Asahi Kasei : Report 2021

Creating for Tomorrow

Asahi Kasei Report 2021

Asahi Kasei Report 2021

Group Mission

Group Vision

Group Values

Group Slogan

1

We, the Asahi Kasei Group, contribute to life and living for people around the world.

Providing new value to society

by enabling "living in health and comfort" and "harmony with the natural environment."

Sincerity-Being sincere with everyone.

Challenge-Boldly taking challenges, continuously seeking change.

Creativity-Creating new value through unity and synergy.

Creating for Tomorrow

Asahi Kasei Report 2021

Contents

Asahi Kasei Group Overview	Management Strategy	Business Overview	Corporate Governance and	Corporate Information	2
			Risk Management

Asahi Kasei Group Overview

Business Overview

Editorial policy

3 At a Glance

5 Financial and Non-Financial Highlights

7 Addressing Social Issues and Advancing Business Portfolio Strategies- Our Path to Three Sectors -

46 Review of Operations

    46 Material

    48 Homes

    50 Health Care

For greater ease of understanding among our stakeholders regarding the Asahi Kasei Group's operating climate and overall business activities, the Asahi Kasei Report focuses on such areas as our management strategy, business conditions, and management configuration as well as our efforts toward sustainability in society. Detailed sustainability-related information is disclosed on our website.

Period under review

The period under review is fiscal 2020 (April 2020 to March 2021). Some qualitative information pertaining to April to July 2021 has also been included.

Organizational scope

Management Strategy

10 Message from the President

1 8 Value Creation Model

19 The Asahi Kasei Group's Vision for the Future of People and the Earth

22 Pursuit of Carbon Neutrality and a Circular Economy

27 Initiatives Regarding Climate Change Disclosure Based on the TCFD Recommendations

29 New Business Creation

32 New Business Creation Utilizing Corporate Venture Capital

34 Digital Transformation

39 Human Resource Strategies

43 Financial and Capital Policy

Corporate Governance and Risk Management

53 Corporate Governance

57 Directors and Audit & Supervisory Board Members

60 Interview with an Outside Director

62 Risk Management

Corporate Information

66 Consolidated Financial Statements

1. Corporate Profile / Stock Information
2. Information Disclosure

The scope of the report is Asahi Kasei Corp. and its consolidated subsidiaries (in other cases, noted in the text). Asahi Kasei's three operating segments are Material, Homes, and Health Care. The titles and positions of corporate officers and other personnel as shown in this report are current as of September 2021.

Guidelines consulted

The GRI Standards, the standards of the Sustainability Accounting Standards Board, ISO 26000, and other guidelines were consulted during the preparation of this report.

Disclaimer

The forecasts and estimates shown in this report are dependent on a variety of assumptions and economic conditions. Plans and figures depicting the future do not imply a guarantee of actual outcome.

Photographs at the beginning of each section

We have used a selection of prize-winning photographs from our Sustainability Photo Contest held in March and April 2021. The contest solicited photographs from all Asahi Kasei Group employees and executives that would inspire people to think about and act on sustainability in their daily lives. More than 2,300 submissions were received from our sites around the world.

Asahi Kasei Report 2021	Asahi Kasei Group Overview	Management Strategy	Business Overview	Corporate Governance and	Corporate Information	3
				Risk Management

At a Glance

			Fiscal 2020 Net Sales	Notable Facts (as of March 31, 2021)
19.5%			¥ 2,106.1billion	Employees			Global bases		20
			Of which, overseas employees		More than
	33.6%			44,497 account for nearly 40%		countries­
							and regions
34.2%	Material		Fiscal 2020 Operating Income
	Homes		¥ 171.8 billion	Consolidated subsidiaries	Overseas sales ratio	Credit rating*
		228	42.8	％	AA * As of June 30, 2021
	Health Care
	47.4%				Japan Credit Rating Agency (JCR)
	Note: Percentages shown exclude the
	"Others" category and "corporate
	expenses and eliminations"
33.1%							Net Sales by Region
						Note: As of March 31, 2021
	32.2%

Europe	China
¥124.9 billion	The Americas
¥198.9 billion	¥ 335.9 billion
5.9 %
9.4 %	15.9 %

Japan

¥1,204.3 billion

57. 2 %

Asia	Other Regions
(excluding China)	¥ 26.8 billion
¥ 215.3 billion
1.3 %
10.3 %

Asahi Kasei Report 2021	Asahi Kasei Group Overview	Management Strategy	Business Overview	Corporate Governance and	Corporate Information	4
				Risk Management

Priority Fields for Provision of Value and Related Products

Material	Homes	Health Care
Environment & Energy	Home & Living	Health Care

Hipore™ and Celgard™ separators for lithium-ion	Ion-exchange membrane chlor-alkali electrolysis	Hebel Haus™ unit homes	Pharmaceutical products
batteries	process	Hebel Maison™ apartment buildings

Mobility

Engineering plastics	Lamous™ artificial suede	Hebel Village™ apartments for seniors	Planova™ virus removal filters
	Dinamica™ automotive interior material

Life Material

Ceolus™ microcrystalline cellulose

Household products

Atlas™ condominiums

ZOLL AED Plus™ automated external defibrillator