26

1. 2. 3. 4. 5.

Annual Report 26 1 C o n t e n t s... 2... 3 Growth Action 21... 4... 6... 11 At a Glance... 12... 14... 31... 32... 34... 35... 36 CSR... 38... 4... 41... 72... 74... 75

2 3 311 * 26 25 24 26 14,986 1,87 945 597 663 694 515 13,777 1,158 911 565 685 715 57 12,535 69 548 277 864 644 484 12,89 929 88 51 567 593 44 13,76 12,71 12,492 11,761 5,942 5,117 4,55 5,79 3 311 1 * 26 25 24 26 42.46 424.34 1. 4.16 365.43 8. 19.62 321.41 6..36 3.63.9 * 263311117 3 311 ROE D/E 26 25 24 7.3% 1.8% 43.2%.4 8.4% 11.7% 4.3%.49 4.9% 6.4% 36.1%.62 ROE 1,5 1,378 1,254 8.4 1, 5 1,499 1 8 7.3 6 6 4 2 56 11.7 28 6 12 1.8 1 8 1,5 1, 5 1,249 1,27 45 512 594 1,376 4.9 24 25 26 4 6.4 24 25 26 6 24 25 26

Annual Report 26 3 4Growth Action 21 25 ISHIN-5IT 1 4,9861,29 1,8771 1 71162 422 1,4791 1,428759732 2 1,ISHIN-5 211 26 8

4 21 Growth Action 21Growth Action 213ISHIN-5 21 5M&A 4, 8, 21 18, 1,5 ROE1% 21 55%6% 25%1/3 ISHIN2 1999-22 ISHIN-5 23-25

Annual Report 26 5 Growth Action 21 2, 15, 14,986 16,5 18, 7 8 21 1, 5 4 5, M&A4, 2, 1,6 1,2 8 4 1, 75 25 28 21 1,25 1,87 25 28 21 65 597 1,5 8 8, 4, 8 / 5 + 4, 8, 5 25 25 28 21 ISHIN-5 ALC EVA Growth Action Ð 21 26-21

6 ISHIN-5 233 ISHIN-5 23 1 2 ISHIN-5 ISHIN-5 2311 25 3 26 3 26 7 HDI 27 APS 24 25 5 4 APS 251 APS 26 24 1 4 2512 26 3 24 5 LSI 24 9 LSI LSI 2411 25 5 26 7 LSI

Annual Report 26 7 Growth Action 21 D/E.78.79.62.54 512 174 743 25 96 252.64 457 52 616.62.49 956 84 565 277.4 1,47 597 ISHIN 2 ISHIN-5 ISHIN-5 668 1998 1999 2 21 22 23 24 25 ISHIN-5 237 3 4 CSR 1 &

8 ISHIN-5 ISHIN-5 GDP 2 GDP 1, GDP GDP GDP 1, 1 196=1 25%7% Growth 1 19631964 1972 1983LSI 1955 1965 1975 1985 1995 25 3198 Action 21 Growth Action 21 Growth Action 21 ISHIN-5 18, 1,58 251.41.3 Growth Action 21 ROE% 25 28 14,986 16,5 1,87 1,25 597 65 1.8 1 21 18, 1,5 8 1

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

1 Growth Action 21 7 8 Growth Action 21 215 M&A4, 8, 8, 3/4 M&AM&A 7%Growth Action 21 1 3 3 2621 21 21 78 8,5 5 4, 21 M&A M&A 4 5 4 1, 5 3 4 2 1,5 2,2 2 3

Annual Report 26 11 & * 25424

12 At a Glance &

Annual Report 26 13 25 25 * 44% 6,64 35% 45 Asahikasei Plastics (America) Inc. Asahi Kasei Plastics Singapore Pte. Ltd. N.V. Asahi Photoproducts (Europe) S.A. 27% 25% 4,45 282 7% 1,58 1% 111 N&P 6% 3% 897 4 Thai Asahi Kasei Spandex Co., Ltd. 7% 1,29 17% 193 Asahi-Schwebel (Taiwan) Co., Ltd. 4% 3% 565 38 3% 4% 519 48 2% 3% 268 33 *

