengthen operations byleveraging existing bases

Southeast Asia, Korea, Taiwan

Reinforce marketing functions in automotive and healthcare fields where strong growth is forecasted

Coordinate business strategies and administrative functions mainly for automotive‐related

businesses centered on Polypore and APNA*

Asahi Kasei Europe functions as a central base for all operations in

Europe, and develops comprehensive business strategies mainly focusing on automotive

business

Enhance governance of each established business base, and respond to growing market

ChinaIndia

Europe United States

Advancing integration of business strategies and functions in each region

* Asahi Kasei Plastic North America, Inc.


19

Asahi Kasei Europe GmbH—operation began April 2016Enhancing Asahi Kasei’s presence in Europe and promoting comprehensive marketing within the Material sector mainly for the automotive industry. → Aiming to triple current net sales of €700 million in Europe by FY2025.

Automotive‐related

Healthcare materials

Other materials (fibers, photo products, etc.)

FY2015 FY2020 FY2025


20

Expansion of materials for healthcare‐related applications through synergy within Material sector

Packaging material of pharmaceuticals

Applications for pharmaceutical manufacturing

Hygiene materials

Material for medical‐related applications

Ceolus microcrystalline cellulose: Maintain No. 1 position as pharmaceutical excipient, and expand sales in growing Asian markets.

Acetonitrile: No. 1 position in Japan in pharmaceutical manufacturing solvent. Further expand with stable supply ensured by two production bases.

Health Care sector of Asahi Kasei (pharmaceuticals/medical devices/critical care)

Hydrogenated styrenic thermoplastic elastomer: Increase production to meet growing demand for medical fluid bags in China and Europe.

New fiber‐related materials: NanoAct cellulose nanobeads as label for immunoassay. Fiber for endovascular stent grafts.

Polyvinylidene chloride (PVDC) latex for push‐through pack (PTP) packaging: Proactively expand in emerging countries where strong demand growth for pharmaceuticals including generics is forecasted.

Spunbond: Proactively expand in diaper applications.Disinfection applications: Promotion of UVC LED business, sales of Klaran high‐output UVC LEDs.

Sales: ¥ billion FY 2015 → FY 2018 (target)→ FY 2025 (outlook)

Health Care sector 285.4 370 600

Strategic focus: growth in healthcare applications

21

Basic strategy by business unit

Business unit Basic strategy

Fibers & Textiles SBU Stable expansion of all four main businesses while studying expansion of production facilities

Petrochemicals SBUEnhance earning base by completing structural realignment of operations while transforming to a higher value‐added configuration


Continue to grow highly profitable products ranging from performance chemicals to electronic materials, and create new businesses

Consumables SBUAs a manufacturer of consumables for both B‐to‐B and B‐to‐C markets, expand business in the growing fields including convenience stores and healthcare applications

Asahi Kasei Microdevices Corp.

Leverage technological advantages to expand with solution‐oriented business in the sensing, audio, voice fields

(Performance Polymers SBU and Separators SBU detailed separately)

22





Contents

23

Investments under “For Tomorrow 2015”

FY 2011

FY 2012

FY 2013

FY 2014

FY 2015

Acquisition of Polypore

¥260 billion

Acquisition of ZOLL

¥180 billion

• Acquisition of Crystal IS• Construction of initial production plant for UVC LEDs, etc.

Total ¥20 billion

FY 2011• Capacity increase for S‐SBR in Singapore• Capacity increase for acetonitrile in Korea• Capacity increase for high‐performance insulation panels

• Research complex for pharmaceuticals, etc.

FY 2012• Capacity increase for Bemberg• Overseas expansion of Hipore, etc.

FY 2013• Acquisition of full ownership of Tenac JV in China

• Capacity increase for polycarbonate diol (new plant in China)

• Overseas expansion of Hipore, etc.

FY 2014• Capacity increase for spunbond in Thailand• Capacity increase for Roica in Thailand• New plastic compound plant in the southern US• New production facility for the active ingredient of Recomodulin, etc.

Non‐linear growth¥460 billion

Existing businesses¥540 billion

* Decisions adopted FY 2015• Capacity increase for Bemliese, etc.

