Teijin Holdings Netherlands B.V. Arnhem

Teijin Holdings Netherlands B.V.

Annual Report

For the year ended March 31, 2014

Contents

Financial report

Directors’ report 2

Financial statements

Consolidated balance sheet as at March 31, 2014 10

Consolidated profit and loss account for the year ended March 31, 2014 12

Consolidated cash flow statement for the year ended March 31, 2014 13

Consolidated statement of recognized income and expense for the year ended March 31, 2014 14

Notes to the consolidated financial statements 15

Company balance sheet as at March 31, 2014 52

Company profit and loss account for the year ended March 31, 2014 54

Notes to the company financial statements 55

Other information

Provisions in the articles of association governing the appropriation of profit 64

Proposal for profit appropriation 64

Subsequent events 64

Independent auditor’s report 64

[1]

Teijin Holdings Netherlands B.V. Arnhem

Directors’ report

The Board of Managing Directors of Teijin Holdings Netherlands B.V. hereby presents its financial statements for the financial year ended on March 31, 2014.

General information

Teijin Holdings Netherlands B.V. (“the Company” or “the Group”) was incorporated on December 22, 2000. The Company, having its legal address in Arnhem, the Netherlands, is a private limited liability company under Dutch law, with 100% of its shares held by Teijin Limited, Osaka, Japan.

During the financial year 2013/2014, the Company acted as a holding and finance company and provided financial funding to its participating interests and to other Teijin Limited Group (hereinafter referred to as “Teijin Group“) companies. The Group primarily relates to Teijin Aramid B.V. as referred to page 3.

The following changes in the group structure occurred during the year:

・ In January, 2013, the Company incorporated Teijin Aramid management(Shanghai) Co., Ltd., Shanghai, China. In April, 2013, the Company paid its capital.

・In August, 2013, the Company incorporated Teijin RUS, LLC., Moscow, Russia.

・In March 2014, the Company decided to liquidate Teijin Aramid Italy S.r.l., Milano, Italy and Novameer Holding B.V., Veghel, the Netherlands. No significant financial impact is expected by the liquidation.

The group structure as at March 31, 2014 can be detailed as follows:

Teijin Teijin Aramid Teijin Aramid Teijin Aramid Teijin Aramid Aramid Teijin Aramid B.V. GmbH Asia Co., Ltd. Management FRANCE EURL ITALY S.r.l. (Arnhem, NL) (Wuppertal, (Shanghai, (Shanghai) Co., Ltd. (Dardilly, France ) in liquidation Germany) China) (Milan, Italy) (Shanghai,China)

25% 100 % 100 % 100% 100% 100% 100%

Novameer Holding TEIJIN HOLDINGS Teijin RUS LLC NETHERLANDS B.V. 100% B.V. inliquidation (Moscow ,Rusia) 75% (Amsterdam, NL) (Veghel, NL)

0.02% 50% 5% 50% 100%

Esteve Teijin Teijin Kasei DuPont Teijin Films DuPont Teijin Films UK Teijin India Pvt. Healthcare S.L. Luxembourg S.A. Ltd. Europe B.V. Limited (Barcelona, (Gurgaon, India) (Venlo, NL) (Luxembourg) (Dumfries, UK) Spain)

[2]

Teijin Holdings Netherlands B.V. Arnhem

Overview of activities

Teijin Holdings Netherlands B.V.

The Company continuously promoted its activities during the financial year. As one of the big Japanese investors in the Netherlands and the representative of the Teijin Group in Europe, the Company marked its presence in the Netherlands, through contributions not only to business communities but also to local ones such as the official sponsorship to the City Museum “Stedelijk Museum” in Amsterdam.

The Company established a good working relationship with group companies and trading partners. In the area of financing, the Medium Term Notes program was listed on the London Stock Exchange’s Professional Securities Market and the Company issued approximately EUR 83 million of Medium Term Notes in the financial year 2013/2014. The Company also raised new funds through long-term loans in the total amount of EUR 50 million to provide long-term loans to Teijin Group companies. These activities enabled the Company to centralize fundraising of the Teijin Group in Europe, resulting in an optimal group fund procurement.

Teijin Aramid B.V.

Teijin Aramid B.V. having its legal seat in Arnhem, the Netherlands, is engaged in the manufacturing and selling of para-aramid products like yarn, staple fiber and pulp. Teijin Aramid B.V. is a worldwide leader in the field of para-aramid. It produces its own monomers PPD (Para Phenylene Diamine) and TDC (Terephtaloy Dichloride) as well as polymer PPTA (Poly Phenylene Terepthal Amide) in the Delfzijl production facilities. Based on this polymer, Teijin Aramid B.V. produces para-aramid continuous filament, chopped fibers and pulp in the Emmen plant and pulp in the Arnhem plant. Teijin Aramid B.V. also produces and sells High Performance Polyethylene (UHMWPE) tape. It is produced by UHMWPE polymer compacting, rolling and stretching. The production process is held at the facility in Emmen. In the financial year 2013/2014, sales of para-aramid fibers for automotive applications, including tires, recovered in Europe, while sales for infrastructure-related applications, including optical fiber and rope reinforcements, were firm. In contrast, demand for use in ballistic protection products and protective clothing remained lackluster, while pricing competition for all applications intensified.

Financial information

The Group’s turnover over the financial year 2013/2014 decreased by EUR 15 million to EUR 450 million from EUR 465 million in previous year. The decrease is mainly due to the strong price pressure from competitors. The cost of sales decreased by EUR 43 million from EUR 377 million to EUR 334 million. This is mainly contributed by rationalization in Teijin Aramid B.V. Overall, the gross margin on turnover increased by EUR 28 million to EUR 116 million. The operating result increased by EUR 22 million from an operating loss of EUR 17 million to an operating income of EUR 5 million. The tax on the result from ordinary activities in the previous year includes an use of innovation box tax relief of EUR 23 million. Overall, the net result decreased by EUR 2 million to EUR 1 million.

Intangible fixed assets decreased by EUR 24 million from EUR 123 million to EUR 99 million due to the amortization of goodwill (EUR 14 million) and the impairment of R&D assets (EUR 10 million). Tangible fixed assets decreased by EUR 58 million from EUR 398 million to EUR 340 million mainly due to EUR 18 million of additions, EUR 69 million of depreciation and EUR 5 million of impairment losses. Financial fixed assets decreased by EUR 5 million from EUR 57 million to EUR 51 million [3]

Teijin Holdings Netherlands B.V. Arnhem mainly due to an EUR 12 million reclassification to current assets and an EUR 5 million other comprehensive income. Inventories increased by EUR 11 million from EUR 100 million to EUR 111 million. The increase is mainly due to shipment increase and preparing for maintenance shut down in fiscal year 2014/2015. Accounts receivable from participating interests and affiliated companies increased by EUR 15 million from EUR 124 million to EUR 139 million. The increase is mainly due to an EUR 12 million reclassification of loans receivable from financial fixed assets to current assets. Current and non-current debts to credit institution decreased by EUR 56 million from EUR 350 million to EUR 294 million. The decrease is mainly the result of repayments of borrowings by EUR 103 million and a new long-term loan taken-up of EUR 50 million. The solvency ratio (shareholder’s equity / total assets) as at March 31, 2014 is 52.6% (March 31, 2013: 48.3%). The current ratio (current assets / current liabilities) as at March 31, 2014 is 126.3% (March 31, 2013: 102.5%).

The Company realized a free cash flow of EUR 52 million over the financial year 2013/2014 (2012/2013: EUR 66 million), mainly due to the Group’s focus on cash management such as cutting in capital expenditure and overall cost reduction. The decrease compared to the previous year is mainly due to the increase in working capital. For further details on the 2012/2013 and 2013/2014 cash flows, reference is made to the cash flow statement included in the financial statements.

Financial and non-financial performance indicators

The financial performance indicators are described under the heading ‘Financial information’. There were no significant changes in the financial performance indicators as the Company’s activities and performance did not significantly change in the financial year 2013/2014.