PPE 6,6492 43 4527 PTT MMA HDI 5,72 6,64 7,15 25/3 26/3 27/3 2, 4, 6, 8, 378 45 37 25/3 26/3 27/3 1 2 3 4 5 14

Annual Report 26 15 MMA AS ABSMMA SB PPE 66 APR AFP UF MF 1 MMA 2 No. 1 No.1 MF UF 12 MF 4

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

Annual Report 26 17 5, 4, 3,758 4,45 4,15 115 3,133 4,45288 22 2828 2 3, 2, 1, 25/3 26/3 27/3 4 33 3 29 282 2 1 25/3 26/3 27/3

18 * 4, 3,62 3, 165 2,8 167 11 3,182 3,32 3,541 3,59 9 11 11 336 256 21 36 4, 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 1975 4

Annual Report 26 19 3 6 211 1 2

2 No. 1 1,2 1,39 1,58 1,8 APS 1,5819 21 11123 8 4 15 12 9 6 3 25/3 26/3 27/3 134 111 1 25/3 26/3 27/3 1 2 No. 1

Annual Report 26 21 APS ART-123 DIC AK-12 AT-877 PTH AT-877 KT-611 1 ART-123 DVT 11 APS 4 6 4 3

22 1,2 915 897 1,8 89718 13 443 6 8 4 1 8 6 4 2 25/3 26/3 27/3 83 4 4 25/3 26/3 27/3 & 1 6 2 PTT

Annual Report 26 23 4 75 6 75 1929 1931 675 1 3 6 75

24 1,2 1, 93 1,29 1,15 DVDIT 1,29 98 11 19317 2 6 8 6 4 2 25 2 15 1 5 25/3 26/3 27/3 176 193 21 25/3 26/3 27/3 1 LSI LSIIC 2

Annual Report 26 25 LSI LSI LCDEL IC AE81.5 IC ICAE81 6 3 3 6 AK8976A GPS 3 6 3D 3 6 AK8976A

26 For Safety & Amenity 8 6 4 599 565 59 ALC EAZET ATT 565 34 15 3812 2 25/3 26/3 27/3 5 4 38 4 3 26 2 1 25/3 26/3 27/3

Annual Report 26 27 ALC 1 2 26 4 3 ALC ALC 11 1 3

28 & & & 51972 6 4812 6 591 519 54 4 2 8 6 4 25/3 26/3 27/3 61 48 45 & 1 2 2 25/3 26/3 27/3

Annual Report 26 29 1 2 3 4 IT PAOSS & 3 1%

3 268 26 4TIS 333 3 BDF 3 242 268 29 2 1 25/3 26/3 27/3 4 36 33 35 3 2 1 25/3 26/3 27/3

Annual Report 26 31

32 25 8 4 23 1 R&D 25 8 2681 24 1 ECMC M&A

Annual Report 26 33 2 FCCL 1 6 484 57 515 56 4 2 24/3 25/3 26/3 27/3 24 11

34 3% 1,81 44% 9% 351 21% 869 1,574 34% 26% 1,385 EPC 36% 1,477 945 EPC 25 23 24 23 SBR 25 25 23 25 26 3 26 3 7 26 3 1-844 12 Phone: 3-357-765

Annual Report 26 35

36 & 1 2 2 2 1 3 1 4 2

Annual Report 26 37 26 331 1 4 5 5 1 5 1

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

Annual Report 26 39 CSR 25 4 CSRCSR 11 CSR CSR RC CSR CSR CSR CSR RC CSR 15 26 4 15 RC 24 1995% 15 CSR 26 1997 RC RC CSR 26 CSR CSR 26 CSR 1-844 1 2 Phone: 3-357-2345 www.asahi-kasei.co.jp/asahi/jp/csr/

4 2663 PL PL

Annual Report 26 41 C o n t e n t s 11... 42... 44... 51... 52... 54... 55... 56... 57... 71

