Asahi Kasei Corporation Overview
Asahi Kasei is a Japanese diversified industrial group that runs three deliberately unrelated sectors, Healthcare, Homes and Material, under one operating holding company. It began as a 1920s fibre and ammonia chemistry business in Nobeoka and still carries a sizeable petrochemical base, but the profit centre has moved. In FY2025 Healthcare and Homes together produced about JPY 183 billion of segment operating income against JPY 68 billion from Material, and operating income hit a record JPY 231.2 billion for the second year running. Management's thesis, branded "Diversity × Specialty", is that a broad portfolio stabilises earnings while a handful of specialty franchises drive growth: US specialty pharma (Envarsus XR, Tarpeyo), ZOLL critical-care devices, overseas housing, and semiconductor materials tied to AI packaging. The counterweight is a structurally weak commodity chemical business now being shut down, merged or sold, and a capital-efficiency record (ROE 8.0%) that still sits at the company's own cost of equity.
The company's own description. In its FY2025 Business Report the group says it carries out business in three sectors, Healthcare, Homes and Material, under a group mission of contributing to life and living for people around the world and a vision built on two ideas: living in health and comfort, and harmony with the natural environment [S3]. It describes itself as an operating holding company that brings together diverse management assets to pursue sustainable growth in corporate value through both growth investment and structural transformation [S3].
Healthcare covers prescription pharmaceuticals sold in Japan and the United States in autoimmune disease, severe infectious disease, transplantation, kidney disease and orthopaedics; bioprocess products used in manufacturing biologics (notably virus removal filters) and biologics contract development and manufacturing; and the Critical Care business, which is ZOLL Medical: professional defibrillators, AEDs, the LifeVest wearable defibrillator and sleep-apnoea diagnosis and therapy devices [S3].
Homes covers order-built detached and multi-dwelling homes in Japan under the Hebel Haus "Long Life Home" concept, real estate development (condominiums), rental management and brokerage, remodeling, overseas homebuilding operations in North America and Australia, and construction materials (autoclaved aerated concrete and insulation) [S1, S3].
Material covers electronics (electronic materials and electronic devices), car interior materials, energy and infrastructure (battery separators, ion-exchange membrane electrolysis, hollow-fibre membranes), comfort life (fibres, functional additives, consumer products such as Saran Wrap), performance chemicals (engineering plastics, coating materials) and essential chemicals (petrochemical basic materials and elastomers) [S1, S3].
Independent characterization. Asahi Kasei is best understood as a three-legged conglomerate whose legs have different economics. Homes is a domestic, order-backed, high-cash-conversion business with roughly 9% operating margins and low cyclicality. Healthcare is a US-dollar-earning mix of patent-protected specialty drugs and medical devices with high gross margins but heavy amortization from acquisitions. Material is a mixed bag: a small number of high-margin electronic materials (operating margin about 18%) sit beside low-margin petrochemicals (about 2%) and a battery separator business that currently earns close to nothing [S1].
Revenue model. The group is overwhelmingly a product seller. Recurring or service-like revenue exists in four places: rental management and brokerage in Homes (JPY 187.5 billion of sales in FY2025), LifeVest, which is supplied to patients on a rental-type model and billed per patient, royalty and licence income in pharmaceuticals (including, from FY2026, royalties on Prevymis via Aicuris) and technology licensing in Material (for example the Acetolyte electrolyte and carbonate process licences) [S1, S2, S6]. The company does not publish a product/service/subscription/licensing split; that mix is not publicly disclosed.
Value chain position. In Material the group runs from naphtha cracking (through the Mizushima ethylene joint venture) down to formulated specialty products and components; management is now exiting the upstream end. In Healthcare it is an integrated developer, in-licenser, manufacturer and marketer. In Homes it is a designer and builder that also manufactures its own structural material (Hebel AAC panels) and then keeps the customer through rental management and remodeling.
Customers and end-markets. Customers range from individual households (homes, consumer wrap) to hospitals, emergency medical services and transplant and nephrology specialists, to industrial buyers in semiconductors, automotive, batteries, chlor-alkali, textiles and packaging. By geography, Japan was 44.9% of FY2025 sales and the Americas 23.3% [S1].
Strategy
Stated strategy
The current plan is the Medium-Term Management Plan 2027, "Trailblaze Together", covering FY2025 to FY2027 and succeeding "Be a Trailblazer" (FY2022 to FY2024) [S1, S3]. Its core themes, in the company's wording or close to it, are:
"Diversity × Specialty.": Diversity means many growth opportunities and stable earnings from a broad portfolio; Specialty means differentiation that supports high added value and profitability [S3].
Three pillars of the plan: profit growth from returns on past investments; better capital efficiency through structural transformation and productivity; and a strengthened management platform [S3].
Four First Priority businesses: receive continued aggressive investment, including acquisitions: Pharmaceuticals, Critical Care, Overseas Homes and Electronics [S1].
Structural transformation: of businesses in Material whose ROIC stays below the cost of capital [S1].
A stated future vision,: "NEXT Asahi Kasei", which the Board says it needs to discuss in more depth [S3].
Since FY2018 the group has committed about JPY 1 trillion to acquisitions and about JPY 600 billion to growth capital expenditure. Operating income excluding the petrochemical-related businesses rose from JPY 131.7 billion in FY2018 to JPY 219.9 billion in FY2025, which is management's main evidence that the portfolio shift is working [S1].
Financial targets [S3]
| Indicator | FY2024 actual | FY2025 actual | FY2027 revised plan | FY2030 target |
|---|---|---|---|---|
| Net sales (JPY bn) | 3,037.3 | 3,074.5 | 3,470.0 | not stated |
| Operating income (JPY bn) | 211.9 | 231.2 | 270.0 | 380.0 |
| Operating margin | 7.0% | 7.5% | 7.8% | not stated |
| Operating income before goodwill amortization (JPY bn) | 244.5 | 264.9 | 306.0 | not stated |
| EBITDA (JPY bn) | 398.0 | 427.5 | 483.0 | not stated |
| Net income attributable to owners (JPY bn) | 135.0 | 158.8 | 174.0 | not stated |
| EPS (JPY) | 97.9 | 117.0 | 129.6 | not stated |
| ROIC | 5.5% | 5.9% | 6.0% | 8.0% or more |
| ROE | 7.4% | 8.0% | 9.0% | 12.0% or more |
| D/E ratio | 0.62 | 0.46 | about 0.7 | not stated |
| Interest-bearing debt/EBITDA | 2.9 | 2.3 | about 3.0 | not stated |
| Assumed exchange rate (JPY per USD) | 153 | 151 | 140 | not stated |
Additional targets: pharmaceutical net sales of JPY 300 billion by FY2030 [S6]; about JPY 40 billion of in-licensing spend over the three plan years [S1]; a dividend benchmark of 3% of shareholders' equity with a progressive policy [S1].
