2017 FACT BOOK Year Ended March 31, 2017 Contents
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ALWAYS EVOLV NG 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 philosophy and brand statement Management policies CORPORATE PHILOSOPHY OF THE TEIJIN GROUP ■ Basic Management Policies policies 1 ENHANCING THE QUALITY OF LIFE: The Teijin Group's purpose is to enhance the quality of life through a deep insight into human As declared in the Teijin Group’s corporate philosophy, we are committed to enhancing the quality of life of Basic management nature and needs, together with the application of our creative abilities. people everywhere through our deep insight into human nature and the application of our creative abilities. “ ” a) The term quality of life characterizes most of the positive aspects of human At the same time, our corporate philosophy commits us to Grow In Harmony With Society, and to Grow By life: material well-being, good health and peace of mind; the full variety of joy and satisfaction gained from rewarding work, favorite pursuits and daily human contact; Empowering Our People. Accordingly, as our long-term vision, we pledge to create the new value needed by CORPORATE PHILOSOPHY and affection and due respect for all living things. society by utilizing its workforce diversity, thereby aiming to be an enterprise that supports the society of the b) We believe that the ultimate goal of any enterprise is to help people realize and future. maintain a high quality of life. We seek to reach this goal by developing creative technologies and by setting and meeting the highest standards of marketing skills and other business strategies. : 2 IN HARMONY WITH SOCIETY ■ Policy Regarding the Payment of Dividends. Our aim is to grow and evolve in harmony with the progress of society, thus justifying the trust of our shareholders, customers and the public at large. To this end, we strive constantly to raise Our basic policy for profit sharing is to ensure dividends are in line with consolidated operating results. We also corporate value and place our highest priority on safety and the environment. give consideration to the need to ensure financial soundness, to our ability to maintain stable dividend payments a) An enterprise is but one member of society. Accordingly, we strive to maintain harmony over the medium to long term and to securing sufficient internal reserves to fund strategic investments aimed at with society and ensure sound growth. We also endeavor to offer innovative products ensuring future growth. and services and new life style ideas that enhance the quality of life. b) In line with our commitment to being fair and open, we maintain an active dialogue with society, enabling us to hear clearly the voice of the public and respond effectively to its needs. c) As a member of the global community, we maintain an international outlook. Overseas, we operate with due respect for local customs and concerns and strive to earn the trust of the communities in which we operate. d) Enhancing humankind's quality of life depends directly on responsible care for the environment. We give first priority to this critical task in the development of our products and services as well as in our everyday manufacturing activities. 3 EMPOWERING OUR PEOPLE: We encourage our employees to achieve self-realization by developing and exercising their abilities to the fullest. We nurture a corporate community with a wide variety of abilities and personalities to foster creative innovation. a) We support our people in all their efforts to improve their own quality of life by providing many chances to experience challenging and rewarding work and the joys of achievement. b) Among our many management resources (well-trained personnel, capital, facilities, technologies, information, brand, corporate culture, etc.), our people are the most important. We aim to maximize each individual's full potential through fair and impartial evaluation and treatment. c) To maintain the status quo is to accept eventual decline. An enterprise can only grow and evolve through continual creation and innovation. We attach special importance to the development of latent capabilities of those employees who wish to meet the challenges of future possibilities in addition to accomplishing the tasks of today. A succinct expression of the value promised by the Teijin brand The promise of the Teijin brand is summed up in the resonant statement: "Human Chemistry, Human Solutions." Our promise is to keep delivering real value through the development of chemical technologies that are friendly to both people and the global environment,