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1 26

2

3 Annual Report 26 1 C o n t e n t s Growth Action At a Glance CSR

4 * ,986 1, ,777 1, , , ,76 12,71 12,492 11,761 5,942 5,117 4,55 5, * * ROE D/E % 1.8% 43.2%.4 8.4% 11.7% 4.3% % 6.4% 36.1%.62 ROE 1,5 1,378 1, , 5 1, ,5 1, 5 1,249 1, ,

5 Annual Report Growth Action ISHIN-5IT 1 4,9861,29 1, ,4791 1, ,ISHIN

6 4 21 Growth Action 21Growth Action 213ISHIN M&A 4, 8, 21 18, 1,5 ROE1% 21 55%6% 25%1/3 ISHIN ISHIN

7 Annual Report 26 5 Growth Action 21 2, 15, 14,986 16,5 18, , 5 4 5, M&A4, 2, 1,6 1, , ,25 1, ,5 8 8, 4, 8 / 5 + 4, 8, ISHIN-5 ALC EVA Growth Action Ð

8 6 ISHIN ISHIN ISHIN-5 ISHIN HDI 27 APS APS 251 APS LSI 24 9 LSI LSI LSI

9 Annual Report 26 7 Growth Action 21 D/E , ISHIN 2 ISHIN-5 ISHIN ISHIN CSR 1 &

10 8 ISHIN-5 ISHIN-5 GDP 2 GDP 1, GDP GDP GDP 1, 1 196=1 25%7% Growth LSI Action 21 Growth Action 21 Growth Action 21 ISHIN-5 18, 1, Growth Action 21 ROE% ,986 16,5 1,87 1, , 1,5 8 1

11 Annual Report 26 9 Growth Action 21 MMA 4 2 PTT 1No. 1 6 M&A 3

12 1 Growth Action Growth Action M&A4, 8, 8, 3/4 M&AM&A 7%Growth Action ,5 5 4, 21 M&A M&A , ,5 2,2 2 3

13 Annual Report & * 25424

14 12 At a Glance &

15 Annual Report * 44% 6,64 35% 45 Asahikasei Plastics (America) Inc. Asahi Kasei Plastics Singapore Pte. Ltd. N.V. Asahi Photoproducts (Europe) S.A. 27% 25% 4, % 1,58 1% 111 N&P 6% 3% Thai Asahi Kasei Spandex Co., Ltd. 7% 1,29 17% 193 Asahi-Schwebel (Taiwan) Co., Ltd. 4% 3% % 4% % 3% *

16 PPE 6, PTT MMA HDI 5,72 6,64 7,15 25/3 26/3 27/3 2, 4, 6, 8, /3 26/3 27/

17 Annual Report MMA AS ABSMMA SB PPE 66 APR AFP UF MF 1 MMA 2 No. 1 No.1 MF UF 12 MF 4

18 HDI 11 1% HDI 2 PTT MMA PMMA 29 PTT 6 C4C5 16 PTT PTT

19 Annual Report , 4, 3,758 4,45 4, ,133 4, , 2, 1, 25/3 26/3 27/ /3 26/3 27/3

20 18 * 4, 3,62 3, 165 2, ,182 3,32 3,541 3, , 3,181 3, 2,73 2,893 3,133 3,29 3,18 2, 1, 2,896 2,633 2,811 3,17 3,194 3,325 2, 1, 22/3 23/3 24/3 25/3 26/3 27/3 * 22/3 23/3 24/3 25/3 26/3 27/3 1 2 IT

