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2017 FACT BOOK Year ended March 31, 2017 Contents
1. Basic management policies Corporate philosophy and brand statement...... 2 Management policies ...... 3 Corporate governance ...... 4
2. Consolidated results Financial highlights (consolidated) ...... 10 Consolidated 11-year highlights ...... 12 Consolidated balance sheets ...... 18 Consolidated statements of operations ...... 22 Consolidated statements of cash flows ...... 24 Quarterly results ...... 26
3. Outline of Segment Operations Advanced Fibers and Composites Overview of operating results ...... 30 High-Performance Fibers ...... 31 Carbon Fibers and Composites ...... 37 Electronics Materials and Performance Polymer Products Overview of operating results ...... 42 Plastics ...... 42 Films ...... 46 Healthcare Overview of operating results ...... 50 Business summary ...... 50 Trading and Retail Overview of operating results ...... 59 1 Basic management policies Business summary ...... 59 Others Business summary ...... 62 IT business group ...... 63 Other principal products ...... 64 Supplementary information ...... 65
4. Corporate data Stock Information ...... 68 Group relation chart ...... 70 Corporate data ...... 72 Disclosure Policy ...... 73
Note Regarding Segment Information
For information on the changes to the Company's segment breakdown and method of allocation for corporate expenses and assets, please refer to the notes on pages 14. Corporate philosophyandbrandstatement CORPORATE PHILOSOPHY BRAND STATEMENT ENHANCINGTHEQUALITY OFLIFE： 1 environment, and through the provision of solutions that society and our customers expect. customers our and society that solutions of provision the through and environment, global the and people both to friendly are that technologies chemical of development the through value real delivering keep to is promise Our Solutions." Human Chemistry, "Human statement: resonant the in up summed is Teijin the of brand promise The A succinctexpression ofthevaluepromisedby Teijin brand EMPOWERINGOURPEOPLE： 3 INHARMONY WITHSOCIETY： 2 the relationships we have with our customers. The bonds of trust are priceless. are trust of bonds The value customers. our we with have we much relationships the how expresses also Chemistry" "Human Group, Teijin the for So chemistry." "good called it's well, exceptionally along get people when Finally, customers. our for value added creates which IT) and converting products (healthcare, Business Service and products), Solutions our polymer "Solutions," and performance & materials electric and composites & fibers (advanced Business Materials core our "Chemistry," to refers statement brand our that note to important also is It abilities to the fullest. We nurture a corporate community with a wide variety of abilities and and abilities of personalities tovariety foster creative innovation. wide a with community corporate a nurture We fullest. the to abilities their exercising and developing by self-realization achieve to employees our encourage We environment. the and safety on priority highest our place and value corporate raise to constantly strive we end, To this large. at public the and customers shareholders, trust our of the justifying thus society, of progress the with harmony in evolve and grow to is aim Our abilities. creative our of application the with together needs, and nature human into insight adeep through life of quality the enhance to is purpose TeijinThe Group's c) To maintain the status quo is to accept eventual decline. An enterprise can only grow grow only can enterprise An decline. eventual accept to is quo status the maintain To c) facilities, capital, personnel, (well-trained resources managementmany our Among b) by life of quality own their improve to efforts their all in people our support We a) for the of care Enhancing on humankind's quality life responsible directly depends d) a of As member community, global the Overseas, we maintain an outlook. international c) with toand fair we open, being an dialogue maintain active our commitment In line with b) harmony maintain to strive we Accordingly, society. of member one but is enterprise An a) term The a) b) We believe that the ultimate goal of any enterprise is to help people realize and realize people help to is enterprise any of goal ultimate the that We believe b) to the development of latent capabilities of those employees who wish to meet the the tasks the meet of today. to in addition accomplishing of possibilities future challenges to wish who employees those of capabilities latent of development the to importance special We attach innovation. and creation continual through evolve and treatment. and evaluation impartial and fair through potential full individual's each maximize to aim We important. most the are etc.), people our culture, corporate brand, information, technologies, achievement. of joys the and work rewarding and challenging experience to chances many providing activities. manufacturing everyday our in as well as services and products our of development the in task critical this to priority first We give environment. operate. we which in communities the of trust the earn to strive and concerns and customs local for respect due with operate we needs. its to effectively respond and public the of voice the clearly hear to us enabling society, life. of quality the enhance that ideas style life new and services and products innovative offer to endeavor also We growth. sound ensure and society with other business strategies. and skills marketing of standards highest the meeting and by setting and technologies creative by developing goal this reach to We seek life. of quality ahigh maintain things. living all for respect due and affection and contact; human daily and pursuits favorite work, rewarding from and joy gained of satisfaction variety full the mind; of peace and health good well-being, material life: CORPORATE PHILOSOPHY OFTHETEIJINGROUP 2 “ quality of life quality BRANDSTATEMENT ” characterizes most of the positive aspects of human of aspects positive the of most characterizes
■ ■ BasicManagementPolicies Policy RegardingthePaymentofDividends. As declared in the Teijin the in Group declared As society by utilizing its workforce diversity, thereby aiming to be an enterprise that supports the society of the the of society the future. supports that enterprise an be to aiming thereby diversity, workforce its utilizing by by needed society value new the create to pledge we vision, long-term our as Accordingly, By People. Grow Our to and Empowering Society, With Harmony In Grow to us commits philosophy corporate our time, same abilities. the At creative our of application the and nature human into insight deep our through everywhere people ensuring future growth. future ensuring at aimed investments strategic fund to reserves internal sufficient securing to and term long to medium the over give consideration to the need to ensure financial soundness, to our ability to maintain also stable dividend We paymentsresults. operating consolidated with line in are dividends ensure to is sharing profit for policy basic Our ’ s corporate philosophy, we are committed to enhancing the quality of life of life of quality the enhancing to committed are we philosophy, corporate s 3 Management policies
Basic management policies Ⅱ Mechanisms forDecision-Making,SurveillanceandControl, Audit Ⅰ Teijin's BasicView onCorporateGovernance Teijin implements a management that structure ensures transparency and based fairness on the beliefs stated above and will disclose information on 2. Directors and the Board of Directors of Board the and Directors 2. the review Teijinwill Accordingly, time. to time from governance, corporate for mechanisms appropriate adopt to continue will and adopted Teijinhas Policies basic and Outline 1. By governance. corporate embraces that management corporate through activities corporate superior conduct to work we framework, basic this Amid to and activities business its through profits achieve to required is Company the thus, and Company the into capital entrust shareholders The 3. Advisors and the Advisory Board Advisory the and Advisors 3. 2) The Chairman ( Chairman The 2) Directors. outside be shall them of four around and Directors ten than more not have shall Company The 1) Directors of Board the of chairman and Composition (2) same the At long-term. and medium the over and year fiscal each value shareholder maximize to is Directors of Board Teijin's of goal main The Directors of Board the of Roles (1) The term of office of Directors shall be one year. Nothing shall prevent the reelection of the current Directors (including outside Directors), unless unless Directors), outside (including Directors current the of reelection the prevent shall Nothing year. one be shall Directors of office of term The Directors of Term Office of (5) CEO. the including Directors Representative three than more not have shall Company the principle, In Director Representative (4) unless Director Representative a as nominated be not will and business Company's the of activity executive any in engage not will Chairman The Chairman of Position (3) the of chairman as preside will Chairman the execution, business internal and functions, control and surveillance of separation the of part a As 4) separately. stipulated be to Requirements Director Independent the satisfy must Directors outside The 3) The Board of Directors will establish the Advisory Board, mainly consisting of well-experienced persons from inside and outside Japan, and and Japan, outside and inside from persons well-experienced of consisting mainly Board, Advisory the establish will Directors of Board The Body Consultative as Board Advisory (1) well as to promote with every effort the increase in the shareholder value. value. shareholder the in increase as the effort activities every with business promote to as well superior conduct to Managers the and Companies Group the of each requests Teijin Furthermore, decisions. those execute to and decisions speedy make to it enables that mechanism and organization an Teijin create must competitiveness, boost to addition, In basis. a timely explaining). for responsible are we that information of disclosure (full accountability mechanisms yearly and such changes may be made in accordance with changes in the social and legal environment. legal and social the in changes with accordance in made be may changes such and yearly mechanisms ( responsibility social corporate our fulfill prosperity, Company's the to contribute to aim we governance, corporate emphasizing society. to contribute and norms social of observance full in activities business perform to as expected is such parties), society of (interested amember as Company the meantime, the In stakeholders etc. its communities, and to residents local consumers, responsibilities customers, partners, respective business shareholders its employees, such fulfill with must comply Company to the Company mission, the basic of this mission on basic Based the is entrustment. It long-term. and medium the over value shareholder increase ultimately Corporate governance hereinafter called called hereinafter implementations. those supervise how and Company, and the surrounding compliance risks on manage to policies its clarify also must It accountability. ensuring for other responsible is or law Directors by of Board required the items Furthermore, other any regulations. and Group, Teijin entire the of plans overall the and policies, management any approve and determine, deliberate, also must Directors of Board The shareholders. the than other stakeholders the of position the to attention close pay must it time, disqualified by age and others limits to be determined separately. determined be to limits others and age by disqualified necessary. otherwise director. outside or adirector is who Advisor Senior the from selected is board the of achairman seat, vacant achairman-of-the-board-of-directors of case the In Director. of Board the of meetings the Advisory Board itself has no power to make decisions, it has the authority to make proposals and recommendations and to give advice to to advice give advice. to and and recommendations, recommendations proposals, and Board's Advisory proposals the account into make take and to respect fully must Directors of authority Board The the Directors. of Board has the it decisions, make to power no has itself Board Advisory the a at aimed recommendations and advice obtain will “Chairman “CEO ” ). Other internal Directors may, in principle, hold concurrent posts as chief officers. chief as posts concurrent hold may, principle, in Directors internal ). Other -Guideline forCorporateGovernance,ComplianceandRiskManagement- ” ) and President are appointed from the internal Directors, and the President also serves as CEO (President shall be be shall (President CEO as serves also President the and Directors, internal the from appointed are President ) and TEIJIN GROUP “CORPORATE GOVERNANCEGUIDE” more improved management improved “more 4 ” and an an and “enhancement of transparent management. Established: 1, April 2003 Revised: April 1, 2017 April Revised: “CSR ” ) and ensure ensure ) and ” While While ʼ
5. Statutory Auditors and the Board of Statutory Auditors Statutory of Board the and Auditors Statutory 5. . Nomination Consultative Committee and Compensation Consultative Committee Consultative Compensation and Committee Consultative 4. Nomination 1) Roles of the Committee of Teijin Group Statutory Auditors Statutory Teijin of Group Committee the of Roles 1) Auditors Statutory Teijin of Group Committee (2) four-year The Auditors. Statutory of candidates the determining in consent prior give or aproposal make shall Auditors Statutory of Board The Auditors Statutory of Nomination 3) Auditors Statutory of Board the of Composition 2) the of All management. the auditing and surveying of charge in is and Auditors Statutory the all of consists Auditors Statutory of Board The Auditors Statutory of Board the of Roles 1) Auditors Statutory of Board (1) 2) The Advisory Board has a function of nomination and compensation committee, deliberating the following items with respect to nominations and and nominations to respect with items following the deliberating committee, compensation and nomination of function a has Board Advisory The 2) ayear. twice held be shall meetings ordinary Board's Advisory The 1) Meeting of Contents and Frequency (3) Board. the Advisory the chair will Chairman satisfy The to required 3) are advisors outside Also advisors. non-Japanese three or two including seven, to five around be will advisors Outside 2) CEO. and vacant) is Chairman the of position the when Advisor Senior (or the Chairman the advisors, outside of composed is Board Advisory The 1) Board Advisory the of Chairman and Composition (2) Both of the Consultative Committees shall deliberate the following items with respect to nominations and compensation based on CEO on based compensation and nominations to respect with items following the deliberate shall Committees Consultative the of Both meeting of Contents 3. Chairman Committee and Composition 2. the and Committee Consultative Nomination the manage and establish shall Company the Board, Advisory above the to addition In bodies consultative as Committee Consultative Compensation and Committee Consultative Nomination 1. statutory term of office of the Statutory Auditors shall be respected. be shall Auditors Statutory the of office of term statutory make opinions, their express and meetings internal important other any andrecommendations give and advice. meeting Directors of Board the attend should Auditors Statutory compensation. requirements of Independent Directors. (c) Outside Statutory Auditors are required to satisfy the Requirements of Independent Statutory Auditors separately determined. Outside Outside determined. separately Auditors Statutory Independent of Requirements the satisfy to required are Auditors Statutory Outside matters. internal (c) Company's the with familiar are who Auditors, Statutory full-time use to important is it perspective, auditing an From Board. the of transparency secure to (b) Auditors Statutory outside be shall majority the and Auditors, Statutory five principle, in be, shall There (a) CEO. and Chairman the concerning matters the include not shall deliberation for compensation and nominations of items Above Notes: proposals. Directors. outside two from appointed be shall Chairman (2) Committee The respectively. CEO and Chairman the Directors, outside two namely members, four of composed be shall Committees (1) Consultative The andrecommendations make decisions. and proposals relevant the account into take and and respect fully Chairman shall the Directors of than Board the and other Auditors, Management Statutory of Senior nomination the and CEO the and Directors of compensation of amount and evaluation nomination, the to Directors of Board respect the with to recommendations and proposals make to function a have shall committees Both officers. and directors of appointment the concerning transparency the enhance further to Directors of Board the of bodies consultative as Committee, Consultative Compensation [Items of compensation] of [Items [Items of nominations] [Items of nominations and compensation] and nominations of [Items 1. To evaluate the performance of and to deliberate the matters concerning the amount of compensation for internal Directors and the the and Directors internal for compensation of amount the concerning matters the deliberate to and of 1.To performance the evaluate Auditors. Statutory outside and Directors outside of independence of standard the concerning matters the To deliberate 5. and Management; Senior the and Directors internal of demotion and promotion concerning matters the To deliberate 4. Auditors; Statutory the of candidates of selection the To deliberate 3. Directors; the of candidates of selection the To deliberate 2. Directors; Representative the of candidates of selection the To deliberate 1. (2) The Chairman shall leave the meeting room and not participate in the deliberation for matters concerning the Chairman. the concerning matters for deliberation the in participate not and room meeting the leave shall (2) Chairman The deliberation. the in participate not and room meeting the leave principle in will 1, CEO 6above, (Notes): (1) 5and items for Except and To performance; CEO's evaluate 6. Group; the of Teijin Officers Corporate and Auditors Corporate Directors, the of compensation the of standards the To deliberate 5. Group; the of Teijin Officers Corporate and Auditors, Corporate Directors, the of system compensation the To deliberate 4. proposal; CEO's on based Chairman the of selection the To deliberate 3. plans; the of progress the review to CEO, of and position the for successors foster to aplan CEO, deliberate of to candidates To select 2. Directors); of Board by the (decided successor the recommend and CEO of change the To deliberate 1. Statutory Auditors are selected by taking into consideration of the balance in the Board of Statutory Auditors and their specialties. their and Auditors Statutory of Board the in balance the of consideration into by taking selected are Auditors Statutory Senior Management. Senior 5 Corporate governance ’ s
Basic management policies Ⅲ Compliance andTotal RiskManagementunderInternalControlSystem 2. Total Risk Management Management Total Risk 2. 1. Compliance Within corporate management, risk management and compliance are very important. A total risk management system is established to monitor monitor to established is system management risk Atotal important. very are compliance and management risk management, corporate Within Management Total of Risk Principles (1) Basic principles of compliance to be observed to achieve corporate governance are stated below: stated are governance corporate achieve to observed be to compliance of principles Basic Compliance of principles Basic (1) The compliance principles are based on the the on based are principles compliance The Regulations Related and Conduct of Standards Corporate Conduct, of Code Business of Full Awareness (3) maintains that group a corporate be to aims Group The control. internal supports that part important an is ethics, corporate including Compliance, Systems Compliance and Control Internal (2)