42 11 3 31 1 26 25 ** 24 23 23 1,498,62 1,377,697 1,253,534 1,193,614 1,193,614 66,42 57,182 453,77 424,673 477,581 44,539 375,755 361,273 32,553 383,654 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 1,11,366 981,64 981,64 373,166 39,84 242,168 212,55 212,55 18,726 115,89 6,932 61,555 61,555 14,166 112,876 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) 1 42.46 4.16 19.62 (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 49,311 1. 8. 6. 6. 6. 3 31 26 25 24 23 23 1,376,44 1,27,57 1,249,26 1,212,374 1,212,374 214,62 22,521 181,69 176,788 176,788 414,368 419,969 428,32 427,188 427,188 284,39 223,958 226,825 198,697 198,697 594,211 511,726 45,451 47,639 47,639 1 424.34 365.43 321.41 29.92 29.92 % 43.2 4.3 36.1 33.6 33.6 23,3 23,82 25,11 25,73 25,73 * 2 3 ** 26 3 25 3 23 1 1 23 3 &

Annual Report 26 43 22 21 21 2 1999 1998 1998 1997 1996 1,195,393 1,269,415 1,269,415 1,194,462 1,171,845 1,281,675 1,281,675 1,291,599 1,21,17 44,698 449,47 43,934 379,677 375,48 4,42 373,874 363,589 354,595 48,474 433,44 433,44 412,954 372,649 425,553 424,532 451,47 392,3 98,686 95,481 125,98 134,791 134,791 139,181 148,277 181,542 181,542 184,65 177,499 64,62 95,999 27,25 262,65 275,871 274,16 31,727 292,538 286,46 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 1,65,67 188,583 183,196 183,196 149,832 162,46 154,85 154,85 157,788 144,5 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 9,235 3.61 17.45 17.45 14.23 12.6 14.43 14.43 17.57 6.4 74,826 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 55,36 6. 6. 6. 6. 6. 6. 6. 6. 6. 22 21 21 2 1999 1998 1998 1997 1996 1,193,11 1,24,8 1,24,8 1,18,372 1,185,249 1,26,872 1,26,872 1,25,921 1,235,54 18,826 196,51 196,51 181,771 193,691 198,651 198,651 26,253 198,282 415,193 419,168 419,168 416,881 435,5 424,499 424,499 424,2 426,744 181,618 176,177 176,177 127,13 132,251 141,388 141,388 151,84 156,984 496,826 516,13 516,13 476,159 464,339 455,25 455,25 442,73 425,947 353.16 357.7 357.7 33.7 321.88 315.64 315.64 36.89 295.26 41.6 41.6 41.6 4.3 39.2 37.7 37.7 35.4 34.5 26,227 26,695 26,695 26,58 29,263 27,792 27,792 26,721 28,155 22 3 21 3 1999 3 1998 3

44 26 3 IT 1 4,9861,29 8.8% 1,87716.1% 1624 22 5517 1,47919.5% 75.2%1.8 11 17.5%.7 7.3%1.1 4629 164 52621 1,4287 7.7% 57 597 38156 97 121 1,4297 945 34539 443 59732 15, % 1,25 1 1 6 45 12, 1, 8 48 36 9, 75 6 36 27 6, 5 4 24 18 3, 25 2 12 9 4/3 5/3 6/3 4/3 5/3 6/3 4/3 5/3 6/3

Annual Report 26 45 5.7% 1 42.46 4.162.3 7 8 4 6,64 92 15.8%45 43 27 7.1% PPE 8 12 MF HDI 11 MMA 21 PPT % 15 7, 45 5,6 36 1 4,2 27 5 2,8 18 1,4 9 4/3 5/3 6/3 4/3 5/3* 6/3 *

46 4,45 288 7.7% 282 22 8 2.7% 115 3,133 4 9 2 1,5819 1.8%111 21 2317.2% APS 6 3 11 4 897182.% 4 5, 3 1,5 15 1,5 1 4, 24 1,2 12 1,2 8 3, 18 9 9 9 6 2, 12 6 6 6 4 1, 6 3 3 3 2 4/3 5/3 6/3 4/3 5/3 6/3 4/3 5/3* 6/3 *

Annual Report 26 47 134351.8% 3 6 1,2998 1.6%193 1117 9.9% DVDIT 5 2 11 GPS 6 565345.7% 38 151248.6% EAZET ATT 1,5 2 9 6 1,2 16 6 4 9 12 3 2 6 8 3 4 3 2 4/3 5/3 6/3 6 4/3 5/3 6/3 4