21 Annual Report

22 2 No. 1 1,2 1,39 1,58 1,8 APS 1, /3 26/3 27/ /3 26/3 27/3 1 2 No. 1

23 Annual Report APS ART-123 DIC AK-12 AT-877 PTH AT-877 KT ART-123 DVT 11 APS

24 22 1, , /3 26/3 27/ /3 26/3 27/3 & PTT

25 Annual Report

26 24 1,2 1, 93 1,29 1,15 DVDIT 1, /3 26/3 27/ /3 26/3 27/3 1 LSI LSIIC 2

27 Annual Report LSI LSI LCDEL IC AE81.5 IC ICAE AK8976A GPS 3 6 3D 3 6 AK8976A

28 26 For Safety & Amenity ALC EAZET ATT /3 26/3 27/ /3 26/3 27/3

29 Annual Report ALC ALC ALC

30 28 & & & /3 26/3 27/ & /3 26/3 27/3

31 Annual Report IT PAOSS & 3 1%

32 TIS BDF /3 26/3 27/ /3 26/3 27/3

33 Annual Report 26 31

34 R&D ECMC M&A

35 Annual Report FCCL /3 25/3 26/3 27/

36 34 3% 1,81 44% 9% % 869 1,574 34% 26% 1,385 EPC 36% 1, EPC SBR Phone:

37 Annual Report 26 35

38 36 &

39 Annual Report

40 38 CSR CSR* CSRCSR CSR CSRCSR RC** CSR CSRCSR CSRCSR * Corporate Social Responsibility ** 26452

41 Annual Report CSR 25 4 CSRCSR 11 CSR CSR RC CSR CSR CSR CSR RC CSR RC % 15 CSR RC RC CSR 26 CSR CSR 26 CSR Phone:

42 PL PL

43 Annual Report C o n t e n t s

44 ** ,498,62 1,377,697 1,253,534 1,193,614 1,193,614 66,42 57, ,77 424, ,581 44, , ,273 32, ,654 15,842 13,933 15,965 15,463 15,463 89,74 91,518 11,514 11,551 11,551 12,859 93,24 82,484 71,579 71,579 56,512 59,98 6,622 63,11 & 51,942 59,149 59,813 52,98 * 26,821 24,228 28,156 44,786 44,786 1,125,454 1,67,893 1,11, ,64 981,64 373,166 39,84 242, ,55 212,55 18, ,89 6,932 61,555 61,555 14, ,876 53,643 5,389 5,389 94,481 91,141 54,82 (1,869) (1,869) 59,668 56,454 27,672 (66,791) (66,791) (47.63) (47.63) 66,31 68,479 86,387 93,985 93,985 69,399 71,531 64,48 6,88 6,88 51,467 5,715 48,42 49,311 49, ,376,44 1,27,57 1,249,26 1,212,374 1,212, ,62 22, ,69 176, , , , ,32 427, , ,39 223, , , , , ,726 45,451 47,639 47, % ,3 23,82 25,11 25,73 25,73 * 2 3 ** &

45 Annual Report ,195,393 1,269,415 1,269,415 1,194,462 1,171,845 1,281,675 1,281,675 1,291,599 1,21,17 44, ,47 43, , ,48 4,42 373, , ,595 48, ,44 433,44 412, , , , ,47 392,3 98,686 95, ,98 134, , , , , , ,65 177,499 64,62 95,999 27,25 262,65 275, ,16 31, , ,46 96,228 8,653 66,212 63,235 62,337 59,457 56,794 18,37 17,967 18,133 2,828 95,481 93,46 88,5 82,73 82,73 82,58 81,294 33,593 29,464 28,81 9,68 88,478 88,478 89,14 82,742 6,234 7,57 13,48 18,916 34,616 32,545 36,46 57,565 6,234 1,6,81 1,86,219 1,86,219 1,44,63 1,9,439 1,127,59 1,127,59 1,133,811 1,65,67 188, , , , ,46 154,85 154,85 157, ,5 45,664 96,24 96,24 74,323 51,237 62,814 62,814 72,13 56,271 39,849 86,747 86,747 85,853 42,443 56,271 56,271 6,686 47,64 1,679 5,318 5,318 39,615 37,525 4,264 4,264 49,259 27,75 5,18 25,177 25,177 2,525 17,392 2,89 2,89 25,353 9, ,826 69,188 69,188 63,213 7,461 74,981 74,981 73,217 71,98 6,676 62,222 62,222 63,629 63,845 67,117 67,117 7,897 74,875 49,574 49,768 49,768 5,15 56,844 57,23 57,23 55,591 55, ,193,11 1,24,8 1,24,8 1,18,372 1,185,249 1,26,872 1,26,872 1,25,921 1,235,54 18, ,51 196,51 181, , , ,651 26, , , , , , ,5 424, , ,2 426, , , , ,13 132, , , ,84 156, , ,13 516,13 476, , ,25 455,25 442,73 425, ,227 26,695 26,695 26,58 29,263 27,792 27,792 26,721 28,

