June 4, 2009 Asahi Kasei Corporation Strategic review of Growth Action – 2010 mid-term initiative   The Asahi Kasei Group has performed a strategic review of its Growth Action – 2010 mid-term initiative currently in progress, including a reexamination of strategies in place and a revision of financial performance forecasts, as fiscal 2008 saw a decline in sales and a substantial decline in profits as an effect of the global economic downturn, with scant prospect of a sharp recovery in business performance in fiscal 2009.   Advancement toward fiscal 2010   Growth Action – 2010 is directed toward a business portfolio realignment for expansion and growth, with strategic focus on the expansion of global businesses and the enhancement of domestic businesses. Although no fundamental change has been made in this regard, particular emphasis will be placed on the following in consideration of the transformed business environment:   Accelerating the expansion of high-growth businesses, with a focus on the fields of electronics and healthcare. In electronics, product families will be expanded from the perspective of energy and resource conservation. In healthcare, both established business and peripheral operations will be expanded and advanced globally in line with the changing needs of an aging society. Enhancement of the operational structure, through a pervasive drive to raise added value throughout all operations, a streamlining of volume-product business operations including study of an integration of naphtha crackers in Mizushima, a reinforcement of R&D efforts, and the advancement of M&A. Placement of greater management emphasis on rate of profitability and investment efficiency.   Plan for capital expenditure   Whereas strategic investment of ¥800 billion had been planned for the five-year period of Growth Action – 2010, this will now be reduced by ¥130 billion to ¥670 billion as investments for expansion of volume-product businesses are put on hold for the time being and other investments are subject to careful selectivity in consideration of the business environment.   Outlook for financial performance   The outlook for financial performance in fiscal 2010 has been revised as follows in consideration of current state of profitability and business environment.   (¥ billion)   FY 2007 FY 2008 FY 2009 forecast FY 2010 outlook FY 2010 original target Net sales 1,696.8 1,553.1 1,355.0 1,350.0-1,500.0 1,800.0 Operating profit 127.7 35.0 41.0 60.0-80.0 150.0 Net income 69.9 4.7 15.0   80.0   Vision for fiscal 2015   Beginning with fiscal 2009, a business portfolio realignment toward the achievement of a renewed Asahi Kasei Group conformation will be advanced concurrently with Growth Action – 2010. Whereas half of all operating profit in fiscal 2005 came from chemicals and fibers operations, this realignment is directed toward the achievement of a business portfolio in which a majority of operating profit will come from electronics and healthcare operations by fiscal 2015, with the Asahi Kasei Group operating as a fast and lean enterprise coping effectively with challenges related to resources and the environment.