The Board of Managing Directors of the Company has not set itself any goals for which non-financial performance indicators can be presented.

Liquidity and need for external financing

The Company’s liquidity position decreased by EUR 4 million from EUR 10 million as at March 31, 2013 to EUR 6 million as at March 31, 2014. There is however no need for additional external financing, as the Company is profitable and is likely to remain cash positive or cash neutral in the foreseeable future.

Environmental related information

Teijin Limited issues uniform environmental policies for the Teijin Group. The Teijin Group positions Environment, Safety, and health (“ESH”) as key issue relating to all business operations. As basic management policies that relate to ESH, and on the basis of the corporate philosophy, Teijin Group established the Teijin Group Global Environmental Charter, the Teijin Group Global Environmental Activity Goals and the ESH Basic Policies.

In addition, in order to manage ESH, Teijin Group has set-up the Group CSR Committee. This committee is chaired by the Chief Social Responsibility Officer who has authority and responsibility delegated from the CEO. Under the Group CSR Committee, is the Group ESH Subcommittee, which is chaired by the General Manager of the Teijin Limited ESH Office and has members including corporate staff leaders and the chairperson of each business group´s ESH committee. The subcommittee discusses and makes decisions on various measures and activities regarding ESH management, and oversees the expansion of these measures/activities to each business group. [4]

Teijin Holdings Netherlands B.V. Arnhem

Personnel related information

During the 2013/2014 financial year, the average number of staff employed by the Company, converted into full-time equivalents, amounted to 1,333 people (2012/2013: 1,405 people). The Company refer to note 21 of the financial statements for details on personnel related information, such as staff categories.

R&D activities

Recognizing that technical innovations are the basis for corporate growth, Teijin Group has set a group-wide R&D strategy inclusive of basic research, and is strengthening alliances among group companies, aiming to expedite research achievements.

Teijin Group´s core technologies assuring sustainable business growth and structural innovations are supported by various basic technologies in the fields of polymer science, drug discovery, biotechnology and nanotechnology. Based on these technologies, Teijin Group are continuing to strengthen their R&D, specifying Green Chemistry, Health Care and overlapping domains as priority technological domains.

Under restructuring of the technology portfolio outlined in the medium- to long-term management vision, Teijin Group is aiming to further expand existing businesses. In addition, Teijin Group is taking measures to move from an approach focused on materials development/applications development with a materials perspective to a position one step closer to customers and development of products that more clearly reflect customer needs. Through this intention to move their existing businesses downstream and by integrating their existing technologies, Teijin Group are aiming to shift towards becoming a solutions provider, and to forge ahead in new domains combining materials and health care technologies.

In the materials business to date, Teijin Group has taken a customer-oriented approach, maintaining healthy profits through proposal and supply of materials highly suited to customer needs and issues. However, under the conventional business model of a materials provider, there are certain limitations in creating new businesses with capacity for growth based on discovering the potential needs of customers and markets. For this reason, Teijin Group plans to not only expand the existing technologies and strengthen the competitiveness but also implement customer-involved product development that combines cutting-edge materials with advanced processing technologies to develop unique components, materials and devices (through in-house, collaboration and open innovation and other approaches).

Furthermore, Teijin Group is aiming to provide customers and markets with valuable new solutions. To achieve this, Teijin Group strives for flexibility in combining materials through utilization of materials from wide-ranging domains both internally and externally.

In line with the Teijin Group policy, the Group focus in the field of R&D is on creating innovative applications that meet real market needs and therefore offer genuine long-term growth opportunities. This requires both breadth and depth of knowledge across the Group’s business lines and, just as important, a culture of open innovation within the Group that enables the cross-fertilization of ideas and research advances.

The needs of the market are the driving force behind all the R&D activities. The Board of Managing Directors and key management personnel listen to its customers and monitor major market trends. [5]

Teijin Holdings Netherlands B.V. Arnhem

The R&D expense of the Group amounts to EUR 17 million as at March 31, 2014 (2012/2013: EUR 21 million).

The Dutch Technology Magazine “Technisch Weekblad “ published on April 11, 2014 its ranking of the Top 30 best performing R&D companies in the Netherlands. The Teijin Aramid Research Institute is ranked number 25 on this list.

Information concerning application of code of conduct

The Company is committed to Teijin Group’s Corporate Code of Conduct. The Corporate Code of Conduct of the Teijin Group sets forth the ethical codes to be observed by the Teijin Group itself, its corporate officers, and its employees in the conduct of business activities on a global basis, based on the Teijin Group´s corporate philosophy. The Board of Managing Directors is not aware of any non- compliance with the code of conduct.

Information regarding the aspects of corporate social responsibility

The Teijin Group established “Quality of Life” as its corporate philosophy in June 1993, 75 years after its founding. In April 2003, the Teijin Group changed to a holding company system and established “Human Chemistry, Human Solutions” as the Teijin Group brand statement to represent the Teijin Group’s commitment to customers and society. The Teijin Group will continue to fulfil its mission, developing and enhancing “Quality of Life” corporate philosophy, and acting as a corporate group that can be trusted by society and by its customers.

The Group is committed to the principles of Teijin Group’s corporate philosophy, details of which can be found on Teijin Group’s website (www.teijin.com/csr/report).

In 2014, Teijin Aramid B.V. issued its sustainability report 2013/2014 which covers the public environment and its social annual report. Teijin Aramid B.V. strives towards improving the content continuously by involving its stakeholders.

Information on male / female partitioning of board members

The Board of Managing Directors consists of three male members and therefore the balanced partitioning mentioned by article 391 of the Netherlands Civil Code cannot be met. The Company does not have the intention to change the composition of the Board of Managing Directors in the near future. The Managing Directors are selected and appointed based upon their knowledge, experience, and competences.

Risk management and risk profile

The Board of Managing Directors, under the supervision of parent company Teijin Limited, has overall responsibility and sets rules for the Group’s risk management and control systems. They are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Board of Managing Directors oversees the adequacy and functioning of the entire system of risk management and internal control, assisted by (Teijin Limited) Group departments.

[6]

Teijin Holdings Netherlands B.V. Arnhem

The day-to-day management regularly assess material risks to which the Group is exposed and take the necessary actions to manage such risks satisfactorily. These risks can be divided into the various categories below.

Market risks

- Increasing competition Teijin Group is trying to stay ahead of the competition by focusing heavily on the market and the customer. Innovation is key in this regard. By means of open innovation and cooperation with universities and technology institutes in the world, the development of new markets, materials and products is stimulated. Furthermore, cooperation is increasingly important, not just with customers, but also within the Teijin Group.

- Price development of raw materials The Group has to deal with price developments of energy and raw materials. The sourcing of critical raw materials has been further investigated on alternative materials and suppliers. By means of this, management wants to reduce its dependency and reduce overall costs. Various Teijin Group companies have joint forces in the field of purchasing and, together, continually seek for alternative raw materials. In addition, the Group has continued to explore ways to make energy consumption more efficient and effective.

Operational risks

- Fire and business damage On behalf of the operating companies, the Company has drafted a normative set of requirements for the implementation of measures in the field of fire and business damage. The policy formulated and the improvements implemented by the operating companies, again led to a significant improvement in the risk profile and thus to lower insurance premiums for the group companies in financial year 2013/2014.

- Increasing environmental regulations Throughout the world, the group companies are increasingly being confronted with new environmental legislation and regulations. In addition, the use of certain raw materials, which are essential for the production process, is being questioned as a result of, among other things, new European regulations. For example, in 2007 the Council of the EU adopted REACH (Registration, Evaluation, Authorization and Restriction of Chemical substances), the regulations governing chemicals and their safe use, and the Group has taken action to register the relevant substances in time. Furthermore, the Group companies are, as a responsible corporate citizen, constantly seeking ways to reduce the amount of environmentally unfriendly raw materials used in the production process.