2) The Board of Statutory Auditors and Group Companies shall strengthen close relationships with the Corporate Audit Department to obtain internal internal obtain to Department Audit Corporate the with relationships close strengthen shall Companies Group and Auditors Statutory of Board The Statutory of Board 2) The Firms. Auditing their with relationships close strengthen shall Companies Group and Auditors Statutory of Board The Body 1) Auditing other and Auditors Statutory Teijin of Group Committee the Auditors, Statutory of Board the among Relations (3) The principle axis is an internal audit to be performed by the Corporate Audit Department of is by an axis the Audit Company. internal The Department principle the audit Corporate by to be performed Audits of are performed accounting Overseas Teijin Group Companies 3) Teijin the of Auditors Statutory time full Auditors, Teijin's of Statutory composed principle in are Auditors Statutory Teijin of Group Committee The Auditors Statutory Teijin of Group Committee the of Composition 2) Corporate governance achieving corporate governance. The basic principles are stated below: below: stated are principles basic The governance. corporate achieving in face may enterprise the that any risks handle to measures preventive utilizes management Total risk management. overall Teijin Groups Teijin the Group. of employees and companies the all to down passed are they that ensure and any stakeholders, for responsibilities Conduct Group's Corporate Ethics Guideline Ethics Corporate Group's a high level of corporate ethics. corporate of level a high audit information on a permanent and overall basis. overall and apermanent on information audit initiate in of and shall appointment the Auditors change in Firm. Auditing principle aplan. with accordance in time to time from companies these audit to visit will outside auditing firm ( firm auditing outside Company. the of Office Auditors Group of members and Companies Group (b) The Committee of Teijin Group Statutory Auditors will share information among them in its ordinary meetings and enhance the performance performance the enhance and meetings ordinary its in them among information share will Auditors Statutory TeijinGroup of Committee The (b) correspond which Group Teijin entire the auditing and surveying for responsible be will Auditors Statutory Group Teijin of Committee The (a) 3. The Company requests that all the managers and employees of each of the Teijin Group Companies fully understand the understand fully Companies Teijin the of Group each of employees and managers the all that requests Company The 3. fully by society with working while management adequate and fair incorporate to strives Company the above, the to According 2. to also but regulations, and laws the with comply to only not required are Company the of employees and officers, directors, All 1. Compliance] of Principles [Basic 3. The Company requests that each of the Teijin Group Companies and all their managers fully understand the principles of Total Risk Total of Risk principles the understand fully managers their all and Companies Teijin the Group of each that requests Company The 3. management formulating includes which risk, strategy management both of assessment conducts Directors Board Company's The 2. of expectations the satisfy that and value shareholder enhance that activities business its continue to duty a has Company The 1. Management] Total for Risk Principles [Basic level of auditing through the members the through auditing of level Company. the of Auditors Statutory of Board by The decided be to plan and policy auditing others, basic among Teijin of Group basis the on will, business each of items Auditors key of auditing selection the and Statutory auditing for policy Group basic the ensure and Teijin of deliberate Committee The management. consolidation financial and management Group to ” compliance policies stated above and behave accordingly, which will help Teijin Group in its creative growth. creative its in Teijin Group help will which accordingly, behave and above stated policies compliance and philosophy corporate the by abide will it regulations. other and conduct addition, of standards In corporate regulations. and laws and ethics, standards, rules, social with complying value. shareholder in increase the for essential is behavior sincere This mandated. socially values and ethics the on based society and enterprise the of member agood as act sincerely Management as stated above and cope with every risk (uncertainty) that may threaten corporate activities. activities. corporate threaten may that (uncertainty) risk every with cope and above stated as Management information. decision-making could which risk, significant as risks these of operating assessment the on focuses business Directors of and Board The Companies. Teijin the projects, Group affect investment adversely individual of decision and action strategic with plans and strategy the for useful it making of purpose the for management. approaches corporate organizational and that systematic risks take will control and and evaluate enterprise grasp, entire the efficiently exposes and comprehensively will Company may The that mission. (uncertainty) the risk of every achievement with the deal threaten enterprise the that essential is it Therefore, shareholders. especially stakeholder, every and other related regulations, from time to time. In reviewing the above, they will consider compliance issues, risk management and the the and management risk issues, compliance consider will they above, the reviewing In time. to time from regulations, related other and Auditing Firm “Auditing ” ” . Teijin's Board members will review the the review will members Board Teijin's . ) elected by the Shareholders ’ mutual study. mutual Business Code of Conduct of Code “Business 6 ’ Meeting. Teijin's Statutory Auditors and members of Group Auditors Office Office Auditors Group of members and Auditors Statutory Teijin's Meeting. ” and the the and “ Business Code of Conduct of Code Business Corporate Standards of Conduct Standards “Corporate ” and the the and “ ” Corporate Standards of Standards Corporate as stated in the the in stated as “Teijin Ⅳ Accountability 2. Basic Policies Policies Basic 2. The value. shareholder enhance and prosper to business the for activities corporate of part integral an is Company the of accountability The Recognition Basic 1. (5) The Finance & IR Division shall work on centrally managing information transmission to investors while planning the external disclosure of disclosure external the planning while investors to transmission information managing centrally on work shall Division IR & Finance The (5) Statutory Auditors perform audits to confirm that the Board of Directors is carrying out the determination of adequate policies, surveillances and and surveillances policies, adequate of determination the out carrying is Directors of Board the that confirm to audits perform Auditors Statutory Auditors by Statutory Audit (3) TRM by the proposed are that plans annual and policies basic Management Total Risk determines and deliberates Directors of Board The 4) by CEO. assigned persons other and CSRO are members Committee Committee. TRM the chairs CEO 3) ( Committee Management Total Risk 2) (4) The Finance & IR Division shall be in charge of and the Chief Financial Officer shall be responsible for investor relations investor for responsible be shall Officer Financial Chief the and of charge in be shall Division IR & Finance The (4) 1) To promote Operation and Policies Total(2) Risk Management, the Chief Social Responsibility Officer ( (3) The general meeting of shareholders of the Company will be be will Company the of shareholders of meeting general The (3) the from information corporate discloses proactively will Company the stipulated, legally is that information financial the disclosing to addition In (2) simultaneously. Japan outside and inside contents same the disclose to is policy basic the information, disclosing In (1) takes requests from shareholders and society into consideration in order to achieve a higher degree of accountability. of degree ahigher achieve to order in consideration into society and shareholders from requests takes that aCompany as behaves Teijin Teijin Group Group. entire the into instilled be must Management Total and Risk policies compliance occasion. Furthermore, every on mechanisms governance corporate the of explanation clear a present and vision and mission its present clearly should Company related to the competitive strategies of individual business and information related to high-level business confidentiality, and guidelines on guidelines and confidentiality, business shared. be shall high-level disclosure to external related information information and important business control individual to of divisions strategies planning competitive the corporate to the related and divisions operation business the with made be shall Coordination information] insider control to [Measures 3. The Finance & IR Division shall arrange both opinions of investors grasped through dialogue and questions from analysts at analysts from questions and dialogue through grasped investors of opinions both arrange shall Division IR & Finance The 3. and presentations, overview company as such measures, active results, operating for presentations regular holding to addition In 2. shareholders. with dialogue actual in engage to responses make shall management senior extent, To areasonable 1. shareholders] with dialogue enhancing for [Measures contact with relevant offices. relevant with contact close and meetings through coordination for strive shall it and business, of matters important and strategies management long-term to medium- others. and shareholders with communication and disclosure information controls of the Total Risk Management. Total the of Risk controls continuity. business supporting Group, the for Teijin risks significant managing as well as Committee, Directors. of Board the under established risk. strategy management of charge in directly is CEO shareholders. standpoint of CSR. of standpoint presentations, and successively provide these to Directors, the Management and Statutory Auditors as feedback. as Auditors Statutory and Management the Directors, to these provide successively and presentations, individual and institutional domestic and overseas investors. with dialogue for opportunities enhance to taken be shall tour/presentations, facility TRM Committee “TRM ” ) to comprehensively manage business operating risk and management strategy risk is is risk strategy management and risk operating business manage comprehensively ) to “open ” 7 to its shareholders and the Company will respect the communicating with its its with communicating the respect will Company the and shareholders its to “ CSRO ” ) is assigned in charge of business operating risk, while Corporate governance ʼ functions including including functions
Basic management policies 2 Consolidated results Financial highlights (consolidated) Financial highlights (consolidated)
Income statement Billions of yen Balance sheet Billions of yen Cash flows Per Share data Management index Profit (loss) Number Operating Investing Ordinary Interest- Net income Equity per Dividend Share price Payout EBITDA Operating attributable Total Shareholders' of shares activities activities D/E Net sales income bearing (loss) per share per share at the end of ratio PER PBR (Billions of ROA(%) ROE(%) income to owners assets equity issued （Billions of （Billions of fiscal year ratio (loss) debt share (Yen) (Yen) (Yen) (%) yen) of parent (Thousands) yen） yen） (closing/Yen) 1979.3 331.1 23.5 13.8 3.8 456.2 91.9 245.3 688,723 20.00 665 5.1 4.3 2.67 1980.3 389.3 34.8 21.8 10.2 490.3 99.2 232.5 718,443 Data prior to 1983.3 25.00 710 Data prior to 1983.3 not 7.4 10.7 2.34 1981.3 434.5 31.1 15.3 6.8 492.3 101.6 232.7 718,958 not prepared 25.00 895 prepared 6.3 6.8 2.29 1982.3 479.1 36.9 19.8 6.2 507.2 104.3 249.5 731,315 25.00 1,155 7.4 6.0 2.39 Consolidated results 1983.3 497.2 34.3 19.7 7.4 542.6 109.1 263.7 759,396 49.85 718.65 25.00 1,300 50 26.08 1.81 6.5 7.0 2.42
1984.3 580.3 43.4 28.0 14.1 553.6 124.9 244.2 775,194 Data prior to 91.25 805.75 27.50 2,210 30 24.22 2.74 7.9 12.0 1.96 1985.3 589.0 49.8 36.9 16.4 547.1 143.9 214.5 801,724 1992.3 not 103.15 897.75 30.00 2,375 29 23.02 2.65 9.0 12.2 1.49 prepared Data 1986.3 586.5 43.0 35.6 17.3 539.4 162.9 209.2 828,737 105.05 983.00 30.00 2,825 29 26.89 2.87 prior to 7.9 11.3 1.28 1987.3 528.3 35.4 33.8 15.7 625.3 178.0 285.2 843,241 93.60 1055.35 30.00 3,800 32 40.60 3.60 1996.3 6.1 9.2 1.60 not 1988.3 538.3 42.0 42.8 20.1 722.2 213.7 334.0 894,819 113.55 1194.05 30.00 4,075 26 35.89 3.41 6.2 10.3 1.56 prepared 1989.3 554.2 44.0 45.9 20.4 831.6 244.6 378.3 938,815 109.65 1302.95 35.00 4,325 32 39.44 3.32 5.7 8.9 1.55 1990.3 570.0 47.9 51.4 25.4 898.3 278.4 392.0 964,298 132.05 1443.45 35.00 3,500 27 26.51 2.42 5.5 9.7 1.41 1991.3 612.6 45.4 48.1 26.2 944.5 298.9 399.3 967,150 135.40 1545.35 35.00 2,875 26 21.23 1.86 4.9 9.1 1.34 1992.3 631.9 39.2 38.7 20.4 1,006.7 312.3 460.3 973,666 13.3 (63.1) 105.15 1603.65 30.00 2,295 29 21.83 1.43 4.0 6.7 1.47 1993.3 618.4 30.9 26.2 12.0 998.4 319.0 467.8 973,700 54.0 (111.0) 61.65 1638.30 30.00 2,105 49 34.14 1.28 3.1 3.8 1.47 1994.3 562.7 12.6 8.9 3.8 898.3 318.8 387.2 974,202 61.6 (12.1) 19.50 1636.05 30.00 2,375 154 121.79 1.45 1.3 1.2 1.21 1995.3 566.7 16.4 13.6 2.0 899.4 314.9 390.2 974,465 43.4 (34.4) 10.10 1615.60 30.00 2,300 298 227.72 1.42 1.8 0.6 1.24 1996.3 618.6 31.7 27.3 8.5 866.1 317.2 330.5 974,465 63.3 (13.9) 43.55 1627.45 30.00 2,950 69 67.74 1.81 68.1 3.6 2.7 1.04 1997.3 639.2 33.2 29.4 11.4 871.1 323.9 307.5 974,552 32.6 (53.4) 58.25 1661.90 30.00 2,365 51 40.60 1.42 68.0 3.8 3.5 0.95 1998.3 608.1 27.4 23.9 9.8 850.2 310.0 317.2 946,289 31.7 (42.4) 50.40 1637.90 30.00 1,975 59 39.19 1.21 59.8 3.2 3.1 1.02 1999.3 574.2 29.9 25.3 8.1 838.7 299.6 324.3 906,393 50.5 (26.1) 43.75 1652.75 30.00 2,390 69 54.63 1.45 64.1 3.5 2.7 1.08 2000.3 604.2 26.3 20.2 7.1 1,015.9 294.6 412.5 905,993 61.1 (39.9) 39.05 1626.10 30.00 2,175 77 55.70 1.34 63.1 2.8 2.4 1.40 2001.3 761.4 43.7 34.0 16.0 1,058.5 320.8 378.6 905,993 79.4 (50.5) 88.05 1770.45 32.50 2,730 37 31.01 1.54 92.5 4.2 5.2 1.18 2002.3 923.4 29.5 17.8 1.0 1,104.6 311.5 429.2 928,299 52.4 (51.3) 5.35 1677.75 32.50 2,125 607 397.20 1.27 80.7 2.7 0.3 1.38 2003.3 890.4 35.3 22.0 (21.0) 1,036.5 278.5 443.6 928,299 58.3 (65.9) (113.45) 1501.45 32.50 1,330 － (11.72) 0.89 88.3 3.3 － 1.59 2004.3 874.6 38.7 23.8 8.5 914.5 293.9 356.7 928,299 45.0 (16.7) 44.80 1583.75 32.50 1,755 72 39.17 1.11 91.5 4.0 3.0 1.21 2005.3 908.4 51.9 43.1 9.2 852.0 290.6 277.0 928,299 73.3 12.7 48.65 1566.35 32.50 2,290 67 47.07 1.46 104.2 5.9 3.1 0.95 2006.3 938.1 76.8 68.2 24.9 944.0 338.6 298.3 928,299 75.5 (74.1) 133.00 1824.05 37.50 3,915 28 29.44 2.15 127.1 8.5 7.9 0.88 2007.3 1,009.6 75.1 60.5 34.1 999.9 366.8 295.5 928,299 96.5 (87.1) 183.90 1975.90 50.00 3,325 27 18.08 1.68 129.1 7.7 9.7 0.81 2008.3 1,036.6 65.2 46.3 12.6 1,016.0 391.0 325.2 984,754 53.7 (79.2) 65.80 1986.35 40.00 2,100 61 31.91 1.06 127.8 6.5 3.3 0.83 2009.3 943.4 18.0 (2.7) (43.0) 874.2 305.6 361.3 984,759 40.4 (116.3) (218.25) 1552.45 25.00 1,065 － (4.88) 0.69 85.3 1.9 － 1.18 2010.3 765.8 13.4 2.1 (35.7) 823.1 271.3 320.3 984,759 80.4 (33.4) (181.30) 1381.20 10.00 1,570 － (8.66) 1.14 75.3 1.6 － 1.18 2011.3 815.7 48.6 50.4 25.2 761.5 284.2 267.4 984,759 77.1 (27.7) 127.95 1444.00 25.00 1,860 20 14.54 1.29 105.0 6.1 9.1 0.94 2012.3 854.4 34.0 34.3 12.0 762.1 292.0 261.0 984,759 53.7 (35.2) 60.85 1483.50 30.00 1,390 49 22.84 0.94 86.3 4.5 4.2 0.89 2013.3 745.7 12.4 9.8 (29.1) 762.4 271.3 270.8 984,759 64.3 (37.9) (148.05) 1379.95 20.00 1,090 － (7.36) 0.79 59.2 1.6 － 1.00 2014.3 784.4 18.1 19.9 8.4 768.4 281.7 281.5 984,759 38.6 (47.3) 42.50 1433.10 20.00 1,280 47 30.12 0.89 63.7 2.4 3.0 1.00 2015.3 786.2 39.1 42.4 (8.1) 823.7 287.1 308.2 984,759 76.0 (49.6) (41.15) 1460.45 20.00 2,040 － (49.57) 1.40 82.1 4.9 － 1.07 2016.3 790.7 67.1 60.3 31.1 823.4 300.1 303.3 984,759 80.6 (40.3) 158.15 1526.16 35.00 1,960 22 12.39 1.28 106.0 8.2 10.6 1.01 2017.3 741.3 56.5 55.9 50.1 964.1 338.4 376.2 196,952 79.0 (127.7) 254.91 1720.13 55.00 2,099 22 8.23 1.22 95.8 6.3 15.7 1.11 Note: The Company has reported consolidated financial results as required by the Securities and Exchange Law (later replaced by the Financial Instruments and Exchange Law) Notes:
10 11 Consolidated 11-year highlights Consolidated 11-year highlights
2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3
1. Operating results Millions of yen Net sales ¥1,009,586 ¥1,036,624 ¥943,410 ¥765,840 ¥815,656 ¥854,371 ¥745,713 ¥784,425 ¥786,171 ¥790,748 ¥741,292 Gross profit 258,737 256,428 218,636 191,901 229,394 225,219 190,504 194,333 216,672 254,439 248,430 Percentage of net sales (%) 25.6 24.7 23.2 25.1 28.1 26.4 25.5 24.8 27.6 32.2 33.5 Operating income 75,061 65,162 17,966 13,436 48,560 34,044 12,358 18,078 39,086 67,130 56,512 Percentage of net sales (%) 7.4 6.3 1.9 1.8 6.0 4.0 1.7 2.3 5.0 8.5 7.6 Profit (loss) attributable to owners of parent 34,125 12,613 (42,963) (35,684) 25,182 11,979 (29,131) 8,356 (8,086) 31,090 50,133 － － － － Percentage of net sales (%) 3.4 1.2 3.1 1.4 1.1 3.9 6.8 Consolidated results
2. Financial position Millions of yen Total assets ¥999,917 ¥1,015,991 ¥874,157 ¥823,071 ¥761,535 ¥762,118 ¥762,399 ¥768,411 ¥823,695 ¥823,429 ¥964,053 Current assets 417,409 417,395 351,120 332,746 336,895 361,790 372,255 364,908 406,005 430,505 466,755 Property, plant and equipment, net 379,632 382,568 339,704 316,901 259,659 244,301 244,856 236,861 208,883 203,267 241,290 Total liabilities 592,181 604,741 544,171 527,789 453,836 449,901 470,272 468,298 520,059 509,017 612,223 Current liabilities 426,748 417,534 325,074 293,848 244,771 277,952 289,281 248,663 241,556 228,197 279,573 Long-term debt due after one year 102,105 117,200 177,081 188,480 168,871 132,192 132,247 166,402 208,705 218,794 265,540 Total net assets 407,736 411,249 329,985 295,282 307,698 312,217 292,127 300,113 303,636 314,412 351,830 Total shareholders' equity 366,753 391,010 305,577 271,306 284,236 292,030 271,252 281,680 287,074 300,113 338,384
3. Cash flows Millions of yen Cash flows from operating activities ¥96,456 ¥53,740 ¥40,392 ¥80,433 ¥77,132 ¥53,669 ¥64,305 ¥38,587 ¥76,030 ¥80,641 ¥79,040 Depreciation and amortization 54,009 62,668 67,364 61,879 56,410 52,304 46,877 45,664 43,030 38,894 39,331 Cash flows from investing activities (87,065) (79,218) (116,304) (33,437) (27,745) (35,165) (37,868) (47,279) (49,624) (40,323) (127,650) Purchase of property, plant and equipment (69,996) (78,821) (75,845) (34,119) (25,456) (27,641) (31,031) (30,863) (26,528) (31,895) (37,663) Free Cash Flows 9,391 (25,478) (75,912) 46,996 49,387 18,504 26,437 (8,692) 26,406 40,318 (48,610) Cash flows from financing activities (19,074) 16,080 79,178 (42,949) (42,063) (14,123) (12,606) (7,902) 10,394 (8,317) 63,765 Net increase (decrease) in cash and cash equivalents (9,309) (9,272) 1,274 4,168 5,491 4,828 15,417 (15,725) 37,586 30,394 16,595
4. Per share data*1 Yen Profit (loss) attributable to owners of parent ¥183.9 ¥65.8 ¥(218.3) ¥(181.3) ¥128.0 ¥60.9 ¥(148.1) ¥42.5 ¥(41.2) ¥158.2 ¥254.9 Fully diluted 184.0 66.0 － － 128.0 61.0 － 42.5 － 143.4 231.1 Shareholders' equity 1,975.9 1,986.4 1,552.5 1,381.2 1,444.0 1,483.5 1,380.0 1,433.1 1,460.5 1,526.2 1,720.1 Cash dividends 50.0 40.0 25.0 10.0 25.0 30.0 20.0 20.0 20.0 35.0 55.0
5. Ratios Net income to shareholders' equity (ROE) (%) 9.7 3.3 － － 9.1 4.2 － 3.0 － 10.6 15.7 EBITDA (Billions of yen) 129.1 127.8 85.3 75.3 105.0 86.3 59.2 63.7 82.1 106.0 95.8 Debt-to-equity ratio 0.81 0.83 1.18 1.18 0.94 0.89 1.00 1.00 1.07 1.01 1.11 Shareholders' equity ratio (%) 36.7 38.5 35.0 33.0 37.3 38.3 35.6 36.7 34.9 36.4 35.1 Dividend payout ratio (%) 27 61 － － 20 49 － 47 － 22 22
6. Other data R&D expenses (Millions of yen) 35,097 36,282 37,630 33,356 31,483 31,845 33,184 32,234 32,366 33,285 35,417 Capital expenditure (Millions of yen) 75,698 84,641 75,806 36,314 29,249 32,294 36,261 30,182 28,098 38,341 46,224 Number of shares issued (Thousands) 928,299 984,754 984,759 984,759 984,759 984,759 984,759 984,759 984,759 984,759 196,952
Number of employees : Japan 10,277 10,457 10,668 10,197 9,954 9,708 9,616 9,436 9,268 9,265 9,238 (Consolidated) : Overseas 8,776 8,668 8,785 8,581 7,588 7,111 7,021 6,320 6,512 6,491 10,054 Total 19,053 19,125 19,453 18,778 17,542 16,819 16,637 15,756 15,780 15,756 19,292
*1. The Company consolidated its common shares at a ratio of 5 shares to 1 share on Octobet 1, 2016. Accordingly, Per Share Data are calculated on the assumption that the consolidation of shares was conducted at the biginning of fiscal 1978.
12 13 Consolidated 11-year highlights Consolidated 11-year highlights
2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3
7. Segment information
Net sales Millions of yen Synthetic fibers ¥293,280 ¥317,612 ¥273,208 ¥205,154 － － － － － － － Advanced Fibers and Composites － － － － 103,354 120,724 111,166 123,551 135,529 133,017 136,760 Polyester fibers － － － － 103,502 109,944 － － － － － Electronics Materials and Performance Polymer Products 287,902 293,834 258,004 177,791 217,109 215,376 175,538 179,446 184,767 163,699 134,422 Healthcare 113,093 114,403 127,146 131,711 136,446 143,000 138,334 138,415 141,723 147,501 147,537
Trading and retail 266,492 265,931 239,163 205,314 216,922 224,574 237,160 254,180 259,380 270,934 259,584 Consolidated results Others 48,819 44,844 45,889 45,870 38,323 40,753 83,515 88,833 64,772 75,597 62,989 Total 1,009,586 1,036,624 943,410 765,840 815,656 854,371 745,713 784,425 786,171 790,748 741,292
Operating income Millions of yen Synthetic fibers ¥17,342 ¥24,448 ¥(2,780) ¥(15,111) － － － － － － － Advanced Fibers and Composites － － － － 4,423 6,309 (4,697) 5,742 14,353 18,499 13,847 Polyester fibers － － － － 3,017 1,895 － － － － － Electronics Materials and Performance Polymer Products 33,900 20,247 226 7,997 23,447 3,733 (1,921) (7,218) 3,402 22,298 18,481 Healthcare 21,192 21,691 24,838 24,201 22,910 25,913 24,809 24,529 24,829 28,802 27,557 Trading and retail 5,395 5,255 3,873 3,441 4,744 6,013 4,713 5,186 4,249 5,330 6,704 Others 4,320 3,516 3,589 2,954 3,105 3,325 4,231 1,741 3,983 6,488 5,375 Elimination and corporate (7,088) (9,995) (11,780) (10,046) (13,085) (13,144) (14,777) (11,902) (11,730) (14,287) (15,452) Total 75,061 65,162 17,966 13,436 48,560 34,044 12,358 18,078 39,086 67,130 56,512
Total assets Millions of yen Synthetic fibers ¥406,473 ¥464,289 ¥396,937 ¥357,206 － － － － － － － Advanced Fibers and Composites － － － － 215,824 195,934 201,985 199,099 193,894 185,915 311,967 Polyester fibers － － － － 101,534 107,966 － － － － － Electronics Materials and Performance Polymer Products 284,172 251,618 188,288 182,000 185,208 169,701 167,485 157,913 151,978 134,113 140,822 Healthcare 78,973 85,055 107,846 108,913 93,420 97,909 104,509 124,753 147,931 144,990 147,351 Trading and retail 92,296 93,661 82,847 78,212 76,472 85,457 119,725 121,847 133,329 133,580 133,914 Others 72,936 67,219 52,749 51,255 50,407 55,614 94,676 87,106 79,121 92,145 92,395 Elimination and corporate 65,067 54,149 45,490 45,485 38,670 49,537 74,019 77,693 117,442 132,686 137,604 Total 999,917 1,015,991 874,157 823,071 761,535 762,118 762,399 768,411 823,695 823,429 964,053
R&D expenses Billions of yen Synthetic fibers ¥98 ¥104 ¥104 ¥88 － － － － － － － Advanced Fibers and Composites － － － － 47 56 58 52 48 48 44.0 Polyester fibers － － － － 19 22 － － － － － Electronics Materials and Performance Polymer Products 66 68 68 48 48 59 54 49 42 34 34.0 Healthcare 144 135 128 126 124 112 127 128 145 152 183.0 Trading and retail 2 2 2 2 2 2 7 5 5 6 7.0 Others 41 54 73 70 75 67 86 88 83 93 86.0 Total 351 363 376 334 315 318 332 322 324 333 354.0
Capital expenditure： Millions of yen Synthetic fibers ¥42,215 ¥53,507 ¥47,531 ¥14,184 － － － － － － － Advanced Fibers and Composites － － － － 5,077 7,982 13,253 9,062 10,034 12,575 21,642 Polyester fibers － － － － 4,204 4,032 － － － － － Electronics Materials and Performance Polymer Products 19,915 14,805 10,509 5,797 4,277 4,427 4,019 2,638 1,676 2,505 3,588 Healthcare 7,909 6,599 7,369 8,444 12,441 11,332 11,680 12,545 11,232 13,793 11,677 Trading and retail 189 277 392 159 273 1,009 2,239 1,626 2,025 2,930 2,427 Others 2,989 3,920 3,664 2,263 1,242 1,985 3,751 3,014 2,296 4,910 4,274 Elimination and corporate 2,481 5,533 6,341 5,467 1,735 1,527 1,319 1,297 835 1,628 2,616 Total 75,698 84,641 75,806 36,314 29,249 32,294 36,261 30,182 28,098 38,341 46,224
Note: Change in segment classification: The segment of "Synthetic fibers" has been divided into two new segments, "High-performance fibers" and "Polyester fibers" from the year ended 2011.3. The "IT and new products etc." has been renamed "Others" from the year ended 2011.3. Furthermore, from the year ended 2013.3, the segments were reorganized again. The High-Performance Fibers segment has been renamed the Advanced Fibers and Composites segment, and now also includes polyester fibers for industrial applications, which was previously accounted for in the Polyester Fibers segment. The Films and Plastics segment has been renamed Electronics Materials and Performance Polymer Products, while the Pharmaceuticals and Home Health Care segment is now Healthcare. The apparel component of the Polyester Fibers segment has been incorporated into the Trading and Retail segment. Others (other businesses), which does not qualify as a reportable operating segment, retained the same name, but now also includes the polyester raw materials and polymerization businesses, previously part of the Polyester Fibers segment.
14 15 Consolidated 11-year highlights Consolidated 11-year highlights
2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3
7. Segment information
Number of employees (Consolidated) People Synthetic fibers 9,984 9,729 9,702 8,806 － － － － － － － Advanced Fibers and Composites － － － － 3,180 3,083 4,439 4,078 4,307 4,301 7,769 Polyester fibers － － － － 4,458 3,846 － － － － － Electronics Materials and Performance Polymer Products 3,216 3,228 2,469 2,395 2,443 2,434 2,427 2,327 2,152 2,141 1,851
Healthcare 2,389 2,562 3,629 3,951 4,206 4,165 4,142 3,643 3,701 3,633 3,750 Consolidated results Trading and retail 1,198 1,229 1,209 1,189 1,098 1,088 3,078 3,029 3,010 2,966 3,154 Others 1,951 2,011 2,069 2,063 1,767 1,813 1,950 2,056 1,959 2,069 2,083 Corporate 315 366 375 374 390 390 601 623 651 646 685 Total 19,053 19,125 19,453 18,778 17,542 16,819 16,637 15,756 15,780 15,756 19,292
8. Regional segment information
Net sales Millions of yen Japan ¥588,717 ¥593,700 ¥548,054 ¥488,234 ¥512,153 ¥518,973 ¥491,354 ¥494,741 ¥465,413 ¥473,320 ¥453,734 Overseas 420,869 442,924 395,355 277,605 303,503 335,398 254,358 289,684 320,758 317,428 287,558 Asia 227,240 234,781 198,114 165,208 180,245 194,053 154,106 177,694 200,097 193,195 159,774 Americas 112,629 113,173 107,859 59,939 64,129 71,004 51,398 50,108 56,534 56,645 65,718 Europe, others 81,000 94,970 89,382 52,459 59,129 70,342 48,854 61,882 64,127 67,589 62,065 Total 1,009,586 1,036,624 943,410 765,840 815,656 854,371 745,713 784,425 786,171 790,748 741,292
Note: Overseas sales information represents the combined net sales of consolidated subsidiaries to the Japanese market and overseas markets.