46 IT 1 4,9861,29 8.8% 1, % , % 75.2% %.7 7.3% , % , , % 1, , 1, , , , /3 5/3 6/3 4/3 5/3 6/3 4/3 5/3 6/3

47 Annual Report % , % % PPE 8 12 MF HDI 11 MMA 21 PPT % 15 7, 45 5, , ,8 18 1,4 9 4/3 5/3 6/3 4/3 5/3* 6/3 *

48 46 4, % % 115 3, , % % APS % 4 5, 3 1,5 15 1,5 1 4, 24 1,2 12 1,2 8 3, , , /3 5/3 6/3 4/3 5/3 6/3 4/3 5/3* 6/3 *

49 Annual Report % 3 6 1, % % DVDIT GPS % % EAZET ATT 1, , /3 5/3 6/3 6 4/3 5/3 6/3 4

50 48 1, 2, 3, 4, /3 4/3 6/ ,2 1,5 9 5/3 4/3 6/ /3 4/3 6/3 & /3 4/3 6/ & % % % 4TIS % 9% 3, % 24.9%22.5%2.4

51 Annual Report ,68.3% 1 3, %6, %7,319 APS % 4, %3, , %5, %43.2% D/E / & % 26, , , , , , , , , , , APS &

52 5 1, 5 1, 1,5 5 5/3 4/3 6/ , 6 5/3 4/3 6/ ,

53 Annual Report PL.

54 ,422 68,279 $ 738, ,59 252,21 2,33, , ,62 22,521 1,829, ,385 25,67 251, ,828 42,29 391,692 (1,46) (1,477) (12,479) 644, ,719 5,55,915, ,63 155,667 1,33,171 17, ,754 1,456,13 55,24 59, ,137 18,18 14,61 154,769 15,26 15,35 128, , ,969 3,541,67 5,7 5,974 48,718 27,394 3, ,137 33,94 36, , , ,894 2,124, ,43 2,992 26,8 11 8,915 1,452 76,197 24,68 22,643 21,94 (864) (2,23) (7,385) 284,39 223,958 2,43, ,852 68,338 6,255,145 1,376,44 1,27,57 $11,761,6

55 Annual Report : ,98 133,918 $ 1,136, ,38 27, , ,842 34,991 28,71 19,511 1,45 166, ,231 98, ,145 48,877 5,53 417,752 48,92 47, , ,723 43,22 3,758, ,3 186,246 1,335, , ,565 1,131, ,781 8, ,444 18,36 17,86 156, , , ,957 2,864,898 6,917 6,352 59,12 4,,, 1,442,616,332 13,389 13, ,667 79,433 79, , ,45 295,594 2,926, , ,383 54,73 729,769 (99) (5,38) (846) 611, ,695 5,226, ,799, ,26,226 (17,311) (16,969) (147,958) 594, ,726 5,78, ,376,44 1,27,57 $11,761,6

56 ,498,62 1,377,697 $12,88, ,127,53 1,1,526 9,637,9 371,9 367,171 3,171, , ,362 2,242, , ,89 929,282 2,653 2,286 22, ,617 4,581 1,292 2,381 11,43 2,935 3,323 25,86 7,416 1,67 63,385 3,57 3,648 3,513 1,285 1,393 1,983 2,73 3,324 23,12 4,418 5,175 37,761 11,976 13,54 12,359 14, ,876 89,38 3,373 5,67 1,16 48, ,795 5,88 4,8 5, , ,8 7,38 8,568 6, ,799 32, , ,171 14,921 27,13 15,565 26, ,34 94,481 91,141 87,53 11 (38,963) (29,245) (333,17) 11 4,417 (4,76) 37,752 (267) (682) (2,282) 59,668 56,454 $ 59, $.36 $ $.9