Regulatory risks

The business area in which the Company operates is naturally exposed to a number of legal risks, tax risks and risks in connection with the reporting to public authorities or other external reporting. It is their policy to invest in the knowledge and experience of their personnel and to share knowledge with Teijin Group companies. This enables them to address any regulatory risks. Furthermore, the Company engage professional experts (e.g. tax advisors, legal advisors, auditors) to assist them in identifying and mitigating regulatory risks.

[7]

Teijin Holdings Netherlands B.V. Arnhem

Financial risks

The main responsibilities of the Company include coordinating and steering the financial requirements within the Teijin Group, ensuring the financial independence, and reducing financial risks, also through the use of financial instruments. Financial risks are continually monitored, quantified and – if necessary – hedged in order to reduce balance sheet effects. The Company is primarily subject to risks related to changes in interest rates, currency exchange rates and counterparty default, which may influence the Company’s earnings, net assets and financial position. The Company refer to note 14 ’Financial instruments’ of the financial statements for details about financial instruments and related risk management.

Future outlook

Teijin Holdings Netherlands B.V.

The Company is focusing mainly on the optimisation of the Teijin Group in Europe. To achieve this, the Company will continuously concentrate on promoting its functions throughout the Group. The effects of these activities on the financial results of the Company are, however, expected to be modest. The financial results of the Company will be mainly influenced by the performance of the Aramid operating companies.

The Company places great importance on financial stability. Due to accumulated retained earnings from the Aramid business, a long and good relationship with Japanese banks and guarantees issued by the Company’s parent company, Teijin Limited, the Company’s current funding structure has been reinforced. As a result, the Company will be able to choose its funding sources from rolling over short- term bank loans, long-term loans and the issuance of short-term and long-term Medium Term Notes.

Teijin Aramid B.V.

Macro-economic conditions seem slightly more favorable compared to last fiscal year. Especially the USA, but also other high income countries seem bound for a year of moderate growth. The Company foresee a healthy business environment in especially the automotive industry. The continued growth in on-line and mobile data traffic supports the market for optical fiber cables. Continued budget cuts and reduction in defense spending make for a difficult business environment for the ballistics business.

Last but not least, the Company will continuously strive to have a beneficial effect in the Netherlands through contributing added value, not only to the business community, but also to the public domain.

Subsequent events

There have been no events after balance sheet date which have a significant impact on, or should be disclosed in, the 2013/2014 financial statements.

Furthermore, the Board of Managing Directors is not aware of any events that have occurred since the balance sheet date that could have a significant influence on expectations concerning future activities, investments, financing, staffing and profitability.

[8]

Teijin Holdings Netherlands B.V. Arnhem

Arnhem, the Netherlands August 28, 2014

The Board of Managing Directors

M. Sano K. Yamamoto

S. Hirota

[9]

Teijin Holdings Netherlands B.V. Arnhem

Consolidated balance sheet as at March 31, 2014 (Before profit appropriation) (Currency – thousands of euros) note 31/03/2014 31/03/2013

ASSETS

Fixed assets Intangible fixed assets 1 98,521 122,879 Tangible fixed assets 2 339,603 397,690 Financial fixed assets 3 51,194 56,695

Total Fixed assets 489,318 577,264

Current assets Inventories 4 Raw materials and consumables 37,679 28,270 Work in process 424 279 Finished products and goods available for sale 73,162 71,513

Accounts receivable 5 Trade receivables 82,391 77,468 Accounts receivable from participating 139,026 124,214 interests and affiliated companies Taxes and social contributions 6 833 1,931 Derivative financial instruments 14 11,785 11,226 Other receivables and prepaid expenses 7 13,804 11,377 Cash and cash equivalents 8 6,033 10,391

Total Current assets 365,137 336,669

Total Assets 854,455 913,933

The notes on pages 15 to 51 are an integral part of these consolidated financial statements.

[10]

Teijin Holdings Netherlands B.V. Arnhem

Consolidated balance sheet as at March 31, 2014 (Before profit appropriation) (Currency – thousands of euros)

note 31/03/2014 31/03/2013

GROUP EQUITY AND LIABILITIES

Shareholder’s equity 9 449,490 441,816

Group equity 449,490 441,816

Provisions 10 Pension provisions 5,893 5,781 Deferred tax liabilities 15,148 19,631 Other provisions 15,244 15,971

Total Provisions 36,285 41,383

Non-current liabilities Debts to credit institutions 11 79,532 102,015

Total non-current Liabilities 79,532 102,015

Current liabilities Debts to credit institutions 11 214,402 247,540 Derivative financial instruments 14 1,116 4,765 Trade payables 25,556 33,317 Other taxes and social security contributions due 12 8,980 4,961 Accrued liabilities 13 39,094 38,136

Total current liabilities 289,148 328,719

Total Group equity and Liabilities 854,455 913,933

The notes on pages 15 to 51 are an integral part of these consolidated financial statements.

[11]

Teijin Holdings Netherlands B.V. Arnhem

Consolidated profit and loss account for the year ended March 31, 2014

(Currency – thousands of euros)

note 2013/2014 2012/2013

Net turnover 16 450,346 464,556

Cost of sales (334,007) (376,556)

Gross margin on turnover 116,339 88,000

Selling and distribution expenses 17 (41,534) (40,420)

Research and development expenses 18 (16,820) (21,377)

Depreciation and Amortization of fixed assets 19 (31,632) (25,341)

General and administrative expenses 20 (20,889) (17,596)

Total operating expenses (110,875) (104,734)

Operating result 5,464 (16,734)

Financial income and expense 22 (6,907) (6,140)

Result from ordinary activities before tax (1,443) (22,874)

Extraordinary income - 174 Tax on result from ordinary activities 23 167 25,496 Share of result from participating interests 1,747 209

Result after tax 471 3,005

Net result 471 3,005

The notes on pages 15 to 51 are an integral part of these consolidated financial statements.

[12]

Teijin Holdings Netherlands B.V. Arnhem

Consolidated cash flow statement for the year ended March 31, 2014

(Currency – thousands of euros)

Note 2013/2014 2012/2013

Operating result 5,464 (16,734) Adjustments for: Depreciation, amortization and impairments 19 98,365 106,236 Loss on disposals of fixed assets 1,677 1,624 Extraordinary loss - 174 Change in provisions (1,343) 1,685 Change in trade and other receivables (6,246) 5,208 Change in inventories (11,203) 18,306 Change in trade and other payables (11,530) (8,420)

Cash flow from business operations 75,184 108,079

Corporate income tax paid (951) 16,928 Dividend received 192 100 Interest received 2,189 2,866 Interest paid (7,340) (9,716)

Cash flow from operating activities 69,274 118,257

Investments in intangible fixed assets 1 (56) - Investments in tangible fixed assets 2 (17,614) (52,014)

Cash flow used in investing activities (17,670) (52,014)

Repayment of borrowings 11 (1,321,317) (1,451,858) Taken-up borrowings 11 1,268,310 1,385,927 Dividend paid - (205,170) Granted loans to non-consolidated participating interests 5 (1,082,247) (890,047) and affiliated companies Repayment of loans to non-consolidated participating 5 1,079,489 886,934 interests and affiliated companies Capital contribution - 205,170 Other cash flows from financial assets and liabilities - 422

Cash flow used in financing activities (55,765) (68,622)

Net cash flow (4,161) (2,379)

Exchange rate and translation differences on (197) 142 cash and cash equivalents

Changes in cash and cash equivalents (4,358) (2,237)

Cash and cash equivalents at the beginning of the year 10,391 12,628 Changes in cash and cash equivalents (4,358) (2,237) Cash and cash equivalents at the end of the year 8 6,033 10,391

The notes on pages 15 to 51 are an integral part of these consolidated financial statements.

[13]

Teijin Holdings Netherlands B.V. Arnhem

Consolidated statement of recognized income and expense for the year ended March 31, 2014

(Currency – thousands of euros) 2013/2014 2012/2013 Consolidated net result after tax attributable to the Company 471 3,005

Translation differences on foreign participating interests (1,735) 1,215 Effective portion of changes in fair value of hedging instruments 3,718 1,674 Defined benefit plan actuarial gains (losses) 5,220 5,104 Total of items recognized directly in shareholder’s equity of the Company as part of the group entity 7,203 7,993

Total result of the legal entity 7,674 10,998

The notes on pages 15 to 51 are an integral part of these consolidated financial statements.

