Asahi Kasei Corporation · TSE:3407
Asahi Kasei — Q1 2026 Earnings Presentation
49 slides from Asahi Kasei's earnings presentation, Jul 31, 2026
Slide 1: Fiscal 2026 1st Quarter Financial Results Supplementary Financial Summary
Fiscal 2026 1st Quarter Financial Results Supplementary Financial Summary July 31, 2026 Asahi Kasei Corporation Detailed supplementary data on business results are now disclosed in the Financial Factbook on our website. https://www.asahi-kasei.com/ir/library/financial_briefing/
Slide 2: Focus of Q1 2026 results and H1 2026 forecast
Focus of Q1 2026 results and H1 2026 forecast Q1 2026 results H1 2026 forecast Net income attributable Net income attributable Operating income Operating income to owners of the parent to owners of the parent YoY YoY YoY YoY ¥81.3 billion +51.5% ¥53.8 billion +172.7% ¥ 145.0 billion +34.9% ¥ 89.0 bi
Slide 3: Main impacts and risks of Middle East situation (1)
Main impacts and risks of Middle East situation (1) ┃ Impact of increased feedstock prices due to higher petrochemical market prices to be largely offset by timely and appropriate sales price increases; positive impact of inventory valuation in Q1, but the effect is expected to decline in Q2 as mark
Slide 4: Main impacts and risks of Middle East situation (2)
Main impacts and risks of Middle East situation (2) ┃ Impact of increased feedstock prices due to higher petrochemical market prices to be largely offset by timely and appropriate sales price increases ┃ Significant gain on inventory valuation in Q1 due to increased feedstock prices, but gain on inv
Slide 5: Progress of business portfolio transformation (1)
Progress of business portfolio transformation (1) ┃ Business portfolio transformation through proactive growth investments FY20181 M&A ≈¥1 trillion FY20251 Healthcare Homes Material Healthcare Chemical2 (petrochemical-related) Operating Operating income income ¥209.6 billion ¥231.2 billion Healthcar
Slide 6: Progress of business portfolio transformation (2)
Progress of business portfolio transformation (2) ┃ Advancing business portfolio transformation with both growth investments and structural transformation since the previous MTP ┃ Proactive decisions adopted on growth investments and structural transformation in the first year of the current MTP FY2
Slide 7: New business categories and positioning from fiscal 2025
New business categories and positioning from fiscal 2025 ┃ Reconfiguration of subsegments starting in fiscal 2025 (see Appendix) ┃ Continuing investments in First Priority and Growth Potential to achieve income growth while advancing reforms for Profitability improvement and business model change He
Slide 8: Medium-term changes in composition of operating income
Medium-term changes in composition of operating income (as of May 2026) ┃ Aiming for new record high operating income for 3rd consecutive year in FY 2026 with profit growth in First Priority businesses Chemical business affected by deteriorating market conditions, Steady profit growth centered on fo
Slide 9: Progress of First Priority businesses (1)
Progress of First Priority businesses (1) Pharmaceuticals Critical Care U.S. sales of Envarsus XR and Tarpeyo Sales of ACT and CMS3 ($ million) ($ million) ■CMS: LifeVest wearable defibrillators, etc. Tarpeyo1 (kidney disease therapeutic agent) ■ACT: Professional defibrillators, AEDs, etc. 300 700 E
Slide 10: Progress of First Priority businesses (2)
Progress of First Priority businesses (2) Overseas Homes Electronics Sales in North America and Australia Sales of main products (¥ billion) (FY 2022 sales indexed to 100) 100 260 North America (Synergos) Sales CAGR (FY 2022–26) Australia (NEX) 240 78.2 Pimel 20％ 80 72.2 73.6 220 Glass fabric 16％ 63
Slide 11: Efforts to raise corporate value
Efforts to raise corporate value ┃ Measures for sustainable increase in corporate value centered on accelerating business portfolio transformation and improving profitability ┃ Introducing special incentive program for employee stockholding association beginning in fiscal 2026 to heighten awareness