16 17 Consolidated balance sheets Consolidated balance sheets
Millions of yen Assets 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 Current assets Cash and cash equivalents Cash and deposits ¥28,375 ¥19,096 ¥18,956 ¥23,122 ¥28,612 ¥33,441 ¥48,859 ¥33,135 ¥45,719 ¥72,122 ¥97,750 Securities － － － － － － － － 25,000 29,000 20,000 Receivables Notes and accounts receivable - trade Unconsolidated subsidiaries and affiliates 4,997 4,486 2,230 3,056 3,439 3,324 2,871 2,084 2,711 5,858 633
Other 203,416 200,431 149,693 155,895 152,693 168,763 166,144 163,156 169,429 158,678 166,170 Consolidated results Loans to unconsolidated subsidiaries and affiliates 2,382 2,707 5,078 2,873 8,368 10,945 13,453 17,544 15,182 14,836 13,312 Other 20,527 22,376 20,112 13,663 16,954 21,216 13,185 15,774 14,691 12,678 13,541 Inventories 141,095 151,503 135,065 106,315 105,507 108,997 111,633 118,668 115,334 120,443 122,312 Deferred income taxes 11,289 9,864 9,170 19,783 13,230 12,215 11,617 7,269 7,123 8,256 15,064 Other current assets 6,790 9,267 12,873 10,710 10,206 5,829 8,153 9,965 11,924 9,650 18,883 Allowance for doubtful accounts (1,462) (2,335) (2,057) (2,671) (2,114) (2,940) (3,660) (2,687) (1,108) (1,016) (910) Total current assets 417,409 417,395 351,120 332,746 336,895 361,790 372,255 364,908 406,005 430,505 466,755
Investment and other assets Investments in: Unconsolidated subsidiaries and affiliates 18,303 28,179 16,393 19,087 22,184 24,404 28,421 35,567 34,075 39,330 38,543 Other 96,566 68,988 46,215 43,289 39,932 37,596 43,066 55,664 99,058 80,284 88,794 Loans to: Unconsolidated subsidiaries and affiliates 2,501 2,423 1,872 1,665 2,533 2,648 1,910 1,336 1,492 1,602 1,237 Other 597 1,108 1,152 2,514 1,368 788 747 723 708 669 610 Deferred income taxes 2,081 10,691 2,891 2,438 4,215 1,397 1,691 2,272 3,875 4,279 10,965 Other 32,770 32,978 35,487 29,002 29,103 28,824 38,116 44,708 51,901 49,007 48,910 Allowance for doubtful accounts (3,695) (3,039) (2,643) (2,005) (1,970) (2,321) (2,340) (3,085) (2,929) (2,166) (2,092) Total Investment and other assets 149,122 141,328 101,367 95,990 97,365 93,336 111,611 137,185 188,180 173,004 186,967
Property, plant and equipment: Land 47,764 47,666 46,180 45,636 44,532 43,630 43,735 43,691 43,811 43,080 44,493 Buildings 187,073 196,424 184,567 187,267 176,560 178,980 185,466 191,145 191,047 189,695 192,100 Machinery, equipment and vehicles 594,270 618,727 554,892 575,159 512,070 517,928 551,899 571,339 574,943 571,536 584,970 Tools 66,713 70,515 71,694 72,467 72,108 71,978 75,406 78,663 83,509 87,519 91,911 Construction in progress 22,743 38,229 26,477 9,258 6,629 7,370 9,562 9,298 10,246 8,475 15,471 Other － － 1,256 2,369 2,261 2,460 2,714 3,043 2,976 3,117 2,410 Subtotal 918,563 971,561 885,066 892,156 814,160 822,346 868,782 897,179 906,532 903,422 931,355 Accumulated depreciation (538,931) (588,993) (545,362) (575,255) (554,501) (578,045) (623,926) (660,318) (697,649) (700,155) (690,065) Total Property, plant and equipment 379,632 382,568 339,704 316,901 259,659 244,301 244,856 236,861 208,883 203,267 241,290
Intangible assets Intangible assets and deferred charges 22,705 16,075 15,623 17,614 15,843 16,371 15,572 13,651 11,218 9,356 36,303 Goodwill 31,049 58,624 66,343 59,820 51,773 46,320 18,105 15,806 9,409 7,297 32,738 Total Investment and other assets 53,754 74,699 81,966 77,434 67,616 62,691 33,677 29,457 20,627 16,653 69,041
Total assets ¥999,917 ¥1,015,990 ¥874,157 ¥823,071 ¥761,535 ¥762,118 ¥762,399 ¥768,411 ¥823,695 ¥823,429 ¥964,053
18 19 Consolidated balance sheets Consolidated balance sheets
Millions of yen Liabilities and net assets 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 Liabilities: Current liabilities Short-term loans payable ¥65,101 ¥71,976 ¥72,432 ¥54,137 ¥44,568 ¥61,555 ¥67,326 ¥84,605 ¥56,427 ¥55,528 ¥57,585 Current portion of long-term loans payable 53,274 37,096 34,561 24,319 18,942 47,359 69,387 28,772 41,630 27,493 51,327 Commercial papers 75,000 99,000 76,000 51,000 33,000 18,000 － － － － － Payables Notes and accounts payable - trade Unconsolidated subsidiaries and affiliates 2,166 1,439 1,234 1,274 1,192 961 1,202 1,119 1,334 1,466 1,021 Other 137,240 122,301 68,211 82,982 86,092 89,265 90,674 78,884 74,161 69,928 78,096 Other 43,495 45,178 33,222 30,916 22,911 25,780 30,402 25,115 28,417 25,683 29,934 Consolidated results Income taxes payable 17,313 5,672 2,743 5,025 7,459 5,604 2,891 2,915 6,680 6,239 5,021 Accrued expenses 23,907 22,498 19,402 17,118 19,264 19,017 17,759 17,757 21,053 24,997 26,262 Deferred tax liabilities 2 － 363 157 162 11 13 60 34 52 54 Other current liabilities 9,250 12,401 16,906 26,920 11,181 10,400 9,627 9,436 11,820 16,811 30,273 Total current liabilities 426,748 417,534 325,074 293,848 244,771 277,952 289,281 248,663 241,556 228,197 279,573
Long-term liabilities Long-term loans payable 102,105 117,200 177,081 188,480 168,871 132,192 132,247 166,402 208,705 218,794 265,540 Net defined benefit liability *1 19,506 20,238 21,079 20,275 18,153 18,783 20,351 30,204 30,407 30,440 35,428 Deferred tax liabilities 33,113 25,488 8,914 10,577 9,285 8,837 12,658 9,783 6,289 5,640 8,371 Liabilities in accordance with the application of the equity method 864 5,675 23 19 － － － － － － － Other non-current liabilities 9,845 18,607 12,001 14,590 12,757 12,137 15,734 13,246 33,102 25,946 23,311 Total long-term liabilities 165,433 187,207 219,098 233,941 209,066 171,949 180,990 219,635 278,503 280,820 332,650 Total liabilities 592,181 604,741 544,172 527,789 453,837 449,901 470,271 468,298 520,059 509,017 612,223
Net assets: Shareholders' equity Common stock, no par value 70,788 70,816 70,817 70,817 70,817 70,817 70,817 70,817 70,817 70,817 70,817 Capital surplus at begining of term 63,132 63,138 101,325 101,325 101,328 101,373 101,390 101,408 101,429 101,447 101,474 New issue of stock － 38,206 1 － － － － － － － － Disposal of treasury stock 5 (19) (42) 3 45 17 18 21 18 27 12 Transfer of loss on disposal of treasury stock － － 41 － － － － － － － － Change in ownership interest of parent due to － － － － － － － － － － 2,178 transactions with non-controlling interests Capital surplus at end of term 63,138 101,325 101,325 101,328 101,373 101,390 101,408 101,429 101,447 101,474 103,664 Retained earnings at beginning of term 167,050 196,899 199,953 150,886 112,983 135,385 141,441 107,329 111,754 101,202 127,377 Cumulative effects of changes in accounting policies － － － － － － － － 1,465 － － Change owing to application of accounting policies for － － 1,342 － 1,154 － － － － － － overseas consolidated subsidiaries Profit (loss) attributable to owners of parent 34,124 12,613 (42,963) (35,684) 25,182 11,979 (29,131) 8,356 (8,086) 31,090 50,133 Dividends of surplus (7,888) (9,535) (6,398) (1,969) (3,933) (5,906) (4,922) (3,931) (3,931) (4,915) (8,849) Bonuses to directors (198) － － － － － － － － － － Other 3,811 (24) (1,007) (250) (1) (17) (59) － － － － Transfer of loss on disposal of treasury stock － － (41) － － － － － － － － Retained earnings at end of term 196,899 199,953 150,886 112,983 135,385 141,441 107,329 111,754 101,202 127,377 168,661 Treasury stock, at cost 87 (245) (226) (773) (152) (128) (417) (436) (427) (355) (275) Total shareholders' equity 330,738 371,849 322,802 284,355 307,423 313,520 279,137 283,564 273,039 299,313 342,867
Accumulated other comprehensive income Valuation difference on available-for-sale securities 40,269 24,062 12,744 13,025 10,824 9,913 13,551 10,759 24,227 17,755 21,842 Deferred gains or losses on hedges 36 (341) (1,321) 299 (199) 306 1,069 1,018 (2,569) (1,304) (276) Foreign currency translation adjustment (4,290) (4,560) (28,648) (26,373) (33,812) (31,708) (22,505) (13,026) (8,102) (15,072) (24,889) Remeasurements of defined benefit plans － － － － － － － (635) 479 (579) (1,160) Total accumulated other comprehensive income 36,015 19,161 (17,225) (13,049) (23,187) (21,489) (7,885) (1,884) 14,035 800 (4,483)
Stock acquisition rights 96 221 320 401 439 567 650 738 845 837 862 Non-controlling interests *2 40,887 20,018 24,088 23,575 23,023 19,619 20,226 17,695 15,717 13,462 12,584 Total net assets 407,736 411,249 329,985 295,282 307,698 312,217 292,128 300,113 303,636 314,412 351,830
Total Liabilities and net assets ¥999,917 ¥1,015,990 ¥874,157 ¥823,071 ¥761,535 ¥762,118 ¥762,399 ¥768,411 ¥823,695 ¥823,429 ¥964,053 Note: 1. "Net defined benefit liability" was stated "Provision for retirement benefits" prior to 2013.3. 2. "Non-controlling interests" was stated "Minority interest" prior to 2015.3.
20 21 Consolidated statements of operations Consolidated statements of operations
Millions of yen 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 Net sales ¥1,009,586 ¥1,036,624 ¥943,410 ¥765,840 ¥815,656 ¥854,371 ¥745,713 ¥784,425 ¥786,171 ¥790,748 ¥741,292 Costs and expenses Cost of sales 750,849 780,195 724,774 573,939 586,262 629,152 555,209 590,092 569,499 536,309 492,862 Selling, general and administrative expenses 148,578 154,985 163,040 145,109 149,351 159,330 144,962 144,021 145,220 154,024 156,501 Research and development expenses 35,097 36,282 37,630 33,356 31,483 31,845 33,184 32,234 32,366 33,285 35,417 Operating income 75,061 65,162 17,966 13,436 48,560 34,044 12,358 18,078 39,086 67,130 56,512 Other income (expenses) Interest and dividend income 1,723 1,849 1,790 1,591 1,382 1,325 1,348 1,465 1,931 2,311 2,510
Interest expense (9,481) (10,844) (10,495) (5,785) (4,416) (4,885) (3,409) (3,359) (3,067) (2,419) (2,224) Consolidated results Gain (loss) on sales of investment securities 154 5,321 198 7,165 2,220 1,234 (60) 8,289 1 (10) 119 Loss (gain) on sales and retirement of noncurrent assets 2,747 (417) (1,106) (487) 769 (671) (102) (1,524) (535) (2,559) (4,454) Gain on sales of subsidiaries and affiliates' stocks － － － － － 713 － － － － － Gain (loss) on valuation of derivatives － － － － － － 2,617 1,496 2,664 (1,277) (541) Loss on valuation of investment securities (235) (341) (2,701) (1,221) (117) (192) (762) (106) (4) (567) (27) Foreign exchange gain (loss) 998 (76) (926) (991) 106 232 (606) (287) 1,032 (890) (1,726) Special provision for allowance for doubtful accounts (511) (617) (295) (525) (883) (791) (60) － － － － Business structure improvement expenses (3,114) － (3,320) (20,621) (1,050) － (58) (2,386) (16,759) (5,507) (16,315) Impairment loss (1,123) (32,199) (11,588) (4,387) (1,792) (2,614) (29,417) (8,781) (30,376) (7,565) (1,378) Equity in earnings (losses) of unconsolidated subsidiaries (3,973) (4,647) (8,046) (3,389) 6,300 5,299 572 4,181 2,435 (2,944) 2,079 and affiliates Exceptional operating losses (1,709) (3,191) (10,185) (10,713) － － － － － － － Additional contribution to reserve to cover losses on disposal of － － － (7,199) － － － － － － － securities with market value heid in money trusts Net gain related to flooding － － － － － 347 － － － － － Gain (loss) on revision of retirement benefit plans － － － － － (3,300) 418 － － － 193 Earthquake-related loss － － － － (2,861) (327) － － － － － Other, net (1,754) (7,717) (5,197) (3,470) (3,724) (2,581) (4,940) (2,547) (3,335) (122) (820) Total Other income (expenses) (16,586) (52,879) (51,871) (50,032) (4,066) (6,211) (34,459) (3,559) (46,013) (21,549) (22,584) Income (loss) before income taxes 58,475 12,283 33,905 (36,596) 44,949 27,833 (22,101) 14,519 (6,927) 45,581 33,928 Income taxes: Current 15,527 14,691 7,330 7,766 11,976 9,943 4,224 5,126 11,521 13,070 12,026 Deferred 5,281 (4,196) 2,911 (9,288) 4,196 4,780 1,884 2,781 (8,446) 3,289 (29,487) Total Income taxes 20,808 10,495 10,241 (1,522) 16,172 14,723 6,108 7,907 3,075 16,359 (17,461) Profit (loss) attributable to non-controlling interests *1 3,542 (10,825) 1,183 (610) (3,140) (1,131) (922) 1,744 1,916 1,868 (1,256) Profit (loss) attributable to owners of parent ¥34,125 ¥12,613 ¥(42,963) ¥(35,684) ¥25,182 ¥11,979 ¥(29,131) ¥8,356 ¥(8,086) ¥31,090 ¥50,133 Note: 1. "Non-controlling interests" was stated "Minority interest" prior to 2015.3.
22 23 Consolidated statements of cash flows Consolidated statements of cash flows
Millions of yen 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 Cash flows from operating activities: Income (loss) before income taxes ¥58,475 ¥12,283 ¥(33,905) ¥(36,596) ¥44,494 ¥27,833 ¥(22,101) ¥14,519 ¥(6,927) ¥45,581 ¥33,928 Depreciation and other amortization 54,009 62,668 67,364 61,879 56,410 52,304 46,877 45,664 43,030 38,894 39,331 Impairment loss 1,123 32,199 11,588 4,387 1,792 2,614 29,417 8,781 30,376 7,565 1,378 Increase (decrease) in provision for retirement benefits 8 261 1,717 (551) 630 679 1,199 － － － － Increase (decrease) in net defined benefit liability － － － － － － － 1,425 5,421 604 3,237 Decrease (increase) in net defined benefit asset － － － － － 395 (7,302) 1,259 (2,782) (1,777) (5,586) Increase in provision for business structure improvement － － － 18,129 － － － － 14,683 974 10,463 Increase (decrease) in allowance for doubtful accounts 116 196 (164) (68) 1,082 1,157 476 (382) (1,917) (754) (225) Interest and dividends income (1,723) (1,849) (1,790) (1,591) (1,382) (1,325) (1,348) (1,776) (1,931) (2,311) (2,510) Interest expenses 9,481 10,844 10,495 5,785 4,416 4,885 3,409 3,359 3,067 2,419 2,224 Consolidated results Equity in earnings (losses) of unconsolidated subsidiaries and affiliates 3,973 4,647 8,046 3,389 (6,300) (5,299) (572) (4,181) (2,435) 2,944 (2,079) Loss (gain) on sales and retirement of noncurrent assets (2,747) 417 1,106 487 (770) 671 102 1,524 535 2,559 4,454 Gain on compensation for transfer of property under eminent domain (2,550) － － － － － － － － － － Loss (gain) on sales of investment securities 154 (5,321) (198) (7,165) (2,220) (1,947) 60 (8,289) 39 10 (119) Loss (gain) on valuation of derivatives － － － － － － (2,617) (1,496) (2,664) 1,277 541 Loss on valuation of investment securities 235 341 2,701 1,221 117 192 762 106 4 567 27 Decrease (increase) in notes and accounts receivable-trade (10,900) 3,706 33,989 (7,234) (10,937) (14,410) 11,070 8,592 1,051 2,999 5,253 Decrease (increase) in inventories (7,704) (9,493) (4,401) 29,631 (6,283) (3,358) 2,509 (2,371) 6,767 (6,933) 990 Increase (decrease) in notes and accounts payable-trade 25,145 (15,973) (35,110) 15,451 8,477 1,279 (4,787) (15,999) (9,627) (550) 2,192 Increase (decrease) in accrued payments due to change in － － － － － － 6,546 (2,421) (2,082) (2,015) － retirement benefits Other, net (8,223) (5,856) (3,153) 6,893 (260) (1,310) (4,763) (5,325) 2,802 (1,899) (4,062) Subtotal 118,872 89,070 58,286 94,047 89,266 64,360 58,937 42,989 77,410 90,154 89,437 Interest and dividends income received 2,839 3,546 3,527 3,774 4,053 3,672 4,044 5,404 7,068 6,589 6,022 Interest expenses paid (8,401) (11,918) (10,142) (6,155) (4,481) (4,903) (3,488) (3,663) (3,190) (2,482) (2,168) Income taxes paid (16,854) (26,958) (11,279) (4,034) (11,706) (9,460) (3,309) (6,143) (5,258) (13,620) (14,251) Additional contribution to reserve for losses securities heid in money trusts － － － (7,199) － － － － － － － Disaster insurance compensation － － － － － － 8,121 － － － － Net cash and cash equivalents provided by operating activities 96,456 53,740 40,392 80,433 77,132 53,669 64,305 38,587 76,030 80,641 79,040
Cash flows from investing activities: Proceeds from sales of property, plant and equipment 8,032 2,500 2,022 1,757 1,125 487 1,929 472 752 669 2,415 Purchase of property, plant and equipment (69,996) (78,821) (75,845) (34,119) (25,456) (27,641) (31,031) (30,863) (26,528) (31,895) (37,663) Purchase of short-term investment securities (6,835) (2,011) (3,805) (1,183) (4,439) (1,601) (3,947) (21,203) (22,052) (2,406) (2,642) Proceeds from sales of investment securities 1,263 6,196 693 10,242 3,719 2,355 316 10,847 1,576 848 2,026 Proceeds (expenditure) incurred in the acquisition of the shares of － － (24,537) － － － － － － － (82,890) newly consolidated subsidiaries Purchase of investments in subsidiaries (10,854) － － － － (4,950) － － － － － Proceeds from sales of investments in subsidiaries － － － － － － － － － － － Decrease (increase) in short-term loans receivable (1,089) (1,105) (8,085) (2,502) (810) (687) (1,564) (2,981) 2,434 (2,643) (2,380) Payments of long-term loans receivable (1,275) (1,553) (1,072) (1,805) (662) (57) (775) (56) (1,908) (59) (22) Collection of long-term loans receivable 304 518 673 260 933 136 231 255 329 189 91 Proceeds from discontinued operation － － － － － － － － － － － Other, net (6,615) (4,942) (6,348) (6,087) (2,155) (3,207) (3,027) (3,750) (4,227) (5,026) (6,585) Net cash and cash equivalents used in investing activities (87,065) (79,218) (116,304) (33,437) (27,745) (35,165) (37,868) (47,279) (49,624) (40,323) (127,650)
Cash flows from financing activities: Net increase (decrease) in short-term loans payable (18,966) 7,564 36,322 (20,488) (3,648) 16,781 (2,548) 11,135 (36,296) 3,146 1,605 Increase (decrease) in commercial papers 31,000 24,000 (23,000) (25,000) (18,000) (15,000) (18,000) － － － － Proceeds from issuance of bonds 51,733 51,021 50,321 15,226 13,022 6,106 23,912 11,111 59,210 － － Redemption of bonds (57,014) (90,698) (32,764) (28,436) (22,584) (10,957) (7,695) (21,632) (19,809) (20,770) － Proceeds from long-term loans payable 15,455 51,788 68,886 25,754 6,788 22,159 44,347 51,730 37,535 36,707 98,761 Repayment of long-term loans payable (32,160) (16,862) (13,302) (8,473) (10,517) (25,287) (46,862) (55,340) (25,805) (21,821) (27,310) Cash dividends paid (7,887) (9,535) (6,398) (1,969) (3,933) (5,906) (4,922) (3,932) (3,931) (4,914) (8,849) Cash dividends paid to non-controlling interests (1,487) (1,204) (879) (169) (2,996) (1,676) (185) (554) (201) (284) (373) Proceeds from stock issuance to non-controlling shareholders － － － － － － － － － － 1,817 Payments from changes in ownership interests in subsidiaries that － － － － － － － － － － (1,585) do not result in change in scope of consolidation Other, net 252 6 (8) 606 (195) (343) (653) (420) (309) (381) (301) Net cash and cash equivalents used in financing activities (19,074) 16,080 79,178 (42,949) (42,063) (14,123) (12,606) (7,902) 10,394 (8,317) 63,765
Effect of exchange rate change on cash and cash equivalents 374 127 (1,992) 81 (1,946) 447 1,587 869 786 (1,971) 823 Net increase (decrease) in cash and cash equivalents (9,309) (9,271) 1,274 4,128 5,378 4,828 15,418 (15,725) 37,586 30,030 15,978 Cash and cash equivalents at beginning of year 37,585 28,365 19,094 18,796 22,964 28,455 33,283 48,701 32,976 70,562 100,955 Increase (decrease) in cash and cash equivalents resulting from change 89 － (1,572) 40 113 － － － － 363 617 of scope of consolidation Cash and cash equivalents at end of year ¥28,365 ¥19,093 ¥18,796 ¥22,964 ¥28,455 ¥33,283 ¥48,701 ¥32,976 ¥70,562 ¥100,955 ¥117,550 Note: "Non-controlling interests" was stated "Minority interest" prior to 2015.3.
