October 5, 2021
Asahi Kasei Corp.

The Asahi Kasei Group has been advancing its 3-year management initiative “Cs+ for Tomorrow 2021” since fiscal 2019 focused on “Care for People, Care for Earth” by leveraging its strengths of “diversity” and “capability to change” to contribute to the sustainability of society and the sustainable growth of corporate value by contributing to life and living for people around the world in the 3 business sectors of Material, Homes, and Healthcare.

Today Asahi Kasei will hold its first briefing on the Healthcare sector, with the responsible Executive Officers Shuichi Sakamoto (Board Director and Primary Executive Officer) and Richard A. Packer (Primary Executive Officer) describing growth strategies in the sector.

1. Recent progress

• In 2012 Asahi Kasei acquired acute critical care device manufacturer ZOLL Medical Corporation (ZOLL), adding the field of critical care to its established healthcare businesses in pharmaceuticals and medical devices. Since then Asahi Kasei has expanded the Healthcare sector through strong organic growth supplemented with business development such as M&A and licensing.
• Consolidated net sales in Healthcare are forecasted* to increase from ¥119.5 billion in fiscal 2011 to ¥400 billion in fiscal 2021, with operating income rising more than 6-fold during the 10-year period, from ¥8.8 billion to ¥55 billion.
• Whereas Healthcare accounted for 8% of the Asahi Kasei Group’s total consolidated net sales in fiscal 2011, this is forecasted* to rise to 17% in fiscal 2021, with the operating income portion rising from 8% to 25% during the same period.

• *Forecast announced in May 2021; percentages excluding the “Others” category and corporate expenses and eliminations.

2. Policy for further growth

• Asahi Kasei aims to make Healthcare the third major pillar of business along with Material and Homes, and the driver of growth for the Asahi Kasei Group by accelerating the transformation into a Global Healthcare Company operating both pharmaceutical and medical device businesses.
• In addition to investments to strengthen established businesses, growth will be further accelerated by proactively utilizing business development such as M&A. Financial targets for Healthcare are net sales of ¥600 billion and operating income of ¥80 billion in fiscal 2025.
• Regional strategy toward fiscal 2025 is as follows.

  United States

  Pursue growth opportunities in the biggest high growth market

  Japan

  Strengthen business for generating sustainable and stable profit

  Europe/China

  Establish business platform for further expansion

3. Business strategy

Business strategy to achieve further growth is as follows.

• （1）Expanding ZOLL’s business focused on serious cardiopulmonary conditions
  • Growth plans are supported by a portfolio of best-in-class technologies for critical cardiopulmonary care and expansion into adjacent markets.
• （2）Transformation into global specialty pharma
  • Leveraging the busines platforms of Asahi Kasei Pharma and Veloxis Pharmaceuticals while expanding the product pipeline with a focus on the fields of invasive/severe infection, immunology/transplantation, renal disease, and other hospital based treatments.
  • Aim to achieve pharmaceutical sales of ¥150 billion in fiscal 2025 and ¥200 billion in fiscal 2030.
• （3）Expansion of bioprocess business base
  • Expand current business focusing on pioneering biologics safety and manufacturing efficiencies.
  • Added biosafety testing services to the business portfolio; aiming to acquire further growth opportunities.
• （4）Firm business platform in Japan
  • Achieve sustainable growth in pharmaceuticals as a specialty pharma for orthopedics, critical care medicine, and immunology.
  • Maintain stable supply in the hemodialysis business as a major supplier, and invest in the therapeutic apheresis business as a leading company.
• （5）Acceleration of business development
  • Advance business development activity such as M&A, equity, debt with option, and in-licensing in the 4 fields of critical care, pharmaceuticals, bioprocess, and new medtech, focusing on the management, market, and competitive advantage of target companies.
  • Concentrate business development resources of Healthcare in the United States, the location of innovation.

4. Summary

• （1）The business is accelerating its transformation into a Global Healthcare Company with a wide variety of growth drivers in both pharmaceuticals and medical devices.
• （2）Fiscal 2025 targets for the Healthcare sector are nets sales of ¥600 billion and operating income of ¥80 billion; targets for fiscal 2030 will be announced as part of the next medium-term strategy.
• （3）Planning in the near future to relocate the Healthcare headquarters functions to the United States, the location of innovation and the largest market.

• Healthcare Briefing Presentation Material

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