Initiatives announced in the last 24 months
| Initiative | Detail | Timing | Source |
|---|---|---|---|
| Calliditas Therapeutics acquisition | Adds Tarpeyo and a nephrology franchise; JPY 167.8 billion | Consolidated October 2024 | S1 |
| ODC Construction acquisition | Florida building trades; JPY 35.0 billion | Consolidated September 2024 | S1 |
| Aicuris acquisition | Severe infectious disease pipeline and Prevymis royalties; about JPY 144 billion | Closed April 17, 2026 | S2 |
| Pimel capacity expansion, Fuji | About JPY 16 billion; commercial start H1 FY2028; aim to double capacity by 2030 | Decided August 2025 | S1, S3, S6 |
| Planova spinning plant, Nobeoka | About JPY 31 billion; commercial start FY2028 | Decided July 2025 | S1, S6 |
| Kawasaki electrolysis components | About JPY 23.4 billion; at least 2 GW a year each of cell frames and membranes; start H2 FY2029 per the investment table, "fiscal 2028" per the Business Report; national support selected December 2024, regional incentives August 2026 | Decided October 2025 | S1, S3, S6 |
| Ontario Hipore plant with Honda | 700 million square metres a year; start-up assumed delayed by 1.5 to 2 years | Decided April 2024; JV agreement November 2024 | S1, S6 |
| Hipore coating expansions | 600 million square metres a year across North Carolina and Hyuga; North Carolina line unveiled August 2026 | 2023 to 2026 | S1, S6 |
| Bionova pDNA facility | USD 100 million plan announced June 2024; opened August 2025 | 2024 to 2025 | S6 |
| Australian property development | "Nex Property" brand; first New South Wales project in H1 2026 | Announced December 2025 | S3 |
| Initiative | Detail | Timing | Source |
|---|---|---|---|
| Sepacell withdrawal | Production and sales ended | December 2024 | S1 |
| Iwakuni AAC plant closure | Closed | March 2025 | S1 |
| Blood purification divestiture | Transferred | April 2025 | S1 |
| Diagnostics divestiture | Transferred | July 2025 | S1 |
| EMS billing services divestiture | Transferred | November 2025 | S2 |
| Daramic divestiture | Sold to Kingswood Capital Management | Transferred December 2025 | S1, S3 |
| UVC LED device production | Discontinued | FY2025 | S1 |
| MMA, CHMA, PMMA, SB latex exit | CHMA ended March 2026; MMA ends September 2026; PMMA production ends September 2026 and sales September 2027; SB latex production ends September 2027 and sales December 2027 | 2025 to 2027 | S1, S2 |
| PTT Asahi Chemical wind-down | Acrylonitrile and other operations in Thailand; production and sales cease March 2027 | To 2027 | S2 |
| Hexamethylene diamine exit | Production ceases April 2027 | Announced December 2025 | S2, S6 |
| Asahi Kasei Advance and Teijin Frontier | Absorption merger with Teijin Frontier surviving; Teijin 80%, Asahi Kasei 20% | Effective October 1, 2026 | S3 |
| Western Japan ethylene | Joint operating entity with Mitsui Chemicals and Mitsubishi Chemical; Mizushima cracker closes and production consolidates at Osaka Petrochemical Industries; Revolefin decarbonised process targeted for joint commercial production in fiscal 2034 | Targeting fiscal 2030 | S3 |
| Mizushima derivatives realignment | 200,000 tonne acrylonitrile line discontinued; methacrylonitrile line converted; supply from Tongsuh | By fiscal 2030 | S6 |
Growth investments
The amounts for Pimel, Planova and Kawasaki are matched to projects from the investment schedule in S1; the source lists them in a chart, so the pairing should be confirmed.
Structural transformation
Management platform and capital policy. Procurement process reform and optimisation of organisational functions; tighter hurdle-rate management and post-investment monitoring; reduction of strategic shareholdings by about 70% of holdings and more than JPY 180 billion over five years; share repurchases of JPY 30 billion (FY2024) and up to JPY 40 billion (November 2025 to October 2026) with cancellation of the shares [S1, S3]. A quantified cost-reduction target was not found in the documents reviewed.
Guidance. FY2026: net sales JPY 3,254.0 billion, operating income JPY 248.0 billion, net income JPY 160.0 billion, EPS JPY 119.65, dividend JPY 44, assuming JPY 150 per US dollar [S1]. First half FY2026: net sales JPY 1,686.0 billion, operating income JPY 145.0 billion, net income JPY 89.0 billion [S2].
Products & Services
Pricing is not disclosed for any product unless stated. Launch dates are given only where they appear in a source reviewed or are well established.
Healthcare — Pharmaceuticals (Asahi Kasei Therapeutics, incorporating Veloxis, Calliditas, Aicuris)
| Product | Description and indication | Market | FY2025 sales | Source |
|---|---|---|---|---|
| Envarsus XR | Extended-release tacrolimus tablet, immunosuppressant to prevent kidney transplant rejection; came with Veloxis (2020) | United States | USD 330 million (FY2024: USD 295 million) | S1 |
| Tarpeyo (Nefecon) | Delayed-release budesonide capsule for primary IgA nephropathy at risk of progression; came with Calliditas (consolidated October 2024). Management notes it is the only drug recommended in the 2025 KDIGO IgA nephropathy guideline | United States | USD 323 million (FY2024, six months consolidated: USD 104 million) | S1 |
| Teribone | Teriparatide acetate injection for osteoporosis with high fracture risk | Japan | JPY 44.5 billion | S1 |
| Kevzara | Sarilumab, interleukin-6 inhibitor for rheumatoid arthritis | Japan | JPY 12.6 billion | S1 |
| Cresemba | Isavuconazonium sulfate antifungal (aspergillosis, mucormycosis, cryptococcosis) | Japan | JPY 6.8 billion | S1 |
| Recomodulin | Recombinant thrombomodulin alfa, anticoagulant for disseminated intravascular coagulation; in-house origin | Japan | JPY 6.1 billion | S1 |
| Plaquenil | Hydroxychloroquine for cutaneous and systemic lupus erythematosus | Japan | JPY 2.0 billion (down 64%) | S1 |
| Empaveli | Pegcetacoplan, complement C3 inhibitor for paroxysmal nocturnal hemoglobinuria | Japan | JPY 2.0 billion | S1 |
| Reclast | Zoledronic acid for osteoporosis | Japan | JPY 1.1 billion | S1 |
| Doptelet | Avatrombopag, thrombopoietin receptor agonist for immune thrombocytopenia; newly launched | Japan | JPY 1.0 billion | S1 |
| Prevymis (royalty) | Letermovir, out-licensed by Aicuris to Merck (MSD); Asahi Kasei receives royalties from May 2026 | Global | Royalty amount not publicly disclosed | S1 |
Pipeline (as of July 31, 2026) [S2]. Pritelivir, for acyclovir-resistant herpes simplex infection in immunocompromised patients, is filed overseas with launch planned in FY2026 (from Aicuris). ART-123 (thrombomodulin alfa) is in Phase III for chemotherapy-induced peripheral neuropathy and, overseas, for severe sepsis with coagulopathy. TA799 (apraglutide) is in Phase III for short bowel syndrome, developed by the licensor. MN-10-T (teriparatide) is in Phase III for extended-duration osteoporosis treatment. AK1830 is in Phase II for osteoarthritis pain and chronic low back pain. Phase I assets are AK1910 and AK1940 (autoimmune diseases), AK1960 (refractory chronic kidney disease and related conditions), VEL-101 (solid organ transplant) and AIC468 (BK virus infection in kidney transplant patients).