¥1 trillion over

5‐year period

24

Investment for growth in the Material sectorSBU Products Location Items Period

Germany Establishment of Asahi Kasei Europe GmbH 2016

Japan Consolidation and enhancement of R&D facilities 2017/18

S‐SBR Singapore Construction of second plant (50kt/y) 2015

Elastomers Japan Capacity expansion of hydrogenated styrenic thermoplastic elastomers

2015/16

Mexico Establishment of Asahi Kasei Plastics Mexico 2015

US Startup of the second plant for plastic compounds 2016

Vietnam Establishment of Asahi Kasei Plastics Vietnam 2016

Duranate HDI‐based polyisocyanate China Capacity expansion in Nantong plant (10kt/y) 2015

Duranol polycarbonatediol China Startup of new facility in Nantong (3kt/y) 2014

Functional additives China Alliance in pharmaceutical additives with SPI Pharma 2016

Acetonitrile South Korea Startup of new facility (11kt/y) 2014

Ethylene, propylene, butadiene Japan Unification of naphtha cracker 2016

DRC process to produce DPC Japan Construction of validation plant 2017

Ultrahigh molecular weight PE Japan Capacity expansion 2017/18

Bemberg cupro fiber Japan Capacity expansion 2014

Bemliese cupro nonwovens Japan Capacity expansion (1.5kt/y) 2017

Spunbond nonwovens Thailand Capacity expansion (20kt/y) 2016

Roica spandex Thailand Capacity expansion 2016

Leona nylon 66 filament Japan Capacity expansion 2016

Lamous artificial suede Japan Re‐start of idle plant 2014 Celgard LIB separator, Daramic lead‐acid battery separator

US, etc. Acquisition of Polypore International, LP 2015

Hipore LIB separator Japan Capacity expansion in Hyuga plant (60 million m2/Y) 2016

Japan Capacity expansion in Moriyama plant (60 million m2 /y) 2018

Fibers &Textiles

Separators

—

PerformancePolymers

Engineering plastics

PerformanceMaterials

Petro‐chemicals

25

Financial and capital strategy

Total investment (3‐year total): ¥700 billionProactively advance M&A and other new investment in addition to investment to maintain and expand established businesses

Strategic investment in the Material sectorProactively invest for expansion mainly in battery separator, S‐SBR, plastic compounds, and fibers & textiles

Consider M&A for Performance Polymers and Consumables SBUs

26

Creating for TomorrowThe commitment of the Asahi Kasei Group: To do all that we can in every era to help the people of the worldmake 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.”

27

Reference

28

Asahi Kasei’s leading products (1)

Acrylonitrile

Hipore Li‐ion battery separator

Ion‐exchange membranes

Cupro regenerated cellulose fiber

Spunbond nonwovens for sanitary products

S‐SBR for fuel‐efficient tires

Electronic compass

Magnetic sensors

No. 1 share in the world




No. 1 share in the worldDuranate coating

material

UVC LEDsSunfort

photosensitivedry film

Automobile

Roica spandex

Material

29

Asahi Kasei’s leading products (2)

Planova virus removal filters

Defibrillators for Hospital & EMS Wearable defibrillator

One of a kind




Health Care

Sepacell leukocyte reduction filters

DomesticBusiness

Hebel Haus Saran Wrap and Ziploc

30

Fibers (1)

• Only manufacturer in the world• Global development for wide range of applications such aslinings, functional innerwear, and ethnic garments

• Capacity expansion in Nobeoka; start‐up in June 2014, capacity increase by 10%

Bemberg cupro fiber

Roica spandex

Leona nylon 66 filament

• Global development of high‐function and high‐quality brand; production plants in Japan, Taiwan, China, Thailand, and Germany

• Launch of recycled spandex for the first time in the world in July 2015, which is the world’s only spandex certified under the Global Recycle Standard

• Expansion in automotive airbag application in addition to tire cord application with superior strength and heat resistance

31

NonwovensOffering distinctive nonwovens made of different materials and by originalproduction technology for wide range of applications

Bemliese continuous‐filament cellulose nonwovenIncreased demand in facial mask application; decision to expand capacity in March 2017

Lamous artificial suedeSales expansion in automotive upholstery application; capacity doubled by restarting suspended facility in October 2014 Lamous

Eltas spunbondIncreased demand in hygienic application; capacity expansion to 40,000 t/y in Thailand in January 2016 0

20

40

60

2013 2015 2016 2020 2025

BabyAdult

Eltas

Bemliese

(billion pcs.)