57 Annual Report ( 19) ( 12) ,389 79, ,82 1,66 43,413 (9,973) (16,66) 45, ,454 56,454 (692) (692) (1) (1) 11,29 11,29 4,593 4,593 (39) (39) (9,86) (9,86) (182) (182) ,389 79, , ,73 (5,38) (16,969) 511, ,668 59,668 (11) (11) 3,68 3,68 5,281 5,281 (342) (342) (12,62) (12,62) (199) (199) ,389 79, , ,383 (99) (17,311) 594,211 3 ( 19) ( 12) $883,667 $678,829 $2,526,444 $8,256 $467,547 $(45,983) $(145,34) $4,373, ,983 59,983 (94) (94) 262, ,222 45,137 45,137 (2,924) (2,924) (17,79) (17,79) (1,71) (1,71) $883,667 $678,915 $2,926,923 $8,256 $729,769 $ (846) $(147,958) $5,78,726

58 ,481 91,141 $ 87,53 69,399 71, ,154 3,799 32, ,214 (3,127) (23,365) (26,727) (2,653) (2,286) (22,675) 3,57 3,648 3,513 (536) (2,617) (4,581) (3,373) 854 7, ,8 (5,67) (1,16) (48,461) 7,38 8,568 6,154 2,617 (16,393) (15,117) (14,111) (11,75) (2,317) (94,658) (2,75) 13,37 (17,735) 11,532 18,488 98,564 (1,192) 222 (1,188) (11,695) 2,266 (99,958) 137, ,14 1,172,812 4,11 3,413 35,128 (3,656) (3,897) (31,248) (2,617) (29,53) (42,74) (248,316) 18,62 98, ,376 (498) (669) (4,256) ,68 () (59,74) (72,48) (54,96) 8,824 8,733 75,419 (7,341) (6,262) (62,744) (6,848) (1,889) (58,53) 1,99 8,44 9,393 1,962 16,769 (5,293) (2,56) (45,239) 7,6 4,354 64,957 (959) (1,827) (8,196) (6,373) (62,846) (516,9) 25,19 8, ,838 (7,923) (13,171) (67,718) 5, (5,) 2,93 1,265 24,812 (6,584) (2,895) (56,274) 2, (31,) (25,14) (264,957) (378) (414) (3,231) (12,592) (9,8) (17,624) (355) (268) (3,34) (4) (14) (34) (3,881) (39,557) (263,94) ,641 17,792 (3,982) 152,68 68,456 7, , ,54 1, ,39 68,456 $ 738,376

59 Annual Report a 3 b c ,799 32,47 d

60 ,64 21, , ,573 19, ,855 19, , e i ii f g h i1 1 1

61 Annual Report ,422 68,279 $738,65 3 (454) (74) (3,88) MMF ,66 86,39 68,456 $738, ,66 14,285 $133,385 7,692 15,394 65,744 44,383 38, ,342 2,64 1,457 17,641 5,171 6,69 44,197 1,93 1,98 9,342 4,28 4,73 34, ,818 69,17 $562,547 13,436 13, ,838

62 6 7. (a) , ,74 142,93 38, ,74 142, (24) (24) 38, , , , ,511 91, , ,571 91,955 1,726 1,61 (125) ,754 1,629 (125) 39,37 131,2 91,83 26 $331,42 $1,553,26 $1,221, ,42 1,553,26 1,221,624 1, (25) ,316 1,111 (25) $332,718 $1,554,137 $1,221, b ,922 $5, ,514 2,

63 Annual Report c ,1 1,5 $85,479 7,521 7,625 64,282 d $197 $9 $ $ $197 $9 $ $ ,128 27,781 $ 1,778, , ,851 7,62,496 84,591 82, , 1,184,317 1,157,744 $1,122,368

64 % %1.83% 1,354 1,596 $ 11,573 8,788 81,641 69,496 :.54% 2.15% , 9, 555,556 : 1.%( 1.8%) 211 1, 1, 85,47 : 1 CMS-.9% 26 1, : 1 CMS-.45% 6 LIBOR 26 2, 3, 17,94 :.29% 3.45% , 22, 153,846 : US$1.9% 3.5% , 12, 12, , ,237 1,616,599 : 1 (32,842) (34,991) (28,71) 156,3 186,246 $1,335, ,842 $ 28, ,54 295, ,698 27, ,62 769, ,142 $1,616, ,63 $48,