[14]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

General

Relationship with parent company, participating interests and principle activities

Teijin Holdings Netherlands B.V. (“the Company” or “the Group”) was incorporated on December 22, 2000. The Company, having its legal address in Arnhem, the Netherlands, is a private limited liability company under Dutch law, with 100% of its shares held by Teijin Limited, Osaka, Japan.

During the financial year 2013/2014, the Company acted as a holding and finance company and provided financial funding to its participating interests and to other Teijin Limited Group (hereinafter referred to as “Teijin Group“) companies. The Group primarily relates to Teijin Aramid B.V. as referred to in page 3.

The following changes in the group structure occurred during the year:

・ In January, 2013, the Company incorporated Teijin Aramid management(Shanghai) Co., Ltd., Shanghai, China. In April, 2013, the Company paid its capital.

・In August, 2013, the Company incorporated Teijin RUS, LLC., Moscow, Russia.

・In March 2014, the Company decided to liquidate Teijin Aramid Italy S.r.l., Milano, Italy and Novameer Holding B.V., Veghel, the Netherlands. No significant financial impact is expected by the liquidation.

The group structure as at March 31, 2014 can be detailed as follows:

Teijin Teijin Aramid Teijin Aramid Teijin Aramid Teijin Aramid Aramid Teijin Aramid B.V. GmbH Asia Co., Ltd. Management FRANCE EURL ITALY S.r.l. (Arnhem, NL) (Wuppertal, (Shanghai, (Shanghai) Co., Ltd. (Dardilly, France ) in liquidation Germany) China) (Milan, Italy) (Shanghai,China)

25% 100 % 100 % 100% 100% 100% 100%

Novameer Holding TEIJIN HOLDINGS Teijin RUS LLC NETHERLANDS B.V. 100% B.V. inliquidation (Moscow ,Rusia) 75% (Amsterdam, NL) (Veghel, NL)

0.02% 50% 5% 50% 100%

Esteve Teijin Teijin Kasei DuPont Teijin Films DuPont Teijin Films UK Teijin India Pvt. Healthcare S.L. Luxembourg S.A. Ltd. Europe B.V. Limited (Barcelona, (Gurgaon, India) (Venlo, NL) (Luxembourg) (Dumfries, UK) Spain)

[15]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Consolidated participating interests: Percentage Name Legal seat ownership Teijin Aramid B.V. Arnhem, the Netherlands 100% Teijin Aramid GmbH Wuppertal, Germany 100% Teijin Aramid France Eurl Dardilly, France 100% Teijin Aramid Italy S.r.l. Milano, Italy 100% Teijin Aramid Asia Co. Ltd Shanghai, China 100% Teijin Aramid management (Shanghai) Co. Ltd Shanghai, China 100% Novameer Holding B.V. Veghel, the Netherlands 100% Teijin Kasei Europe B.V. Venlo, the Netherlands 100% Teijin RUS LLC Moscow, Russia 100%

Teijin Aramid B.V. is a worldwide leader in the field of para-aramid fibers. It produces its own monomers PPD (Para Phenylene Diamine) and TDC (Terephtaloy Dichloride) as well as polymer PPTA (PolyPhenylene Terepthal Amide) in the Delfzijl production facilities. Based on this polymer, Teijin Aramid B.V. produces para-aramid continuous filament, chopped fibers and pulp in the Emmen plant and pulp in the Arnhem plant.

Teijin Aramid GmbH, Teijin Aramid France Eurl, Teijin Aramid Asia Co. Ltd, Teijin Kasei Europe B.V., and Teijin RUS, LLC are primarily engaged in trade activities.

The Company yearly issues a declaration of joint and several liability to Teijin Aramid B.V. (since 2008) and to Teijin Kasei Europe B.V. (since 2012) pursuant to Section 2:403 of the Netherlands Civil Code.

Other participating interests:

a) Participating interests stated at net asset value Percentage Name Legal seat Ownership DuPont Teijin Films UK Limited Middlesbrough, United Kingdom 50% DuPont Teijin Films Netherlands B.V. Dordrecht, The Netherlands 50% Esteve Teijin Healthcare S.L. Barcelona, Spain 50% TTI GmbH Wuppertal, Germany 50% CPW GmbH Wuppertal, Germany 33%

b) Participating interests stated at acquisition costs Percentage Name Legal seat Ownership Magellan Systems International LLC Richmond, USA 12% Teijin India Private limited Gurgaon, India 5% DuPont Teijin Films Luxembourg S.A. Luxembourg, Luxembourg 0.02%

[16]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Financial reporting period

The reporting period of the company covers from April 1 to March 31.

Basis of preparation

The financial statements have been prepared in accordance with Title 9, Book 2 of the Netherlands Civil Code. The applied accounting policies are based on the historical cost convention.

Application of Section 402, Book 2 of the Netherlands Civil Code

The financial information of the Company is included in the consolidated financial statements. For this reason, in accordance with Section 402, Book 2 of the Netherlands Civil Code, the company profit and loss account of the Company exclusively states the share of the result of participating interests after tax and the general result after tax.

Going concern

These financial statements have been prepared on the basis of the going concern assumption.

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Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Accounting policies

General

Unless stated otherwise, assets and liabilities are shown at nominal value.

An asset is disclosed in the balance sheet when it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the cost of the asset can be measured reliably. A liability is recognized in the balance sheet when it is expected to result in an outflow from the entity of resources embodying economic benefits and the amount of the obligation can be measured with sufficient reliability.

Income is recognized in the profit and loss account when an increase in future economic potential related to an increase in an asset or a decrease of a liability has arisen, the size of which can be measured reliably. Expenses are recognized when a decrease in the economic potential related to a decrease in an asset or an increase of a liability has arisen, the size of which can be measured with sufficient reliability.

If a transaction results in a transfer of future economic benefits and or when all risks relating to assets or liabilities transfer to a third party, the asset or liability is no longer included in the balance sheet. Assets and liabilities are not included in the balance sheet if economic benefits are not probable and/or cannot be measured with sufficient reliability.

The revenue and expenses are allocated to the period to which they relate. Revenues are recognized when the company has transferred the significant risks and rewards of ownership of the goods to the buyer.

The financial statements are presented in euros, the Company’s functional currency. All financial information in euros has been rounded to the nearest thousand.

Use of estimates

The preparation of the financial statements requires the management to form opinions and to make estimates and assumptions that influence the application of principles and the reported values of assets and liabilities and of income and expenditure. Actual results may differ from these estimates. The estimates and the underlying assumptions are constantly assessed. Revisions of estimates are recognized in the period in which the estimate is revised and in future periods for which the revision has consequences.

[18]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Consolidation principles

The consolidated financial statements include the financial data of the Company, its group companies and other companies over which the Company has control. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Group companies are participating interests in which the Company has a direct or indirect controlling interest. In assessing whether controlling interest exists, potential voting rights that are currently exercisable are taken into account. Group companies exclusively acquired with the view to resale are exempted from consolidation.

The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

In preparing the consolidated financial statements, intra-group debts, receivables and transactions are eliminated. The group companies are consolidated in full with minority interest presented within group equity separate from parent’s equity.

For a summary of the consolidated group companies, please refer to the heading ‘Group structure’.

Principles for the translation of foreign currency

Transactions in foreign currencies

Transactions denominated in foreign currency are translated into the relevant functional currency of the group companies at the exchange rate applying on the transaction date. Monetary assets and liabilities denominated in foreign currency are translated at the balance sheet date into to the functional currency at the exchange rate applying on that date. Non-monetary assets and liabilities in foreign currency that are stated at historical cost are translated into euros at the applicable exchange rates applying on the transaction date. Translation gains and losses are taken to the profit and loss account as expenditure.