Slide 12: 1. Consolidated results for Q1 2026
1. Consolidated results for Q1 2026 12
Slide 13: Q1 2026 consolidated financial results
Q1 2026 consolidated financial results ┃ Net sales increased by ¥87.8 billion (+11.9%) to ¥826.2 billion ┃ Operating income increased by ¥27.7 billion (+51.5%) to ¥81.3 billion ┃ Net income attributable to owners of the parent increased by ¥34.1 billion (+172.7%) to ¥53.8 billion Increase Q1 2025 Q1
Slide 14: Operating income change factors
Operating income change factors ┃ Substantive increase of ¥8.1 billion excluding impact of foreign exchange, market prices, and one-time factors ┃ Increased sales of mainstay products particularly in First Priority businesses of Pharmaceuticals, Critical Care, and Electronics Effect of increased sal
Slide 15: Q1 2026 results by segment
Q1 2026 results by segment ◼ Operating income change factors Healthcare +¥7.1 billion Sales (YoY) Operating income (YoY) Increased SG&A expenses and impact of consolidation of Aicuris, but increased income with sales growth of mainstay +¥87.8 billion (+11.9%) +¥27.7 billion (+51.5%) products in each
Slide 16: Non-operating income/expenses, extraordinary income/loss and income taxes
Non-operating income/expenses, extraordinary income/loss and income taxes ┃ Non-operating income/expenses improved with improved foreign exchange gains/losses and equity in earnings/losses of affiliates ┃ Extraordinary income/loss improved significantly with nonrecurrence of previous year’s loss on
Slide 17: Balance sheets
Balance sheets ┃ Total assets increased by ¥318.8 billion with increased goodwill and other intangible assets due to consolidation of Aicuris in Healthcare, increased inventories in Homes and Material, and increased yen value of assets due to weaker yen, etc. ┃ Net worth increased with higher accumu
Slide 18: Cash flows
Cash flows Higher income before income taxes due to income growth centered on First Priority businesses, but cash inflow Operating CF even with previous year with greater working capital associated with increased inventories due to higher feedstock costs in Material, etc. Cash outflow increased sign
Slide 19: 2. Forecast for H1 2026
AsahiKASEl 2. Forecast for H1 2026 19
Slide 20: H1 2026 forecast (consolidated)
H1 2026 forecast (consolidated) ┃ Net sales expected to increase by ¥199.6 billion (+13.4%) to ¥1,686.0 billion ┃ Operating income expected to increase by ¥37.5 billion (+34.9%) to ¥145.0 billion ┃ Net income attributable to owners of the parent expected to increase by ¥22.7 billion (+34.3%) to ¥89.
Slide 21: H1 2026 forecast by segment (year-on-year)
H1 2026 forecast by segment (year-on-year) ◼ Operating income change factors Sales (YoY) Operating income (YoY) Healthcare +¥12.9 billion Increased SG&A expenses and impact of consolidation of +¥199.6 billion (+13.4%) +¥37.5 billion (+34.9%) Aicuris, but increased income with sales growth of mainsta
Slide 22: Shareholder returns
Shareholder returns ┃ Fiscal 2026 dividends forecasted to increase by ¥2 to ¥44 per share in line with shareholder returns policy; interim dividend forecast of ¥22 per share ┃ Share repurchase of up to ¥40 billion decided in November 2025 currently in progress (repurchase period from November 6, 202
Slide 23: 3. Results by segment
sahiKASEIl 3. Results by segment 23
Slide 24: Healthcare Sales and operating income increase/decrease
Healthcare Sales and operating income increase/decrease ┃ Operating income increased with negative impact of others such as increased SG&A expenses and new consolidation of Aicuris outweighed by positive sales volume factor due to greater shipments of mainstay products ◼ Operating income increase/de
Slide 25: Healthcare Pharmaceuticals & Life Science business strategy