24 25 Quarterly results Quarterly results
2012.3 Millions of yen 2015.3 Millions of yen The impact of the Net sales: 1Q 2Q 1st half 3Q 4Q 2nd half Total Net sales: 1Q 2Q 1st half 3Q 4Q standardization of 2nd half Total accounting periods* Advanced Fibers and Composites ¥31,412 ¥32,986 ¥64,397 ¥34,389 ¥36,743 ¥71,131 ¥135,529 High-performance fibers ¥26,896 ¥27,486 ¥54,382 ¥25,660 ¥24,213 ¥16,470 ¥66,343 ¥120,724 Electronics Materials and Performance 46,207 45,994 92,200 46,732 45,835 92,567 184,767 Polyester fibers 23,757 30,167 53,924 26,588 26,428 3,004 56,021 109,944 Polymer Products Films and plastics 46,869 46,082 92,952 46,311 41,376 34,738 122,424 215,376 Healthcare 33,246 34,549 67,795 38,072 35,856 73,928 141,723 Pharmaceuticals and home health care 34,912 33,131 68,043 36,075 35,393 3,489 74,957 143,000 Trading and retail 57,486 66,104 123,590 66,939 68,852 135,790 259,380 Trading and retail 48,177 57,187 105,365 58,459 55,111 5,639 119,209 224,574 Others 13,508 15,908 29,416 14,920 20,436 35,356 64,772 Others 8,957 9,945 18,902 8,815 13,030 5 21,851 40,753 Total ¥181,858 ¥195,541 ¥377,399 ¥201,051 ¥207,721 ¥408,772 ¥786,171 Total ¥189,569 ¥203,998 ¥393,567 ¥201,908 ¥195,553 ¥63,344 ¥460,804 ¥854,371 Operating income: 1Q 2Q 1st half 3Q 4Q 2nd half Total Consolidated results The impact of the Advanced Fibers and Composites ¥1,661 ¥3,024 ¥4,685 ¥3,162 ¥6,505 ¥9,668 ¥14,353 Operating income: 1Q 2Q 1st half 3Q 4Q standardization of 2nd half Total accounting periods* Electronics Materials and Performance 728 (2,073) (1,345) 1,105 3,642 4,747 3,402 High-performance fibers ¥2,008 ¥2,222 ¥4,230 ¥1,198 ¥(4) ¥885 ¥2,079 ¥6,309 Polymer Products Polyester fibers 488 1,506 1,995 28 237 (364) (100) 1,895 Healthcare 5,657 6,436 12,094 9,185 3,550 12,736 24,829 Films and plastics 3,151 2,574 5,725 1,748 (2,526) (1,213) (1,991) 3,733 Trading and retail 754 1,211 1,964 1,233 1,052 2,285 4,249 Pharmaceuticals and home health care 7,239 4,676 11,915 7,558 6,913 (473) 13,998 25,913 Others (711) 1,207 496 894 2,593 3,487 3,983 Trading and retail 1,027 1,332 2,359 1,958 1,623 73 3,654 6,013 Elimination and corporate (3,276) (2,491) (5,766) (3,138) (2,826) (5,964) (11,730) Others 282 805 1,087 365 2,035 (163) 2,237 3,325 Total ¥4,813 ¥7,314 ¥12,127 ¥12,441 ¥14,517 ¥26,959 ¥39,086 Elimination and corporate (3,168) (3,489) (6,658) (3,138) (3,348) 0 (6,486) (13,144) Total ¥11,027 ¥9,626 ¥20,653 ¥9,717 ¥4,931 ¥(1,256) ¥13,392 ¥34,044 2016.3 Millions of yen Net sales: 1Q 2Q 1st half 3Q 4Q 2nd half Total 2013.3 Millions of yen Advanced Fibers and Composites ¥32,105 ¥33,298 ¥65,404 ¥32,231 ¥35,383 ¥67,613 ¥133,017 Net sales: 1Q 2Q 1st half 3Q 4Q 2nd half Total Electronics Materials and Performance 44,778 42,558 87,336 42,030 34,334 76,364 163,699 Advanced Fibers and Composites ¥26,146 ¥26,610 ¥52,756 ¥25,194 ¥33,217 ¥58,411 ¥111,166 Polymer Products Electronics Materials and Performance Healthcare 37,993 36,825 74,818 37,664 35,018 72,683 147,501 43,730 44,699 88,429 43,048 44,062 87,109 175,538 Polymer Products Trading and retail 61,390 68,729 130,118 70,142 70,673 140,815 270,934 Healthcare 31,185 33,119 64,305 35,718 38,312 74,029 138,334 Others 16,299 18,083 34,382 17,169 24,047 41,216 75,597 Trading and retail 54,898 60,754 115,652 60,856 60,653 121,509 237,160 Total ¥192,565 ¥199,492 ¥392,058 ¥199,236 ¥199,455 ¥398,691 ¥790,748 Others 18,376 18,742 37,118 20,022 26,374 46,396 83,515 Total ¥174,335 ¥183,923 ¥358,258 ¥184,838 ¥202,617 ¥387,454 ¥745,713 Operating income: 1Q 2Q 1st half 3Q 4Q 2nd half Total Advanced Fibers and Composites ¥3,613 ¥5,670 ¥9,283 ¥4,641 ¥4,575 ¥9,216 ¥18,499 Operating income: 1Q 2Q 1st half 3Q 4Q 2nd half Total Electronics Materials and Performance 6,212 5,681 11,893 7,020 3,385 10,405 22,298 Advanced Fibers and Composites ¥(322) ¥638 ¥316 ¥(2,019) ¥(2,994) ¥(5,013) ¥(4,697) Polymer Products Electronics Materials and Performance Healthcare 8,875 7,884 16,759 8,677 3,365 12,042 28,802 1,604 (137) 1,466 (399) (2,988) (3,387) (1,921) Polymer Products Trading and retail 1,043 1,153 2,197 1,834 1,299 3,133 5,330 Healthcare 3,804 5,484 9,288 7,125 8,395 15,520 24,809 Others 527 1,376 1,904 1,371 3,215 4,585 6,488 Trading and retail 744 1,413 2,158 1,517 1,038 2,556 4,713 Elimination and corporate (3,859) (2,837) (6,696) (3,394) (4,197) (7,591) (14,287) Others 367 188 555 808 2,868 3,676 4,231 Total ¥16,412 ¥18,927 ¥35,339 ¥20,149 ¥11,642 ¥31,791 ¥67,130 Elimination and corporate (3,225) (3,183) (6,408) (4,257) (4,112) (8,369) (14,777) Total ¥2,972 ¥4,404 ¥7,376 ¥2,774 ¥2,208 ¥4,982 ¥12,358 2017.3 Millions of yen Net sales: 1Q 2Q 1st half 3Q 4Q 2nd half Total 2014.3 Millions of yen Advanced Fibers and Composites ¥29,818 ¥27,532 ¥57,350 ¥28,565 ¥50,846 ¥79,411 ¥136,760 Net sales: 1Q 2Q 1st half 3Q 4Q 2nd half Total Electronics Materials and Performance 33,600 33,254 66,853 35,104 32,464 67,569 134,422 Advanced Fibers and Composites ¥28,240 ¥30,158 ¥58,398 ¥30,357 ¥34,796 ¥65,152 ¥123,551 Polymer Products Electronics Materials and Performance Healthcare 37,423 36,134 73,558 38,300 35,679 73,979 147,537 44,304 47,026 91,330 44,945 43,171 88,116 179,446 Polymer Products Trading and retail 59,249 66,240 125,489 65,454 68,641 134,095 259,584 Healthcare 31,493 33,348 64,841 36,551 37,023 73,574 138,415 Others 14,136 15,662 29,799 14,708 18,481 33,189 62,989 Trading and retail 57,051 63,840 120,892 66,001 67,287 133,288 254,180 Total ¥174,227 ¥178,823 ¥353,049 ¥182,131 ¥206,112 ¥388,242 ¥741,292 Others 22,432 23,915 46,347 18,555 23,932 42,487 88,833 Total ¥183,521 ¥198,287 ¥381,808 ¥196,408 ¥206,209 ¥402,617 ¥784,425 Operating income: 1Q 2Q 1st half 3Q 4Q 2nd half Total Advanced Fibers and Composites ¥3,555 ¥4,126 ¥7,681 ¥2,945 ¥3,220 ¥6,166 ¥13,847 Operating income: 1Q 2Q 1st half 3Q 4Q 2nd half Total Electronics Materials and Performance 5,650 3,765 9,415 5,575 3,491 9,067 18,481 Advanced Fibers and Composites ¥193 ¥2,174 ¥2,367 ¥937 ¥2,438 ¥3,375 ¥5,742 Polymer Products Electronics Materials and Performance Healthcare 8,583 3,778 12,361 9,049 6,146 15,196 27,557 (229) (2,443) (2,672) (1,831) (2,716) (4,547) (7,218) Polymer Products Trading and retail 1,391 1,538 2,929 1,655 2,121 3,775 6,704 Healthcare 4,601 4,769 9,370 7,961 7,198 15,159 24,529 Others 298 1,862 2,161 1,271 1,944 3,215 5,375 Trading and retail 589 1,759 2,347 1,100 1,738 2,838 5,186 Elimination and corporate (3,779) (3,770) (7,549) (3,879) (4,025) (7,903) (15,452) Others (3) (335) (338) (531) 2,609 2,078 1,741 Total ¥15,698 ¥11,300 ¥26,997 ¥16,617 ¥12,898 ¥29,515 ¥56,512 Elimination and corporate (3,314) (2,574) (5,887) (3,145) (2,869) (6,014) (11,902) Total ¥1,837 ¥3,351 ¥5,188 ¥4,491 ¥8,399 ¥12,891 ¥18,078
* From the year ended 2012.3, all consolidated subsidiaries of Teijin close their books on March 31. As a consequence, for the year ended 2012.3, certain consolidated subsidiaries and equity method affiliates reported operating results for a 15-month period (January 1, 2011–March 31, 2012).
26 27 3 Outline of Segment Operations Advanced Fibers and Composites Advanced Fibers and Composites - High-Performance Fibers Business Group
Overview of operating results Advanced Fibers and Composites - High-Performance Fibers Business Group
■ High-Performance Fibers ◆ Subsidiaries and affiliates (As of March 2017) Millions of yen Equity Company Location Business field held by the 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 Group Sales ¥130,690 1. Teijin Aramid B.V. Netherlands Gelderland Research, manufacture and sales of aramid fibers 100% Net sales to external customers 120,724 2. Teijin Cordley Limited Japan Osaka Manufacture and sales of artificial and synthetic leather 100 Intersegment net sales or transfer amounts 9,966 3. Teijin (Thailand) Ltd. Thailand Pathumthani Manufacture and sales of polyester fibers 91.9 Segment income (loss) 6,309 4. Teijin Polyester (Thailand） Ltd. Thailand Pathumthani Manufacture and sales of polyester fibers 66.9 Segment asset 195,934 5. Teijin Corporation (Thailand) Limited Thailand Pathumthani Manufacture and sales of aramid fibers 100 Depreciation 16,985 6. Teijin Monofilament Limited Japan Tokyo Manufacture and sales of monofilaments 100 7. Union Tire Cord Limited Japan Osaka Manufacture of tire cord fabrics, twisted yarns, etc. 100 Amortization of goodwill 5,884 8. Teijin Cord (Thailand) Co., Ltd. Thailand Pathumthani Manufacture and sales of core materials used in the carcasses 99.6 Investments in associates accounted for using equity method 5,486 of transmission belts for agricultural and production machinery Capital expenditure 7,982 9. Unisel Co.,Ltd. Japan Yamaguchi Manufacture and sales of synthetic fibers, filament yawn and 100 non-woven fabrics Composites
■ 10. Nantong Teijin Automotive Fabrics PRC Jiangsu Weaving, dyeing and finishing and sales of luxury fabrics, as 100 Advanced Fibers and Polyester Fibers Finishing Co.,Ltd. well as procurement and sales of raw materials and products Millions of yen Note: Equity held by the Group includes equity held directly and indirectly by Teijin Limited. 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 Sales ¥143,190 ◆ Business history Net sales to external customers 109,944 ● Aramid fibers Intersegment net sales or transfer amounts 33,246 1962. 7 Obtained license to introduce production technologies for nylon 6 from Allied Chemicals Corp. of the United States Segment income (loss) 1,895 1963.11 Production of nylon began at Mihara Factory Segment asset 107,966 1971. 4 Started production of heat-resistant meta-aramid fiber Teijinconex at Iwakuni Factory Depreciation 4,448 1987. 9 Started production of high-strength para-aramid fiber Technora at Matsuyama Factory 1995. 9 Established a company jointly with DuPont to manufacture and market nylon fibers in Japan Amortization of goodwill － 2000.12 Reestablished Twaron products business unit, acquired from Acordis B.V. of the Netherlands, as Teijin Twaron B.V. Investments in associates accounted for using equity method 3,397 2002.10 Teijin and DuPont announced plans to dissolve Teijin DuPont Nylon Capital expenditure 4,032 2003. 4 Spun off industrial-use polyester fibers business as a separate company named Teijin Techno Products Limited because of Teijin's introduction of the holding company system ■ Advanced Fibers and Composites 2003. 7 Expanded manufacturing capacity of para-aramid fiber Twaron at Teijin Twaron B.V. in the Netherlands (12,300 tons/year → 18,500 tons/year) 2003.12 Withdrew from nylon fibers business Millions of yen 2006.12 Expanded manufacturing capacity of para-aramid fiber Twaron at Teijin Twaron B.V. in the Netherlands (23,000 tons/year) 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2007. 9 Teijin Twaron B.V. was renamed Teijin Aramid B.V. Sales ¥134,956 ¥151,449 ¥163,186 ¥159,475 ¥160,971 2011.10 Commenced commercial production of high-performance polyethylene products Net sales to external customers 111,166 123,551 135,529 133,017 136,760 2012.10 Teijin Techno Products Limited was integrated with Teijin Limited Intersegment net sales or transfer amounts 23,790 27,898 27,657 26,458 24,211 2013. 4 Established Technical Center Asia in Shanghai, PRC Operating income (loss) (4,698) 5,742 14,353 18,499 13,847 2013. 9 Established Teijin Corporation (Thailand) Limited, new type of meta-aramid fiber manufacturing and sales and polycarbonate resin and Segment asset 201,986 199,099 193,894 185,915 311,967 processed plastics sales company in Thailand 2015. 8 Commenced production and sales of Teijinconex and Teijinconex neo at Teijin Corporation (Thailand) Limited in Thailand Depreciation 15,962 16,314 15,462 14,320 14,228 (2,700 tons/year → 4,900 tons/year) Amortization of goodwill 5,553 1,435 1,410 1,429 2,081 2016. 3 Announced a 10% increase in manufacturing capacity of Technora para-aramid fibers Investents in associates accounted for using equity method 5,730 7,546 7,368 4,432 6,895 Capital expenditure 13,253 9,062 10,034 12,575 21,642 ● Polyester fibers for industrial applications * The High-Performance Fibers segment has been renamed the Advanced Fibers and Composites segment, and also includes polyester fibers 1918. 6 Teikoku Rayon Co., Ltd., established. Began production of rayon filament for industrial applications, which was previously accounted for in the Polyester Fibers segment. 1951.11 Established DAISYOJI SEIREN (Unofficial translation) (predecessor of Teijin Nestex Co., Ltd.) 1955.11 Matsuyama Factory (currently the Matsuyama Factory (North)) established and began production of acetate filament 1957. 1 Teijin and Toray Industries, Inc., obtained license to introduce production technologies for polyester fibers and films from ICI of the United Kingdom 1957. 6 Tetoron is selected by Teijin and Toray as the trademark for polyester fibers 1957.12 Established Sankio Worsted Mills Limited (predecessor of Teijin Tecloth Limited) 1958. 6 Production of Tetoron began at Matsuyama Factory 1967. 9 Established Tetoron production and sales company Thai Tetoron Co., Ltd. (currently Teijin Polyester (Thailand) Limited) 1968. 4 Tokuyama Factory (currently Teijin Fibers Limited's Tokuyama Factory) commenced operations and began production of Tetoron staple fiber 1970.10 Ehime Factory (currently the Matsuyama Factory (South)) commenced operations and began production of Tetoron filament 1971.10 Production of rayon filament discontinued 1973.10 Established Tetoron production and sales company P.T. Teijin Indonesia Fiber Corporation 1976. 1 Production of Tetoron staple fiber began at Ehime Factory 1991.10 Established Tetoron production and sales company Teijin (Thailand) Limited 1993.11 Established TMI Europe S.p.A in Italy as a joint venture with Mantero Seta S.P.A. (Italy) and ITOCHU Corporation to manufacture and market polyester filament fabrics 1997. 1 Started marketing ECOPET (fibers made from PET bottles)
30 31 Advanced Fibers and Composites - High-Performance Fibers Business Group Advanced Fibers and Composites - High-Performance Fibers Business Group
1999. 1 Launched recycling system for fiber products named ECOCIRCLE ◆ R&D sites 1999. 4 Acquired 50% interest in polyester filament manufacturer Novacorp S.A. of Mexico, and renamed it Akra Teijin S.A. de C.V. Company Location 2000.11 Purchased the monofilament business of Johns Manville Corporation of the United States and established Teijin Monofilament U.S., Inc., Teijin Japan Matsuyama and Teijin Monofilament Germany GmbH Iwakuni 2001. 5 Announced Tetoron Global Strategy (TGS) plan Teijin Aramid the Netherland Arnhem 2001.11 Established Teijin Nestex Limited Teijin Aramid Asia PRC Shanghai 2002. 3 Withdrew from acetate fibers business Teijin Product Development China PRC Jiangsu 2002. 4 Spun off apparel-use polyester fibers business as a separate company named Teijin Fibers Limited Launched new chemical recycling operations at Teijin Fibers' Tokuyama Factory 2002. 5 Established Solotex Corporation, a PTT fibers joint venture, with Asahi Kasei Corporation 2002. 7 Started expansion of "Fiber to Fiber" recycling system, helping to enhance public awareness of recycling ◆ Product line and chemical formula 2003.11 Commenced operations at "Bottle to Bottle" recycling facility at Teijin Fibers' Tokuyama Factory 2004. 5 Transferred "Fiber to Fiber" recycling facility from Tokuyama Factory to Teijin Fibers' Matsuyama Factory ● Para-aramid fiber 2005. 1 Announced withdrawal from Business Operation of TMI Europe S.p.A in Italy Twaron® 2005. 3 Withdrew from the Polyester Fiber Business in Mexico
2005.12 Teijin Fibers Limited established car seat fabric manufacturing and sales company in the PRC Composites 2008. 7 Started commercial production of Nanofront high-strength polyester nanofiber Twaron® 2008.12 Expanded production facilities for BEWELL high-performance, highly durable fiber filament Advanced Fibers and 2009. 8 Announced structural reform plan for polyester fibers business 2009.12 Established Suminoe Teijin Techno Co., Ltd., a joint venture with Suminoe Textile Co., Ltd. 2010. 3 Dissolved joint venture Solotex Corporation and commenced liquidation proceedings Teijin Aramid (Delfzijl, Netherlands) Teijin Aramid (Emmen, Netherlands) Withdrew from the operations of Teijin Nestex Limited Withdrew from the operations of Teijin Monofilament U.S., Inc. 2010. 4 Transferred stake in P.T. Teijin Indonesia Fiber Tbk to a third party 2010. 6 Transferred stake in Teijin Monofilament Germany GmbH to a third party Technora® 2010.12 Announced plans to begin full-fledged production and marketing of bio-derived PET products under the name PLANTPET in Japan and ECO CIRCLE Plantfiber overseas 2012. 4 Established Teijin Product Development China Co., Ltd 2012.10 Absorbed all businesses of Teijin Fibers Limited, except for its polyester fibers for apparel business 2013. 2 Established Zhejiang Jiaren New Materials Co., Ltd., polyester chemical recycling joint venture, in the PRC 2017. 4 Formed the Fibers & Products Converting Business Group by integrating the polyester fiber business into the Products Converting Business Technora® Group
◆ Production sites (As of March 2017) Teijin (Matsuyama, Japan) Production Principal products Location Company Form capacity (tons/year) Meta-aramid fibers Teijinconex® Japan Iwakuni Teijin Staple fiber 2,700 ● Meta-aramid fiber Thailand Ayutthaya Teijin Corporation (Thailand) Staple fiber 2,200 *3 Interfacial polymerization in Japan, Teijinconex® ® solution polymerization in Thailand Para-aramid fibers Technora Japan Matsuyama Teijin Filament yarn － Staple fiber Twaron® Netherlands Delfzijl Teijin Aramid Staple fiber － ＊3 ® Emmen Filament yarn Polymerization Teijinconex Pulp Polyester fibers Teijin®Tetoron® Japan Matsuyama Teijin Staple fiber 8,000 Teijin (Iwakuni, Japan) Shuunan Teijin Staple fiber 49,000 Teijin Corporation (Thailand)(Ayutthaya, Thainland) Iwakuni Teijin Industrial fibers 12,000 Thailand Pathumthani Teijin Polyester (Thailand) Filament yarn 10,500 Staple fiber 52,800 Industrial fibers 11,400 Ayutthaya Teijin (Thailand) Filament yarn 11,800 Staple fiber 7,800 Total 163,300
32 33 Advanced Fibers and Composites - High-Performance Fibers Business Group Advanced Fibers and Composites - High-Performance Fibers Business Group
◆ Product line and chemical formula ◆ Development of applications for principal products ● Aramid fibers ● Polyester fibers ◎：Excellent ○：Good △：Good under certain conditions （Product line） Para-aramid fibers Meta-aramid fibers Application ® ® ® Ethylene Twaron Technora (copolymerization) Teijinconex glycol ◎ △ Tires Strength and elasticity Strength and fatigue-resistance ○ ◎ ◎ Elastomer reinforcements Strength and elasticity Fatigue- and heat-resistance and Heat-resistance Dimethyl Polyethylene Para xylene Teijin® Tetoron® strength terephthalate Polymerization terephthalate(PET) Melt spinning (filament, staple) ○ ◎ Linear tension members Strength, fatigue-resistance and Strength and elasticity heat-resistance Teijin (Matsuyama, Japan) Friction and sealing materials ◎ × △ Teijin (Matsuyama, Japan) (brake pads, gaskets, alternative to Heat-resistance dimensional Difficulty in pulping Heat-resistance (brake pads) Terephthalic acid (Iwakuni, Japan) asbestos) stability; easy for pulping
(Tokuyama, Japan) ◎ 〇
Protective clothing Protectiveness, strength and Composites elasticity Strength
○ ◎ Advanced Fibers and Teijin Polyester（Thailand） (Parthumthani, Thailand) Geotextiles Modulus and strength High chemical resistance (concrete reinforcements) Plastic reinforcements ◎ ◎ ○ Teijin (Thailand) (Ayutthaya, Thainland) (thermoplastic, thermoset) Strength and elasticity Crashworthiness and strength Sliding 〇 〇 ◎ （Chemical formula） Fire-resistant clothing Strength and flame-resistance for Strength and flame-resistance for Flame-retardance and heat- Flame-retardant uniforms short periods short periods resistance Filters ◎ (used in plant of asphalt, cement, iron and steel) Heat-resistance ◎ ◎ Optical fiber cables Strength and elasticity Strength and fatigue-resistance ● Polyester fibers ◆ Characteristics of main products Field Principal products Applications ● Aramid fibers Apparel ECOPET®, ECOPETPLUS®, PLANTPET®, WAVERON®, Men's and ladies' fashions; sportswear; work and A type of nylon, aramid fibers are polyamide fibers with molecular structure of aromatic (benzene) rings. The U.S. Federal Trade Commission recognizes TRIXION®, DELTA®, DUSTOP®, Suzushiya®, Octa®, school uniforms; inner wear; garment lining fabrics these fibers as being aliphatic polyamide fibers, that is, nylon, and in 1974 introduced the generic name "aramid." In 1977, the International Organization Ecopure®, SOLOTEX® for Standardization (ISO) adopted "aramid" as the classification for a category of artificial fibers. Aramid fibers are divided broadly into para-aramid Industrial products and materials ECOPET®, ECOPETPLUS®, PLANTPET®, Curtains; upholstery; bedding; office fabrics; paper fibers, which have a straight molecular structure, and meta-aramid fibers, which have a zigzag molecular structure. The two types of aramid fibers have ® ® ® ® different characteristics. SUPER EXTAR , BELLOASIS , CHEMITAC , Tepyrus , diapers; wiping cloths; automobile, train and aircraft ® ® ® ® ® NANOFRONT , elk , V-Lap , FIBER CUSHION , seats; tire cords; rubber reinforcements; seat belts; Para-aramid fibers Twaron Twaron and Technora para-aramid fibers boast high strength, tensile modulus and elasticity, as well as Suzushiya®, Teonex® mats; cushions; filters Technora® superb heat resistance and dimensional stability. (Example: Tensile strength is between five and eight times greater than steel of the same weight.) Thanks to these characteristics, Twaron and Technora * Applications and characteristics for Teonex PEN fibers are used primarily in bullet-proof vests, automotive brake pads and other friction materials (as a substitute for asbestos) and in reinforcements for tire cords and optical fibers, among others. Application Current material Characteristics required of ® Tire Cord reinforcement materials Meta-aramid fibers Teijinconex Teijinconex meta-aramid fibers offer the same fiber performance characteristics as polyester fibers Cap layer Nylon High adhesion, High modulus Cap-Ply (extension, elasticity, specific density, texture, color), combined with superb resistance to long-term Carcass ply PET, RAYON High modulus, Low shrinkage heat exposure (continuous use possible at 200°C) and incombustibility (higher flash and ignition points than nylon or polyester). Applications for Teijinconex include heat-resistant particulate filters Automotive hose for industrial applications (steel, cement, asphalt), fireproof clothing for firefighters, and factory and Oil brake hose PET, PVA, RAYON High modulus, Low shrinkage service industry uniforms. Chemical resistance Belt Carcass-Ply ● Polyester fibers Transmission belt PET High modulus, Low shrinkage Teijin®Tetoron® One of the stronger synthetic fibers, Teijin Tetoron polyester fibers boast a low coefficient of linear expansion and excellent dimensional stability and have a higher melting point than other synthetic fibers, meaning it can withstand processing at high temperatures. In terms of chemical properties, Teijin Tetoron is insoluble in most organic solvents, while in an alkaline aqueous solution there is no loss of strength from the surface as decomposition is uniform. Colors develop well and fibers remain colorfast through multiple wearings and washings; UV-resistant; highly weather-resistant, so degradation outdoors is minimal. Polyester fibers are the most commonly produced synthetic fiber in the world today.
34 35 Advanced Fibers and Composites - High-Performance Fibers Business Group Advanced Fibers and Composites - Carbon Fibers and Composites Business Group
◆ Sales configuration Advanced Fibers and Composites - Carbon Fibers and Composites Business Group ● Aramid fibers ◆ Subsidiaries and affiliates (As of March 2017) Equity Commissioned Company Location Business field held by the Twaron® Tires Group processing Rubber reinforcements ® 1. Toho Tenax Co., Ltd. Japan Tokyo Manufacture and sales of carbon fibers 99.75% Technora (includes processing Ropes of yarn, dyeing and ® Converters Friction materials 2. GH Craft Ltd. Japan Shizuoka Manufacture and sales of composites 99.15 Teijinconex weaving) Intermediate Protective clothing 3. Toho Tenax Europe GmbH Germany Land Nordrhein-Westfalen Manufacture and sales of carbon fibers 100 processors Geotextiles Finished product Plastic reinforcements 4. Toho Tenax America, Inc. U.S.A. Tennessee Manufacture and sales of carbon fibers 100 manufacturers Fire-resistant clothing 5. Diversified Structural Composites, Inc. U.S.A. Kentucky Manufacture and sales of composites Others Filters 6. Continental Structural Plastics Holdings Corporation U.S.A. Michigan Manufacture and sales of composites 100 Note: Equity held by Group includes equity held directly and indirectly by Teijin Limited.
