Asahi Kasei Corporation Board of Directors has adopted a resolution to execute a separation agreement regarding the transfer of its business related to the manufacture and sale of Bemberg lining fabric to Asahi Kasei Advance Corp., a wholly owned subsidiary of Asahi Kasei, with an effective date of October 1, 2024, by absorption-type separation. As The Separation is a simplified absorption-type separation where The Business will be separated into a wholly owned subsidiary of Asahi Kasei, certain items and content are omitted from this disclosure. Cupro fiber made from cotton linter.

Manufacture and sale of Bemberg yarn are not included in The Business. 1. Purpose of The Separation Asahi Kasei manufactures and sells Bemberg fabric for use as lining of suits and other apparel, while Asahi Kasei Advance has a trading company function for a wide range of materials including fibers, resins, chemicals, and construction materials, and is engaged in the manufacture and sale of textile products. The decision was made to separate The Business to Asahi Kasei Advance based on the judgment that The Business can aim for further expansion by utilizing its sales offices and market connections while leveraging its technical capabilities.

Method of The Separation Absorption-type separation with Asahi Kasei as the separating company and Asahi Kasei Advance as the succeeding company. Allocation related to The Separation Since The Separation is between Asahi Kasei and a wholly-owned subsidiary of Asahi Kasei, it is performed without consideration, with no allocation of new shares from the succeeding company, and no allotment of funds or other assets. Share warrants and bonds with share warrants with The Separation None.

Change of paid-in capital due to The Separation There will be no change in paid-in capital due to The Separation. Rights and obligations to be succeeded to the succeeding company In accordance with the Separation Agreement, Asahi Kasei shall succeed to Asahi Kasei Advance the assets, liabilities, contractual status and obligations, and other incidental rights and obligations pertaining to The Business. Outlook for fulfillment of obligations It is judged that there is no issue regarding the outlook for fulfillment of obligations by Asahi Kasei Advance after the Effective Date of The Separation.