The following exchange rates have been used:  March 31, 2013: 1 EUR = 1.2805 USD = 120.87 JPY = 0.8456 GBP  March 31, 2014: 1 EUR = 1.3788 USD = 142.42 JPY = 0.8282 GBP

Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated into euros at exchange rates applying on the balance sheet date. Income and expenses of foreign operations are translated into euros at the exchange rate applying on the transaction date.

Translation gains and losses are taken to reserve for translation difference. If a foreign operation is fully or partially sold, the respective amount is transferred from the reserve for translation difference to the profit and loss account.

[19]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Hedging of the net investment in foreign operations

Exchange rate differences arising on retranslation of a foreign currency liability accounted for as a hedge of a net investment in a foreign activity are taken directly to shareholder’s equity, in the reserve for translation differences, insofar as the hedge is effective. The non-effective part is taken to the profit and loss account as expenditure.

Financial instruments

Financial instruments include investments in shares and bonds, trade and other receivables, cash items, loans and other financing commitments, and trade and other payables. This financial statement contains the following financial instruments: loans and receivables, other financial liabilities and derivatives.

Financial instruments also include derivative financial instruments (derivatives) embedded in contracts. Derivatives embedded in contracts shall be separated from the host contract and accounted for as a separate financial instrument if:  the economic characteristics and risks of the host contract and the embedded derivative are not closely related;  a separate instrument with the same terms and conditions as the embedded derivative would meet the definition of a derivative; and  the combined instrument is not measured at fair value with changes in fair value recognised through profit and loss.

Financial instruments, including derivatives separated from their host contracts, are initially recognized at fair value. If instruments are not measured at fair value through profit and loss, then any directly attributable transaction costs are included in the initial measurement.

Financial instruments embedded in contracts that are not accounted for separately from the host contract are recognized in accordance with the host contract.

After initial recognition, financial instruments are valued in the manner described below.

Purchased loans and bonds

Purchased loans and bonds which the Company intends to hold to maturity (and is capable of doing so), are measured at amortized cost on the basis of the effective interest method, less impairment losses.

If listed on a stock exchange, other purchased loans and bonds are carried at fair value. Changes in the fair value are recognized in the profit and loss account. Unlisted purchased loans and bonds are carried at amortized cost on the basis of the effective interest method, less impairment losses.

[20]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Loans granted and other receivables

Loans granted and other receivables are carried at amortized cost on the basis of the effective interest method, less impairment losses.

Other financial commitments

Financial commitments that are not held for trading are carried at amortized cost on the basis of the effective interest rate method.

Derivatives

Derivatives are measured at fair value with recognition of all changes in value in the profit and loss account, except where hedge accounting is used the hedge the variability of future cash flows affecting the profit and loss account (cash flow hedge accounting).

Cash flow hedge accounting If cash flow hedge accounting is used, the effective portion of the fair value changes of the derivatives is initially recognised in the hedging reserve. As soon as the expected future transactions lead to the recognition of gains or losses in the profit and loss account, the respective amounts are taken from the hedging reserve to the profit and loss account. If a hedged position in respect of an expected future transaction leads to the recognition in the balance sheet of a non-financial asset, the Company adjust the cost price of this asset in line with the hedging results that have not yet been recognised in the profit and loss account.

If a derivative no longer meets the conditions for hedge accounting, expires or is sold, or if the Company has decided to no longer apply hedge accounting, the hedging relationship is terminated. The gains or losses recognised at the time of the termination of the hedging relationship remain in equity until the expected future transaction takes place. If the transaction is no longer expected to take place, the deferred gain or loss on the hedge recognised in equity is taken to the profit and loss account.

The Company regularly assesses the effectiveness of its hedging relationships by comparing the cumulative value change of the hedged position with the cumulative value change of the derivatives.

The lower of the cumulative value change of the hedged position and the cumulative value change of the derivatives is recognized as a deferred gain or loss in the hedging reserve.

[21]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Fair value hedge If a derivative is a fair value hedge of a recognized asset or liability or an off-balance sheet commitment arising from a binding agreement, revaluation gains or losses on the derivative are recognized in profit or loss. These revaluation gains or losses are recognized simultaneously with any gains or losses on the hedged position that arise from the fair value change related to the specific risk of the hedged item or position.

If a derivative no longer meets the conditions for hedge accounting, expires or is sold, or if the Company has decided to no longer apply hedge accounting, the hedging relationship is terminated. The gains or losses recognised at the time of the termination of the hedging relationship remain in equity until the expected future transaction takes place. If the transaction is no longer expected to take place, the deferred gain or loss on the hedge recognised in equity is taken to the profit and loss account.

The Company documents its hedging relationships by means of specific/generic hedging documentation, and regularly checks the effectiveness of the hedge relationships by establishing that there are no overhedges.

Impairment of financial assets

A financial asset not classified as at fair value through profit or loss, including an interest in an equity- accounted investee, is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset, and that loss event(s) had an impact on the estimated future cash flows of that asset that can be estimated reliably.

Objective evidence that financial assets are impaired includes default or delinquency by a debtor, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers, economic conditions that correlate with defaults or the disappearance of an active market for a security.

The entity considers evidence of impairment for financial assets measured at amortized cost (loan and receivables and held-to-maturity financial assets) at both a specific asset and collective level. All individually significant assets are assessed for specific impairment. Those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Assets that are not individually significant are collectively assessed for impairment by grouping together assets with similar risk characteristics.

In assessing collective impairment, the Group uses historical trends of the probability of default, the timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or lesser than suggested by historical trends.

[22]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account against loans and receivables or held-to-maturity investment securities. Interest on the impaired asset continues to be recognized. When an event occurring after the impairment was recognized causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

Intangible fixed assets

Development costs

Development costs are capitalized insofar as incurred in respect of potentially profitable projects and are stated at cost. These costs mainly comprise the cost of direct labour, upon termination of the development phase, the capitalized costs are written down over their expected useful life, which normally is five years. Depreciation takes place on a straight-line basis.

The costs of research and other development costs are charged to the result in the period during which they are incurred.

A legal reserve is formed for the capitalized development costs that have not yet been amortized.

Goodwill

Goodwill represents the excess of the cost of the acquisition over the Company’s interest in the net realizable value of the assets acquired and liabilities and contingent liabilities assumed at the transfer date less cumulative amortization and cumulative impairment losses.

Goodwill paid upon the acquisition of foreign group companies and subsidiaries is translated at the exchange rates at the date of the acquisition. The capitalized goodwill is amortized on a straight-line basis over the estimated economical useful life of ten to twenty years.

[23]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Tangible fixed assets

Land and buildings, plant and equipment, other fixed operating assets, and tangible fixed assets in production are stated at cost of acquisition or manufacture, less accumulated depreciation.

The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, such as production cost, production overhead cost and interest paid to third parties during the period of construction or manufacturing.

Government grants are deducted from the cost price of the assets to which the grants relate.

Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each item of the tangible fixed assets. Land and tangible fixed assets in production are not depreciated.

The following rates of depreciation are applied: Buildings : 12% Plant and equipment : 10%-25% Other fixed operating assets : 20%.

Maintenance expenditure is only capitalized when the maintenance extends the useful life of the asset.

Tangible fixed assets, for which the Company and its group companies possess the economic ownership under a financial lease, are capitalized. The obligation arising from the financial lease contract is recognized as a liability. The interest included in the future lease instalments is charged to the profit and loss account during the term of the finance lease contract.

[24]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Financial fixed assets

Participating interests where significant influence is exercised over the business and financial policy are valued according to the equity method on the basis of net asset value. The net asset value is calculated on the basis of the Company’s accounting policies. Participating interests with a negative net asset value are valued at nil. If the Company guarantees for the debts of the relevant participating interest, a provision is recognised. This provision is recognised primarily to the debit of the receivables on the respective participating interest and for the remainder presented under provisions for the part of the share of the losses incurred by the participating interest, or for the estimated payments by the company on behalf of these participating interests.