Forecast for diaper productionin ASEAN and India(Asahi Kasei estimate)

Fibers (2)

32

Petrochemicals (1)

Asahi KaseiCapacity(kt/y)

Main competitors Main applications Asahi Kasei’s position/strengths

Acrylonitrile 960 Ineos Acrylic fiber, ABS; 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 390 Shell

Ineos

Lyondell Basell

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

After 320 kt/y plant in Mizushima closed in Feb. 2016, business to focus on domestic market and captive use

Methyl methacrylate

170 Mitsubishi Rayon MS, MBS, coating materials; captive use for PMMA

Proprietary, cost‐competitive C4 process

Cyclohexanol 180 Shandong HailiBASF

Adipic acid, caprolactam; captive use for adipic acid

Mainly for captive use

Polyethylene 283 (Domestic)Japan PolyethylenePrime Polymer

Films, miscellaneous goods, food containers, injection molding

Business development taking advantage of unique characteristics based on distinctive catalyst technology

Polystyrene 315 (Domestic)Toyo StyreneDIC

Food containers, food packaging, toys, miscellaneous goods, construction materials

Largest producer in Japan

Main petrochemical products

33

Strengthening petrochemical operations by establishing the optimum production configuration for stable earnings and enhanced competitiveness to cope with contracting domestic demand and price competition from products made overseas based on low‐priced feedstock

Business Location Capacity(thousand tons)

Major applications Closure schedule

Naphthacracker Mizushima

500(unified with

Mitsubishi Chemical’s facility)

Production of basic petrochemical products such as ethylene and propylene

February 2016

AN

Mizushima

KawasakiKorea

Thailand

200100150560200

Acrylic fiber, ABS, acrylamide,adiponitrile August 2014

Styrene Mizushima 320390

Polystyrene, ABS, synthetic rubber February 2016

ABS resin Mizushima 65 Automotive, home electronics, office equipment December 2015

SB latex MizushimaKawasaki

2436

Paper coating, adhesives, paint December 2015

Epoxy resin MizushimaFuji

37(undisclosed) Coatings, adhesives, electronics May 2015

Closure Dedication to another product

Strengthening petrochemical operations in Japan

Petrochemicals (2)

34

Performance polymers (1)

• Top share in Asian market for solution‐polymerized SBR (S‐SBR) for fuel‐efficient tires• Enhancing overall tire performance, with good balance of fuel efficiency and wet grip• Technology for both continuous and batch polymerization processes; taking the lead in proactively expanding capacity for continuous process, with fewer competitors

Enhancing all four main performance characteristics of tires through original technologies for polymer design, higher molecular weight, and functionalization

Asahi Kasei’s technologies for continuous‐polymerization process

Batch polymerization

Continuouspolymerization

Handlingstability

Wearresistance

Fuel‐efficiency

Wet grip

Synthetic rubber (solution‐polymerized SBR)

0.0

0.5

1.0

1.5

2010 2015 20200

100

200

300

2010 2013 2015 2020

New plant in Singapore — 50 kt/y in 2013 and 50 kt/y expansion in 2015

Growing demand for fuel‐efficient tires with more stringent environmental standards

Performance characteristics

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

(Asahi Kasei estimate)

In‐house production by tire manufacturers

Asahi Kasei production capacity for S‐SBR for fuel‐efficient tires

Phase 2Singapore plant

Phase 1Singapore plantDomestic capacity

(thousand tons)

Functional‐ization

Polymerdesign

Open market

Additional capacity(overseas)

onward

Higher molecular weight

35

Performance polymers (2)

Advancing global growth strategy; reinforcing automotive‐related businesses• Leveraging computer‐aided engineering (CAE) technology with weight‐saving proposals for automotive parts

• Development of materials based on sophisticated technologies for polymer design, alloys, and compounding

• Global operations for production (compounding), sales, and technical service

Product Strategy Main automotive applications

Leona polyamide 66 Global development of specialty polyamide with superior heat resistance, durability, rigidity, and appearance

Engine compartment parts (cylinder head covers, etc.)