Healthcare — Life Science
| Product or service | Description | Source |
|---|---|---|
| Planova virus removal filters | Hollow-fibre filters used in the manufacture of biologics and plasma derivatives; the range includes Planova S20N and the next-generation Planova FG1 (launched October 2024). A new spinning plant in Nobeoka is under construction | S1, S6 |
| Asahi Kasei Bioprocess equipment | Process equipment for biologics and oligonucleotides, including the MOTIV buffer management system, THESYS synthesis columns and the VANTIJ SU-VFC Benchtop for gene therapy manufacturing (introduced September 2026) | S6 |
| Bionova Scientific | Biologics CDMO in Fremont, California, with a plasmid DNA facility in The Woodlands, Texas (opened August 2025). Management describes the business as needing strengthened fundamentals and a reconfigured strategy | S1, S6 |
| Ceolus microcrystalline cellulose | Pharmaceutical excipient for tableting; second plant at Mizushima completed 2023. Reported within Material, not Healthcare; listed here because its customers are pharmaceutical manufacturers | S6 |
| Sepacell leukocyte reduction filters | Withdrawn; production and sales ended December 2024 | S1 |
| Blood purification (dialyzers, apheresis) | Divested; transferred April 2025 | S1 |
| Diagnostics reagents | Divested; transferred July 2025 | S1 |
Healthcare — Critical Care (ZOLL Medical)
| Product line | Description | FY2025 sales | Source |
|---|---|---|---|
| Acute Care Technology (ACT) | Professional monitor/defibrillators for hospitals and emergency services, AEDs, CPR-related devices, temperature management, ventilators (including the acquired Vyaire ventilator business) and software. The Zenix monitor/defibrillator series launched in the US in September 2025 | USD 1,521 million | S1, S3 |
| Cardiac Management Solutions (CMS) | LifeVest wearable cardioverter defibrillator and cardiac diagnosis and management products; billed per patient | USD 1,002 million | S1 |
| Sleep apnoea devices | Home sleep apnoea diagnosis (Itamar) and implantable therapy for central sleep apnoea (Respicardia) | — | S1 |
| EMS billing services | Divested; transferred November 2025 | — | S2 |
Homes
| Offering | Description | FY2025 sales | Source |
|---|---|---|---|
| Hebel Haus order-built homes | Steel-frame detached homes with Hebel AAC cladding, marketed as the "Long Life Home"; strategy is larger, higher-specification units | Part of JPY 441.6 billion order-built | S1, S3 |
| Hebel Maison multi-dwelling homes | Order-built rental apartment buildings for landowners; orders of JPY 194.3 billion in FY2025 against JPY 236.1 billion for unit homes | Part of order-built | S1 |
| Atlas condominiums (development) | Condominium development and urban redevelopment [brand per K] | JPY 48.6 billion | S1 |
| Rental management and brokerage | Management of apartments built by the group, condominium management and brokerage | JPY 187.5 billion | S1 |
| Remodeling | Renovation of existing Hebel Haus stock | JPY 62.9 billion | S1 |
| Overseas Homes, North America | The "Synergos" model, which integrates core trades (framing, concrete, plumbing, electrical and similar) for homebuilders; built from Erickson Framing, Austin, Brewer, Focus Companies (Nevada) and ODC Construction (Florida) | Part of JPY 289.3 billion | S1, K |
| Overseas Homes, Australia | NEX group homebuilding (order-built and ready-built) and, from 2026, the "Nex Property" real estate development brand in New South Wales | Part of JPY 289.3 billion | S1, S3 |
| Hebel AAC panels | Autoclaved aerated concrete building panels; the Iwakuni plant closed at the end of March 2025 | Part of JPY 43.1 billion | S1 |
| Neoma Foam insulation | Phenolic foam insulation board [brand per K] | Part of JPY 43.1 billion | S1, K |
Material — Electronics
| Product | Description | Source |
|---|---|---|
| Pimel | Photosensitive polyimide used as semiconductor buffer coat and interlayer dielectric in advanced packaging; sales CAGR of 22% from FY2021 to FY2025. Received TSMC Excellent Performance Awards in 2020, 2024 and 2025. Capacity at Fuji is being expanded, with a plan to double it by 2030 | S1, S3, S6 |
| Glass fabric | Glass cloth for printed circuit boards, moving toward low-dielectric grades for AI servers; sales CAGR of 18% from FY2021 to FY2025 | S1, S2 |
| Sunfort | Dry film photoresist for circuit patterning and advanced packaging; new slitting facility opened in Tainan in July 2026, lifting local slit capacity by 40% | S6 |
| PSPI film for panel-level packaging | New photosensitive polyimide film combining PSPI and dry film technology, announced May 2026 | S6 |
| Camera module ICs | Position-sensing and control ICs for smartphone camera modules; sales CAGR of 21% from FY2021 to FY2025, softer in Q1 FY2026 because memory shortages hurt smartphone demand | S1, S2 |
| Current sensors | Coreless current sensors (CZ37, CZ39, CZ3K series) for EV on-board chargers and power electronics | S6 |
| Hall elements and magnetic sensors | Thin-film Hall elements, the original AKM product | S6 |
| Audio ICs | AK4499EX flagship DAC, AK491x audio op amps, AK7709 automotive audio DSP | S6 |
| mmWave radar modules | AK5816AIM camera-less sensing modules for fall and vital-sign detection; mass production from July 2026 | S6 |
| Senseair gas sensors | NDIR CO2 and refrigerant sensors (Sweden) | S6 |
| UVC LEDs (Crystal IS, Klaran) | Device production discontinued in FY2025; aluminium nitride substrate development retained | S1 |
| Photomask pellicles | Divested (previous plan period) | S1 |
Material — Car Interior
| Product | Description | Source |
|---|---|---|
| Sage Automotive Interiors fabrics | Seat and trim fabrics and surface materials supplied to global automakers, with regional manufacturing in the US, Europe, Japan and China; sales CAGR of 12% from FY2021 to FY2025 | S1 |
| Dinamica | Microfibre suede-like material made partly from recycled polyester, used for automotive interiors | S6 |
Material — Energy & Infrastructure
| Product | Description | Source |
|---|---|---|
| Hipore | Wet-process lithium-ion battery separator; base film at Hyuga and Moriyama, coating in North Carolina and Hyuga, and an integrated Ontario plant (700 million square metres a year as coated film) now assumed to start 1.5 to 2 years later than first planned. Demand is shifting toward energy storage systems | S1, S2, S6 |
| Celgard | Dry-process lithium-ion battery separator (Polypore) | S1, K |
| Daramic | Lead battery separator; sold to Kingswood Capital Management, transferred December 2025 | S1, S3 |
| Chlor-alkali electrolysis systems | Ion-exchange membranes, electrolysers and cells for chlor-alkali producers, plus services | S1, S6 |
| Aqualyzer | Alkaline water electrolysis systems for hydrogen, including the containerised 1 MW-class Aqualyzer C3. New Kawasaki facilities for cell frames and membranes of at least 2 GW a year each are due around fiscal 2028 | S3, S6 |
| Microza | Hollow-fibre filtration membranes for water and process filtration; forward osmosis and membrane distillation systems for pharmaceutical concentration | S1, S6 |
| Acetolyte | Acetonitrile-based high-ionic-conductivity battery electrolyte, licensed to EAS Batteries (2025) and to a Chinese licensee (August 2026) | S6 |
Material — Comfort Life
| Product | Description | Source |
|---|---|---|
| Saran Wrap, Ziploc and Cook per household products | Consumer food wrap, storage bags and cooking sheets in Japan [Ziploc and Cook per: K] | S1, K |
| Bemberg | Cupro fibre for linings and apparel, the group's founding product | S6 |
| Roica | Premium stretch (spandex) fibre | S6 |
| Bemliese, Lastan, spunbond | Cellulosic nonwoven, flame-retardant nonwoven, and spunbond (the latter now in a joint venture with Mitsui Chemicals) | S1, S6 |
| Functional additives | High-performance materials including Ceolus and other additives | S1 |
| Asahi Kasei Advance | Textile and materials trading company; to merge into Teijin Frontier on October 1, 2026, leaving Asahi Kasei with 20% | S1, S3 |
Material — Performance Chemical
| Product | Description | Source |
|---|---|---|
| Leona | Polyamide 66 resin, including a PFAS-free low-friction grade announced January 2026 | S6 |
| Tenac | Polyacetal (POM) resin | S6 |
| Xyron | Modified polyphenylene ether resin, used in 5G and EV battery components | S6 |
| Thermylene and SoForm | Polypropylene compounds (Asahi Kasei Plastics North America) | S6 |
| SunForce | Particle foam for battery and composite applications | S6 |
| Asaclean | Purging compounds for plastics processing | S6 |
| Duranate and Duranol | HDI-based polyisocyanates and polycarbonate diols for coatings and synthetic leather | S6, K |
| Hexamethylene diamine | Intermediate; production to cease in April 2027 | S2, S6 |
Material — Essential Chemical
| Product | Description | Source |
|---|---|---|
| Acrylonitrile | Produced at Mizushima and at Tongsuh Petrochemical in Korea. The 200,000 tonne a year Mizushima line is to be discontinued and a 50,000 tonne methacrylonitrile line converted to co-production, with supply continuing from Korea. The Thai operation (PTT Asahi Chemical) is being wound down | S1, S6 |
| Ethylene and derivatives | Via Asahi Kasei Mitsubishi Chemical Ethylene at Mizushima; cracker to close around fiscal 2030 | S1, S3 |
| Styrene monomer, polyethylene | Basic materials at Mizushima | K |
| MMA, CHMA, PMMA resin, SB latex | Being exited between March 2026 and December 2027 | S1, S2 |
| Elastomers | Solution SBR and butadiene rubber for tyres, hydrogenated styrenic elastomers | S6 |
Financial Narrative
Sourcing for this section. FY2024 and FY2025 are taken from S1, S3 and S4. FY2022 and FY2023 series that appear in S1 charts (operating income, ROE, ROIC, net worth, dividends, cash flows) are used as shown there. FY2021 to FY2023 headline income figures agree with MarketScreener's "released" series [S7]. Items marked [K] in the notes come from earlier kessan tanshin as recalled and were not re-fetched.