Participating interests where no significant influence is exercised are stated at cost less any accumulated impairment losses.

Loans to non-consolidated participating interests are included at amortised cost using the effective interest method, less impairment losses.

The accounting policies for other financial fixed assets are included under the heading ‘Financial instruments’.

Dividends are accounted for in the period in which they are declared. Interest income is recognised in the profit and loss account as it accrues, using the effective interest rate method. Any profit or loss is recognised in the profit or loss as accounted for under financial income or expenses.

Impairment

Assets with a long life should be tested for impairment in the case of changes or circumstances arising that lead to an indication that the carrying amount of the asset will not be recovered. The recoverability of assets in use is determined by comparing the carrying amount of an asset with the estimated present value of the future net cash flows which the asset is expected to generate. If the carrying amount of an asset exceeds the estimated present value of the future cash flows, impairment is charged to the difference between the carrying amount and the recoverable amount.

Disposal of fixed assets

Assets available for sale are stated at the lower of their carrying amount and net realizable value.

[25]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Inventories

Raw materials and consumables are carried at the lower of cost price and fair value in accordance with the first-in, first-out (FIFO) principle and market value.

Finished products are stated at cost on the basis of weighted average prices comprising cost of used raw materials and consumables and the other costs directly attributable to manufacture. In addition, part of the indirect costs and the interest on debts over the period of manufacture are attributed to the cost of manufacture. Trade discounts, rebates and similar indemnities (to be) received in connection with purchasing are deducted from the sales price.

Goods available for sale and work in process are stated at cost. Cost includes the purchase price and expenditure incurred in acquiring the inventories and bringing them to their existing location and condition.

The measurement of inventories includes possible impairments that arise on the balance sheet date.

Receivables

The accounting policies applied for the valuation of trade and other receivables are described under the heading ‘Financial instruments’.

Shareholder’s equity

Financial instruments that are designated as equity instruments by virtue of the economic reality are presented under shareholder’s equity. Payments to holders of these instruments are deducted from the shareholder’s equity as part of the profit distribution.

Financial instruments that are designated as a financial liability by virtue of the economic reality are presented under liabilities. Interest, dividends, income and expenditure with respect to these financial instruments are recognized in the profit and loss as financial income or expense.

Provisions

Provisions should be valued at the nominal value of the expenses expected to be incurred in settling the liabilities and losses.

A provision is recognized if the following applies:  the Company has a legal or constructive obligation, arising from a past event; and  the amount can be estimated reliably; and  it is probable that an outflow of economic benefits will be required to settle the obligation.

[26]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Non-current liabilities

The valuation of non-current liabilities is explained under the heading ‘Financial instruments’.

Current liabilities

The valuation of current liabilities is explained under the heading ‘Financial instruments’.

Revenue recognition

Sale of goods

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods.

The transfer of risks and benefits varies according to the conditions of the relevant sales contract. For the sale of para-aramid products, transfer usually occurs when the product is received at the customer’s warehouse; for some international shipments, however, transfer occurs when the goods have been loaded by the carrier. For polycarbonate resin, delivery occurs when the buyer receives the goods.

Government grants

Government grants are initially recognized in the balance sheet as deferred income when there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant. Grants that compensate the Group for expenses incurred are recognized in the profit and loss on a systematic basis in the same period in which the expenses are recognized. Grants that compensate the Group for the cost of an asset are recognized in the profit and loss account on a systematic basis over the useful life of the asset.

Share in result of participating interests

The share in the result of participating interests consists of the share of the group in the result of these participating interests. Results on transactions, where the transfer of assets and liabilities between the group and the non-consolidated participating interests and mutually between non-consolidated participating interests themselves, are not recognized as they can be deemed as not realized.

The results of participating interests acquired or sold during the financial year are stated in the group result from the date of acquisition or until the date of sale respectively.

[27]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Employee benefits/pensions

Dutch pension plans

The main principle is that the pension charge to be recognized for the reporting period should be equal to the pension contributions payable to the pension fund over the period. Insofar as the payable contributions have not yet been paid as at balance sheet date, a liability is recognized. If the contributions already paid exceed the payable contributions as at balance sheet date, a receivable is r ec o g n iz e d to account for any repayment by the fund or settlement with contributions payable in future .

In addition, a provision is included as at balance sheet date for existing additional commitments to the fund and the employees, provided that it is likely that there will be an outflow of funds for the settlement of the commitments and it is possible to reliably estimate the amount of the commitments. The existence or non-existence of additional commitments is assessed on the basis of the administration agreement concluded with the fund, the pension agreement with the staff and other (explicit or implicit) commitments to staff. The liability is stated at the best estimate of the present value of the anticipated costs of settling the commitments as at balance sheet date.

For any surplus at the pension fund as at balance sheet date, a receivable is recognized if the company has the power to withdraw this surplus, if it is likely that the surplus will flow to the Company and if the receivable can be reliably determined.

Foreign pension plans

Pension plans that are comparable in design and functioning to the Dutch pension system, having a strict segregation of the responsibilities of the parties involved and risk sharing between the said parties (company, fund and members) are recognized and measured in accordance with Dutch pension plans (see previous section).

For foreign pension plans that are not comparable in design and functioning to the Dutch pension system, a best estimate is made of the commitment as at balance sheet date. This commitment should then be stated on the basis of an actuarial valuation principle generally accepted in the Netherlands.

Defined benefit plans

One of the consolidated participating interests provides defined benefit plans for its employees. The funds are valued every year by professionally qualified independent actuaries. The obligation and costs of the pension benefits are determined using a projected unit credit method. The projected unit credit method considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Past-service costs are recognized on a straight-line basis over the average period until the amended benefits become vested. Actuarial gains and losses are recognized immediately in other comprehensive income.

[28]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Other long-term employee benefits

The commitments for other long-term employee benefits (early retirement/long-service awards) are calculated in the same manner as for defined benefit plans. Actuarial gains and losses are recognized immediately in other comprehensive income.

Corporate income tax

Corporate income tax comprises the current and deferred corporate income tax payable and deductible for the reporting period.

Corporate income tax is recognized in the profit and loss account except to the extent that it relates to items recognized directly to equity, in which case it is recognized in equity.

Current tax comprises the expected tax payable or receivable on the taxable profit or loss for the financial year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to the tax payable in respect of previous years.

Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Cash flow statement

The cash flow statement is prepared using the indirect method. Cash flows in foreign currency are translated into euros using the weighted average exchange rates at the dates of the transactions.

Cash flows from financial derivatives that are stated as fair value hedges or cash flow hedges are attributed to the same category as the cash flows from the hedged balance sheet items. Cash flows from financial derivatives to which hedge accounting is no longer applied are categorized in accordance with the nature of the instrument as from the date on which the hedge accounting is ended.

Determination of fair value

A number of accounting policies and disclosures in the Group’s financial statements require the determination of the fair value for both financial and non-financial assets and liabilities. For measurement and disclosure purposes, fair value is determined on the basis of the following methods. Where applicable, detailed information concerning the principles for determining fair value are included in the section that specifically relates to the relevant asset or liability.

[29]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Financial assets

The fair value of listed financial assets is determined on the basis of the listed market price as at the balance sheet date.

Trade and other receivables

The fair value of trade and other receivables is estimated at the present value of future cash flows.

Derivatives

The fair value of forward exchange contracts is based on the quoted market price, if available. If no quoted market price is available, the fair value is determined on the basis of the expected cash flows discounted at the current interest rates, including a margin for discounting the relevant risks.

Non-derivative financial commitments

The fair value of non-derivative financial commitments is calculated on the basis of the net present value of future repayments and interest payments, discounted at the market interest rate with which a mark-up is included for the relevant risks as at the reporting date. For financial leases, the market interest rate is determined using comparable leasing agreements.