Tenac polyacetal Production of low‐VOC products in both Mizushima, Japan, and Zhangjiagang, China, and global sales expansion

Interior parts, fuel‐system parts, electric motor parts

Xyron modified polyphenylene ether

Global development of superior grades centered on office equipment, photovoltaics, automobiles, and rechargeable battery applications

Electrical system parts (relay blocks, electric vehicle battery parts, etc.)

Polypropylene compounds Sales expansion leveraging 2nd plant in US and sales subsidiary in Mexico

Radiator fans, fan shrouds, etc.

Engineering plastics

36

Performance materials

Product Main applications Asahi Kasei’s position

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

Aciplex ion‐exchange membranesMembrane‐process electrolyzer

Chlor‐alkali electrolysis Membranes: No. 1 world shareElectrolyzers: No. 2 world share

Duranate HDI‐based polyisocyanate Non‐yellowing polyurethane curing (coatings, inks, adhesives, cast molding, etc.)

No. 2 world shareNo. 1 domestic share

Acetonitrile Solvent for pharmaceutical manufacture No. 2 world share

Ceolus microcrystalline cellulose Additives for pharmaceuticals and foods No. 1 domestic share

Sunfort dry film photoresist Forming circuit patterns on printed wiring boards and semiconductor packaging

World top‐3 share: 30

APR and AFP photopolymers and platemaking systems

Printing plates for packaging such as cardboard, labels, and film

No. 1 domestic share

Main products of performance materials

37

Consumables

Household products

Saran Wrap

Ziploc

Frosch

Division/affiliate Main products

Fabricated Products Division Polyolefin and polystyrene films, Asaclean

Asahi Kasei Home Products Corp. Saran Wrap, Ziploc, Frosch

Asahi Kasei Pax Corp. Beverage containers, food packaging materials

Saran Wrap, Ziploc, Cookper Saran Wrap: No. 1 market share in Japan Increase market share by improving convenience and function of products

Frosch Utilize brand strength of Saran Wrap to expand business by

developing new kitchen goods such as detergent and deodorizer

Commercial productsContainers for convenience stores and fast food chains Rapid growth in container market for convenience stores and fast food chains Increase market share, utilizing position as leading manufacturer of

polypropylene containers Capture container demand including other materials in the future

38

LIB separator

Hipore

Celgard

Asahi Kasei production capacity for LIB separator (planned as of May 2016)

0

500

1,000

1,500

2,000

2,500

2016 2017 2018

⾞載⺠⽣

Demand forecast for LIB separator (Asahi Kasei estimate)(Million m2)

Demand increase: CAGR approx. 20%

CAGR approx. 30%

CAGR approx. 3%

AutomotiveConsumerelectronics

(FY) (FY)

Main applications

Electronics Mobile communication devices (cellphones, smartphones, tablets, etc.), laptop PCs, wearable devices, digital cameras, etc.

Electrical goods Power tools, cordless appliances, etc.

Eco‐friendly vehicles Hybrid vehicles, electric vehicles

Energy storage systems

Grid management, backup power

39

Electronic devices

Product Main applications Asahi Kasei’s position Main competitors

Electronic compass Smartphones, tablets, etc. World’s No. 1 Yamaha, Alps Electric

Devices for camera module

Camera modules for smartphones Top tier in the world (magnetic sensors)

Rohm Semiconductor, Renesas Electronics

LSIs for crystal oscillator Smartphones, communication devices World’s No. 1 Panasonic

LSIs for high‐end audio Smartphones, high‐end audio equipment Top tier in the world ESS Technology, Cirrus Logic

LSIs for automotive audio/visual/navigation

Car audio, navigation system, hands‐free system, etc.

Top tier in Japan NXP Semiconductors, Texas Instruments

Hall elements for motor control

Air conditioner, household appliances, computer cooling fans, industrial equipment

World’s No. 1 –

Various sensing solutions for the IoT era• Hall elements: motor control• Electronic compass: smartphones, tablets• Close positioning sensing: digital cameras, smartphones• Electric current sensor: industrial equipment (inverters, servomotors, robots)

• Gas sensor: indoor air quality monitoring system• Human detection sensor: “smart homes” etc.• Rotation angle sensor: industrial equipment, automotive electric motor control

Documents

Material Sector Business Briefing - Asahi Kasei · company) Asahi Kasei Microdevices Material Asahi Kasei Construction HealthMaterials Homes Asahi Kasei Homes Care Asahi Kasei Pharma