Income statement
Notes: FY2022 operating income is the figure restated for completion of purchase price allocation on Focus Companies (originally reported JPY 128.4 billion) [S1]. Ordinary income for FY2021 to FY2023 and FY2021 EPS are [K]. EBITDA is the company definition (operating income plus depreciation, amortization and goodwill amortization) [S1]; FY2022 and FY2023 values are as shown by MarketScreener [S7]. Diluted EPS is not presented separately in the documents reviewed.
Margins and growth
Net sales CAGR FY2021 to FY2025: 5.7% a year (derived). The FY2022 payout ratio is blank because the company reported a net loss.
Balance sheet
Notes: FY2021 to FY2023 total assets and FY2021 to FY2022 debt are [K], cross-checked against the equity and D/E ratios the company reports; FY2023 debt and all net worth figures are from S1. Short-term debt is short-term loans, commercial paper and the current portion of bonds; long-term debt is bonds plus long-term loans [S3]. Net debt is interest-bearing debt less cash and deposits (derived).
Cash flow
Notes: all from S1. Free cash flow is the company's presentation (operating less investing cash flow). The JPY 40.0 billion for FY2025 is the ceiling approved on November 5, 2025, not the amount executed; cash spent on treasury stock in FY2025 was JPY 2.3 billion [S3]. FY2025 investing outflow was reduced by JPY 62.6 billion of proceeds from selling subsidiaries [S3].
Ratios
Notes: ROE, ROIC, D/E, debt/EBITDA and equity ratio for FY2024 and FY2025 are company-reported [S1, S3]. The FY2022 and FY2023 ROIC values are read from the KPI chart sequence in S1; the FY2023 value looks high against operating income of JPY 140.7 billion and probably reflects a tax credit that year, so treat it with caution. FY2021 to FY2023 D/E and equity ratios for FY2021 and FY2022 are [K]. ROA, current ratio, net debt/EBITDA, interest coverage, asset turnover and cash conversion cycle are derived from S3 balances. The cash conversion cycle is long because inventories include land and work in progress in Homes.
Commentary
Revenue. Sales grew from JPY 2.46 trillion to JPY 3.07 trillion over four years, but the composition of that growth matters more than the rate. Yen weakness and acquisitions (Focus, Calliditas, ODC) did much of the work; FY2025 growth was only 1.2% because divestitures and lower petrochemical prices took JPY 62.5 billion out of Material [S1].
Operating income. The series shows a clear trough and recovery: JPY 202.6 billion in FY2021, a collapse to JPY 127.7 billion in FY2022 as petrochemical spreads and separator profitability deteriorated, then successive records of JPY 211.9 billion and JPY 231.2 billion. Management's bridge for FY2025 attributes JPY 29.4 billion to volume and profitability gains in First Priority businesses, offset by JPY 10.1 billion from foreign exchange, market prices and one-off items [S1].
Net income. The FY2022 loss was driven by the Polypore impairment, and FY2023 was depressed by further extraordinary losses. FY2025 net income of JPY 158.8 billion benefited from JPY 41.7 billion of gains on sales of investment securities, JPY 12.4 billion of gains on sale of subsidiaries and about JPY 15 billion of tax effects from restructuring, set against JPY 47.9 billion of business structure improvement expenses, mostly the MMA exit [S1]. Underlying earnings quality is therefore mixed: the headline is supported by disposal gains and tax items that will not repeat, which is why FY2026 net income is guided almost flat at JPY 160 billion despite higher operating income [S1].
Balance sheet. Debt peaked at JPY 1,157.5 billion in March 2025 after Calliditas and ODC, fell to JPY 967.5 billion a year later on strong cash flow and disposal proceeds, and rose again to JPY 1,205.3 billion by June 2026 to fund Aicuris, taking D/E from 0.46 to 0.57 against a self-imposed ceiling of about 0.7 [S1, S2]. Net worth benefited from JPY 127.5 billion of additional accumulated other comprehensive income in FY2025, largely currency translation; a stronger yen would reverse part of it [S1].
Cash flow. Operating cash flow has been stable at around JPY 300 billion for three years. Inventory build of JPY 76.6 billion in FY2025, mainly development land and work in progress in Homes, absorbed much of the higher profit [S3].
Returns. ROE of 8.0% is equal to the cost of equity the company itself cites, and price-to-book ended FY2025 at 0.98 times [S1]. The medium-term plan asks for ROE of 9% in FY2027 and at least 12% by FY2030, which requires both the planned profit growth and tighter balance-sheet discipline.