48 1, 2, 3, 4,..25.5.75 1. 5/3 4/3 6/3 3 6 1,2 1,5 9 5/3 4/3 6/3 2 4 6 8 2 4 6 8 5/3 4/3 6/3 & 1 2 3 4 1 2 3 4 5/3 4/3 6/3 11 1 & 519 72 12.2%48 6 122.5% 3 268261.7% 4TIS 333 7.9% 9% 3,732 6342.5% 24.9%22.5%2.4

Annual Report 26 49 1,68.3% 1 3,76 173 115 181545 9.2%6,442 5633 587 5157.6%7,319 APS 249115 3679.1% 4,397 23 69 188 138 3.9%3,352 31 132,358 597 469 37 82516.1%5,942 1 58.91424.34 4.3%43.2% D/E /.49.4 25 4 1 & % 26,632 16.2 3,583 13.9 4,897 59.3 5,417 19.9 14,96 91. 2,313 14.7 4,655 17.5 1,38 72.9 63,495 96. 2,815 119.6 66,31 96.8 663 APS &

5 1, 5 1, 1,5 5 5/3 4/3 6/3 2 4 8 1, 6 5/3 4/3 6/3 482 39 179864 275291 945694 1,8613 591 73 88 6425 176 126 39 87

Annual Report 26 51........ PL.

52 3 31 3 26 25 26 5 86,422 68,279 $ 738,65 6 269,59 252,21 2,33,496 5 7 446 37 3,812 214,62 22,521 1,829,59 11 29,385 25,67 251,154 6 45,828 42,29 391,692 (1,46) (1,477) (12,479) 644,192 589,719 5,55,915, 8 9 155,63 155,667 1,33,171 17,364 174,754 1,456,13 55,24 59,912 472,137 18,18 14,61 154,769 15,26 15,35 128,427 414,368 419,969 3,541,67 5,7 5,974 48,718 27,394 3,437 234,137 33,94 36,411 282,855 6 7 248,616 189,894 2,124,923 6 3,43 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 2,43,683 731,852 68,338 6,255,145 1,376,44 1,27,57 $11,761,6

Annual Report 26 53 : 3 26 25 26 6 132,98 133,918 $ 1,136,581 6 9 46,38 27,369 396,41 1 9 32,842 34,991 28,71 19,511 1,45 166,761 11 6 11,231 98,759 942,145 48,877 5,53 417,752 48,92 47,527 417,966 439,723 43,22 3,758,316 9 156,3 186,246 1,335,898 1 132,433 135,565 1,131,96 11 27,781 8,964 237,444 18,36 17,86 156,462 373 376 3,188 335,193 348,957 2,864,898 6,917 6,352 59,12 4,,, 1,442,616,332 13,389 13,389 883,667 79,433 79,423 678,915 19 342,45 295,594 2,926,923 12 966 966 8,256 11 85,383 54,73 729,769 (99) (5,38) (846) 611,522 528,695 5,226,684 26 3 31 42,799,834 25 3 31 42,26,226 (17,311) (16,969) (147,958) 594,211 511,726 5,78,726 17 2 1,376,44 1,27,57 $11,761,6

54 3 31 1 3 26 25 26 6 18 1,498,62 1,377,697 $12,88,718 6 13 1,127,53 1,1,526 9,637,9 371,9 367,171 3,171,79 13 262,364 251,362 2,242,427 18 18,726 115,89 929,282 2,653 2,286 22,675 536 2,617 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 14,166 112,876 89,38 3,373 5,67 1,16 48,461 21 411 1,795 5,88 4,8 5,256 854 7,299 73 429 6,8 7,38 8,568 6,154 14 3,799 32,47 15 2,617 16 3,171 14,921 27,13 15,565 26,535 133,34 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 $ 59,983 3 26 25 26 1 21 42.46 4.16 $.36 $ 1. 8. $.9