Healthcare Pharmaceuticals & Life Science ◼ Operating income (¥ billion) ◼ Operating income change factors Operating margin before goodwill 28% 28% amortization 22.4 ⚫ Pharmaceuticals: Impact of consolidation of Operating income Aicuris, but operating income increased with before goodwill 18.1 Q1 20
Slide 26: Main pharmaceuticals
Healthcare Main pharmaceuticals FY 2025 FY 2026 Q1 2026 vs Q1 2025 Increase Q1 H1 Q1 % change (Sales region, monetary unit) (decrease) Envarsus XR (US, $ million) 85 167 99 14 +16.5% U.S. Business Tarpeyo (US, $ million) 84 164 95 10 +12.4% * Teribone (Japan, ¥ billion) 10.9 21.8 10.4 (0.5) -4.2% Re
Slide 27: Pharmaceuticals pipeline
Healthcare Pharmaceuticals pipeline Development Code name, Indication Origin Development Region/remarks stage generic name Phase I in Japan was conducted Phase III TA799, apraglutide Short bowel syndrome Licensed Licensor by Asahi Kasei Pharma Additional indication ART-123, recombinant Chemotherapy-
Slide 28: Healthcare Critical Care business strategy
Healthcare Critical Care ◼ Operating income (¥ billion) ◼ Operating income change factors Operating margin 13% ⚫ ACT: Higher SG&A expenses and production before goodwill 12% costs, but operating income increased with amortization greater shipments of new defibrillator product 14.9 launched in Septem
Slide 29: Homes Sales and operating income increase/decrease
Homes Sales and operating income increase/decrease ┃ Positive effect of sales factor and decreased fixed costs in domestic order-built homes, but operating income decreased with negative impact in overseas business due to diminished housing demand in North America, etc. ◼ Operating income increase/d
Slide 30: Homes Housing business strategy
Homes Housing (Order-built, Development, Rental/brokerage, Remodeling, Construction Materials) ◼ Operating income (¥ billion) ◼ Operating income change factors Operating margin 11% 11% ⚫ Order-built homes: Impact of higher material costs, but operating income increased with effect 20.6 Operating inc
Slide 31: Homes Overseas Homes business strategy
Homes Housing (Overseas Homes) ◼ Operating income (¥ billion) ◼ Operating income change factors Operating margin before goodwill 4% amortization ⚫ North American: Operating income decreased with lower volume of work and lower pricing due Operating income Q1 2026 to diminished housing demand before g
Slide 32: Material Sales and operating income increase/decrease
Material Sales and operating income increase/decrease ┃ Operating income increased with positive effect of sales volume due to firm sales in Electronics, impact of feedstock costs due to Middle East situation outweighed by sales prices due to price increases and foreign exchange due to weaker yen, a
Slide 33: Material Electronics business strategy
Material Electronics ◼ Operating income (¥ billion) ◼ Operating income change factors 22% ⚫ Electronic materials: Operating income increased with firm performance of mainstay Operating 14% margin products centered on AI applications and positive effect of weaker yen Q1 2026 ⚫ Electronic devices: Ope
Slide 34: Material Car Interior business strategy
Material Car Interior ◼ Operating income (¥ billion) ◼ Operating income change factors 11% Operating margin before goodwill 9% amortization 4.7 Q1 2026 Operating income Operating income increased with firm sales in 3.4 vs before goodwill Europe and positive effect of weaker yen, etc. amortization Q1
Slide 35: Material Energy & Infrastructure business strategy
Material Energy & Infrastructure ◼ Operating income (¥ billion) ◼ Operating income change factors Operating 4% Negative impact of divestiture margin of lead battery separator ⚫ Separators: Greater shipments of LIB separators, business in Dec. 2025 but operating income decreased with Hipore impacted
Slide 36: Comfort Life, Performance Chemical, Essential Chemical
Material Comfort Life, Performance Chemical, Essential Chemical ◼ Operating income (¥ billion) 8% ◼ Operating income change factors Operating income 7% Operating margin Operating income increased with Earnings Base Q1 2026 speculative demand on Consumables Expansion 5.5 4.1 vs related to Middle East