65 Annual Report (3,327) (29,655) $(2,566,898) 26,22 172,419 1,76,872 (94,35) (118,236) (86,26) (23,619) (2,663) (21,872) (9,797) (11,176) (83,735) (3,896) (2,73) (33,299) (131,617) (134,85) (1,124,932) (816) (76) (6,974) (132,433) (135,565) $(1,131,96) ,352 11, ,697 8,438 $ 74,333 7,293 7,49 62,333 (4,49) (4,158) (37,684) (2,726) (23,48) (23,299) (1,394) (1,394) (11,914) 7,461 (13,545) $ 63, ,962 16,769 1, % 2.5% 2.5% 2.5%

66 (1)(2)(3) % ,496 52,517 $ 457,231 8,317 8,747 71,85 6,25 6,71 53,34 4,13 3,736 35,299 3,196 3,58 27,316 3,16 2,863 25,778 2,145 2,152 18,333 1,38 11,18 1, , , ,633 13,817 9, ,94 97,617 92, ,333 (6,23) (4,144) (53,17) 91,414 88, ,316 (6,281) (39,845) (515,222) (15,777) (16,256) (134,846) (1,621) (1,79) (13,855) (3,216) (3,15) (27,487) (8,895) (61,41) (691,41) () 1,519 27,158 $ 89, % 4.7% () () (6.4) (4.5) IT (.4) IT (.4).1.1 (.2) (1.2).3 (.4) 36.6% 37.3% 5%

67 Annual Report ,554 33,637 $278,239 87,117 71, ,59 1,718 1,759 91,67 * 35,832 36,445 36,256 13,411 15, ,624 28,72 3,69 239,932 * , ,889 5, ,799 32, ,456 6,983 $2, ,938 6,111 3,171 14,921 $27,13

68 ,554 38,923 6, ( ) ,971 4,488 $33,94 1 6,161 5,798 52,658 1,132 1,286 $86, ,125 6,387 8,738 $74, ,34 1, , ,333 18,93 7,961 1,132 $86, ,43 8,25 7, ,448 2,78 1,668 1,577 1, ,716 12,43 1, ,554 38,923 6, : 26 & : 66,42 44,539 15,842 89,74 12,858 56,512 51,942 26,821 1,498,62 1,498,62 16, , ,596 3,624 27,247 62,51 (62,51) 677,61 44,65 15,861 91,966 13,85 68,18 55,566 54,68 1,561,13 (62,51) 1,498,62 636, ,432 94,83 87,95 84,517 64,292 5,74 5,785 1,446,68 (56,174) 1,389,894 4,512 28,218 11,58 4,16 19,333 3,816 4,826 3, ,62 (6,336) 18,726

69 Annual Report & 57, ,755 13,933 91,518 93,24 59,98 59,149 24,228 1,377,697 1,377,697 14, , ,326 4,613 36,447 69,462 (69,462) 584, ,841 13,968 93,589 93,733 71,234 63,762 6,675 1,447,159 (69,462) 1,377, , ,853 9,611 85,251 76,142 68,666 57,695 57,111 1,328,874 (66,986) 1,261,888 37,812 28,988 13,357 8,338 17,591 2,568 6,67 3, ,285 (2,476) 115,89 26 & $5,644,462 $3,457,598 $94,632 $766,71 $879,128 $483,9 $443,949 $229,239 $12,88,718 $ $12,88, , ,333 8,479 99,111 3, ,88 534,274 $(534,274) 5,786,847 3,458,547 94, ,34 887,67 582,12 474, ,119 13,342,992 (534,274) 12,88,718 5,44,59 3,217,368 81, ,79 722, ,54 433, ,6 12,359,556 (48,12) 11,879,436 $ 346,257 $ 241,179 $ 94,512 $ 34,325 $165,239 $ 32,616 $ 41,249 $ 28,59 $ 983,436 $ (54,154) $ 929, & 529,1 2,66 118,721 15, ,743 49,557 5,97 317,171 1,486,46 (11,2) 1,376,44 31,281 2,448 6,364 5,337 12,51 3,129 4, ,677 3,722 69, ,548 3,799 26,632 3,583 4,897 5,417 14,96 2,313 4,655 1,38 63,495 2,815 66,31 25 & 494, , ,762 1,31 19,55 58,68 55, ,826 1,425,63 (155,573) 1,27,57 31,553 2,28 6,372 5,2 13,312 3,797 4,535 1,192 68,241 3,29 71,531 25,84 3,447 8,26 4,927 16,446 2,29 4,329 1,423 66,125 2,354 68,479