Annual Report 26 55 3 31 1 ( 19) ( 12) 24 3 31 13,389 79,396 249,82 1,66 43,413 (9,973) (16,66) 45,451 27 27 25 3 56,454 56,454 (692) (692) (1) (1) 11,29 11,29 4,593 4,593 (39) (39) (9,86) (9,86) (182) (182) 25 3 31 13,389 79,423 295,594 966 54,73 (5,38) (16,969) 511,726 1 1 26 3 59,668 59,668 (11) (11) 3,68 3,68 5,281 5,281 (342) (342) (12,62) (12,62) (199) (199) 26 3 31 13,389 79,433 342,45 966 85,383 (99) (17,311) 594,211 3 ( 19) ( 12) 25 3 31 $883,667 $678,829 $2,526,444 $8,256 $467,547 $(45,983) $(145,34) $4,373,726 86 86 26 3 59,983 59,983 (94) (94) 262,222 262,222 45,137 45,137 (2,924) (2,924) (17,79) (17,79) (1,71) (1,71) 26 3 31 $883,667 $678,915 $2,926,923 $8,256 $729,769 $ (846) $(147,958) $5,78,726

56 3 31 1 3 26 25 26 94,481 91,141 $ 87,53 69,399 71,531 593,154 3,799 32,47 259 248 2,214 (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 7,299 73 429 6,8 (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) 137,219 144,14 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 98,299 928,376 (498) (669) (4,256) 125 718 1,68 () 3 2 256 (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 8,715 213,838 (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) 33 129 282 (12,592) (9,8) (17,624) (355) (268) (3,34) (4) (14) (34) (3,881) (39,557) (263,94) 426 122 3,641 17,792 (3,982) 152,68 68,456 7,898 585,94 142 1,54 1,214 5 86,39 68,456 $ 738,376

Annual Report 26 57 1. 26 3 15 25 3 16 26 3 55 25 3 53 12 31 2 28 12 31 228 5 2 2. a 3 b c 5 6 422 5 22 89 3,799 32,47 d 26 3 25 3 1 1 1

58 1 1 2 3 1 23,64 21,744 1 1 21,244 181,573 19,639 167,855 19,639 167,855 18 e i 4 26 25 3 31 ii f g h i1 1 1

Annual Report 26 59 3. 26 3 31 1 117 4. 5. 3 31 26 25 26 86,422 68,279 $738,65 3 (454) (74) (3,88) MMF 422 251 3,66 86,39 68,456 $738,376 6. 26 25 26 15,66 14,285 $133,385 7,692 15,394 65,744 44,383 38,788 379,342 2,64 1,457 17,641 5,171 6,69 44,197 1,93 1,98 9,342 4,28 4,73 34,427 26 25 26 65,818 69,17 $562,547 13,436 13,325 114,838

6 7. (a) 3 31 26 38,774 181,74 142,93 38,774 181,74 142,93 13 16 (24) 24 24 154 13 (24) 38,928 181,834 142,96 25 37,556 129,511 91,955 6 6 37,616 129,571 91,955 1,726 1,61 (125) 28 28 1,754 1,629 (125) 39,37 131,2 91,83 26 $331,42 $1,553,26 $1,221,624 331,42 1,553,26 1,221,624 1,111 96 (25) 25 25 1,316 1,111 (25) $332,718 $1,554,137 $1,221,419 25 311 b26 325 3 26 25 26 625 4,922 $5,342 267 1,514 2,282 4 23 34

Annual Report 26 61 c3 31 26 25 26 1,1 1,5 $85,479 7,521 7,625 64,282 d3 31 26 1 1 5 5 1 1 23 1 23 1 25 1 1 5 5 1 1 46 42 1 56 42 26 1 1 5 5 1 1 $197 $9 $ $ $197 $9 $ $ 8. 3 31 26 25 26 28,128 27,781 $ 1,778,872 891,598 867,851 7,62,496 84,591 82,112 723, 1,184,317 1,157,744 $1,122,368