● Composites Polyester fibers ◆ Business history Advanced Fibers and 1999.10 Acquired an equity stake in Toho Rayon Co., Ltd. (currently Toho Tenax Co., Ltd.) with the aim of entering the carbon fiber business Commissioned 2000. 2 Increased stake in Toho Rayon, making the company a consolidated subsidiary processing 2006. 9 Expanded manufacturing capacity of TENAX carbon fibers at Toho Tenax Europe GmbH (1,900 tons/year → 3,400 tons/year) Polyester filament yarn (includes processing 2007. 9 Made Toho Tenax Co., Ltd., a wholly owned subsidiary of yarn, dyeing and 2008. 4 Increased TENAX manufacturing capacity of Toho Tenax's Mishima Plant (3,700 tons/year → 6,400 tons/year) weaving) 2008. 5 Acquired U.S. firm Diversified Composites, Inc., a manufacturer of pultruded carbon fibers products (pultrusions) 2009. 8 Toho Tenax Europe GmbH completed its fourth production line, increasing annual production capacity (3,400 tons/year → 5,100 tons/year) Examples of apparel-related 2009.12 Toho Tenax America, Inc., revamped its third production line, increasing production capacity (2,000 tons/year → 2,400 tons/year) Converters customers: 2010. 9 Commenced production on fourth line at Toho Tenax Europe GmbH Intermediate Manufacturers of women's 2011. 4 Absorbed the Teijin Composites Innovation Center and changed its name to the Carbon Fibers and Composites Business Group processors apparel 2011.12 Established Teijin Advanced Composites America Inc. in the United States Manufacturers Manufacturers of men's apparel 2012. 6 Announced a development and marketing alliance with Hindoostan Technical Fabrics Limited, a major textiles company in India Sportswear manufacturers SPA (fast fashion) manufacturers 2012.12 Began operations at a new thermoplastic CFRP pilot plant within the Matsuyama Plant 2013. 5 Moved the Teijin Composites Innovation Center to the Matsuyama Plant 2013.11 Suspended production of carbon fibers at Toho Tenax America, Inc. 2014. 5 TENAX TPCL (thermoplastic consolidated laminates) were qualified for use in the Airbus A350 XWB as a primary structural material 2014.11 Sereebo thermoplastic CFRP was registered on General Motors's materials list Commissioned 2016. 1 Announced a 40% increase in manufacturing capacity of Pyromex oxidized PAN fibers at Toho Tenax America, Inc. Polyester staple fibers processing 2017. 1 Acquired Continental Structural Plastics Holdings Corporation, one of the global leaders in automotive lightweight composite technologies (spinning)
Examples of industrial customers: ◆ Production sites (As of March 2017) Manufacturers of interior Production Spinning companies decorating materials Principal products Location Company Form capacity Manufacturers of cotton Manufacturers of automotive (tons/year) Manufacturers of materials Carbon fibers TENAX® Japan Shizuoka Toho Tenax Regular-tow filament 6,400 nonwoven textiles Manufacturers of industrial Germany Heinsberg Toho Tenax Europe Regular-tow filament 5,100 Manufacturers of paper materials Total 11,500 Tire manufacturers ® Belt manufacturers Oxidized PAN fibers Pyromex Japan Gifu Toho Tenax Tow - U.S.A. Rockwood, TN Toho Tenax America Tow - Total - Composites U.S.A. Carey, OH Continental Structural Plastics Composites - Conneaut, OH Continental Structural Plastics Composites - North Baltimore, OH Continental Structural Plastics Composites - Van Wert, OH Continental Structural Plastics Composites - Grabill, IN Continental Structural Plastics Composites - Huntington, IN Continental Structural Plastics Composites - Newton, NC Continental Structural Plastics Composites - Salisbury, NC Continental Structural Plastics Composites - Sarepta, LA Continental Structural Plastics Composites - Mexico Tijuana, B.C Continental Structural Plastics Composites - Saltillo Continental Structural Plastics Composites - PRC Tangshan City CSP Victall Composites - Total -
36 37 Advanced Fibers and Composites - Carbon Fibers and Composites Business Group Advanced Fibers and Composites - Carbon Fibers and Composites Business Group
◆ R&D sites ◆ Characteristics of main products Company Location Carbon fibers / Oxidized PAN fibers Toho Tenax Japan Nagaizumi, Shizuoka Carbon fibers With a lower density than metal, coupled with high tensile strength, elasticity and resistance to fatigue and abrasion and TENAX® superb lubricity, TENAX carbon fibers are 10 times stronger than iron, but only one quarter the weight. TENAX Teijin Japan Matsuyama is also characterized by a low coefficient of thermal expansion and excellent dimensional stability—meaning minimal Toho Tenax Europe Germany Wuppertal mechanical deterioration at high temperatures and a low coefficient of thermal conductivity at ultralow temperatures—as Continental Structural Plastics U.S.A. Auburn Hills, MI well as excellent chemical stability, and is thus unaffected by acids, alkalis and various solvents. In terms of electrical and magnetic characteristics, TENAX is electroconductive and has electromagnetic shielding properties and outstanding X-ray Continental Structural Plastics France Pouancé transmissivity. Oxidized PAN fibers Pyromex oxidized polyacrylonitrile (PAN) fibers deliver outstanding flame resistance. Properties are not hampered by ◆ Product line and chemical formula Pyromex® high heat, with both gravity and dimensional stability remaining excellent. In addition to being durable, Pyromex is highly resistant to organic solvents, weak acid and weak alkali. Pyromex can also withstand strong acid and strong alkali for short ● Carbon fibers TENAX®, Oxidized PAN fibers Pyromex® periods. Further, because it is an organic fiber, it offers excellent physical properties—including textile processability and (Product line) drape—not found in inorganic fibers.
Composites Composites Acrylonitrile Composites refer to engineered materials made from two or more types of constituent materials with different properties, signifying materials with properties and performance exceeding those of their individual constituents. Fiber reinforced plastics (FRP), which combine plastics with advanced fiber, Advanced Fibers and Polymer Spinning/washing Precursor are well known. Various properties can be imparted to FRP depending on the type of fiber and plastic used, making it possible to provide an expansive Comonomer Polymerrization solution /finishing (*) range of solutions tailored to customer needs. Numerous benefits can be derived by using FRP instead of metal, including weight-reduction, higher strength, greater flexibility in shape, and shorter manufacturing processes. （ ） Solvent ZnCl2 Carbon Fiber Plastics reinforced with carbon fiber. They are strong yet light composites made by reinforcing and adding strength to Reinforced Plastics plastics, which are generally light but have a low elastic modulus, with carbon fiber, which has a high elastic modulus. Toho Tenax (Shizuoka, Japan) (CFRP) CFRP are lighter, as well as stronger and more elastic, than other materials such as iron and aluminum, but are generally more expensive. Conventionally, CFRP has been used mainly in aircraft, sports applications such as fishing rods and bicycles, and wind turbine blades. However, as a result of advances in various intermediate materials based on carbon 250-300°C 1,000-1,500°C fiber and technological development in molding methods, CFRP are expected to be used in mass-produced automobiles in in air in inactive gas the near future. Thermal Surface processing Precursor Carbonization TENAX® Glass Fiber Plastics reinforced with glass fiber. They are strong yet light composites made by reinforcing and adding strength to processing /sizing Reinforced Plastics plastics, which are generally light but have a low elastic modulus, with glass fiber, which has a high elastic modulus. GFRP (GFRP) fall short of CFRP in terms of strength and light-weight properties. On the other hand, GFRP are relatively inexpensive, but Toho Tenax (Shizuoka, Japan) still offer outstanding light-weight properties and durability. For this reason, GFRP is used in the hulls of small watercraft, housing equipment such as modular baths and wastewater treatment tanks, and, in recent years, as interior and exterior Toho Tenax Europe (Heinsberg, Germany) finishing materials for automobiles and railcars. Thermal processing Pyromex® 250-300°C in air * Differences between regular-tow and large-tow carbon fibers Toho Tenax (Gifu, Japan) Regular-tow Large-tow
Toho Tenax America (Rockwood, TN, U.S.A.) Number of filaments Up to 24,000 More than 40,000 Major areas of use Aircraft and aerospace, sports and leisure, industrial materials Industrial materials (chopped) * Precursor: The raw fibers from which carbon fibers are made. Toho Tenax uses acrylic precursor fibers with a different copolymer composition than those used for apparel. Pitch, rayon and other fibers are also used, but acrylic is the most suitable in terms of quality. Characteristics High-performance, easy to handle Low price * Toho Tenax produces precursors and regular-tow carbon fibers and oxidized PAN fibers. Toho Tenax Europe produces regular-tow carbon fibers. Toho Tenax Note: Large-tow carbon fibers are also increasingly chosen for wind power and other industrial applications, as well as for golf club shafts and other sports and leisure America produces oxidized PAN fibers. equipment applications.
38 39 Advanced Fibers and Composites - Carbon Fibers and Composites Business Group Advanced Fibers and Composites - Carbon Fibers and Composites Business Group
◆ Development of applications for principal products ◆ Sales configuration ● Carbon fibers TENAX® Toho Tenax Field Category Application
Aerospace Aircraft Primary structural material: main wings, tail units, fuselages (Teijin Group） (Customer) Pressure vessels Secondary structural material: ailerons, rudders, elevators manufacturers Interior material: floor panels, beams, lavatory Golf club shaft Fabricators Yarn manufacturers Rockets Nozzle cones, motor cases (filament winding) Propeller shaft Satellites Antennas, solar battery panels, tube truss structural materials manufacturers Sports Fishing equipment Fishing rods, reels Woven fabric Aircraft components Yarn processors Woven fabric prepreg Golf clubs Shafts, heads, face, shoes manufacturers manufacturers Rackets Tennis, badminton, squash Prepreggers Composite Bicycles Frames, wheels, handle bars manufacturers Marine Sailboats, cruisers, racing boats, masts Others Baseball bats, skis, ski poles, Kendo swords, Japanese and Western bows, Personal computer radio-controlled model cars, table tennis and billiard equipment, ice hockey stick manufacturers Chopped fibers Resin manufacturers Camera manufacturers Composites Industrial materials Automobiles Propeller shafts, racing cars, CNG tanks, spoiler, bonnet hood Industrial materials Motorcycles Racing cowls, muffler covers manufacturers Advanced Fibers and Cars and containers Train car bodies, linear motorcar bodies, seats Machinery parts Fiber parts, plate blades, robot arms, bearings, gears, cams, bearing retainers Sports equipment manufacturers Prepreg High-speed rotors Centrifugal separator rotors, uranium enrichment cylinders, flywheels, industrial rollers, shafts Golf club shaft Electric / Electronic parts Parabola antennas, audio speakers, VTR parts, CD parts, IC carriers manufacturers Wind power Blades, nacelles Aircraft components Pressure vessels Hydraulic cylinders, gas cylinders manufacturers Submarine oilfield digging Raiser, tethers Automobile parts manufacturers Deep-sea probes Secondary cables Composites Machinery manufacturers Chemical equipment Agitating vanes, pipes, tanks Medical equipment manufacturers Medical equipment Top plates, cassettes, X-ray grid, operation device parts, wheelchairs Construction Cables, concrete reinforcement material Office equipment Printer bearings, cams, housi Precision equipment Camera parts, plant parts Continental Structural Plastics Corrosion resistant equipment Pump parts, plant parts Others Resin dyes, umbrellas, helmets, sheet heating element, spectacle frames (Teijins Group)
● Oxidized PAN fibers Pyromex® Design Components Automobile manufacturers composites Field Category Application Fiber manufacturers Watercraft manufacturers Molding and Sale Industrial materials Thermoresistant/protective materials Insulation processing Aircraft Aircraft brake materials Resin manufacturers Electric / Electronic parts Graphite felt for NAS batteries Fuel cells Gas diffusion layers (GDL)
Filaments: Elongated strands made with 1,000, 3,000, 6,000, 12,000 and 24,000 fibers; twisted and untwisted varieties available. ● Composites Chopped fibers: Carbon fibers bundled using a sizing agent and chopped into designated lengths. Field Category Application Textiles: Filament textile; plain, twill and satin weave are available. Industrial materials Automobiles Exterior panel components and structural components Prepreg: Acronym for preimpregnated material; an intermediate sheet material made from carbon fibers impregnated with a thermoset Watercraft Outboard motors polymer, prepreg ensures stable quality for molded products and is therefore suited to automated laminating. Others Wind turbine blades, civil engineering materials and camera housings
40 41 Electronics Materials and Performance Polymer Products Electronics Materials and Performance Polymer Products - Plastics Business Group
Overview of operating results ◆ Business history Millions of yen 1959.10 Established commercial production technology for Panlite polycarbonate resin 1960.11 Started manufacturing Panlite polycarbonate resin at Teijin Chemicals Limited's Matsuyama Factory 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 1968. 7 Began full-scale marketing of glass fiber-reinforced PET FR-PET( ) resin Sales ¥221,840 ¥181,226 ¥184,297 ¥189,276 ¥167,452 ¥138,018 1973. 9 Started production of PBT resin at Iwakuni Factory of Teijin Chemicals Limited (currently Iwakuni Factory of WinTech Polymer) Net sales to external customers 215,376 175,538 179,446 184,767 163,699 134,422 1973.10 Began production of PC/ABS polymer alloy MULTILON Intersegment net sales or transfer amounts 6,464 5,688 4,851 4,509 3,753 3,596 1976.10 Started manufacturing polycarbonate sheet Panlite sheet 1982.10 Started marketing optical-grade Panlite for compact discs Operating income (loss) 3,733 (1,921) (7,218) 3,402 22,298 18,481 1993. 6 Plastics Technical Center was established in Chiba City Segment asset 169,701 167,485 157,913 151,978 134,113 140,822 1997. 6 Established Teijin Polycarbonate Singapore Pte Ltd. to manufacture and market polycarbonate resin Depreciation 10,946 9,018 9,985 8,154 4,981 4,067 1999.10 Started manufacturing polycarbonate resin at Teijin Polycarbonate Singapore Pte Ltd. (60,000 tons/year) Amortization of goodwill 132 190 190 95 － － 2000.12 Increased manufacturing capacity of polycarbonate resin at Teijin Polycarbonate Singapore Pte Ltd. (60,000 tons/year → 80,000 tons/year) 2001. 1 Started operations of WinTech Polymer (established to integrate PBT resin and glass fiber-reinforced PET resin businesses with operations Investments in associates accounted for using equity method 10,619 11,811 16,658 21,694 21,131 17,197 of Polyplastics Co., Ltd.) Capital expenditure 4,427 4,019 2,638 1,676 2,505 3,588 2001. 4 Transferred the PET and PEN resin businesses of Teijin to Teijin Chemicals Limited 2001. 7 Increased manufacturing capacity of polycarbonate resin at Teijin Polycarbonate Singapore Pte Ltd. (80,000 tons/year → 130,000 tons/year) 2002. 7 Established Teijin Chemicals Plastic Compounds (Shanghai) Ltd. 2002.12 Increased manufacturing capacity of polycarbonate resin at Teijin Polycarbonate Singapore Pte Ltd. (130,000 tons/year → 180,000 tons/year) Electronics Materials and Performance Polymer Products - Plastics Business Group 2003. 3 Established Teijin Polycarbonate China Ltd. ◆ Subsidiaries and affiliates (As of March 2017) 2003. 8 Started operations of Teijin Chemicals Plastic Compounds (Shanghai) Ltd. 2003. 8 Transferred Metton business to RIMTEC, a joint venture with ZEON Corporation Equity Company Location Business field held by the 2003.10 Introduced one of the largest injection press molding machines in the world (clamp capacity: 3,400 tons) at the Plastics Technical Center Group 2004. 4 Started marketing of PET resin recycled from used PET bottles with "Bottle to Bottle" technology 2004. 8 Increased manufacturing capacity of polycarbonate resin at Teijin Polycarbonate Singapore Pte Ltd. (+20,000tons/year) 1. Hiroshima Plastic Limited Japan Hiroshima Manufacture and sales of plastic molds 100%
2005. 4 Started operations of Teijin Polycarbonate China Ltd. (50,000tons/year) Electronics Materials and 2. Teiyo Co., Ltd. Japan Hiroshima Manufacture and sales of extrusion products 100 2005. 7 Installed additional polycarbonate sheet extrusion equipment Performance Polymer Products 3. Kinkai Chemical Co., Ltd. Japan Okayama Manufacture and sale of brominated flame retardants 99 2005.10 Completed second phase of construction at Teijin Chemicals Plastic Compounds (Shanghai) Ltd.'s compounding plant and commenced and fine chemicals intermediates operations (43,000 tons/year) 2006. 3 Commenced operation of next-generation high-precision optical film extrusion equipment 4. Teijin Polycarbonate China Ltd. PRC Zhejiang Manufacture of polycarbonate resin, etc. 100 2006. 4 Established Teijin Kasei Malaysia Sdn. Bhd. 5. Teijin Chemicals Plastic Compounds PRC Shanghai Manufacture of polycarbonate resin compounds 100 2006. 6 Established Shenzhen Teijin Kasei Trading Co., Ltd. Shanghai Ltd. 2006.10 Completed world-class, ultralarge two-color injection press mold 6. Teijin Corporation (Thailand) Limited Thailand Bangkok Manufacture of polycarbonate resin, etc. 100 2006.12 Increased manufacturing capacity of polycarbonate resin at Teijin Polycarbpnate China Ltd. (50,000 tons/year → 100,000 tons/year) 7. Initz Co., Ltd. ROK Ulsan Manufacture and sales of polyphenylene sulfide (PPS) 34 2007.11 Expanded polycarbonate resin compounds manufacturing capacity of Teijin Chemicals Plastic Compounds Shanghai Ltd. in Shanghai, → resins and compounds PRC (43,000 tons/year 63,000 tons/year) 2008.10 Completed expansion of production facilities for clear electroconductive film (capacity: 1.2 million m2-plus/year) Note: Equity held by the Group includes equity held directly and indirectly by Teijin Limited. 2008.12 Increased annual production capacity of Teijin Polycarbonate China Ltd., thereby expanding total production capacity for polycarbonate resin (100,000 tons/year → 130,000 tons/year） 2009. 8 Increased annual production capacity of Teijin Chemicals Plastic Compounds Shanghai Ltd. (63,000 tons/year → 102,000 tons/year) 2010. 4 Opened China Business Management Office to increase the efficiency of polycarbonate resins business in the PRC 2011. 4 Shifted domestic PET resin for bottles operations to MCT PET Resin Co., Ltd., a joint venture with Mitsui Chemicals, Inc. 2011. 9 Teijin Polycarbonate China Ltd. expanded annual production capacity for polycarbonate resin (130,000 tons/year → 150,000 tons/year) 2013. 4 Merged Teijin Chemicals Limited into Teijin Limited 2013. 9 Established joint venture Initz Co., Ltd. with SK Chemicals Ltd. to start polyphenylene sulfide (PPS) resins business 2014. 3 Started to sales of polycarbonate resin in Teijin Corporation (Thailand) Limited 2015.12 Halted production of polycarbonate resin at Teijin Polycarbonate Singapore Pte Ltd.
◆ Production sites (As of March 2017) Production Principal products Location Company Form capacity (tons/year) PC resin PC resin Japan Matsuyama Teijin Polymer 125,000 (Polycarbonate resin) Panlite® PRC Jiaxing Teijin Polycarbonate China Polymer 150,000 Multilon® Polymer Total 275,000 Japan Mihara Teijin Compounds － PRC Shanghai Teijin Chemicals Plastic Compounds 102,000 Compounds Shanghai PC film* PURE-ACE® Japan Matsuyama Teijin Films － 1.2 million ELECLEAR® Japan Mihara Teijin Films (m2-plus/year) PC sheet* Japan Matsuyama Teijin Sheets 16,100 Panlite® PEN resin Teonex® Japan Tokuyama Teijin Polymer － (Polyethylene naphthalate resin) * Among the above, PC sheet and film products are manufactured by the Plastics Business Group and sold by the Films Business Group.
