[Company analysis] Asahi Kasei Corporation (旭化成)

「Asahi Kasei Corporation (旭化成)」is a major general chemical company developing businesses such as chemicals, textile housing, building materials, electronic equipment, pharmaceuticals and medical care. It is the third largest in the chemical company in Japan. 「Asahi Breweries, Ltd.(アサヒビール)」and「Asahi Glass(旭硝子)」are completely different companies with no capital relationship. The number of consolidated employees is about 33,720.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Asahi Kasei Corporation
Company name (Japanese)	旭化成
Date of establishment	Thursday, May 21, 1931
Headquarters location	〒100-0006 東京都千代田区有楽町一丁目1番2号
Capital	103,389
Consolidated sales	2,170,403
Consolidated operating profit	209,587
Consolidated total assets	2,575,203
Consolidated capital	1,402,710
Capital adequacy ratio	54.5%
Consolidated number of employees	33,720

 

 

 

2. Summary and Features

 
「Asahi Kasei Corporation」originated in a power generation company established in Kagoshima Prefecture in 1906. At that time, utilizing the surplus power of hydropower, 「Nihon Kaabaido Shōkai(日本カーバイド商会)」was established in Kumamoto Prefecture in 1907, and then merged to become「Japan Nitrogenous Fertilizer Company(日本窒素肥料株式会社)」. After the end of World War II, 「Japan Nitrogenous Fertilizer Company」 was dismantled by GHQ, and「Asahi Kasei Corporation」was born in April 1946

Similarly, there are famous companies originating from this「Japan Nitrogenous Fertilizer Company」such as「Sekisui House, Ltd. (積水ハウス)」,「Sekisui Chemical (積水化学」and「Shin-Etsu Chemical Co. , Ltd.(信越化学工業)」. After the indenpence, 「Asahi Kasei Corporation」started Business diversification ealier and this became the features of this company.

Due to the explosive popularity of "Saran Wrap" that  this company released in 1960, especially in the household goods field, the name of "Asahi Kasei" has spread all over Japan. Then, theyhad  acquired the Japanese right to sell "Ziploc", a food preservation bag manufactured and sold by「Dow Chemical」in the United States, and they have sold this product as their main product in household goods market.

The various business domains that started in this way are recognized as the greatest features and strengths of Asahi Kasei. At present, they are developing eight businesses (textile, chemical, housing, building materials, medical care, etc.) in the three fields of "materials", "housing" and "healthcare". The sales composition ratios for the 2018 financial statements are 53%, 31% and 14%, respectively. In other words, 「Asahi Kasei」has a broad business portfolio, and it contributed to stable sales structure. 

 

 

3. Major Business

 

■ Material
In the materials field, 「Asahi Kasei Corporation」produce and sell countless types of materials. Famous household goods such as the famous "Saran Wrap" and "Ziploc" . but they also have the plastic resin products and textile business "Bemberg" to electronic components such as industrial power semiconductors and IC sensors.

■ Housing business
Typically, the general housing business of "Hebel House" is famous for japanese consumers. However, this company also handles wooden building products and building materials for steel building.

■ Healthcare
In addition to drugs such as anticoagulants and antidepressants, Asahi Kasei also produces medical equipment (hemodialysis, transfusion filter products, etc.).

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,882,991	2,042,216	2,170,403
Consolidated operating profit		159,229	198,475	209,587
Consolidated total assets		2,254,500	2,307,154	2,575,203
Consolidated net assets		1,168,115	1,305,214	1,402,710
Breakdown of sales	Material business	977,892	1,087,720	1,176,217
	Housing business	618,964	640,988	659,754
	Healthcare business	270,120	296,258	316,166
	Others	16,015	17,251	18,265