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Revenue by Segment
| Segment | FY2024 | FY2025 | FY2026F |
|---|---|---|---|
Healthcare net sales (JPY Bn) | 615.9 | 664.1 | 749.0 |
Homes net sales (JPY Bn) | 1,035.9 | 1,077.4 | 1,173.0 |
Material net sales (JPY Bn) | 1,368.8 | 1,306.2 | 1,301.0 |
Others net sales (JPY Bn) | 16.8 | 26.7 | 31.0 |
Consolidated net sales (JPY Bn) | 3,037.3 | 3,074.5 | 3,254.0 |
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View Subscription PlansResults by Segment
| Segment | FY2024 | FY2025 | FY2026F |
|---|---|---|---|
Healthcare operating income (JPY Bn) | 64.0 | 83.5 | 90.0 |
Homes operating income (JPY Bn) | 95.9 | 99.8 | 101.3 |
Material operating income (JPY Bn) | 79.9 | 68.3 | 81.0 |
Others operating income (JPY Bn) | 2.9 | 3.9 | 3.1 |
Corporate expenses and eliminations (JPY Bn) | -30.9 | -24.3 | -27.4 |
Consolidated operating income (JPY Bn) | 211.9 | 231.2 | 248.0 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Metric | FY2024 | FY2025 | FY2026F |
|---|---|---|---|
Healthcare operating margin (%) | 10.4 | 12.6 | 12.0 |
Homes operating margin (%) | 9.3 | 9.3 | 8.6 |
Material operating margin (%) | 5.8 | 5.2 | 6.2 |
Healthcare share of consolidated sales (%) | 20.3 | 21.6 | 23.0 |
Homes share of consolidated sales (%) | 34.1 | 35.0 | 36.0 |
Material share of consolidated sales (%) | 45.1 | 42.5 | 40.0 |
Healthcare sales growth YoY (%) | — | 7.8 | 12.8 |
Homes sales growth YoY (%) | — | 4.0 | 8.9 |
Material sales growth YoY (%) | — | -4.6 | -0.4 |
Revenue by Segment by Business Category
| Business category | FY2024 | FY2025 | FY2026F |
|---|---|---|---|
Pharmaceuticals (JPY Bn) | 152.2 | 204.5 | 245.0 |
Life Science (JPY Bn) | 93.0 | 55.4 | 64.0 |
Critical Care (JPY Bn) | 370.7 | 404.2 | 440.0 |
Order-built homes (JPY Bn) | 419.5 | 441.6 | 451.0 |
Development (JPY Bn) | 52.7 | 48.6 | 62.0 |
Rental/brokerage (JPY Bn) | 168.1 | 187.5 | 203.5 |
Remodeling (JPY Bn) | 57.8 | 62.9 | 72.0 |
Overseas Homes (JPY Bn) | 293.0 | 289.3 | 336.0 |
Construction Materials (JPY Bn) | 42.3 | 43.1 | 47.0 |
Electronics (JPY Bn) | 146.7 | 164.0 | 188.0 |
Car Interior (JPY Bn) | 159.3 | 165.7 | 168.0 |
Energy & Infrastructure (JPY Bn) | 138.2 | 127.9 | 110.0 |
Comfort Life (JPY Bn) | 267.1 | 263.6 | 230.0 |
Performance Chemical (JPY Bn) | 247.4 | 222.4 | 229.0 |
Essential Chemical (JPY Bn) | 404.3 | 355.6 | 368.0 |
Revenue by Segment — Pharmaceuticals & Life Science
| Business category | FY2024 | FY2025 | FY2026F |
|---|---|---|---|
Pharmaceuticals & Life Science (JPY Bn) | 26.6 | 47.3 | 44.4 |
Critical Care (JPY Bn) | 37.4 | 36.1 | 46.0 |
Order-built homes (JPY Bn) | 44.6 | 47.9 | 46.2 |
Development (JPY Bn) | 9.1 | 10.7 | 10.0 |
Rental/brokerage (JPY Bn) | 17.1 | 18.9 | 20.3 |
Remodeling (JPY Bn) | 7.4 | 7.2 | 8.8 |
Overseas Homes (JPY Bn) | 12.3 | 7.4 | 9.0 |
Construction Materials (JPY Bn) | 4.6 | 5.3 | 6.3 |
Electronics (JPY Bn) | 22.1 | 29.6 | 34.1 |
Car Interior (JPY Bn) | 10.8 | 9.1 | 11.0 |
Energy & Infrastructure (JPY Bn) | 2.8 | 0.5 | -2.7 |
Comfort Life (JPY Bn) | 19.7 | 17.2 | 17.2 |
Performance Chemical (JPY Bn) | 7.7 | 5.1 | 11.2 |
Essential Chemical (JPY Bn) | 20.2 | 6.2 | 7.2 |
Others in Material (JPY Bn) | -3.5 | 0.6 | 3.0 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net sales (JPY Bn) | 2,461.3 | 2,726.5 | 2,784.9 | 3,037.3 | 3,074.5 |
Gross profit (JPY Bn) | — | — | — | 958.3 | 1,008.6 |
Operating income (JPY Bn) | 202.6 | 127.7 | 140.7 | 211.9 | 231.2 |
Operating income before goodwill amortization (JPY Bn) | — | 165.0 | 170.3 | 244.5 | 264.9 |
EBITDA (JPY Bn) | — | 305.0 | 322.9 | 398.0 | 427.5 |
Ordinary income (JPY Bn) | 212.1 | 121.5 | 90.1 | 193.5 | 230.4 |
Income before income taxes (JPY Bn) | — | -61.9 | 28.8 | 194.6 | 214.6 |
Net income attributable to owners (JPY Bn) | 161.9 | -91.3 | 43.8 | 135.0 | 158.8 |
EPS basic (JPY) | 116.68 | -65.84 | 31.60 | 97.94 | 116.97 |
Dividends per share (JPY) | 34 | 36 | 36 | 38 | 42 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | — | — | — | 31.5 | 32.8 |
Operating margin (%) | 8.2 | 4.7 | 5.1 | 7.0 | 7.5 |
EBITDA margin (%) | — | 11.2 | 11.6 | 13.1 | 13.9 |
Net margin (%) | 6.6 | -3.3 | 1.6 | 4.4 | 5.2 |
Net sales growth YoY (%) | — | 10.8 | 2.1 | 9.1 | 1.2 |
Dividend payout ratio (%) | 29.1 | — | 113.9 | 38.8 | 35.9 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (JPY Bn) | 3,349.1 | 3,454.5 | 3,662.7 | 4,015.2 | 4,137.9 |
Cash and deposits (JPY Bn) | — | — | — | 393.5 | 377.0 |
Interest-bearing debt excl. leases (JPY Bn) | 766.3 | 941.5 | 917.0 | 1,157.5 | 967.5 |
Short-term debt (JPY Bn) | — | — | — | 310.2 | 129.9 |
Long-term debt (JPY Bn) | — | — | — | 847.2 | 837.6 |
Net debt (JPY Bn) | — | — | — | 764.0 | 590.5 |
Net worth (JPY Bn) | 1,687.4 | 1,660.3 | 1,813.4 | 1,859.4 | 2,088.5 |
Total net assets (JPY Bn) | — | — | — | 1,913.9 | 2,165.6 |
Goodwill (JPY Bn) | — | — | — | 389.6 | 383.8 |
Goodwill and all intangible assets (JPY Bn) | — | — | — | 930.6 | 917.9 |
Working capital, current assets less current liabilities (JPY Bn) | — | — | — | 804.8 | 1,072.2 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (JPY Bn) | — | — | 295.3 | 301.5 | 303.1 |
Investing cash flow, outflow (JPY Bn) | — | — | 142.6 | 381.1 | 106.9 |
of which M&A outlays (JPY Bn) | — | — | 0.0 | 199.5 | 0.0 |
Free cash flow (JPY Bn) | — | — | 152.7 | -79.7 | 196.2 |
Capital expenditure, company basis (JPY Bn) | — | — | — | 211.0 | 222.3 |
Total dividends for the year (JPY Bn) | 47.2 | 50.0 | 50.0 | 52.2 | 57.1 |
Share repurchase authorised (JPY Bn) | 0.0 | 0.0 | 0.0 | 30.0 | 40.0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE (%) | 10.3 | -5.5 | 2.5 | 7.4 | 8.0 |
ROIC, company definition (%) | — | 4.0 | 5.9 | 5.5 | 5.9 |
ROA, net income on average assets (%) | — | — | — | 3.5 | 3.9 |
Current ratio (x) | — | — | — | 1.83 | 2.35 |
Debt/equity (x) | 0.45 | 0.57 | 0.51 | 0.62 | 0.46 |
Interest-bearing debt/EBITDA (x) | — | — | — | 2.9 | 2.3 |
Net debt/EBITDA (x) | — | — | — | 1.92 | 1.38 |