42 43 Electronics Materials and Performance Polymer Products - Plastics Business Group Electronics Materials and Performance Polymer Products - Plastics Business Group
◆ R&D sites ◆ Development of applications for principal products Company Location Fields Category Applications Teijin Japan Matsuyama, Ehime PC resin Optical Optical lenses Camera lenses for smartphone, lenses for onboard vehicle cameras and eyeglasses ® Mihara, Hiroshima Panlite Other Blu-Ray Discs, DVDs Multilon® Chiba Industrial Electric and electric Exterior parts of LED lamp, personal computers, audiovisual devices, digital cameras Teijin Chemicals Plastic Compounds Shanghai PRC Shanghai equipment OA equipment Exterior parts and mechanism elements of OA equipment, optical chassis of printers Automotive Windows for automobiles and rail vehicles, external parts of automotive vehicles, such as ◆ Product line and chemical formula headlamp lenses and door handles Other Traffic light lenses, external parts of electrical equipment ● PC resin PEN resin Medical equipment, fire extinguisher, plates for schuul lunch boxes, cosmetic container (Product line) Teonex® Refining/ Carbon monoxide Reaction Carbonyl chloride Reaction Polycarbonate distillation/ Panlite® PET resin Cosmetics containers, food containers, sheet materials drying/extrusion * See page 49 for development of applications for PC sheet and film, transparent electroconductive film. Chlorine
◆ Sales configuration Bisphenol A
Teijin (Matsuyama, Japan) (Teijin Group) Customers
® Electronic/electrical components manufacturers
Panlite Electronics Materials and Teijin Polycarbonate China (Jiaxing, the PRC) PC resin Automobile parts manufacturers Performance Polymer Products PC sheet manufacturers (Chemical formula) Molding/processing firms
CH3 ® ® O C O C Panlite , Multilon Automobiles parts manufacturers Compounds Electronic/electrical components manufacturers O CH 3 OA equipment manufacturers n Teijin (Mihara, Japan) Molding/processing firms Othe industrial parts manufacturers Teijin Chemicals Plastic Compounds Shanghai LC materials manufacturers ◆ Characteristics of main products Panlite® Sheet and film Automobiles parts manufacturers Sheet and film* Building materials manufacturers Polycarbonate (PC) resin: With the largest market of any of the five key engineering plastics, polycarbonatte has outstanding transparency, impact Teijin (Matsuyama, Japan) Processing firms Household products manufacturers resistance, dimensional stability and strength and is used in OA equipment, automotive parts and osther large items. Polyethylene teraphthalate (PET) resin: PET resin boasts excellent transparency, gas-barrier properties and mechanical strength and is used widely in ELECLEAR® Transparent Touch screen manufacturers plastic bottles. electroconductive film* Polyethylene naphthalate (PEN) resin: PEN resin is superior to PET resin in terms of heat deflection temperature and strength and is popular for use in Teijin (Mihara, Japan) food containers and medical equipment. Molded plastic Automobiles parts manufacturers PC resin Impact properties Highest impact strength of all plastics, 200 times superior to glass Operarional temperature range Stable properties throughout a wide temperature range (-100°C to +129°C) Tranparency Excellent properties for optical use, as transparent as glass * Among the above, PC sheet and film, transparent electroconductive film are manufactured by the Plastics Business Group and sold by the Films Business Group. Flame resistance Good resistance against flames Dimensional stability Good creep characteristics, resulting in minimal dimensional changes under temperature and humidity differences, and over time Electrical properties Excellent insulation properties over a wide temperature range PET resin Gas barrier properties Outstanding transparency and hygienic properties PEN resin Tranparency Transparency and superior UV shielding properties, ensuring contents are protected Operational temperature range High heat deflection temperature and superb heat resistance Gas and moisture transmissivity Extremely low gas and moisture transmissivity Chemical and hydrolysis resistance Superb resistance to organic solvents and chemcials Zero flavor adsorption and repels dirt
44 45 Electronics Materials and Performance Polymer Products - Films Business Group Electronics Materials and Performance Polymer Products - Films Business Group
Electronics Materials and Performance Polymer Products - Films Business Group ◆ R&D sites Company Location ◆ Subsidiaries and affiliates (As of March 2017) Teijin Japan Matsuyama, Ehime Equity Mihara, Hiroshima Company Location Business field held by the Anpachi, Gifu Group Teijin Film Solutions Japan Anpachi, Gifu 1. Teijin Film Solutions Limited Japan Tokyo Manufacture, processing and sales of PET film 100% 2. P.T. Indonesia Teijin Film Solutions Indonesia Tangerang Manufacture and sales of PET film 100 Note: Equity held by Group includes equity held directly and indirectly by Teijin Limited. ◆ Product line and chemical formula ◆ Business history 1957. 1 Teijin and Toray Industries, Inc., obtained license to introduce production technologies for polyester fibers and films from ICI of the United Kingdom ● PET Films Ethlene 1968. 3 Teijin Konishiroku Films, a joint venture with Konishiroku, started production of PET films at Sagamihara Factory Biaxial glycol Exturding Casting 1971. 8 Commenced operations at Gifu Factory and began production of Tetoron film (Product line) stretching 1985. 8 Commenced operations at Utsunomiya Factory and began production of Tetoron film 1990. 5 Began production of Teonex PEN films 1990.11 Launched Purex (high-performance processed films) business Dimethyl Polyethylene Para xylene Polymerrization 1991.10 Established joint-venture companies in Europe and the United States with DuPont of the United States to manufacture and market polyester film terephtalate terephthalate Rolling Slitting PET film 1995. 3 Closed down the factory of Teijin Sagamihara Films Limited 1996. 3 Established P.T. Indonesia Teijin Films (currently P.T. Indonesia Teijin Film Solutions) to manufacture and market Tetoron film Terephthalic 1996. 4 Teonex film adopted for use in APS (Advanced Photo System) acid 2000. 1 Polyester film joint venture with DuPont launched operations in seven countries Teijin Film Solutions (Utsunomiya, Japan)
2000. 8 Boosted annual production capacity of Teonex film to 3,000 tons/year Electronics Materials and
2003. 3 Established a recycling system for commuter passes with the aim of realizing "Film to Film" recycling P.T. Indonesia Teijin Film Solutions Performance Polymer Products 2003. 4 Transferred R&D facilities and functions of Teijin DuPont Films Japan Limited from Sagamihara to Gifu Factory (Tangerang, Indonesia） 2004. 4 Remodeled production equipment at Utsunomiya Factory and boosted production capacity of Teonex film (Chemical formula) 2004. 7 Installed new production line for coated processed films at Utsunomiya Factory and started commercial operations 2006. 9 Teijin DuPont Films Japan Limited established and began operations at Taiwan sales company TDFJ Taiwan Limited 2007. 1 Completed production facilities for clear, thick film at the Gifu Factory and commenced commercial production 2008. 4 Posted a representative in Shanghai, PRC 2008. 7 Opened a branch of Teijin DuPont Fiilms Japan Limited in Seoul, the ROK 2009. 2 Closed plant in Circleville, Ohio, the United States 2010. 1 Posted a representative in Shenzhen, PRC ● Processed Films 2010. 4 Converted one film production line at the Utsunomiya Factory to thick PET and PEN film, expanding overall production capacity for thick film Processed PET Film Processing 2011. 2 Completed phased closure of plant in Florence, South Carolina, the United States Film 2012. 7 Transformed Seoul Branch into local subsidiary, Teijin DuPont Films Korea Limited, in Seoul, the ROK, and commenced operations at the company 2012.10 Merged Teijin Films Limited into Teijin Limited 2013.12 Suspended production at Ibaraki Factory Teijin Film Solutions (Utsunomiya, Japan) 2016. 9 Formed Teijin Film Solutions Limited by dissolving the joint venture arrangement with DuPont Kabushiki Kaisha for Teijin DuPont Films Japan Limited and making the company a wholly owned subsidiary Suspended production at Gifu Factory Dissolved Teijin DuPont Films Korea Limited ● PEN Films 2017. 1 Formed P.T. Indonesia Teijin Film Solutions by dissolving the joint venture arrangement with E.I. du Pont de Nemours and Company “( DuPont”), U.S.A., for P.T. Indonesia Teijin DuPont Films and making the company a wholly owned subsidiary 2017. 3 Dissolved Film Products Co., Ltd., Gifu, Japan
* Teonex ◆ Production sites (As of March 2017) Production capacity Principal products Location Company Teijin (Matsuyama, Japan) Teijin Film Solutions (Utsunomiya, Japan) (tons/year) PET film Tetoron® film Japan Utsunomiya, Tochigi Teijin Film Solutions 30,000(*) ® Teflex film Indonesia Tangerang P.T. Indonesia Teijin Film Solutions 10,000 * 2-6 dimethyl Naphthalate dicarboxylate Total 40,000 Processed film Japan Utsunomiya, Tochigi Teijin Film Solutions － Purex® film Low heat shrinkable film Coated film PEN film Teonex® film Japan Utsunomiya, Tochigi Teijin Film Solutions (*) * Including PEN film
46 47 Electronics Materials and Performance Polymer Products - Films Business Group Electronics Materials and Performance Polymer Products - Films Business Group
● PEN Films * Production Process for Films Application Category Details PET film and PEN film are plastic films made from, respectively, polyethylene terephthalate (PET) and polyethylene naphthalate (PEN), which has Teonex® film Magnetic Magnetic disc memory High-density data storage tape, digital video cassettes (DVC) been biaxially stretched. The biaxial stretching process uses orthogonal drawing and heat setting to orient the molecules and crystallize the film, Industrial Electrical insulating materials, various Flexible printing circuits
Processed Films Electronics Materials and Rolling Characteristics Details Performance Polymer Products Slitting Mold releasing film PET film with silicon release Various processing and releasing films (ceramic capacitors, LCD-related Purex® film polarizing plates) Semiconductor materials Medical applications (percutaneous treatment), cosmetics Special adhesives Small heat-resistant capacitors film PET film with superior high FPCs, RFID cards, IC cards temperature stability Various coating materials Transparent conductive film (PET, PC) A structure consisting of Various touch panels (vehicle navigation system, game hardware, factory Packa g in g Shipping To Warehouse ELECLEAR® hard-coat, undercoat and automation, printers, digital cameras), Flexible display ITO (indium tin oxide) layers overlaid onto a PC or PET film ◆ Characteristics of main products PET film PET film is a basic material that boasts outstanding mechanical properties, dimensional stability, transparency, optical properties and chemical resistance, enabling it to deliver excellent cost performance. ◆ Sales configuration PEN film PEN film is a well-balanced high-performance film that combines superior strength, resistance to heat and hydrolysis, dimensional stability, low oligomer extraction and other properties and excellent cost performance and is as easy to use as PET film. (Teijins Group) (Customer) Magnetic madeia manufacturers ◆ Electronic components manufacturers Development of applications for principal products Electrical components manufacturers ● PET Films Film roll Processed Films Automobile parts manufacturers Application Category Details Can manufacturers PET film Industrial Electric/Electronic Display materials (LCD-related, plasma display, organic EL) Processing contractors Printers Pachaging materials manufacturers Tetoron® film Flexible printed Circuits (FPCs), printed circuit boards (DFRs), Teflex® film Various electrical insulating materials, ceramic capacitors, membrane switches, various touch panels, various coating materials Mold releasing Various processing materials and adhesive releasing materials Panlite® Sheet and film LC materials manufacturers PC resin Sheet and film* Cards/Labels Various cards(IC cards, ID cards, RFID cards, magnetic cards), labels Automobiles parts manufacturers Building materials manufacturers Automotive Automotive interior and exterior materials, electrical insulating materials, Teijin (Matsuyama, Japan) Processing firms automotive electronics, window glass interlayers Household products manufacturers Printing/Imaging Receiver paper, printing and photosensitive paper, thermal ribbons, Transparent various printing substrates Touch screen manufacturers electroconductive film* ® Photography Processing materials, X-ray film ELLECLEAR Teijin (Mihara, Japan) Agriculture/Building materials Agricultural plastic houses, building materials Various Tinsel, window film, heat wire reflection film, explosion-protection film Packaging Food packaging Laminating film for beverage and food cans, shrink wrap, retort pouches, environment-friendly plastic tray materials * Among the above, PC sheet and film, and transparent conductive film are manufactured by the Resin & Plastic Processing Business Unit and sold by the Films General packaging General packaging for commodities Business Unit
48 49 Healthcare Healthcare
◆ Business history Overview of operating results ● Pharmaceuticals Millions of yen 1968. 5 Studies began at the Future Business Division 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 1972. 8 Invested in Teysan Pharmaceuticals Co., Ltd. (current name) Sales ¥143,000 ¥138,334 ¥138,415 ¥141,723 ¥147,501 ¥147,537 1973. 8 Teijin Fher Medical Co., Ltd., jointly established with Germany's Boehringer Ingelheim Net sales to external customers 143,000 138,334 138,415 141,723 147,501 147,537 1974. 7 Established the Teijin Institute for Bio-Medical Research (Hino, Tokyo) Intersegment net sales or transfer amounts 0 0 0 0 0 0 1974.10 Development partnership formed with The Chemo-Sero-Therapeutic Research Institute Operating income 25,913 24,808 24,529 24,829 28,802 27,557 1978. 3 Established Teijin Pharmaceutical Co., Ltd. (dissolved Teijin Fher Medical) Segment asset 97,909 104,509 124,753 147,931 144,990 147,351 1978. 5 Started marketing alliance with Fujisawa Pharmaceutical Co., Ltd. Depreciation 7,921 8,454 9,789 10,935 11,524 12,180 1980. 2 Started marketing Venilon (freeze-dried sulfonated human immunoglobulin), and Laxoberon (laxative) Amortization of goodwill 1,970 1,464 1,116 763 364 49 1981. 1 Started marketing Onealfa (activated vitamin D3) Investments in associates accounted for using equity method 569 931 879 1,062 1,157 2,029 1983.10 Teijin Pharmaceutical absorbed by Teijin Capital expenditure 11,332 11,680 12,545 11,232 13,793 11,677 1984. 3 Started marketing Mucosolvan (expectorant) 1994. 2 Opened New Pharmaceutical Research Center Business summary 1996.10 Started independent sales of drugs in Japan 2000. 5 Established clinical development base within Teijin America, Inc. ◆ Subsidiaries and affiliates (As of March 2017) 2001. 8 Started marketing Bonalon Tablets (5mg) (treatment for osteoporosis) Equity 2003.10 Spun off Teijin's pharmaceutical and medical business as a separate company named Teijin Pharma Limited following the introduction of the Company Location Business field held by the holding company system Group 2009. 3 U.S. licensee Takeda Pharmaceuticals North America, Inc. –a wholly-owned subsidiary of Japan's Takeda Pharmaceuticals Company 1. Teijin Pharma Limited Japan Tokyo Research, manufacture and sales (provide) of 100% Limted– commenced sales of hyperuricemia and gout treatment febuxostat in the Unted States under the name ULORIC pharmaceuticals and durable medical equipment (DME) for 2010. 3 Commenced sales of hyperuricemia and gout treatment ADENURIC (febuxostat) in Europe home healthcare 2011. 5 Commenced sales of hyperuricemia and gout treatment Feburic (febuxostat) in Japan 2. Teijin Home Healthcare Limited Japan Tokyo Provider of DME for home healthcare 100 2012. 5 Launched Bonalon Bag for I.V. Infusion 900μ, Japan's first intravenous drip-form treatment for osteoporosis 3. Teysan Pharmaceuticals Co., Ltd. Japan Tokyo Manufactures of pharmaceuticals 99 2012. 9 Concluded licensing agreement with Pulmagen Therapeutics (Asthma) Limited, gaining exclusive rights to develop, manufacture and market Healthcare 4. Sleep Medical Service Ltd. Japan Tokyo Establishment of and support for management of 100 ADC3680, a bronchial asthma therapeutic discovered by Pulmagen, in Japan sleep clinics. 2013. 1 Commenced sales of Somatuline subcutaneous injection, for the treatment of acromegaly and pituitary gigantism, in Japan 5. Teijin America, Inc. U.S.A. New York Research for pharmaceuticals 100 2013. 3 Launched Bonalon Jelly 35 mg, world's first drug for osteoporosis in jelly form 6. Associated Healthcare Systems, Inc. *1 U.S.A. New York Provider of DME for home healthcare 100 2013. 7 Concluded a collaborative research contact and an R&D, production an marketing option agreement with Amgen Inc. of the United States for 7. Braden Partners L.P. *1 U.S.A. California Provider of DME for home healthcare 100 novel treatments for autoimmune diseases 8. Home Therapy Equipment *1 U.S.A. New York Provider of DME for home healthcare 100 2014. 5 Concluded licensing agreement with Sigma-Tau Pharma Ltd. (currently Sigma-Tau Rare Disease Ltd.) of the United Kingdom, gaining 9. YUYU TEIJIN MDICARE Inc. ROK Seoul Provider of DME for home healthcare 50 exclusive rights to develop and market EZN-2279, a therapeutic agent for adenosine deaminase (ADA) deficiency, in Japan 10. Esteve Teijin Healthcare S.L. Spain Catalunya Provider of DME for home healthcare 50 2015. 7 Commenced sales of Mucosolvan L tablet 45 mg, a sustained-release expectorant Note: 1. Teijin Limited withdrew from the home healthcare business in the U.S. by selling its entire equity interest in each company in April 2017. 2015. 9 Agreed with PeptiDream Inc. to jointly research and develop macrocyclic and constrained peptides 2. Equity held by the Group includes equity held directly and indirectly by Teijin Limited. 2015.10 Started operation of the Technology Integrated Pharmaceutics Center at the Iwakuni Plant 2016. 1 Launched LOQOA Tape, a transdermal anti-inflammatory analgesic patch formulation 2016. 8 Signed an exclusive license and supply agreement with Versartis, Inc. for the development and marketing of Somavaratan (VRS-317), a novel, potential long-acting form of recombinant growth hormone (rhGH), in Japan 2017. 5 Entered into an exclusive worldwide license agreement with Merck & Co., Inc., U.S.A., for the development, manufacture and commercialization of an investigational antibody candidate targeting tau, for a possible new treatment of Alzheimer’s disease Notes: 1. Bonalon® is the registered trademark of Merck Sharp & Dohme Corp., Whitehouse Station, NJ, U.S.A. 2. Somatuline® is the registered trademark of Ipsen Pharma, Paris, France.
50 51 Healthcare Healthcare
● Home healthcare ◆ Business network (As of March 2017) 1971. - Research started on oxygen enrichment membranes at Teijin Limited ● Pharmaceuticals sales network Number of regional 1982.10 Started Home Oxygen Therapy (HOT) business Branch City Prefecture offices 1982.11 Established the Iwakuni Medical Factory 1. Sapporo Branch Sapporo Hokkaido 4 1985. 3 Health insurance coverage introduced for HOT 2. Sendai Branch Sendai Miyagi 6 1993. 4 Established a sales company (six sales companies were established through 1997). 3. Takasaki Branch Takasaki Gunma 5 4. Chiba/Saitama Branch Chiba / Saitama Chiba / Saitama 5 1997. 4 Established the Bio-medical Engineering Laboratories 5. Tokyo Branch Bunkyo-ku Tokyo 8 1998. 1 Started Noninvasive Positive Pressure Ventilator (NPPV) business 6. Kanagawa Branch Yokohama Kanagawa 4 1998. 6 Launched the SAFHS business (SAFHS: an ultrasound device for the accelerated healing of certain fractures) 7. Nagoya Branch Nagoya Aichi 7 1999.10 Established visiting nurse station in Osaka, the first of six nationwide 8. Kyoto Branch Kyoto Kyoto 6 9. Osaka Branch Osaka Osaka 9 2000. 6 Launched the CPAP respirator business (continuous positive airway pressure (CPAP) respirator for the treatment of sleep apnea syndrome (SAS)) 10. Hiroshima Branch Hiroshima Hiroshima 5 11. Matsuyama Branch Matsuyama Ehime 3 2005. 3 Fujisawa agreeed to contract out maintenance and management of HOT equipment for patients to Teijin Pharma 12. Fukuoka Branch Fukuoka Fukuoka 8 2006. 4 Six companies merge and restart operations as Teijin Home Healthcare Limited 70 2006.10 Established YUYU Teijin Medicare Inc., a joint venture with YUYU Inc. of the ROK Distribution centers City Prefecture 2008. 1 Acquired New York-based home health care services firm Associated Healthcare Systems Inc., which became a wholly owned subsidiary 1. Tokyo Distribution Center Koto-ku Tokyo 2008. 6 Acquired Braden Partners L.P., a leading U.S. provider of home oxygen and respiratory therapy medications and equipment, making the 2. Hiroshima Distribution Center Hiroshima Hiroshima company a wholly owned subsidiary 2009. 2 Established Esteve Teijin Healthcare S.L.—a joint venture with leading Spanish pharmaceuticals manufacturer Laboratorios del Dr.Esteve S.A.—to oversee HOT business in Europe ● Home healthcare sales network Number of regional 2010. 7 Commenced rentals of Hi-Sanso 7R, an energy-efficient home-use therapeutic oxygen concentrator featuring a system that monitors Sales subsidiaries City Prefecture operating conditions and detects anomalies around the clock offices 1. Sapporo Branch Sapporo Hokkaido 1 2012. 3 Commenced rentals of NIP NASAL V, a general-purpose bilevel noninvasive positive pressure ventilator (NPPV) 2. Sendai Branch Sendai Miyagi 4 2012. 4 Launched NemLink, Japan's first monitoring system that uses mobile phone networks 3. Takasaki Branch Takasaki Gunma 6 2013. 1 Commenced rentals of Hi-Sanso Portable α, a portable oxygen concentrator 4. Chiba/Saitama Branch Chiba / Saitama Chiba / Saitama 4 Healthcare 2013. 4 Commenced rentals of WalkAide System, a neuromuscular electrical stimulation device for treatment of gait impairment 5. Tokyo Branch Bunkyo-ku Tokyo 9 6. Kanagawa Branch Yokohama Kanagawa 4 2014. 6 Commenced rentals of Sanso Saver 5, a respiration-synchronized demand valve device, and Hi-Sanso 5S, a therapeutic oxygen concentrator for HOT, which help resolve concerns and inconvenience for patients in the event of a major disaster or power failure 7. Nagoya Branch Nagoya Aichi 8 8. Kyoto Branch Kyoto Kyoto 4 2015. 2 Commenced rentals of AutoSet CS-A Type TJ mask-type bilevel positive pressure ventilators 9. Osaka Branch Osaka Osaka 10 2015. 9 Commenced sales of VitalLink, a patient information sharing system 10. Hiroshima Branch Hiroshima Hiroshima 5 2016. 1 Commenced rentals of SLEEPMATE10, a state-of-the-art device for the treatment of sleep apnea syndrome (SAS) 11. Matsuyama Branch Matsuyama Ehime 3 12. Fukuoka Branch Fukuoka Fukuoka 7 2016.11 Commenced sales of ReoGo-J, a portable robotic arm that supports the rehabilitation of paralyzed upper limbs due to stroke 65 2017. 4 ithdrew from the U.S. home healthcare business by selling Teijin Limited’s entire equity interest in Braden Partners, L.P. and Associated Healthcare Systems, Inc. Service center City Prefecture Technical Service Center Anpachi Gifu
◆ R&D sites Company Location Teijin Pharma Japan Hino, Tokyo Iwakuni, Yamaguchi Teijin America U.S.A. New York
◆ Sales of principal pharmaceuticals products Billions of yen 12/ 1H 12/ 2H 12 Total 13/ 1H 13/ 2H 13 Total 14/ 1H 14/ 2H 14 Total 15/ 1H 15/ 2H 15 Total 16/ 1H 16/ 2H 16 Total Feburic® 1.8 3.7 5.5 4.4 7.1 11.4 6.7 8.8 15.5 10.1 11.3 21.3 12.7 13.8 26.5 Bonalon® 7.3 8.6 15.9 6.9 7.3 14.2 6.3 6.5 12.9 6.6 6.3 12.9 5.9 5.6 11.6 Mucosolvan® 4.0 5.0 9.0 3.5 4.3 7.9 3.0 3.4 6.5 3.2 3.5 6.7 2.7 3.0 5.8 Venilon® 4.7 5.2 9.9 4.5 4.9 9.4 4.9 4.9 9.8 2.5 1.9 4.4 2.2 2.5 4.7 Onealfa® 3.8 4.1 7.9 3.3 3.3 6.6 2.8 2.6 5.4 2.6 2.3 4.9 2.0 1.8 3.7 Laxoberon® 1.9 2.0 4.0 1.8 1.8 3.6 1.5 1.4 2.9 1.3 1.2 2.5 1.0 0.9 2.0 Somatuline® 0.0 0.1 0.1 0.2 0.4 0.6 0.5 0.6 1.1 0.7 0.8 1.5 0.9 0.9 1.7 Tricore® 0.9 0.9 1.8 0.8 0.9 1.7 0.8 0.8 1.7 0.8 0.8 1.6 0.8 0.8 1.5 Alvesco® 0.6 0.7 1.3 0.6 0.7 1.3 0.6 0.6 1.2 0.6 0.6 1.2 0.6 0.6 1.2 LOQOA® ------0.1 0.1 0.4 0.6 1.0
52 53 Healthcare Healthcare
◆ Pharmaceuticals products (As of March 2017) ◆ Principal Pharmaceuticals in Current Portfolio (As of March 2017) ● Japan Therapeutic Area Product Indication Medical Properties/Characteristics Dosage Form Remarks ■ Products developed in-house Launch Bone and joint Bonalon® Osteoporosis • Alendronate is most widely used in osteoporosis Oral (tablet), Licensed in from Venilon® *1 Plasma fractionation preparation, intravenous immunoglobulin preparation 1980 disease management as a first-line drug; acts as a specific injection, jelly Merck Sharp & inhibitor of osteoclast-mediated bone resorption, Dohme Corp. (U.S.A.) Onealfa® Active vitamin D3 preparation 1981 ® thereby increasing bone density Lightgen Cough suppressant 1981 • Proven effective in minimizing the risk of fracture Aftach® Adhesive-type therapeutic preparation for aphthous stomatitis 1982 regardless of patient age, gender or degree of bone Rhinocort® Mucosal adhesive preparation for nasal hypersensitivity 1986 density loss ® • Complementing its 5mg tablet for once-daily dosing, Salcoat Spray-type therapeutic agent for stomatitis 1987 ® ® in September 2006 Teijin launched Bonalon 35mg Bonalfa Active vitamin D3 for the treatment of hyperkeratosis 1993 tablet, the once-weekly drug for osteoporosis to Antup® Gas-permeable tape for ischemic heart disease 1999 gain approval. Teijin launched Bonalon® Bag for I.V. ® Anact® C *1 Plasma fractionation preparation, freeze-dried human activated protein C concentrate 2001 Infusion 900 μg in May 2012 and Bonalon Jelly 35 mg, the worldʼs first drug for osteoporosis in jelly Feburic® Hyperuricemia and gout 2011 form, in March 2013. This new version achieves the ■ Products licensed in from Boehringer Ingelheim (Germany) Launch same therapeutic effects while reducing the burden ® on patients. Atrovent Anticholinergic agents for inhibiting bronchial constriction 1981 ® ® Onealfa Osteoporosis • Active vitamin D3 preparation proven to improve Oral Developed in-house Spiropent Long-acting bronchodilator and drug for the treatment of stress urinary incontinence 1986 bone metabolism and minimize the risk of fracture (tablet, solution) ■ Products licensed in from Merck Sharp & Dohme Corp. (U.S.A.) *2 Launch • Easy-to-take small tablet also developed LOQOA® Teiroc® Bone-resorption inhibitor 1997 Transdermal A patch formulation for the treatment of osteoarthritis Patch formulation Llicensed-in from ® anti-inflammatory inflammation and pain. The formulation contains Taisho Pharmaceutical Bonalon (Daily dose) Osteoporosis 2001 ® analgesic patch the active ingredients S-flurbiprofen and mentha oil, Co.,Ltd. (Japan) Bonalon (Weekly dose) Osteoporosis 2006 formulation demonstrating a powerful anti-inflammatory analgesic Bonalon® (I.V. Infusion) Osteoporosis 2012 action by vigorously inhibiting COX activity. It is a Bonalon® (Oral jelly) Osteoporosis 2013 NSAIDs patch formulation with heightened drug delivery to the affected tissues through modification of ■ Products licensed in from Aska Pharmaceutical Launch the base material to enhance transdermal absorption. Along with having the properties of plaster, the NSAIDs Tricor® Hyperlipidemia 2005 patch uses a support material that is elastic and has ■ Produsts licensed-in from AstraZeneca PLC (U.K.) Launch suitable adhesion properties, allowing the patch to ® continuously adhere to joints and other movable parts Alvesco Asthma 2007 of the body and skin areas with hair. ® ■ Product licensed in from Fresenius Medical Care AG & Co. (Germany) Launch Respiratory disease Mucosolvan Expectorant • Acts by stimulating the secretion of surfactants and Oral Licensed in from Saliveht® Artificial saliva, treatment for Xerostomia 1986 other secretions in the respiratory tract, effectively (tablet, L tablet, Boehringer facilitating expectoration of phlegm regardless of its solution, pediatric Ingelheim ■ Product licensed in from Chemo-Sero-Therapeutic Research Institute (Kaketsuken) (Japan) Launch properties syrup, dry syrup, (Germany) Healthcare • Seven dosage forms available, including Mucosolvan pediatric dry syrup) Bolheal® Plasma fractionation preparation, tissue sealant 1991 Tablet and Mucosolvan L Tablet a sustained-release ■ Product licensed in from Morishita Jintan Co., Ltd. (Japan) Launch tablet (once-daily dosing). ® Solmiran® Peripheral vascular disease 1999 Alvesco Asthma • Japan's first once-daily steroid preparation for Aerosol spray Licensed in from adults. Increased compliance is anticipated. An Takeda GmbH ■ Product licensed in from Sanofi S.A. (France) Launch inhaled steroid that directly targets areas in the lung (Germany) Laxoberon® Laxatives 1980 to be stimulated, this drug reduces side-effects ® affecting the oropharynx. Mucosolvan Airway lubricant and expectorant 1984 • A new indication, an inhaled steroid for treating Synvisc® Osteoarthritis pain in the knee 2010 asthma already on the market, for children ® ■ Cardiovascular and Tricor Hyperlipidemia • Reduces triglyceride level while elevating high- Oral (tablet) Licensed in Produsts licensed in from Ipsen Pharma (France) Launch metabolic disease density lipoprotein (HDL) cholesterol. Has recently from Aska ® 3 Somatuline * Acromegaly and pituitary gigantism 2013 been shown effective in lowering blood lipids when Pharmaceutical ■ administered to individuals with type 2 diabetes, Produsts licensed-in from Taisho Pharmaceutical Co.,Ltd. (Japan) Launch thereby preventing the occurrence of cardiovascular ® LOQOA Transdermal anti-inflammatory analgesic patch formulation 2016 events *1 Venilon® and Anact®C were jointly developed by Teijin and Chemo-Sero-Therapeutic Research Institute. • Once- daily dosing for easy use by middle-aged *2 Bonalon® and Teiroc® are registered trademark of Merck Sharp & Dohme Corp., NJ, U.S.A. and elderly people suffering from lifestyle-related *3 Somatuline® is the registered trademark of Ipsen Pharma, Paris, France. illnesses Feburic® Hyperuricemia and A novel non-purine drug that inhibits synthesis of Oral Developed in-house ● Overseas gout uric acid; taken once daily, it reduces serum uric ■ Products developed in-house Launch Area Campany acid levels to the target level and keeps it low; no ® adjustment of dosage is required for patients with mild Uloric Treatment of hyperuricemia and gout March 2009 North America Takeda Pharmaceuticals North America to moderate renal impairment, thereby offering hope to Adenuric® Treatment of hyperuricemia and gout March 2010 Europe Menarini Group/Ipsen Pharma a significantly broader group of patients. Feburic® Treatment of hyperuricemia and gout July 2011 ROK SK Chemicals Somatuline® Acromegaly and Suppresses the excessive secretion of growth Injection Licensed in from Feburic® Treatment of hyperuricemia and gout May 2012 Taiwan, PRC, Hong Kong, Southeast Asia and India Astellas Pharma Inc. pituitary gigantism hormones associated with acromegaly; pharmaceutical Ipsen Pharma SAS formulation facilitates sustained release and extended (France) Adenuric® Treatment of hyperuricemia and gout September 2012 Middle East and North Africa Algorithm SAL ® pharmaceutical action, while prefilled syringe format Adenuric Treatment of hyperuricemia and gout September 2013 Central and South America, CIS and Oceania Menarini Group makes it more convenient than existing acromegaly Feburic® Treatment of hyperuricemia and gout June 2014 Israel Neopharm drugs and thus more conducive to patient compliance.