62 9. 26 25 3 31 1.23 1.32% 3 31 26 25 26 26 218 2.12%1.83% 1,354 1,596 $ 11,573 8,788 81,641 69,496 :.54% 2.15% 26 29 65, 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% 26 29 18, 22, 153,846 : US$1.9% 3.5% 27 213 12, 12, 12,564 189,142 221,237 1,616,599 : 1 (32,842) (34,991) (28,71) 156,3 186,246 $1,335,898 26 331 3 31 27 32,842 $ 28,71 28 34,54 295,214 29 31,698 27,923 21 9,62 769,761 189,142 $1,616,599 26 331 5,63 $48,12 1. 16 25 3 31 16 1999 4 1 1999 4 1

Annual Report 26 63 3 31 26 25 26 (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) 3 31 26 3 1,352 11,556 25 3 219 3 31 26 325 3 26 25 26 1 8,697 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) $ 63,769 1 2 1,962 16,769 1,376 26 3 25 3 26 25 2.5% 2.5% 2.5% 2.5% 1 1 1 1

64 11. (1)(2)(3) 25 3 4.7% 26 331 25 331 26 25 26 53,496 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 1,37 96 8,863 525 73 4,487 425 433 3,633 13,817 9,996 118,94 97,617 92,343 834,333 (6,23) (4,144) (53,17) 91,414 88,199 781,316 (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 $ 89,96 26 25 4.7% 4.7% () () 2.1 2.6.4.4 (6.4) (4.5) IT (.4) IT (.4).1.1 (.2) (1.2).3 (.4) 36.6% 37.3% 5%

Annual Report 26 65 12. 13. 26 25 26 32,554 33,637 $278,239 87,117 71,357 744,59 1,718 1,759 91,67 * 35,832 36,445 36,256 13,411 15,167 114,624 28,72 3,69 239,932 *26 325 351,467 439,889 5,715 14. 15. 3,799 32,47 25 3 25 7 16. 26 325 3 26 25 26 2,456 6,983 $2,992 715 7,938 6,111 3,171 14,921 $27,13

66 17. 26 3 25 3 4,554 38,923 6,23 3 31 ( ) 26 25 26 1 3,971 4,488 $33,94 1 6,161 5,798 52,658 1,132 1,286 $86,598 26 25 3 31 26 26 15,125 6,387 8,738 $74,684 616 378 238 2,34 1,724 841 883 7,547 628 355 273 2,333 18,93 7,961 1,132 $86,598 25 16,43 8,25 7,793 648 349 299 4,448 2,78 1,668 1,577 1,51 526 22,716 12,43 1,286 26 3 25 3 4,554 38,923 6,23 18. 1 3 31 : 26 & : 66,42 44,539 15,842 89,74 12,858 56,512 51,942 26,821 1,498,62 1,498,62 16,659 111 19 2,262 992 11,596 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) 1,498,62 636,549 376,432 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 3,283 115,62 (6,336) 18,726

Annual Report 26 67 25 & 57,182 375,755 13,933 91,518 93,24 59,98 59,149 24,228 1,377,697 1,377,697 14,175 86 35 2,71 79 11,326 4,613 36,447 69,462 (69,462) 584,357 375,841 13,968 93,589 93,733 71,234 63,762 6,675 1,447,159 (69,462) 1,377,697 546,545 346,853 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 3,564 118,285 (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 $ $12,88,718 142,385 949 162 19,333 8,479 99,111 3,975 232,88 534,274 $(534,274) 5,786,847 3,458,547 94,794 786,34 887,67 582,12 474,924 462,119 13,342,992 (534,274) 12,88,718 5,44,59 3,217,368 81,282 751,79 722,368 549,54 433,675 434,6 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) $ 929,282 3 31 331 26 & 529,1 2,66 118,721 15,718 114,743 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 4,352 715 65,677 3,722 69,399 251 251 3,548 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 & 494,313 186,837 123,762 1,31 19,55 58,68 55,738 297,826 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

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 6,111 561,342 31,812 593,154 2,145 2,145 3,325 32,47 227,624 3,624 41,855 46,299 127,863 19,769 39,786 8,872 542,692 24,6 566,752 1. 8 66 APS LSI & 2. 22 8 9 6 23 1 31 251 2,145 3,548 3,325 3. 1 1 23,64 21,744 1 6,64 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 19,639 167,855 4. 25 4 5. 26 3 25 3 15,29 129,991 1,25 6. 26 3 25 3 26 3 447,76 3,821,162 25 3 39,975