Interest coverage, operating income/interest expense (x) | — | — | — | 23.3 | 18.6 |
Asset turnover (x) | — | — | — | 0.79 | 0.75 |
Equity ratio (%) | 50.4 | 48.1 | 49.5 | 46.3 | 50.5 |
Cash conversion cycle (days) | — | — | — | 151 | 167 |
Revenue by Region (%)
| Region | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Japan share of net sales (%) | 51.9 | 49.4 | 47.2 | 45.3 | 44.9 |
The Americas share of net sales (%) | 15.8 | 18.5 | 20.4 | 21.9 | 23.3 |
Other Asia share of net sales (%) | 11.5 | 10.5 | 9.8 | 10.1 | 9.6 |
China share of net sales (%) | 9.7 | 8.9 | 9.0 | 9.4 | 8.3 |
Europe share of net sales (%) | 6.2 | 6.9 | 7.0 | 7.1 | 7.5 |
Other regions share of net sales (%) | 4.9 | 5.8 | 6.6 | 6.2 | 6.4 |
Revenue by Region
| Region | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Japan net sales (JPY Bn, derived) | 1,314.5 | 1,375.9 | 1,380.5 |
The Americas net sales (JPY Bn, derived) | 568.1 | 665.2 | 716.4 |
Other Asia net sales (JPY Bn, derived) | 272.9 | 306.8 | 295.2 |
China net sales (JPY Bn, derived) | 250.6 | 285.5 | 255.2 |
Europe net sales (JPY Bn, derived) | 194.9 | 215.6 | 230.6 |
Other regions net sales (JPY Bn, derived) | 183.8 | 188.3 | 196.8 |
Region Margins & Growth (%)
| Region | FY2024 | FY2025 |
|---|---|---|
Japan growth YoY (%) | 4.7 | 0.3 |
The Americas growth YoY (%) | 17.1 | 7.7 |
Other Asia growth YoY (%) | 12.4 | -3.8 |
China growth YoY (%) | 13.9 | -10.6 |
Europe growth YoY (%) | 10.6 | 7.0 |
Capital Markets
| Item | Value | Source |
|---|---|---|
Latest close | JPY 1,688.5 (Yahoo Finance, early October 2026); JPY 1,645.5 on September 25, 2026 | S7 |
52-week range | JPY 1,144.5 to JPY 1,906.0 | S7 |
Market capitalisation | About JPY 2.26 trillion | S7 |
1-year change | About +36% to +37% (late September to early October 2026 readings) | S7 |
3-year change | About +66% (MarketScreener reading of September 8, 2026) | S7 |
Beta (5-year monthly) | 0.65 | S7 |
Fiscal year-end price-to-book | 0.76 (FY2024), 0.98 (FY2025) | S1 |
Fiscal year-end P/E | 10.7 (FY2024), 12.9 (FY2025) | S1 |
Valuation Snapshot
| Multiple | Value | Basis |
|---|---|---|
P/E, FY2025 actual | 14.4x | JPY 1,688.5 on EPS of JPY 116.97 [S1, S7] |
P/E, FY2026 company forecast | 14.1x | EPS forecast of JPY 119.65 [S1] |
P/E, trailing twelve months | About 11.9x | Aggregator trailing EPS of about JPY 142, lifted by the strong Q1 FY2026 [S7] |
P/E before goodwill amortization, FY2026 forecast | 11.4x | EPS before goodwill amortization of JPY 148.07 [S1] |
Price-to-book | About 1.05x | S7 |
EV/EBITDA, FY2025 actual | About 7.4x | Derived: market cap JPY 2,263 billion plus debt JPY 1,205.3 billion plus non-controlling interests JPY 79.8 billion less cash JPY 387.4 billion (June 2026) gives enterprise value of about JPY 3,161 billion; EBITDA JPY 427.5 billion |
EV/EBITDA, FY2026 forecast | About 6.8x | EBITDA forecast JPY 466.0 billion [S1]; Investing.com shows 6.56x |
EV/Sales | About 1.0x | FY2025 net sales |
Dividend yield | About 2.6% | JPY 44 forecast dividend |
Per-Share Data and Dividends & Capital Returns
| Metric | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026F |
|---|---|---|---|---|---|---|---|
Dividend per share (JPY) | 34 | 34 | 36 | 36 | 38 | 42 | 44 |
Total dividends (JPY Bn) | 47.2 | 47.2 | 50.0 | 50.0 | 52.2 | 57.1 | 58.7 |
Payout ratio (%) | 59.1 | 29.1 | — | 113.9 | 38.8 | 35.9 | 36.8 |
Adjusted dividend on equity (%) | 3.6 | 3.4 | 3.6 | 3.8 | 3.9 | 4.0 | 3.9 |
Share repurchase authorised (JPY Bn) | 0.0 | 0.0 | 0.0 | 0.0 | 30.0 | 40.0 | — |
Credit Ratings
| Agency | Rating | Outlook | Source |
|---|---|---|---|
Japan Credit Rating Agency (JCR) | AA long-term issuer rating; AA on bonds | Stable | S8 |
Rating and Investment Information (R&I) | — | Stable [K] | K |
Capital Markets Data and Financial Ratios (x)
| Item | March 31, 2025 | March 31, 2026 | June 30, 2026 |
|---|---|---|---|
Interest-bearing debt excl. leases (JPY Bn) | 1,157.5 | 967.5 | 1,205.3 |
Short-term loans payable (JPY Bn) | 203.2 | 99.9 | — |
Commercial paper (JPY Bn) | 87.0 | 0.0 | — |
Current portion of bonds (JPY Bn) | 20.0 | 30.0 | — |
Bonds payable, non-current (JPY Bn) | 280.0 | 250.0 | — |
Long-term loans payable (JPY Bn) | 567.2 | 587.6 | — |
D/E ratio (x) | 0.62 | 0.46 | 0.57 |
Analyst Conclusions
Management guidance
| Metric | FY2025 actual | FY2026 forecast (May 12, 2026) | Change |
|---|---|---|---|
| Net sales (JPY bn) | 3,074.5 | 3,254.0 | +5.8% |
| Operating income (JPY bn) | 231.2 | 248.0 | +7.3% |
| Operating income before goodwill amortization (JPY bn) | 264.9 | 286.0 | +7.9% |
| EBITDA (JPY bn) | 427.5 | 466.0 | +9.0% |
| Net income attributable to owners (JPY bn) | 158.8 | 160.0 | +0.8% |
| EPS (JPY) | 116.97 | 119.65 | +2.3% |
| Dividend per share (JPY) | 42 | 44 | +2 |
| Capital expenditure (JPY bn) | 222.3 | 254.0 | +14.3% |
| R&D (JPY bn) | 110.5 | 136.0 | +23.1% |
| ROE | 8.0% | 7.7% | lower |
| ROIC | 5.9% | 5.7% | lower |
Source: S1. Within the forecast, operating income excluding currency, divestitures and acquisition effects is expected to rise JPY 31.6 billion, offset by JPY 14.8 billion from those items, including JPY 10.0 billion from Aicuris consolidation and JPY 8.0 billion of in-licensing expense [S1].
Progress so far. Q1 FY2026 operating income was JPY 81.3 billion, one third of the full-year forecast in one quarter, and the first-half forecast of JPY 145.0 billion is 58% of it [S2]. Of the JPY 27.7 billion year-on-year increase in Q1, about JPY 19.5 billion came from currency, market prices and one-off factors, chiefly inventory gains in Essential and Performance Chemical, and JPY 8.1 billion from underlying growth [S2]. The full-year forecast has not been revised; management will review the second half with Q2 results on November 5, 2026 [S2].
Consensus. Analysts expect FY2026 net income of about JPY 165 billion, a little above guidance, and growth of roughly 10% in FY2027 [S7]. Simply Wall St cited revenue growth expectations of about 4% a year over three years at the time of the FY2024 results [S7].