■ Products developed in-house Area Onealfa® Drug for the treatment of osteoporosis ROK, PRC, Taiwan, Hong Kong, Thailand, Pakistan, Singapore, Malaysia, indnesia /Bon-one® Myanmar, Viet Nam, Egypt Bonalfa® * Active vitamin D3 for the ROK, PRC, Taiwan, Pakistan, Germany, Italy, France, Spain, Austria, Belgium, Switzerland, Poland, treatment of hyperkeratosis Portugal, Slovakia, U.K., Argentina, Chile, Mexico Aftach® Adhesive-type therapeutic ROK, Taiwan, Hong Kong, Itary, Finland, Portugal, Germany preparation for aphthous stomatitis
* Bonalfa® is sold under a different name in Europe.
54 55 Healthcare Healthcare
Therapeutic Area Product Indication Medical Properties/Characteristics Dosage Form Remarks ◆ Principal home healthcare products ® Others Kenketsu Venilon -I Severe infection, • The intac intraveneous immunoglobulin (IVIG) Injection Joint development Area Device Properties Products Kawasaki disease; developed first in Japan using the unique domestic with Kaketsuken ® etc. technology (The Chemo-Sero- Home oxygen therapy Therapeutic oxygen concentrators Oxygen concentrators draw in air and concentrate the Hi-Sanso series ® • Manufactured from blood donated in Japan Therapeutic Research (HOT) devices oxygen in the air from the normal level (21%) to 90% Mildsanso series • The only IVIG storable at the room temperature Institute) by adsorbing the nitrogen particles. Used by patients Bonalfa® Psoriasis • Acts by preventing the hyperproliferation of epidermal Ointment, cream, Developed in-house undergoing home oxygen therapy (HOT) cells and inducing cell differentiation lotion Oxygen demand valve devices Prolongs the life of portable oxygen tanks used when Sanso Saver® series • A topical active vitamin D3 preparation available undergoing outpatient treatment or partaking in other outside in three forms (ointment and lotion available in two activities by synchronizing oxygen flow with the patients concentrations: 2μg/g and 20μg/g ) that responds to a wide variety of treatment needs breathing so that oxygen is provided only when the patient inhales Laxoberon® Laxative, colonic • Relieves constipation by stimulating bowel movement Oral Licensed in from evacuation and softening stool (solution, tablet) Boehringer Ingelheim Portable lightweight oxygen tanks Oxygen tanks for during outside activities and during power Ultressa® / Lite TEC® / oxygen • Solution enables adjustment of dose to suit patient; (Germany) failures tanks manufactured by the Luxfer also appropriate for colonic evacuation prior to Group investigational procedures Noninvasive positive Mask-type bilevel positive pressure Positive pressure ventilator that supports a breathing pattern AutoSet ™ CS Anact C® Thrombosis caused • The world's first human activated protein C Injection Joint development by congenital concentrate. An orphan drug, Anact C is approved with Kaketsuken pressure ventilators ventilators similar to spontaneous respiration and automatically adjusts protein C deficiency by the Ministry of Health, Labour and Welfare (The Chemo-Sero- pressure to the patient's needs, making it suitable for those for the treatment of deep vein thrombosis, acute Therapeutic Research suffering from conditions that causes unstable breathing, pulmonary embolism and fulminant purpura caused Institute) including alveolar hypoventilation and hypopnea. by congenital protein C deficiency. Noninvasive positive pressure ventilator that delivers a NIP NASAL® series continuous supply of oxygen through a mask to chronic ◆ Pharmaceutical Pipeline (As of June 2017) respiratory failure patients suffering concurrently from hypoxemia and type II respiratory failure accompanying Ⅲ Phase chronic accumulation of carbon dioxide in the blood. Code No. (Generic name) Target disease Medical properties/characteristics Sleep disorder Continuous positive airway pressure Used in the treatment of sleep apnea syndrome (SAS); air SLEEPMATE® series GGS-ON (freeze-dried sulfonated Optic neuritis The immunoregulatory mechanism of this drug inhibits inflammation of the optic nerve; also breathing-related (CPAP) ventilators is forced through the mask and into the nostrils, thereby REMstar® series human immunoglobulin) promising because of its ability to restore lost visual function. devices preventing the airways from collapsing Dream station Auto GGS-MPA (freeze-dried sulfonated Microscopic polyangiitis This drug's anti-inflammatory and immunoregulatory actions mitigate autoimmune vasculitis; ® human immunoglobulin) also promising as a treatment for mononeuritis multiplex, a neuropathic disorder that is not Automatically adjusting CPAP Automatically adjusting ventilator for use in CPAP therapy SLEEPMATE series ® alleviated by standard therapies. ventilators REMstar series GGS-CIDP (freeze-dried sulfonated Chronic inflammatory The immunoregulatory action of this drug inhibits inflammation of the peripheral nerves; the Dream station Auto human immunoglobulin) demyelinating drug thus offers promise as a treatment that will restore lost muscle strength. Sleeping pattern analysis devices Simultaneously records brain waves, electrocardiogram PSG-1100 polyneuropathy (Devices for recording and analyzing data, eye movements, mentalis activity, and electromyogram Sleep Profiler Healthcare STM-279 Adenosine deaminase EZN-2279 (polyethylene glycol recombinant bovine adenosine deaminase) is an injectable sleeping polygraph data) data for the arms and legs Alice PDx (ADA) deficiency recombinant ADA that suppresses a reduction in lymphocytes by replacing ADA. It is expected Sleeping pattern analysis devices Compact, portable device used in testing for sleep apnea SAS-2100 to prevent the onset of severe combined immune deficiency (SCID). (Portable device used in testing for (can also be used to measure respiratory effort and as SAS-3200 VRS-317 Pediatric growth The long-acting form of recombinant human growth hormone containing polypeptide. sleep apnea） electrocardiogram (Morpheus) hormone deficiency From the result of a Phase 2 trial in the US by Versartis, Inc., this drug is expected ® (GHD) to provide a twice-monthly therapy that is equal therapeutic benefit to those patients Oxygen saturation Pulse oximeter Measures arterial oxygen saturation; used in screening for PULSOX series of oxygen currently being treated with the pediatric GHD products that require a daily injection. monitors/Analysis respiratory ailments and SAS saturation monitors software MASIMO Rad-8® pulse oximeter ITM-058 Osteoporosis Promising for the treatment of osteoporosis due to potency in promoting bone formation, PalmSAT 2500 series pulse resulting in a rapid increase in bone density and reduction in the risk of fracture. Superior oximeter to existing PTH derived drugs in its ability to increase bone density and its safety (minimal risk of hypercalcemia). Data analysis software Software for analyzing data collected by oxygen saturation DS-Me monitors Phase Ⅱ Ultrasound bone Ultrasound bone fracture treatment Generates continuous pulsed ultrasound at the fracture site, SAFHS® series Code No. (Generic name) Target disease Medical properties/characteristics fracture treatment devices which stimulates healing KTP-001 Lumbar disc herniation For use in chemonucleolysis for herniated lumbar discs; because it is a recombinant human devices protease-identical in structure to matrix metalloprotease, which promotes the spontaneous regression of herniated discs-this drug minimizes the risk of allergic reaction and facilitates the selective treatment of affected discs, thus reducing damage to surrounding tissue and enhancing the viability of this procedure as a minimally invasive alternative to surgery and expanding the treatment options available to patients. PTR-36 Bronchial asthma Uses a novel mechanism (CRTh2 receptor antagonism) to control symptoms of asthma, facilitating effective long-term management of the disease; offers promise for use alone, delivering therapeutic value comparable to that of steroids, for patients with mild asthma; also offers promise for use in tandem with steroid inhalants, delivering sufficient therapeutic value for patients with mild to severe asthma. TMG-123 Type 2 diabetes Uses a novel mechanism (activation of glucokinase (GK) expressed predominantly in the liver) to control blood glucose levels; holds promise for use by patients with impaired glucose homeostasis. Also expected to offer greater convenience (administered once daily, does not require adjustment of dose for patients with renal insufficiency and minimal risk of drug interaction). TMX-049 Hyperuricemia and gout Non-purine xanthine oxidase inhibitor; offers promise as a new treatment for hyperuricemia and gout that is both highly effective and safe.
Phase Ⅰ Code No. (Generic name) Target disease Medical properties/characteristics TMX-049DN Diabetic nephropathy in Non-purine xanthine oxidase inhibitor; offers promise in suppressing the progression of Type 2 diabetes nephropathy, as a new treatment for diabetic nephropath.
56 57 Healthcare Trading and Retail
◆ Product line and Sales configuration Overview of operating results Millions of yen ● Pharmaceuticals product line 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 Sales ¥228,512 Raw materials Formulating/ tabletting Packaging Pharmaceuticals Net sales to external customers 224,574 Intersegment net sales or transfer amounts 3,938 Teijin Pharma (Iwakuni, Japan) Operating income 6,013 Segment asset 85,457 Consignment Depreciation 430 Amortization of goodwill 16 Investents in associates accounted for using equity method 731 Teysan Pharmaceuticals (Tachikawa, Japan) Capital expenditure 1,009 ● Pharmaceuticals sales configuration Provision of academic Millions of yen information 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 Sales ¥240,318 ¥258,414 ¥264,067 ¥274,697 ¥263,686 Net sales to external customers 237,160 254,180 259,380 270,934 259,584 Sale Sale Prescription Intersegment net sales or transfer amounts 3,158 4,234 4,687 3,763 4,102 Teijin Pharma Exclusive agency Medical institution Patient Operating income 4,713 5,186 4,249 5,330 6,704 Payment Payment Portion of cost borne Segment asset 119,725 121,847 133,329 133,580 133,914 by individual Payment Sale (Including sale rights) Depreciation 1,863 1,795 2,021 1,980 2,122 Reimbursement for madical Payment (screening) Amortization of goodwill 16 16 41 25 25 Dealer in examination (drug price) overseas Investents in associates accounted for using equity method 938 698 1,823 2,027 1,522 Capital expenditure 2,239 1,626 2,025 2,930 2,427 Social Insurance * The apparel component of the Polyester Fibers segment has been incorporated into the Trading and Retail segment form the year ended 2013.3 Medical Fee Payment Fund Business summary
◆ Subsidiaries and affiliates (As of March 2017) ● Home healthcare product line Equity Company Location Business field held by the Group Home Parts Assemble Package healthcare 1. TEIJIN FRONTIER Co., Ltd. Japan Osaka Trading and export and import of fiber materials, apparel products, 100% industrial materials and films and plastics, etc. 2. TEISHO SANGYO Co., Ltd. Japan Fukui Collection and sorting of bobbins and packaging materials, 100 transportation and storage of yarn, processed yarn and fabrics, etc. 3. TEIKEN Ltd. Japan Osaka Manufacture and sales of healthcare products, amenities, 100 Returned disaster mitigation and safety products that use specialized high- Maintenance and Retail Trading equipment performance Teijin Group fibers 4. FOLKNER Ltd. Japan Okayama Manufacture and sales of men's apparel, distribution and 100 Teijin Pharma（Gifu, Japan） processing of apparel 5. TEIJIN ASSOCIA RETAIL Ltd. Japan Tokyo Retailer for men's and ladies' apparel, general merchandise and 100 Teijin Pharma（Iwakuni, Japan） cosmetics 6. TEIJIN MODERN YARN Co., Ltd. Japan Ishikawa Manufacture and sales of special textured yarn and knitted fabrics 100 7. TOHO TEXTILE Co., Ltd. Japan Osaka Sales of spun yarn (cotton, rayon, acrylic, etc.); manufacture and 100 sales of knitted fabrics and products ● Home healthcare sales configuration 8. TEXET Ltd. Japan Tokyo Manufacture and sale of materials for industrial applications 100 9. NANTONG TEIJIN Co., Ltd. PRC Jiangsu Weaving, dying, and sales of polyester fabrics 100 Installation, deinstallation and periodic inspections of equipment 10. SHINWA Limited Japan Ishikawa Manufacture of synthetic textured fiber yarn and knitted fabrics 99.67 11. FRONTIER TEX Ltd. Japan Fukui Manufacture of synthetic greige 100 12. THAI NAMSIRI INTERTEX Co., Ltd. Thailand Bangkok Manufacture, dyeing, and weaving of polyester filament fabrics 81.25 Rental Rental Rental Teijin Home 13. TEIJIN FRONTIER (U.S.A.), Inc. U.S.A. New York Exports and imports, domestic sales and triangular trade 100 Teijin Pharma Medical institution Patient Healthcare 14. TEIJIN FRONTIER EUROPE GmbH Germany Hamburg Exports and imports, domestic sales agency and triangular trade 100 Payment Payment Portion of cost borme 15. TEIJIN FRONTIER (THAILAND) Co., Ltd. Thailand Bangkok Domestic sales and exports and imports of woven textiles 100 by individual 16. TEIJIN FRONTIER (SHANGHAI) Co., Ltd. PRC Shanghai Export and import trading, sales within and outside of free trade 100 Payment Reimbursement for zones, sales agency, entrepôt and intermediary trading, and (screening) medical examination simple processing, and domestic sales in the PRC Discharge (day/time/prescription) 17. TEIJIN FRONTIER (HONG KONG) Ltd. PRC Hong Kong Exports and imports, domestic sales and triangular trade 100 Social Insurance 18. P.T. TEIJIN FRONTIER INDONESIA Indonesia Jakarta Exports and sales agency services for fiber products and other 100 Medical Fee items manufactured in Indonesia Payment Fund 19. TEIJIN FRONTIER (VIETNAM) Co., Ltd. Vietnam Bien Hoa Processing, manufacture, sales and export of apparel 100 20. TEIJIN FRONTIER MYANMAR Co., Ltd. Myanmar Yangon Consulting 100 21. TEIJIN FRONTIER MEXICO, S.A. de C.V. Mexico Mexico City Import, manufacturing and sales of fiber products, leather 100 products and raw materials. Import and sales of manufacturing machinery and applied chemicals Note: Equity held by the Group includes equity held directly and indirectly by Teijin Limited.
