Asahi Kasei (3407) Investor 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.

• Business portfolio transformation and structural reforms are enabling sustainable growth despite market uncertainties.

• Strategic investments and M&A, especially in Healthcare and Electronics, are supporting income growth.

• Record-high operating income is forecasted for a second consecutive year in FY2025.

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

Vision and sector strategies

• Aims for 2030 include operating income of ¥380 billion, ROIC ≥8%, and ROE ≥12%.

• Focus on sustainability, carbon neutrality, and digital innovation across Material, Homes, and Healthcare sectors.

• Shifting income composition toward high value-added businesses in diverse industries.

• Each sector leverages shared resources, technology, and management expertise for growth.

Business portfolio and investment focus

• Proactive growth investments and M&A totaling ~¥1 trillion, with ~¥600 billion in capex for growth.

• Portfolio prioritizes First Priority (Pharmaceuticals, Overseas Homes, Electronics, Critical Care) and Growth Potential businesses.

• Structural transformation in the Material sector, including divestitures and alliances, to improve profitability.

• Expansion-related investments focus on First Priority businesses, especially in North America and Japan.