Bull case
-
The profit mix has changed and the market has not fully priced it. Operating income outside the petrochemical businesses rose from JPY 131.7 billion in FY2018 to JPY 219.9 billion in FY2025, yet the stock trades at about book value and under 7 times forecast EBITDA [S1, S7].
-
Three First Priority engines are firing together. Pharmaceuticals (US product sales of USD 653 million, up 64%), Electronics (operating income up 34% on the recalculated basis) and Critical Care (forecast up 27% on the Zenix launch) each have identifiable drivers through FY2027 [S1].
-
Chemical exits are accretive to returns. Closing MMA, hexamethylene diamine, the large acrylonitrile line and the cracker removes capital that earns 2% margins; Performance Chemical profit is already forecast to double [S1].
Bear case
-
Reported returns will stay pinned by acquisition accounting. Each deal adds amortization; guidance has ROE falling to 7.7% in FY2026 and Pharmaceuticals & Life Science operating income falling 6.2% despite higher sales [S1].
-
Battery separators remain a capital sink. The business is forecast to lose money in FY2026, the Ontario plant is delayed, and auditors are examining impairment at the separator subsidiary [S1, S4].
-
The strong start to FY2026 is low quality. Most of the Q1 beat was inventory valuation from a naphtha spike; Overseas Homes slipped into loss; and the Homes segment is guided down in the first half on material and fixed costs [S2].
Catalysts and monitorables for the next 12 months
| Date or window | Item | Why it matters |
|---|---|---|
| November 5, 2026 | Q2 results and second-half review | Possible upward revision; clarity on how much of the Q1 inventory gain persists |
| By October 31, 2026 | Completion of the JPY 40 billion buyback; any new authorisation | Signal on capital policy with D/E back at 0.57 |
| FY2026 | Pritelivir approval and launch | First return on the Aicuris purchase |
| FY2026 | Purchase price allocation for Aicuris | Determines goodwill and intangible amortization |
| Quarterly | Tarpeyo and Envarsus XR US sales | Competitive pressure in IgA nephropathy |
| Quarterly | Zenix shipments and LifeVest patient numbers | Delivery of the JPY 46.0 billion Critical Care forecast |
| Quarterly | Hipore volumes, EBITDA and Ontario timing | Impairment risk |
| Through FY2026 | Definitive agreements on the ethylene joint entity | Converts a basic agreement into a binding plan |
| H2 FY2026 | Deconsolidation of Asahi Kasei Advance | Comfort Life sales guided down 12.8% |
| Ongoing | Yen, naphtha, North American housing demand | The three largest external sensitivities |
| Spring 2027 | FY2026 results and any update to FY2027 targets | Final-year plan credibility |
Analyst verdict
Asahi Kasei has done what many Japanese chemical groups only talk about: it has moved its earnings base away from commodity chemistry. In FY2025 it earned record operating income of JPY 231.2 billion in a year when its essential chemical business lost two thirds of its profit, because US pharmaceuticals, semiconductor materials and a steady housing franchise more than filled the gap. The medium-term plan is credible on operating income; the FY2026 forecast of JPY 248 billion already looks conservative after a first quarter of JPY 81 billion, even allowing for inventory gains that will fade.
The harder question is returns, not profit. ROE of 8% matches the cost of equity, and guidance has it slipping in FY2026 as Aicuris adds debt and amortization. Roughly JPY 1 trillion of acquisitions since FY2018 has bought growth, but Polypore destroyed value, separators still earn nothing, and Bionova is being rethought. Investors are entitled to ask for evidence that Calliditas was the rule and Polypore the exception. The early signs are good: Calliditas beat plan in its first full year.
On balance the evidence supports a constructive view. The portfolio is more resilient than its valuation of about one times book implies, the chemical exits are concrete and dated, governance has improved with a half-independent board, and shareholder returns are rising. The main things that would change this assessment are an impairment in battery separators, a sharp loss of Tarpeyo share, or another large acquisition that pushes leverage to the ceiling before the last one has proved itself. Reported earnings understate cash earnings by more than JPY 30 billion a year of goodwill amortization, which is worth remembering when comparing the company with IFRS peers. The November 5 results are the next real test.
APPENDIX — DATA GAPS AND DISCREPANCIES
| Item | Status |
|---|---|
| FY2023 segment data on the current basis | segment tables use FY2024, FY2025 and FY2026 forecast |
| FY2021 to FY2023 gross profit, cash, capex, R&D; FY2021 to FY2022 cash flows | Published by the company; cells left blank |
| FY2023 ROIC of 5.9% | Read from a chart sequence in S1; looks high and should be confirmed |
| Regional mapping of Other Asia, China and Europe | Inferred from chart legend order in S1 |
| Electronics FY2025 | JPY 165.3 billion sales and JPY 28.2 billion operating income before reclassification; JPY 164.0 billion and JPY 29.6 billion after [S1] |
| Aicuris price | JPY 143.1 billion in the May 2026 document, JPY 144.3 billion in the July 2026 document [S1, S2] |
| Kawasaki facility start date | "Fiscal 2028" in the Business Report; H2 FY2029 in the investment schedule; "by 2028" in the August 2026 release [S1, S3, S6] |
| FY2022 operating income | JPY 128.4 billion as first reported; JPY 127.7 billion after PPA restatement [S1, S7] |
| Market capitalisation | JPY 2.19 to 2.26 trillion depending on date and share count used [S7] |
| Trailing P/E | 11.9x on aggregator trailing EPS versus 14.4x on FY2025 EPS [S7] |
| Employee count | 47,895 per the company at March 2026; some aggregators still show about 50,000 [S5, S7] |
| CEO compensation | JPY 209 million per Simply Wall St |
| Buyers and prices for the blood purification, diagnostics, EMS billing and Daramic disposals | Daramic buyer confirmed (Kingswood) |
| R&I rating; MSCI, Sustainalytics, CDP ratings; ADR CUSIP; patent counts; 5-year share price change; debt maturity ladder; peer margins and R&D intensity | — |
| Itemised Significant Group Risks for FY2025 | Present in S3 as a table that could not be read |
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title and role | Born (age at October 2026) | Director since | Career summary | Shares held |
|---|---|---|---|---|---|
Hideki Kobori | Chairman & Director; convener and chair of the Board; member of both advisory committees | February 2, 1955 (71) | June 2012 | Joined 1978; led Asahi Kasei Microdevices (President 2010); group strategy and finance officer 2012; President 2016 to 2022; Chairman since April 2022. Outside director at Nomura Research Institute, Seiko Group and Japan Investment Corporation | 145,500 |
Koshiro Kudo | President & Representative Director, Presidential Executive Officer; chairs the Management Council | June 5, 1959 (67) | June 2021 | Joined 1982; career in fibres and textiles; President of Performance Products SBU 2019; group strategy and finance officer 2021; President since April 2022 | 134,400 |