[30]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

1 Intangible fixed assets

The movements in intangible fixed assets were as follows:

Development Goodwill Total costs EUR EUR EUR

Balance as at April 1, 2013: Purchase price 271,887 19,893 291,780 Accumulated amortization and impairment (164,525) (4,376) (168,901)

Carrying amount 107,362 15,517 122,879

Changes in carrying amount: Investment 56 - 56 Amortization (13,999) (862) (14,861) Impairments - (9,553) (9,553) Total (13,943) (10,415) (24,358)

Balance as at March 31, 2014: Purchase price 271,943 19,893 291,836 Accumulated amortization and impairment (178,524) (14,791) (193,315)

Carrying amount 93,419 5,102 98,521

Amortization rates applied: 5-20%

As at balance sheet date, the total goodwill balance amounts to EUR 93,419 thousand. The carrying amount mainly relates to the acquisition of Teijin Aramid B.V. in 2000 (EUR 89,178 thousand) and goodwill in relation to the acquisition of Novameer Holding B.V. in 2009 and 2010 (EUR 4,015 thousand).

The goodwill paid upon the acquisition of Teijin Aramid B.V. has an estimated economical useful life of 20 years. The remaining useful life as at balance sheet date is 7 years. The goodwill paid upon the acquisition of Novameer Holding B.V. has an estimated economical useful life of 10 years. The remaining useful life as at balance sheet date is 5 years. The capitalized goodwill is amortized on a straight line basis based on the estimated economical useful life. The Board of Managing Directors believes that the economical useful life is the most appropriate amortization period.

Furthermore, the Board of Managing Directors believes that there has not been any permanent diminution in the value of the Company’s goodwill. Consequently, no impairment losses for permanent diminution in value were recognized during the financial year.

[31]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

The capitalized development costs relates to the internally generated intangible fixed assets and relate to the development of para-aramid products and ultra-high-molecular-weight polyethylene.

In the financial year 2013/2014, the Board of Managing Directors decided to recognize an impairment loss on the capitalized development costs. The impairment loss is the result of the Board’s decision not to use certain production facilities of Teijin Aramid B.V. Further explanation is provided in note 2 ‘Tangible fixed assets’.

Amortization, impairment and impairment reversals are accounted for in the profit and loss account as follows: 2013/2014 2012/2013 EUR EUR Amortization Cost of sales - - Operating expenses (14,861) (14,769) (14,861) (14,769) Impairments Cost of sales - - Operating expenses (9,553) (620) (9,553) (620) Reversal of impairments Cost of sales - - Operating expenses - - - -

2 Tangible fixed assets

The movements in tangible fixed assets were as follows: Land and Plant and Other fixed Tangible Total buildings equipment operating fixed assets assets in production EUR EUR EUR EUR EUR

Balance as at April 1, 2013: Purchase price 109,314 864,747 29,449 35,463 1,038,973 Accumulated depreciation and impairment (33,361) (589,862) (18,060) - (641,283) Carrying amount 75,953 274,885 11,389 35,463 397,690

Changes in carrying amount: Exchange rate differences - - (73) - (73) Investments 2,451 22,000 1,507 (8,344) 17,614 Disposals (622) (129) (1) (925) (1,677) Depreciation (4,183) (62,991) (2,099) - (69,273) Impairments - (3,101) - (1,577) (4,678) Total (2,354) (44,221) (666) (10,846) (58,087)

Balance as at March 31, 2014: Purchase price 110,770 883,845 30,767 24,617 1,049,999 Accumulated depreciation and impairment (37,171) (653,181) (20,044) - (710,396) Carrying amount 73,599 230,664 10,723 24,617 339,603

[32]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

The Board of Managing Directors decided not to use certain production facilities of Teijin Aramid B.V. and consequently concluded that the assets related to these production facilities should be impaired. This resulted in a total impairment of EUR 14,231 thousand, allocated to Plant and equipment (EUR 3,101 thousand), Tangible fixed assets in production (EUR 1,577 thousand), and Development costs (EUR 9,553 thousand).

3 Financial fixed assets

The movements in financial fixed assets were as follows:

Participating Accounts Other Total interests receivable receivables from participating interests EUR EUR EUR EUR Balance as at April 1, 2013: Cost of acquisition 43,133 12,100 1,462 56,695 Accumulated depreciation and impairment - - - - Carrying amount: 43,133 12,100 1,462 56,695

Changes during the financial year: Deferred tax assets released - - (264) (264) Deferred tax assets offset against profits - - 386 386 Addition of guarantee deposit - - 2 2 Reclassification to current assets - (12,100) - (12,100) Share of result of participating interests 1,747 - - 1,747 Other comprehensive income 4,920 - - 4,920 Dividend received from participating interests (192) - - (192) Total 6,475 (12,100) 124 (5,501)

Balance as at April 1, 2013: Cost of acquisition 49,608 - 1,586 51,194 Accumulated depreciation and impairment - - - - Carrying amount: 49,608 - 1,586 51,194

[33]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Participating interests (non-consolidated):

Share of Total Net result result Share 31/03/2014 2013/2014 2013/2014

DuPont Teijin Films UK Limited 50% 48,523 1,606 3,212 DuPont Teijin Films Netherlands B.V. 50% 534 (4) (8) Esteve Teijin Healthcare S.L. 50% 0 - 2,053 TTI GmbH 50% 56 - 0 CPW GmbH 33% 486 145 145 Teijin India Private Limited 5% 9 *) - (43) DuPont Teijin Films Luxembourg S.A. 0.02% 0 *) - 54,793

49,608 1,747 60,152

*) These participating interests are stated at acquisition costs.

Accounts receivable from participating interests:

All amount as at April 1, 2013 (EUR 12,100 thousand) reclassified to current assets.

Other receivables:

Other receivables contain deferred tax assets (EUR 1,544 thousand) and a guarantee deposit (EUR 42 thousand).

4 Inventories

As at March 31, 2014, a provision for obsolescence in the amount of EUR 5,901 thousand (2013: EUR 6,309 thousand) has been recognized, which relates to finished products (EUR 73,162 thousand) and raw materials and consumables (EUR 37,679 thousand).

The valuation of inventories on the basis of the fair value does not materially differ from the valuation of the inventories as stated in the balance sheet.

[34]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

5 Accounts receivable

Trade receivables 31/03/2014 31/03/2013 EUR EUR Amortized cost of outstanding receivables 83,707 79,247 Less: Provision for bad debts (1,316) (1,779) 82,391 77,468

The trade receivables mature within one year.

Accounts receivable from participating interests and affiliated companies

31/03/2014 Loan receivable Toho Tenax Europe GmbH 85,000 DuPont Teijin Films Luxembourg S.A. 26,437 Esteve Teijin Healthcare S.L. 12,100 Cash-pool related receivables 15,417 Other receivables 72 Total accounts receivable from participating interests and affiliated companies 139,026

Interest rate range is 1.1%-2.1%. For the loans receivable, the Company’s parent company, Teijin Limited, guarantees any and all obligations which these entities owe or will hereafter owe under or pursuant to the loan agreements. For this reason, the managing directors of the Company did not recognize any impairment on these loans.

[35]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

6 Taxes and social contributions

The Company forms a fiscal unity with Teijin Aramid B.V. The receivable regarding taxes and social contributions relates to excess prepayments on preliminary tax returns that will be off-set against future tax liabilities.

The accounts receivable presented under current assets mature within one year.

7 Other receivables and prepaid expenses

31/03/2014 31/03/2013 Non-trade receivables 6,453 5,968 Loans receivable 3,461 3,252 Prepaid expenses 1,570 1,124 Deferred tax assets 2,055 910 Other 265 123 Total 13,804 11,377

Prepayments and other receivables mature within one year.

8 Cash and cash equivalents

The cash and cash equivalents are unencumbered and are, therefore, available on demand.

9 Group equity

Reference is made to note 32 ‘Shareholder’s equity’ to the company financial statements. There are no reconciliation differences between consolidated group equity and company equity.