58 59 Trading and Retail Trading and Retail
◆ Business history ◆ Business Flow 1952.11 Established Teijin Shoji Co., Ltd. ● 1960. 4 Established FOLKNER Ltd. Teijin Frontier 1979. 9 Established TEIKEN Ltd. 1. Apparel Textiles & Materials 1988. 5 Established TEXET Ltd. Yarn Fabric(Woven and Sewing Finished products Retailers knitted textiles) 1989. 7 Established TEIJIN ASSOCIA Limited, combining TEIJIN MEN'S SHOP Limited, WINKLE Limited and TEIJIN INTERIART Limited Established weaving and dyeing company THAI NAMSIRI INTERTEX Co., Ltd. Directly managed shops shops Online retailers Specialty stores merchandisers Mass Department Sale of fabric (Teijin Frontier) (Teijin fabric of Sale
1994. 3 NANTONG TEIJIN Co., Ltd., established in the PRC to manufacture and market polyester filament fabrics Frontier) (Teijin yarn of Sale manufacturers Sale of finished products Sale of finished
1995. 4 Established Teijin (Hong Kong) Limited Apparel (Teijin Frontier) (Teijin Fiber/yarn processing Weaversand knitters Weaversand Consumers
1995.10 Invested in and gained control of THAI NAMSIRI INTERTEX Co., Ltd. Sewing factories 2001. 4 Teijin Shoji Co., Ltd., merged with the apparel division of Nissho Iwai Corp. under the name NI Teijin Shoji Co., Ltd. Expanded overseas bases (Milan, Taipei, Ho Chi Minh, Hanoi and Los Angeles) 2001. 7 Established FASHION FORCE NO.1 FACTORY Co., Ltd., in Vietnam 2002. 4 Spun off apparel-use polyester fibers business as a separate company named Teijin Fibers Limited 2003. 1 Established offices of N.I. Teijin Shoji (Shanghai) Co., Ltd., in Dalian, Qingdao, Wuxi and Ningbo 2003.11 EstablishedTEIJIN MODERN YARN（NANTONG） Co., Ltd., in the PRC in response to car seat manufacturers' shift to production in the PRC and growing local demand for high-value-added materials for textiles 2004. 9 Launched Kurashi@Science, the Teijin Group's online shopping site Teijin Frontier's business portfolio Teijin has built an integrated production configuration encompassing all 2005. 7 Established Guangzhou office of N.I. Teijin Shoji (Shanghai) Co., Ltd. stages, from materials through to finished products
2008. 4 N.I. Teijin Shoji Co., Ltd.'s Tokyo branch established the Harajuku Office, a satellite office Note: Solid arrows indicate sales by Teijin Frontier 2009. 3 Obtains commercial rights and OEM production of to certain polyester fibers products from Asahi Kasei Corporation 2010. 2 Established a representative office of N.I. Teijin Shoji Co., Ltd., in Dhaka, Bangladesh 2. Industrial Textiles & Materials
2011. 1 Launched Mirai@Science, an online shop for commercial customers Purchase Converting Sale 2012.10 Integrated the polyester fibers for apparel business of Teijin Fibers Limited with N.I. Teijin Shoji Co., Ltd., and relaunched as TEIJIN FRONTIER Co., Ltd. 2013. 2 Merged FASHION FORCE NO.1 FACTORY Co., Ltd. and two branches (Ho Chi Minh City Office and Hanoi Office) of TEIJIN FRONTIER Manufacturers of automotive materials and components (rubber materials, Co., Ltd., which restarted operations as TEIJIN FRONTIER (VIETNAM) Co., Ltd. Fiber/yarn Wo v automotive fabrics)
en Manufacturers of household products 2013. 4 Integrated Teijin Hong Kong Limited and TEIJIN FRONTIER (HONG KONG) Ltd. textiles
Weaving, knitting, dyeing, resin and (canvas, sewing machine thread, 2013. 9 Established TEIJIN FRONTIER MYANMAR Co., Ltd. finishing others) k n
i Manufacturers of industrial materials tt ed Woven and S 2014. 6 Established Teijin FRA Tire Cord (Thailand) Co., Ltd., a tire cord production joint venture e (materials for civil engineering knitted textiles mi- f applications, nonwoven fabrics, others)
2016. 4 Established TEIJIN FRONTIER MEXICO S.A. DE C.V. in Mexico as Teijin Frontierʼs first automotive material subsidiary in the Americas ini s Manufacturers of interior products 2017. 4 Formed the Fibers & Products Converting Business Group by integrating the polyester fiber business into the Products Converting Business hed Manufacturers of plastics and Trading and Retail Trading Group Semi-finished equipment products Processing
Teijin Frontier's business portfolio By fortifying its converting capabilities, Teijin Frontier is building an effective system for managing its industrial materials and textiles supply chain
◆ Produsts Apparel Textile & Textiles and apparel fiver materials, fabric materials, textiles Materials Mens' and ladies' casual apparel Sportswear, children's wear, inner wear, uniforms and other apparel products Industrial Textiles & Industrial Textiles and Materials: Tire cords; V-belt-related materials and fabrics; reinforced fibers for hoses; seatbelts and Materials airbag textiles Industrial fabrics: Materials for civil engineering, construction and agriculture- and fisheries-related applications; tent and heavy industrial fabrics; materials for household applications; materials for felt: nonwoven fabrics; high-performance woven fabrics; others Automotive fabrics: Automotive interior materials; automotive products; others Living materials: Curtains, wall coverings and flooring materials; bedding fabrics; high-performance household products; healthcare products; others Plastics products: Synthetic resins; plastic films; plastic sheets; artificial leather; packing materials; others Equipment: Clean room equipment: industrial machinery and devices; others
60 61 Others Others
Business summary ◆ R&D sites ● New business ◆ Subsidiaries and affiliates (As of March 2017) Company Location Equity Company Location Business field held by the Teijin Japan Iwakuni, Yamaguchi Group Hino, Tokyo 1. Infocom Corporation Japan Tokyo Provision of IT services, including the planning, development, 55% Matsuyama, Ehime operation and administration of information systems 2. Amutus Corporation Japan Tokyo E-comics distribution services 55 3. Teijin Engineering Ltd. Japan Osaka Machinery and engineering business 100 4. Teijin Eco-science Limited Japan Tokyo Environmental assessment, analysis and measurement 100 IT business group 5. Teijin Logistics Co., Ltd. Japan Osaka Transportation and warehouse operation 100 ◆ Principal products and services 6. Teijin Lielsort Korea Co., Ltd. ROK Asan Manufacture and sales of lithium ion secondary battery separator 100 Development, manufacture and sales of joint prostheses, 50 Segment Business area Principal products and services description of business 7. Teijin Nakashima Medical Co., Ltd. Japan Okayama osteosynthesis materials and other medical device iRad® series A comprehensive workflow support tool for hospitals moving away from Note: Equity held by the Group includes equity held directly and indirectly by Teijin Limited. conventional film-based systems A system providing comprehensive support, from the management of ◆ Business history diagnostic information through to the preparation of treatment summaries, 1983. 9 Established Teijin System Technology Limited Medi-Bank enabling hospitals to improve performance evaluations and enhance Healthcare 1993. 7 Established Teijin Eco-science Limited medical information management capabilities, required under Japan's 1996.10 Started full-scale sales and marketing of Ultressa an FRP composite pressure vessel National Health Insurance scheme to secure additional funding 1996.12 Acquired proprietary marketing rights of Metton America Inc. and started Metton business operation in North America and Europe Comprehensive MR support solution that helps improve MR productivity ® 1997. 4 Started plastic film substrate for LCDs business on a commercial basis MRSupport by facilitating sales force automation (SFA), performance reference model 1997.12 Established DSM Teijin Solutech Limited IT service (PRM) assessment and management of promotional materials segment 2001. 3 Decided to increase manufacturing capacity of Solufill an engineering film used for multilayer ceramic capacitors A next-generation ERP software package developed by a consortium of GRANDIT® 2001. 4 Infocom Corporation and Teijin Systems Technology Limited merged and started operations as Infocom Corporation leading systems development firms from various industries 2001.11 Acquired all the shares in DSM Teijin Solutech and reestablished the company as Teijin Solufill Limited Support tool for the formulation of business contingency plans (BCPs) 2002. 3 Infocom Corporation listed on JASDAQ exchange featuring emergency contact and safety confirmation features for use 2003. 3 Established Teijin Advanced Films Limited, a polyparaphenylene terephthalamide film joint venture with Asahi Kasei Corporation Service Business Emergency Call® in emergency situations, as well as internal communications features 2003. 4 Transferred Metton and polycarbonate film operation to Teijin Chemicals Limited for everyday use; facilitates the swift and accurate collection and Transferred Teijin Eco-science and Ultressa operations to Machinery and Engineering Group dissemination of information 2004. 2 Transferred the installment credit for commodities business of Teijin Finance Limited to Shinsei Bank Group Cloud-based distribution and storage service for accounts-related 2004. 4 With the elimination of Machinery and Engineering Group, Teijin Engineering Ltd., Kure Kogyo Co., Ltd., Teijin Eco-science Limited, eco Deliver Express Toho Chemical Engineering & Construction Co., Ltd. and Toho Machinery Co., Ltd., were transferred to this segment paperwork (invoices, notices of payment, etc.) Net business Network business E-comics distribution services offering a wide selection of titles, including 2005. 1 Transferred leasing business to the Morgan Stanley Group Mechacomics 2005. 3 Merged subsidiary Teijin Solufill into Teijin Limited segment services brand-new and standard comics and photo collections 2007. 3 Dissolved Teijin Advanced Films Limited and withdrew from the Aramica aramid film business 2008. 2 Established joint venture TS Aromatics Limited with Showa Shell Sekiyu K.K. and Mitsubishi Corporation to integrate paraxylene products sales operations 2008. 4 Established Innovation Research Institute 2008. 6 Acquired majority stake in GH Craft Ltd., a manufacturer with an outstanding record in the design and development of advanced composite materials 2008. 7 Established Teijin Composites Innovation Center (TCIC) on the premises of GH Craft 2008. 8 Took over polylactic acid (PLA) pilot plant from Toyota Motor Corporation, reinforcing development structure for BIOFRONT heatresistant bioplastic Others 2009. 7 Established the Integrative Technology Research Institute to conduct investigative research aimed at developing new and integrative technologies 2010. 4 Established Innovative Medical material Project (IMM), which is charged with conducting research and commercializing medical materials 2010. 7 Acquired U.S. firm NanoGram Corporation 2011. 4 Reorganized Teijin Composites Innovation Center, integrating it into the Carbon Fibers and Composites Business Group 2011.10 Established a lithium-ion battery (LiB) separator operating company in the ROK (currently Teijin Lielsort Korea Co., Ltd.) 2012. 7 Began production of LIELSORT, a Teijin-developed LiB separator 2012.10 Absorbed Teijin Intellectual Property Center Limited and Teijin Creative Staff Co., Ltd. 2013. 1 Signed a strategic partnership agreement with InCube Labs LLC in the U.S.A. 2013. 4 Established the Alliance Promotion Department within the New Business Development Group to propose, search out and advance M&A activties and alliances wordwide 2013.10 Spun off net services operations of Infocom Corporation into a separate company (Amutus Corporation) 2014.12 Commenced operation of a second production line for LIELSORT at Teijin Lielsort Korea Co., Ltd. 2015. 4 Established joint venture Teijin Nakashima Medical Co., Ltd., to facilitate entry into the market for joint prostheses 2016. 7 Commenced sales of BARLEYmax, an enhanced barley product 2017. 7 Established Teijin Medical Technologies Co., Ltd., to expand the bone-connecting material business
62 63 Others Supplementary information
Other principal products ◆ Competitors and Key Competitive Advantages (As of March 2017) Ranking in ● LiB separator LIELSORT® Business Share Major Competitors Key Competitive Advantages each business Description Made from microporous polyethylene membranes sandwiched between layers of a porous aramid resin or fluorine compound and used to separate Aramid fiber Approx. 50% 1st E.I. du Pont de Nemours and Company Global production and sales capabilities cathode and anode without hindering the movement of lithium ions between the electrodes, thereby enhancing battery safety and performance (para-aramid (para-aramid (DuPont) Two types of aramid fibers with entirely different fibers) fibers) performance characteristics (para-aramid and meta- Features of LiB separators aramid) Meta-aramid coating Increased capacity and high LiB separator with meta-aramid materials coating is capable of maintaining its shape at Carbon fiber Approx. 15% 2nd Toray Industries, Inc.; Global production and sales system encompassing energy density temperatures up to 250°C Mitsubishi Chemical Corporation facilities in Japan, North America and Europe Increased safety, long lifespan In spot heating test, does not break down even at 350°C PC resin Approx. 7% 4th Saudi Basic Industries Corporation A frontrunner in the high-growth PRC market Fluorine compound Increased safety Fluorine compound coatings deliver superior adhesion to the polymer electrolyte and (SABIC); Covestro; Mitsubishi Group Currently expanding into specialty polycarbonate resins coating Improved output, long lifespan resistance to oxidation under high voltages PET film*1 Approx. 10% 2nd Toray Industries, Inc.; High share of the market for PET film for electronic Mitsubishi Chemical Corporation components, special packaging applications and others Sales configuration Account for an overwhelming share of PEN film market (Teijin Group) Pharmaceuticals Solid presence in the markets
● RFID information management system RecoPick® Description RecoPick is an RFID*1 information management system that accurately and efficienctly tracks the entry and removal and precise location of books and other items. The system incorporates Teijin's RFID-enabled two-dimensional communication sheet CELL FORM *2, which functions as an antenna to read ultrahigh-frequency (UHF)-band IC tags affixed to items, thereby facilitating shelf--by-shelf management.
*1 RFID is an acronym for radio-frequency identification RFID technology uses electromagnetic fields to transfer data from noncontact IC chips.
*2 CELL FORM® was developed by Cellcoss Co., Ltd., a spin-off venture company of the University of Tokyo. The development of CELL FORM was made possible by a two-dimensional communication technology called @CELL and Teijin's sheet production technologies. information Supplementary
64 65 Supplementary information
◆ Flow for derivation of raw materials from petroleum
4 Corporate data *1 *2
*4
*3
*5
(Panlite®) (Technora®) (Twaron®) (Teonex®) (TENAX®)
*1 *2 *3 *4 *5
66 Stock information Stock information
■ Common Stock (As of March 31, 2017) Share price data Issuable shares 600,000,000 shares (Yen/share) (Shares) (Yen/share) (Shares) Issued 196,951,733 shares Start High Low Close Volume Start High Low Close Volume Shareholders 85,195 1994 Q1 ¥470 ¥577 ¥440 ¥537 96,362,000 2005 Q1 ¥466 ¥515 ¥443 ¥515 256,842,000 Q2 532 605 524 557 80,310,000 Q2 514 679 505 662 271,180,000 ■ Major shareholders Q3 556 575 511 525 55,685,000 Q3 652 774 608 749 403,187,000 Investment in Teijin Q4 526 531 405 460 63,207,000 Q4 756 852 670 783 316,593,000 Shareholders Percentage of total Number of shares held 1995 Q1 450 486 400 406 45,508,000 2006 Q1 790 899 651 726 465,617,000 shares issued Q2 406 530 404 475 61,388,000 Q2 727 729 594 636 498,779,000 1 The Master Trust Bank of Japan, Ltd. (Trust account) 18,439,200 9.36% Q3 467 538 451 528 60,345,000 Q3 642 768 600 733 446,905,000 2 Japan Trustee Service Bank, Ltd. (Trust account) 12,497,400 6.34% Q4 548 599 524 590 84,169,000 Q4 741 766 613 665 534,638,000 3 Nippon Life Insurance Company 7,045,501 3.57% 1996 Q1 595 606 545 595 86,186,000 2007 Q1 655 694 609 674 359,624,000 4 The Employee Stock Ownership Association of Teijin 4,667,078 2.36% Q2 595 597 512 562 51,287,000 Q2 671 681 522 561 456,738,000 5 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 4,138,987 2.10% Q3 557 563 482 506 46,507,000 Q3 560 605 461 479 378,183,000 6 Japan Trustee Service Bank, Ltd. (Trust account 5) 3,144,700 1.59% Q4 506 524 424 473 56,615,000 Q4 470 471 363 420 394,549,000 7 Japan Trustee Service Bank, Ltd. (Trust account 9) 2,931,400 1.48% 1997 Q1 459 567 435 540 64,568,000 2008 Q1 420 446 349 364 419,437,000 8 STATE STREET BANK WEST CLIENT-TREATY 505234 2,882,171 1.46% Q2 540 540 370 380 54,014,000 Q2 369 374 303 312 348,089,000 9 STATE STREET BANK AND TRUST COMPANY 505225 2,416,456 1.22% Q3 380 435 220 273 73,499,000 Q3 318 326 219 251 341,582,000 10 Japan Trustee Service Bank, Ltd. (Trust account 2) 2,299,100 1.16% Q4 271 424 222 395 115,307,000 Q4 254 261 166 213 293,309,000 Note: The investment ratio has been calculated after excluding treasury stocks (230,613 shares). 1998 Q1 386 420 333 420 67,982,000 2009 Q1 215 331 213 311 365,556,000 Q2 420 450 320 360 64,872,000 Q2 314 322 262 280 296,781,000 Q3 355 444 351 416 67,004,000 Q3 274 314 243 300 280,473,000 Ownership and distribution of shares (Shareholders 85,195) Q4 414 484 385 478 86,089,000 Q4 301 315 259 314 250,774,000 ■ By type of shareholder (Number of shareholders/Percentage of shares) 1999 Q1 476 540 451 490 95,774,000 2010 Q1 312 326 247 266 319,164,000 Other Japanese Q2 495 521 439 513 93,216,000 Q2 263 290 251 276 291,805,000 corporations Japanese securities firms / Q3 503 560 374 377 123,962,000 Q3 277 352 273 347 370,291,000 512/3.55% 63 2.37% Q4 372 512 343 435 137,126,000 Q4 353 440 268 372 631,961,000 Foreign institutions and 2000 Q1 440 543 425 517 116,939,000 2011 Q1 372 402 339 353 402,611,000 Japanese individuals individuals Q2 512 535 391 450 116,380,000 Q2 354 380 251 281 500,094,000 and others 620/35.97% 83,912/23.37% Q3 455 593 438 590 126,547,000 Q3 277 292 215 237 307,134,000 Q4 570 595 485 546 135,420,000 Q4 239 297 221 278 519,547,000 2001 Q1 556 759 541 701 176,793,000 2012 Q1 282 285 218 241 320,949,000 Q2 701 708 403 514 148,251,000 Q2 244 247 163 191 409,729,000 Q3 524 564 416 503 156,607,000 Q3 185 216 156 213 463,375,000 Q4 510 518 394 425 235,978,000 Q4 227 231 196 218 584,111,000
Japanese financial 2002 Q1 421 492 395 408 229,482,000 2013 Q1 215 285 199 218 637,194,000 institutions Q2 411 438 315 324 186,137,000 Q2 217 238 206 226 375,057,000 88/34.75% Q3 322 323 248 284 175,595,000 Q3 226 238 208 234 364,458,000 ■ By number of shares held (Number of shareholders/Percentage of shares) Q4 289 328 255 266 297,600,000 Q4 234 269 223 256 505,373,000 2003 Q1 263 306 250 300 190,931,000 2014 Q1 257 261 224 254 368,746,000 100 to 500 shares Less than 100 shares Q2 301 349 273 306 374,247,000 Q2 251 271 244 265 282,465,000 49,508/6.24% 15,004/0.15% Q3 310 341 281 315 213,743,000 Q3 266 337 237 321 574,338,000 500 to 1,000 shares 9,308/3.14% Q4 318 361 300 351 240,857,000 Q4 320 421 305 408 533,179,000 2004 Q1 351 409 321 408 375,687,000 2015 Q1 403 499 395 475 491,892,000 1,000 to 5,000 shares 10,109/8.72% Q2 409 410 366 394 193,865,000 Q2 479 486 345 362 583,753,000 Q3 394 449 394 445 261,309,000 Q3 365 449 359 415 406,470,000 5,000 to 10,000 shares Q4 447 467 404 458 254,890,000 Q4 409 457 333 392 562,431,000 579/1.94% 2016 Q1 386 415 329 337 404,140,000 Q1: From April 1 to June 30 Q2: From July 1 to September 30 Q2 343 404 337 390 413,867,500 Corporate data Q3: From October 1 to December 31 Q3 1,967 2,405 1,824 2,369 94,233,000 Over 10,000 shares Q4: From January 1 to March 31 687/79.82% Q4 2,384 2,468 2,099 2,099 95,507,800 2017 Q1 2,075 2,249 2,018 2,161 103,225,200
68 69 Group relation chart Group relation chart
(As of March 31, 2017) Subsidiaries and affiliates companies of Teijin
Consolidated Equity method Other Advanced Fibers and Composites Trading and Retail Subsidiaries Affiliates Subtotal Subsidiaries Affiliates Total (48 companies) (39 companies) Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Manufacture, processing and sales of aramid fibers anning, processing and sales of fiber products and othe 1999 Interim 48 27 51 12 32 13 183 183 ◎Teijin Aramid B.V. ◎Teijin Frontier Co., Ltd. Annual 56 34 50 12 30 13 195 1 196 ◎Teijin Associa Retail Limited 2000 Interim 56 34 43 12 29 13 187 1 188 Products ◎ and 12 other companies Teiken Limited Annual 57 41 41 12 27 12 190 1 191 ◎Nantong Teijin Co., Ltd. 2001 Interim 59 44 39 19 32 15 208 1 209 Manufacture, processing and sales of polyester fibers Annual 59 42 37 19 25 18 200 1 201 and 35 other companies for industrial applications 2002 Interim 60 41 36 20 27 21 205 1 206 ◎Teijin Polyester (Thailand) Limited Annual 61 41 37 20 22 21 202 1 203 ◎ Teijin (Thailand) Limited Raw 2003 Interim 56 35 30 15 18 20 174 1 175 ◎Teijin Cordley Limited materials Annual 55 35 29 17 17 20 173 1 174 △Suminoe Teijin Techno Co., Ltd. Products 2004 Interim 51 38 28 15 15 20 167 1 1 169 and 7 other companies Raw Electronics Materials and Annual 48 36 29 13 14 19 159 1 2 162 materials Performance Polymer Products 2005 Interim 48 36 29 15 14 18 160 3 2 165 Advanced Fibers and Composites Manufacture and sales of carbon fibers (25 companies) Annual 48 36 24 14 12 17 151 1 1 3 1 157 ◎Toho Tenax Co., Ltd. Manufacture, processing and sales of PET films 2006 Interim 43 39 25 16 12 17 152 1 1 3 1 158 E l
◎ P ◎ Toho Tenax Europe GmbH e Teijin Film Solutions Limited H c e Annual 43 39 26 16 13 19 156 1 1 3 1 162 t r r f ealthca r on i o r
P ◎ and 5 other companies TEIJIN LIMITED m P.T. Indonesia Teijin Film Solutions cs r an c odu c 2007 Interim 43 39 25 15 13 18 153 0 1 2 1 157 M a e ○Film Products Co., Ltd. t
t e P s
r Annual 44 39 29 16 13 20 161 0 1 2 1 165 o i a l y e l △ s
Manufacture and sales of composites m DuPont Teijin Films U.S. Limited Partnership
an d e
r 2008 Interim 44 42 29 20 12 20 167 0 1 2 1 171 ◎Continental Structural Plastics △DuPont Teijin Films Luxembourg S.A. Holdings Corporation Others Annual 43 40 27 22 12 20 164 0 1 2 1 168 2009 Interim 43 40 25 22 12 19 161 0 1 2 1 165 and 16 other companies and 5 other companies Annual 41 40 19 22 13 16 151 0 1 2 1 155 2010 Interim 40 39 18 22 12 16 147 0 2 1 1 151 Annual 39 37 19 22 12 16 145 0 2 1 1 149 Healthcare Others 2011 Interim 38 37 19 22 10 16 142 0 2 1 1 146 (16 companies) (41 companies) Manufacture and sales of resins, plastics and chemicals Annual 38 38 19 25 9 15 144 0 2 1 1 148 ◎TEIJIN POLYCARBONATE CHINA Ltd. 2012 Interim 38 38 19 26 9 15 145 0 2 1 1 149 Sales, marketing manufactureing and R&D Information services, development ◎Hiroshima Plastic Limited Annual 34 38 18 29 8 16 143 0 1 1 2 147 of pharmaceuticals and medical devices and sales of computer software 2013 Interim 32 38 18 34 7 17 146 0 1 1 2 150 ◎Teijin Pharma Limited ◎Infocom Corporation Annual 30 39 18 35 7 18 147 0 1 0 2 150 ◎Teysan Pharmaceuticals Co., Ltd. and 11 other companies 2014 Interim 30 39 19 38 6 18 150 0 2 1 1 154 ◎ Teijin Home Healthcare Limited Annual 30 39 20 33 6 18 146 1 2 1 2 152 ◎Braden Partners L.P. Machinery and engineering business, logistics and 13 other companies 2015 Interim 31 39 19 34 6 18 147 1 2 2 2 154 ◎Associated Healthcare Systems, Inc. ◎Teijin Engineering Ltd. Annual 31 38 19 33 7 18 146 1 2 2 2 153 △Esteve Teijin Healthcare S.L. ◎Teijin Logistics Co., Ltd. 2016 Interim 32 41 18 31 6 17 145 1 1 2 2 151 and 9 other companies and 16 other companies Annual 32 57 18 31 6 20 164 1 1 1 2 169
Pharmaceuticals R&D Subsidiaries: 140 companies Excluding Teijin Limited Holding companies ◎Teijin America, Inc. Affiliates: 29 companies ◎Teijin Holdings USA, Inc. ◎Teijin Holdings Netherlands B.V. ◎ Teijin (China) Investment Co., Ltd. Long-term issue rating ◎ Consolidated subsidiaries Flow of products or raw materials ○ Unconsolidated suvsidiaries (As of March 31, 2017) Flow of services, etc. Manufacture and sales of other products Affiliates Rating Agencies Rating and Investment Information, Inc. ◎Teijin Nakashima Medical Co., Ltd. Long-term Issue Rating A-
and 7 other companies Outlook Stable ・ Rating and Investment Information, Inc.: An "A" rating indicates the credit quality is high and is also accompanied by some excellent factors. * A long-term issue rating expresses an independent ratings agency's opinion regarding an issuer's certainty to repay its individual financial obligations (bonds). * The above ratings are based on the most recent information available. Any one of these ratings may change should the opinion of the relevent independent ratings agency change. Corporate data
70 71 Corporate data Disclosure Policy
Corporate headquarters Osaka: Nakanoshima Festival Tower West, 2-4, Nakanoshima 3-chome, Kita-ku, Osaka 530-8605, Japan Tokyo: Kasumigaseki Common Gate West Tower, 2-1, Kasumigaseki 3-chome, Chiyoda-ku, Tokyo Disclosure Policy 100-8585, Japan Stock exchange listings Tokyo １． Basic Policy Code number 3401 (1) Teijin Ltd. and Teijin Group companies have a basic policy of providing company information to all stakeholders in a timely, fair, Shareholder resistry administrator Mitsubishi UFJ Trust and Banking Corporation accurate, and consistent manner. (2) A management priority is to build a relationship of trust with shareholders and investors in particular, and therefore, we shall actively Independent public accountants KPMG AZSA LLC endeavor to enhance information disclosure and two-way communication. (3) We believe that accountability is an essential requirement in securing effective corporate governance.
Information available to shareholders Corporate Profile ２．Disclosure Standards and investors Integrated Report (1) We will promptly disclose information in a fair, accurate, clear, timely and ongoing manner in accordance with Financial Instruments and Kessan Tanshin (Japanese summary financiall report) Exchange Law, corporate law the various regulations like and Rules on Timely Disclosure of Corporate Information by Issuer of Listed Fact Book (web site) Security of the Tokyo Stock Exchange (TSE) etc. (hereinafter "timely disclosure rules"). Moreover, for those matters that cannot be disclosed due to an unfavorable impact on business operations, the reason for such must be clearly stated at the time of explanation. (2) Information that is not considered important information as established under the laws or regulations, or under rules timely disclosure, but is deemed to be of use to shareholders and investors-with the exception of information pertaining to the competitive strategies of Web Site Website https://www.teijin.com/ individual businesses or highly confidential management information-will be disclosed fairly, accurately, clearly and in a timely and For Investors https://www.teijin.com/ir/ ongoing manner, irrespective of whether this is advantageous or disadvantageous to us. Teijin’s web site offers a wealth of corporate and product information, including the latest Integrated Report, financial results and corporate news. ３．Disclosure Methods (1) Information that is considered important under the timely disclosure rules shall be disclosed in accordance with said rules via the TSE's timely disclosure information system (TDnet), in addition to explanations provided to the TSE. (2) Information under Financial Instruments and Exchange Law shall be disclosed in accordance with said rules via the Financial Services Investor relations Address: 100-8585 Agency's Electronic Disclosure for Investors' NETwork (EDINET), in addition to explanations provided to the Financial Services Agency. Kasumigaseki Common Gate West Tower, 2-1, Kasumigaseki 3-chome, Chiyoda-ku, (3) Information other than the above that is considered to affect investor decisions will also be promptly disclosed as required depending Tokyo, Japan on the importance and urgency of that information through press releases, press conferences, or information sessions. Tel: +81-3-3506-4395 (4) Information disclosed in accordance with (1) and (2) above will be posted on the Teijin website ("the Website") immediately after Fax: +81-3-5510-7977 disclosure. Further, for the convenience of shareholders and investors, we will endeavor to provide Japanese and English versions of E-mail: [email protected] the information disclosed. Contact: Finance & Investor Relations Department (5) In addition to improving the "For Investors" section of the Website, we will also endeavor to provide information appropriately in a variety of media, and disclose easy-to-understand information in an environment easily accessible by shareholders and investors through a range of information media including information sessions and various printed materials.
４．Quiet Period In the weeks leading up the announcement of each quarterly and annual results, we shall employ a quiet period so as to prevent any leakage of financial information and to maintain impartiality. Please note that during this time, we will not provide answers to comments or questions received in relation to the accounts etc. However, if the deviation from the outlook is obviously equal to the range of that specified under the timely disclosure rules during the quiet period, then we shall disclose information as required through press releases, etc.
５．Disclaimers (1) Any information disclosed (including information posted on the Website) other than past facts are forward-looking statements that we have made based on information available at the time. These statements may involve risks or uncertainties that may be affected by changes in economic conditions, market trends, or in the taxation or other systems, etc. Therefore, please be aware that actual results may differ from publicized and announced results due to such factors. (2) Each disclosed information (including information posted on the Website) is provided solely for the purpose of facilitating an understanding of our business activities, management policies, business plans, and financial position, etc. No information is disclosed for the purpose of soliciting investments. All investment decisions should be made at your own discretion and risk. Corporate data
72 73 https://www.teijin.com
Issued 2017.8