Toshiyasu Horie | Representative Director, Primary Executive Officer; responsible for strategy, accounting and finance, IR and communications (the CFO role) | December 30, 1962 (63) | June 2022 | Joined 1985; petrochemicals planning; legal, risk and compliance officer; strategy and finance since April 2022 | 50,375 |
Masatsugu Kawase | Director, Primary Executive Officer; oversees safety, quality, manufacturing, production technology, energy policy and green transformation | March 9, 1965 (61) | June 2023 | Joined 1990; petrochemical process development and manufacturing; head of the Production Center | 34,650 |
Yuko Maeda | Independent Outside Director | July 26, 1960 (66) | June 2021 | Engineer at Bridgestone (later Executive Officer); technology transfer roles at Tokyo Medical and Dental University; Executive Vice President of Kyushu University; director of CellBank; external director of MODEC | 0 |
Chieko Matsuda | Independent Outside Director | November 18, 1964 (61) | June 2023 | Long-Term Credit Bank of Japan; Moody's Japan; partner at Corporate Directions and Booz & Company; professor at Tokyo Metropolitan University; outside director at IHI, Toyota Tsusho and Isetan Mitsukoshi | 0 |
Yoshinori Yamashita | Independent Outside Director; chair of the Remuneration Advisory Committee | August 22, 1957 (69) | June 2024 | President and CEO of Ricoh 2017 to 2023, now Chairperson; external director of Nomura Real Estate Holdings and Kubota | 0 |
Hiroyuki Ogawa | Independent Outside Director (new) | March 23, 1961 (65) | June 2026 | President and CEO of Komatsu 2019 to 2025, now Chairman of the Board; outside director of Tadano | 0 |
Executive Leadership Team
| Name | Position | Source |
|---|---|---|
Koshiro Kudo | President, Presidential Executive Officer | S3 |
Richard A. Packer | Vice-Presidential Executive Officer, Corporate Initiatives (former ZOLL chief executive) | S9, S7 |
Toshiyasu Horie | Primary Executive Officer; strategy, accounting and finance, IR | S3 |
Masatsugu Kawase | Primary Executive Officer; production, safety, energy policy | S3 |
Hideyuki Yamagishi | Primary Executive Officer; Material Sector President | S6, S7 |
Yoshikazu Aoki | Global President, Asahi Kasei Therapeutics | S6 |
Stacy Wheeler | Chief Executive Officer, Asahi Kasei Therapeutics, United States and Europe | S6 |
Jonathan A. Rennert | Senior Executive Officer (ZOLL chief executive) | S7 |
Nobuhiro Yamaguchi | Lead Executive Officer; general affairs, legal, communications, risk management and compliance | S7 |
Satoshi Nishikawa | Senior Executive Officer; human resources | S7 |
Hideki Tsutsumi | Senior Executive Officer; procurement and logistics | S7 |
Osamu Matsuzaki | Senior technology officer (appears representing the company in the Acetolyte licence signing) | S6, S7 |
Futoshi Hamamoto | General Manager, Investor Relations | S7 |
Directors' Remuneration
| Category | Total paid (JPY Mn) | Basic | Performance-linked cash | Stock-based | Recipients |
|---|---|---|---|---|---|
Directors | 744 | 455 | 151 | 139 | 10 |
of which Outside Directors | 81 | 81 | 0 | 0 | 4 |
Audit & Supervisory Board Members | 169 | 169 | 0 | 0 | 6 |
of which Outside members | 61 | 61 | 0 | 0 | 3 |
Major Shareholders
| Shareholder | Shares (thousand) | Percentage of equity excluding treasury stock |
|---|---|---|
The Master Trust Bank of Japan, Ltd. (trust account) | 200,145 | 14.72 |
Custody Bank of Japan, Ltd. (trust account) | 80,976 | 5.96 |
Nippon Life Insurance Company | 40,880 | 3.01 |
Asahi Kasei Group Employee Stockholding Association | 35,884 | 2.64 |
State Street Bank and Trust Company 505001 | 29,442 | 2.17 |
Sumitomo Life Insurance Company | 20,161 | 1.48 |
Mizuho Trust & Banking retirement benefit trust (Mizuho Bank account) | 19,800 | 1.46 |
JPMorgan Chase Bank 385781 | 18,443 | 1.36 |
Meiji Yasuda Life Insurance Company | 18,416 | 1.35 |
Tokio Marine & Nichido Fire Insurance Co., Ltd. | 16,425 | 1.21 |
Competitive Landscape
Competitors by Segment
| Segment | Competitors | Approximate scale and relative position |
|---|---|---|
Diversified chemicals (Japan) | Mitsubishi Chemical Group, Sumitomo Chemical, Mitsui Chemicals, Toray Industries, Shin-Etsu Chemical, Resonac, Tosoh, Teijin | Mitsubishi Chemical Group is larger by revenue (roughly JPY 4.4 trillion); Toray and Sumitomo Chemical are of similar size (roughly JPY 2.5 to 2.6 trillion); Mitsui Chemicals is smaller (roughly JPY 1.8 trillion). Shin-Etsu is similar in revenue but far more profitable and carries a market value several times Asahi Kasei's (about USD 70 billion against USD 14 billion per S7). Asahi Kasei is the only one with a large housing arm |
Homes (Japan) | Daiwa House Industry, Sekisui House, Sekisui Chemical (Heim), Sumitomo Forestry, Misawa Homes, Panasonic Homes | Daiwa House and Sekisui House are several times larger in housing revenue. Hebel Haus is an urban, premium, steel-frame niche player |
Overseas homes | Sekisui House (US builders), Sumitomo Forestry (US and Australia), Daiwa House (US) | Japanese peers bought homebuilders; Asahi Kasei instead bought trade contractors, a different and less capital-intensive position |
Critical care | Stryker (Physio-Control), Philips, Nihon Kohden, Medtronic (implantable devices), Element Science (wearable defibrillator entrant); ResMed and Inspire Medical in sleep apnoea | ZOLL is one of the leading North American defibrillator companies per the company [S3]; LifeVest has long been the principal commercial wearable defibrillator |
Specialty pharma (nephrology, transplant) | Novartis (Fabhalta, Vanrafia), Travere Therapeutics (Filspari), Otsuka (sibeprenlimab), Vera Therapeutics (atacicept); Astellas (tacrolimus) | IgA nephropathy is becoming crowded; Tarpeyo's guideline position is the current advantage [S1] |
Bioprocess | Merck KGaA (MilliporeSigma), Sartorius, Danaher (Cytiva, Pall) | Planova is a leading brand in virus filtration; competitors are far larger overall |
Electronic materials | HD MicroSystems, Toray, Fujifilm, Sumitomo Bakelite (photosensitive polyimide); Nitto Boseki (glass cloth); Resonac, Eternal Materials (dry film) | Asahi Kasei holds a strong position in PSPI for advanced packaging, evidenced by repeated TSMC awards |
Electronic devices | Allegro MicroSystems, Melexis, Infineon, TDK (magnetic and current sensing); Cirrus Logic, ESS (audio) | AKM is a niche specialist |
Battery separators | SEMCORP, Shenzhen Senior, Sinoma, SK IE Technology, W-Scope, Toray | Chinese producers lead on volume and cost; Asahi Kasei's edge is quality, patents and North American localisation |
Electrolysis | thyssenkrupp nucera, De Nora, Nel, John Cockerill, LONGi | Strong incumbent in chlor-alkali; a challenger in hydrogen |
Car interior | Seiren, Toray (Alcantara), Lear, Adient | Sage is a global leader in seat fabrics |
Peer Comparison FY2025
| Metric | Asahi Kasei (FY2025, verified) | Mitsubishi Chemical Group | Toray Industries | Mitsui Chemicals |
|---|---|---|---|---|
Revenue | JPY 3,074.5 billion [S1] | About JPY 4.4 trillion [K, approximate] | About JPY 2.6 trillion [K, approximate] | About JPY 1.8 trillion [K, approximate] |
Revenue growth | 1.2% [S1] | — | — | — |
Operating margin | 7.5% (8.6% before goodwill amortization) [S1] | — | — | — |
R&D intensity | 3.6% of sales [S1] | — | — | — |
Accounting basis | Japanese GAAP | IFRS | IFRS | IFRS |
Recent Developments
Dates from the European newsroom [S6] can be one day later than the Tokyo release date.