70 68 26 & $4,522,222 $1,79,966 $1,14,71 $93,573 $98,79 $423,564 $435,641 $2,71,863 $12,71,248 $(94,188) $11,761,6 267,359 2,923 $54,393 45,615 13, 26,744 37,197 6, ,342 31, ,154 2,145 2,145 3,325 32,47 227,624 3,624 41,855 46, ,863 19,769 39,786 8, ,692 24,6 566, APS LSI & ,145 3,548 3, ,64 21, ,64 51,829 3,97 26,47 2,83 24,188 1,869 15,974 1,77 9,25 1,368 11,692 & 855 7,38 2,478 21,179 19, , ,29 129,991 1, ,76 3,821, ,975

71 Annual Report ,377 15, , ,17 122,787 39,84 $1,9,658 $1,288,795 $ 3,189,453 1,498,62 1,377,697 12,88,718 % 14.8% 1.1% 24.9% 13.6% 8.9% 22.5% ,999 (59,821 ) $ 2,53 15,569 17,44 133,68 2,646 2,739 22, ,274 19,245 2,198 $164,487

72 ,668 56,454 $59,983 (218) (199) (1,863) 59,45 56,255 $58, ,45 56,255 $58, ,4,19 1,4, ,4,19 1,4, $.36 1 $

73 Annual Report 26 71

74 % * 3, 1. * 2, 1. * * * 1, 75. 4,2 5. 1, , 45. 5, 29.8 * US$ 17.8** 1. * US$ 21.5** 1. * US$ * US$ * W 5, W 1,5 1. W 5, US$ US$ HDI US$ * US$ * PPE US$ B US$ * A * / A *.3 1. UK* UK* * A * 3,25 1. * 2,82 1. * 5 1. * * 2 1. * 3, 1. * 8 1. N&P* * **

75 Annual Report % * US$.2 1. W 4,4 5. US$ A.2 1. A.2 1. A.1 1. (* 3, 1. * PTT US$ 1.2** * * NT$ * HK$ * B A 1.** 1. A A.3 1. * 3, 1. * 14, 1. * * 4 1. AKM * US$ * 6 1. * NT$ * NT$ * 3, 1. * 2 1. * 3 1. & & * 3, 1. * * ,5 5. A.7 1. * 3, 1. * 8 1. * 4 1. * * * 8 1. AJS * **

76 ,388 23, Phone Fax Phone Fax Room 148 New China Insurance Tower No.12 Jian Guo Men Wai Avenue Chao Yang District Beijing 122 P. R. China Phone: Fax: Room 2321 Shanghai Central Plaza 381 Huaihai Zhong Road Shanghai 22 China Phone: Fax: Madison Avenue, 33rd Floor New York, NY 122, U.S.A. Phone: Fax: Phone Phone MD Phone Phone Phone Phone & Phone

77 Annual Report ,,, 1,442,616, * , % 4.94% 4.66% 2.84% 2.45% 2.23% 2.16% 1.7% 1.57% % 44.8% 25.2% 23.91% 2.26% 4.73% 1, 8.25% 1,99, % 1,9, % 1,.44% 1,442,616,332 IR

78 Phone: Fax:

1. 2. 3. 4. 5. Contents The Asahi Kasei History... 1... 4... 5 Growth Action 21... 6... 12 At a Glance... 14... 16... 32 CSR... 36... 38... 39... 7...

1. 2. 3. 4. 5. Contents The Asahi Kasei History... 1... 4... 5 Growth Action 21... 6... 12 At a Glance... 14... 16... 32 CSR... 36... 38... 39... 7... 27 27 1. 2. 3. 4. 5. Contents The Asahi Kasei History... 1... 4... 5 Growth Action 21... 6... 12 At a Glance... 14... 16... 32 CSR... 36... 38... 39... 7... 72... 73 The Asahi Kasei History 1922 1931 199199

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