Asahi Kasei (3407) Corporate presentation summary

Progress toward medium-term management plan targets

• On track to achieve FY2027 operating income target of ¥270 billion, driven by growth in Healthcare and AI/semiconductors sectors.

• Business portfolio transformation and proactive investments support sustainable growth amid uncertainty.

• Structural reforms and M&A totaling ¥1 trillion are reshaping the portfolio, with a focus on high-value-added businesses.

• Record-high operating income achieved for two consecutive years, with further growth expected.

• Capital allocation balances growth investment and shareholder returns, with strong operating cash flow.

Strategic business focus and sector evolution

• Shift from a Material-centric structure to diversified, high-value-added businesses in Healthcare, Homes, and Electronics.

• Healthcare and Electronics are prioritized for aggressive investment and are key profit drivers.

• Overseas Homes and Critical Care businesses are expanding through M&A and innovation.

• Material sector undergoing structural transformation, including divestitures and alliances to improve profitability.

• Energy & Infrastructure pivots to ESS demand as EV market growth slows, with new capacity investments in North America.

Financial and operational performance

• FY2025 operating income reached ¥231.2 billion, with ROIC at 5.9% and ROE at 8.0%.

• FY2027 targets: operating income ¥270 billion, ROIC 6.0%, ROE 9.0%.

• EBITDA margin projected to rise to 13.9% in FY2027.

• Shareholder returns policy emphasizes progressive dividends and share repurchases, with DOE benchmark at 3%.

• D/E ratio and interest-bearing debt/EBITDA maintained at healthy levels.