Slide 37: Net sales breakdown by segment
Net sales breakdown by segment (¥ billion) H1 2026 %change %change H1 2025 Q1 Q2 Q1 Q2 forecast forecast Q1 2026 vs Q1 2025 H1 2026 vs H1 2025 Healthcare segment 155.1 151.7 306.8 190.8 190.2 381.0 +23.0% +24.2% Pharmaceuticals & Life Science 65.6 62.1 127.6 80.0 79.0 159.0 +22.0% +24.6% Pharmaceuti
Slide 38: Operating income breakdown by segment
Operating income breakdown by segment (¥ billion) H1 2026 % change % change H1 2025 Q1 Q2 Q1 Q2 forecast forecast Q1 2026 vs Q1 2025 H1 2026 vs H1 2025 Healthcare segment 22.7 17.4 40.1 29.8 23.2 53.0 +31.4% +32.2% Pharmaceuticals & Life Science 16.2 12.4 28.6 19.8 13.6 33.4 +22.3% +16.9% Critical C
Slide 39: 4. Appendix
sahiKASEIl 4. Appendix 39
Slide 40: Business categories
Business categories Business categories from FY 2025 Segment Business categories Businesses Pharmaceuticals Pharmaceuticals (Japan and U.S.) Life Science (Bioprocess, CDMO, etc.) & Life Science Healthcare ACT (professional defibrillators/AEDs, etc.) CMS (LifeVest wearable defibrillator, etc.) Critic
Slide 41: Overseas sales
Overseas sales ┃ Both of domestic sales and overseas sales increased from previous year with impact of foreign exchange due to weaker yen and higher petrochemical market prices ┃ Portion of sales in the Americas tending to increase with acquisitions in Healthcare and Homes in the U.S. (¥ billion) 82
Slide 42: Depreciation and amortization
Depreciation and amortization (¥ billion) 1 Depreciation and amortization Amortization of goodwill Q1 2025 of which, Q1 2026 of which, Q1 2025 Q1 2026 2 PPA amortization PPA amortization2 Healthcare segment 14.8 9.0 18.0 11.5 6.3 7.4 Pharmaceuticals & Life Science 8.1 5.9 10.7 8.1 1.9 2.6 Critical C
Slide 43: Major investments (FY 2025–)
Major investments (FY 2025–) Business Completion of construction Segment Project Capacity Location category H1 2025 H2 2025 H1 2026 H2 2026 H1 2027 H2 2027 H1 2028 H2 2028 Construction of new spinning plant Nobeoka-shi, ー To be completed and start operations in FY 2029 for Planova virus removal filt
Slide 44: Major M&A (FY 2025–)
Major M&A (FY 2025–) Consolidation on statements of income Segment Business category Company Operations Cost Goodwill H1 2025 H2 2025 H1 2026 H2 2026 Healthcare R&D of medicine Pharmaceuticals Aicuris Anti-infective centered on anti- ¥144.3 billion TBD May 2026 & Life Science Cures AG infective ther
Slide 45: Progress of structural transformation (FY 2025–)
Progress of structural transformation (FY 2025–) Business Execution period Segment Project category H1 2025 H2 2025 H1 2026 H2 2026 H1 2027 H2 2027 H1 2028 H2 2028 Scheduled to cease production and Withdrawal of Sepacell leukocyte reduction filter business Healthcare Pharmaceuticals sales in Mar. 20
Slide 46: Main KPIs (as of May 2026)
Main KPIs (as of May 2026) Improved in FY 2025 with income growth in First Priority businesses of Pharmaceuticals and Electronics; further Operating improvement forecasted in FY 2026 with continued income growth despite impact of Aicuris acquisition and in- margin licensing expenses in Pharmaceutica
Slide 47: Operating income trend (as of May 2026)
Operating income trend1 (as of May 2026) ┃ Income structure is more resilient with steady income growth in Homes and income expansion in Healthcare ┃ Material impacted by severe operating environment after peak in fiscal 2018 but recovering from nadir in fiscal 2022 ┃ Record-high operating income in
Slide 48: Note and schedule; Disclaimer
Note and schedule • Figures for operating income by business category include intrasegment transactions which are eliminated from the segment totals, while segment totals include shared segment-wide expenses. Schedule for announcement of financial results for Q2 fiscal 2026 November 5, 2026 (JST) Di
Slide 49: Asahi Kasei - Creating for Tomorrow
AsahiKASEI Creating for Tomorrow