Annual Report 26 69 2 26 325 3 3 26 325 3 26 25 26 222,377 15,789 373,166 187,17 122,787 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% 1 2 3 19. 26 3 31 26 6 29 6,999 (59,821 ) 73 624 2. 3 31 26 25 26 296 225 $ 2,53 15,569 17,44 133,68 2,646 2,739 22,615 734 19 6,274 19,245 2,198 $164,487

7 21. 1 1 26 25 26 59,668 56,454 $59,983 (218) (199) (1,863) 59,45 56,255 $58,12 1 59,45 56,255 $58,12 26 25 1,4,19 1,4,671 1 1,4,19 1,4,671 26 25 26 1 42.46 4.16 $.36 1 $ 26 3 25 3 1

Annual Report 26 71

72 26 41 % * 3, 1. * 2, 1. * 3 1. 25 1. 175 1. 1 1. 132 1. * 16 99.4 * 1, 75. 4,2 5. 1, 5. 35 5. 5, 45. 5, 29.8 * US$ 17.8** 1. * US$ 21.5** 1. * US$ 16.4 1. * US$ 1. 1. * W 5,642 1. W 1,5 1. W 5, 6. 18 1. 5 51. 222 5. - US$ 32. 5. US$ 1. 5. HDI US$ 2. 1. 4 1. * US$ 46. 1. * PPE US$ 35. 7. B 14 1. US$ 6.3 25.7 * A 5. 1. * / A 3.4 1. *.3 1. UK* 11.1 65. UK* 5.3 65. * A 4.3 65. * 3,25 1. * 2,82 1. * 5 1. * 25 1. * 2 1. * 3, 1. * 8 1. N&P* 495 1. * **

Annual Report 26 73 % * 48 1. US$.2 1. W 4,4 5. US$ 1. 1. A.2 1. A.2 1. A.1 1. (* 3, 1. * 8 1. 45 5. PTT 25 5. US$ 1.2** 1. 26 51 * 132 1. * 78 82.5 NT$ 81 5. * HK$ 65 1. * B 52 6. A 1.** 1. A 3. 1. A.3 1. * 3, 1. * 14, 1. * 648 1. * 4 1. AKM * US$ 2.9 1. * 6 1. * NT$ 49 8.6 * NT$ 326 51. * 3, 1. * 2 1. * 3 1. & & * 3, 1. * 49 1. * 25 1. 1,5 5. A.7 1. * 3, 1. * 8 1. * 4 1. * 98 1. * 94 1. * 8 1. AJS 8 49. * **

74 26 331 1931 521 13,388 23,3 86 1-844 12 Phone3357-26 Fax3357-2495 53-825 26 Phone66347-3111 Fax66347-377 Room 148 New China Insurance Tower No.12 Jian Guo Men Wai Avenue Chao Yang District Beijing 122 P. R. China Phone: +86-1-6569-3939 Fax: +86-1-6569-3938 Room 2321 Shanghai Central Plaza 381 Huaihai Zhong Road Shanghai 22 China Phone: +86-21-6391-6111 Fax: +86-21-6391-6686 535 Madison Avenue, 33rd Floor New York, NY 122, U.S.A. Phone: +1-212-371-99 Fax: +1-212-371-95 1-844 12 Phone3-357-222 16-8345 24 1 Phone3-3344-7111 11-8481 91 MD Phone3-3259-5777 53-825 26 Phone6-6347-36 16-23 23 7 Phone3-6911-27 15-21 12 7 2 Phone3-5473-5251 & 1-844 12 Phone3-357-2939

Annual Report 26 75 26 331 347 4,,, 1,442,616,332 533 *26 71 132,452 5.43% 4.94% 4.66% 2.84% 2.45% 2.23% 2.16% 1.7% 1.57% 4 1.43% 44.8% 25.2% 23.91% 2.26% 4.73% 1, 8.25% 1,99,999 6.5% 1,9,999 12.81% 1,.44% 1,442,616,332 IR http://www.asahi-kasei.co.jp/asahi/jp/ir/

Phone:3357-26 Fax:3357-2495 www.asahi-kasei.co.jp