ASAHI KASEI CORPORATION
3407・Prime Market・Chemicals
Material
A foundational segment of the Asahi Kasei Group spanning a broad range of chemical, electronic, and textile materials
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (External Customers) | ¥1,306,240 million | ¥1,368,770 million | ↓ |
| Segment Profit (Operating Profit/Loss) | ¥68,321 million | ¥79,905 million | ↓ |
| Segment Assets | ¥1,893,421 million | ¥1,842,954 million | ↑ |
| Depreciation (excluding goodwill) | ¥67,314 million | ¥65,082 million | ↑ |
| Increase in Tangible and Intangible Fixed Assets | ¥164,829 million | ¥125,572 million | ↑ |
| Amortization of Goodwill | ¥5,354 million | ¥5,460 million | ↓ |
| Impairment Loss | ¥18,748 million | ¥14,811 million | ↑ |
Business Details
This segment comprises the Electronics business (electronic materials, LSI), Essential Chemicals business (petrochemical products), Car Interior business (automotive interior materials), Energy & Infrastructure business (ion exchange membranes, separators), Comfort Life business (textiles), and Performance Chemicals business (engineering plastics), among others. As a large-scale segment accounting for approximately 42% of consolidated net sales, its performance is highly susceptible to trends in petrochemical market conditions and the semiconductor and electronic device markets.
Recent Overview
Net sales and profit declined due to overlapping factors of petrochemical periodic maintenance, inventory valuation differences, and business divestitures; structural transformation accelerated
In FY2026 (ending March 2026), the Material segment recorded net sales of ¥1,306,240 million (down ¥62,530 million year on year) and operating profit of ¥68,321 million (down ¥11,584 million year on year), representing a decline in both revenue and profit. While the Electronics business achieved higher profit driven by robust demand for AI and high-end smartphone applications, this was offset by the large-scale periodic maintenance and inventory valuation differences at the Mizushima Works in the Essential Chemicals business, the transfer of the Daramic® (separator for lead-acid batteries) business in December 2025 (net sales of ¥26,601 million and operating profit of ¥2,820 million recorded in the current period), and weakness in the Car Interior business in China and North America. Additionally, an impairment loss of ¥18,748 million was recorded, including ¥10,849 million mainly related to general-purpose petrochemical and resin asset groups. As a subsequent event, the company decided to end production of styrene monomer, polyethylene, and other products by around FY2030, and to restructure the acrylonitrile supply system.
Key Products
Growth Drivers
- Continued robust demand for electronic materials (Pimel, Glass Cloth, etc.) for AI servers and high-end smartphones
- Recovery in profitability in the Essential Chemicals business as the impact of prior-period periodic maintenance dissipates (FY2027, ending March 2027)
- Contribution to increased profit from solid sales to North America and Europe in the Car Interior business
- Profitability improvement in the Performance Chemicals business through increased engineering plastics sales volume and progress in structural transformation
- Fixed cost reduction and improved profit structure through the restructuring of the derivatives business at the Mizushima Works (ending production of styrene monomer, polyethylene, etc.)
- Continued sales of electrolysis plants in the ion exchange membrane chlor-alkali electrolysis business
Risks
- Changes in Asian export demand for petrochemical products and pressure for domestic complex reorganization due to China's expansion of petrochemical facilities and progress in in-house production
- Risk of worsening inventory valuation losses and inventory valuation differences due to a sharp decline in petrochemical market conditions (Essential Chemicals, Performance Chemicals)
- Erosion of net sales and profit due to business divestitures such as the transfer of the Daramic® business and the exclusion of Asahi Kasei Advance from consolidation
- Risk of additional impairment losses and equipment removal cost recognition, mainly in general-purpose petrochemical and resin asset groups (removal costs from FY2030 onward associated with the restructuring of the Mizushima Works)
- Risk of declining sales volume in the Car Interior business due to sluggish automobile demand in China and North America
- Risk of rising raw material costs and declining sales volume of ion exchange membrane chlor-alkali electrolysis plants in the Energy & Infrastructure business (a decline is expected in the next fiscal year as a reaction to the prior period's strong performance)
- Risk of additional recognition of business structure improvement expenses (impairment losses, losses on transfer, etc.)
Last updated: June 24, 2026