10 Provisions

Movements in provisions can be specified as follows:

Pension Deferred tax Other provision liabilities provisions Total

Carrying amount as at April 1, 2013 5,781 19,631 15,971 41,383 Additions 1,215 - 3,559 4,774 Utilized (1,103) - (4,286) (5,389) Release - (4,483) - (4,483) Carrying amount as at March 31, 2014 5,893 15,148 15,244 36,285

Releases of provisions have been presented in corporate income tax (EUR 4,483 thousand).

[36]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Pension provision

Defined benefit plan

One of the Company’s consolidated participating interests provide defined benefit pension plans for its employees. Provisions for pension obligations are established for benefits payable in the form of retirement, disability and surviving related pensions. The benefits are dependent on years of service and the respective employee's compensation. Also included in the calculation are the costs regarding transitional pension arrangements and jubilee cost. The obligation resulting from defined benefit pension plans is determined using the projected unit credit method.

Unrecognized gains and losses resulting from changes in actuarial assumptions are recognized through statement of recognized income and expense.

The total pension provision consists of the following balance sheet items:

2013/2014 2012/2013

Presented value of funded defined benefit obligations (11,006) (9,948) Fair value of plan assets 5,113 4,167 Present value of unfunded obligations (5,893) (5,781)

The following table reconciles the funded status of defined benefit plans to the amounts recognized in the balance sheet:

Pension expense is comprised of the following : 2013/2014 2012/2013

Current service costs 235 284 Interest expense on obligations 410 353 Expected return on plan assets (157) (146) Amortization of past service cost of the year - (157) Additional charges - 146 488 480

2013/2014 2012/2013

Actual return on plan assets 142 163

2013/2014 2012/2013

Net liability as of April 1 5,780 7,290 Net expense recognized in the income statement 488 480 Benefit paid (150) (843) Contributions (952) (700) Gains(loss) recognized via OCI 727 (446)

Net liability as of March 31 5,893 5,781

[37]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

2013/2014 2012/2013

Presented value of funded benefit obligations as of April 1 9,948 10,946 Interest cost 319 353 Current service cost including employee contribution 326 283 Past service cost of the year - (157) Benefits paid (172) (873) Actuarial loss / (gain) on obligation 585 (604)

Present value of funded benefit obligations as of March 31 11,006 9,948

2013/2014 2012/2013

Fair value of plan assets of April 1 4,168 3,656 Expected return on plan assets 157 158 Contributions 952 702 Benefits paid (22) (28) Actuarial (loss) on assets (142) (321)

Fair value of plan assets as of March 31 5,113 4,167

Actuarial assumptions 2013/2014 2012/2013 % %

Discount rate at March 31 1.5 1.5 Expected return on plan assets at March 31 3.4 3.8 Future salary increases 2.0 2.0 Future pension increases 2.0 2.0

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): Assumptions regarding future mortality are based on published statistics and mortality tables. The mortality table applied as at March 31, 2014 is RT 2005 G (March 31, 2013: RT 2005 G).

[38]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Provision for deferred tax liabilities

The Company and its Netherlands’ wholly owned participating interest Teijin Aramid B.V. constitute a fiscal unity.

The provision for deferred tax liabilities comprises the tax effect of the temporary differences between the profit determination for financial reporting purposes and for tax purposes.

In one of the Company’s participating interests, a provision for deferred taxes is calculated with regard to tangible fixed assets as a result of obtaining a fiscal ruling for environment capital allowances (‘VAMIL’) and obtaining an individual fiscal ruling with regard to the acquisition of this subsidiary.

The movements in the provision for deferred tax liabilities were as follows:

2013/2014 2012/2013

Carrying amount as at April 1 19,631 21,419 Additions - - Utilized - - Release (4,483) (1,788)

Carrying amount as at March 31 15,148 19,631

Other provisions

Other provisions in the amount of EUR 15,244 thousand (2012/2013: EUR 15,971 thousand) mainly relate to other long-term employee benefit provisions, such as early retirement and long-service awards for one of the Company’s participating interests.

[39]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

11 Debts to credit institutions

Debts to credit institutions relates to loans issued by banks.

EUR Principal amount 349,555 Repaid until March 31, 2013 -

Outstanding principal amount as at April 1, 2013: 349,555 Increase in 2013/2014 1,268,310 Repayments in 2013/2014 (1,321,317) Exchange effect (2,614)

Outstanding principal amount as at March 31, 2014: 293,934

Current as at March 31, 2014 214,402

Non-current as at March 31, 2014 79,532

Current liabilities

Debts to credit institutions with a remaining period up to 1 year, including the current portion of non- current liabilities, are presented under current liabilities.

Medium Term Notes

The Company issued the following Medium Term Notes (MTN) that are listed on the London Stock Exchange’s Professional Securities Market:

Euro Amount Principal amount Currency Issue Date Maturity Date MTN 14,040 2,000,000 JPY 22-01-2014 22-04-2014 MTN 14,040 2,000,000 JPY 19-02-2014 19-05-2014 MTN 21,060 3,000,000 JPY 17-03-2014 17-06-2014 Total 49,140 7,000,000

Interest rate range is 0.4%-0.5%.

Bank loans

Bank loans in the amount of EUR 165,262 thousand (March 31, 2013: EUR 231,000 thousand) relate to short-term bank loans and overdraft facilities. The details can be specified as follows:

Loan Lender Amount Currency Concluded Repayment 1 Mizuho Corporate Bank Nederland N.V. 42,000 EUR 31/03/2014 30/04/2014 2 Bank of Tokyo-Mitsubishi UFJ (Holland) N.V. 27,000 EUR 31/03/2014 30/04/2014 3 Sumitomo Mitsui Banking Corporation 13,000 EUR 31/03/2014 30/04/2014 4 Japan Bank for International Cooperation 60,000 EUR 30/06/2009 30/06/2014 5 Bank of Tokyo-Mitsubishi UFJ (Holland) N.V. 6,900 EUR 04/01/2010 31/12/2014 6 Mizuho Corporate Bank Nederland N.V. 3,700 EUR 04/01/2010 31/12/2014 7 Bank of Tokyo-Mitsubishi UFJ (Holland) N.V. 12,662 EUR (Overdraft facility) Total 165,262

Interest rate range after swap is 0.5%-1.8%. [40]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Non-Current liabilities

Debts to credit institutions with a remaining period of more than 1 year can be specified as follows:

2013/2014 Remaining Period > than 1 Year < 5 Years > 5 years Total

Banks and institutions 79,532 - 79,532

79,532 - 79,532

The details of the loans can be specified as follows:

Euro Loan Lender Currency Concluded Repayment Amount 1 Bank of Tokyo-Mitsubishi UFJ (Holland) N.V. 24,532 USD 01/02/2013 01/02/2016 2 Bank of Tokyo-Mitsubishi UFJ (Holland) N.V. 30,000 EUR 31/10/2013 31/10/2016 3 Mitsubishi UFJ Trust and Banking Corporation 5,000 EUR 01/02/2013 01/02/2016 4 Mitsubishi UFJ Trust and Banking Corporation 10,000 EUR 31/10/2013 31/10/2016 5 Sumitomo Mitsui Trust Bank, Limited 10,000 EUR 31/10/2013 31/10/2016 79,532

Interest rate range after swap is 0.6%-1.0%.

12 Other taxes and social security contributions due

2013/2014 2012/2013 EUR EUR Wage tax and national insurance contributions 4,178 4,146 Value-added tax 0 468 Corporate income tax 4,802 347 8,980 4,961

13 Accrued liabilities 2013/2014 2012/2013 EUR EUR Holiday allowance 14,147 13,357 Interest payable 415 1,253 Other 24,532 23,526 39,094 38,136

Accrued liabilities include a guarantee fee payable to Teijin Limited in the amount of EUR 427 thousand. Other accrued liabilities mainly consist of accrued expenses in relation to the Group’s Aramid Operations (EUR 23,656 thousand), which primarily concern accrued manufacturing expenses and accrued administrative expenses.

[41]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

14 Financial instruments

During the normal course of business, the Company uses various financial instruments that expose the Company to certain risks. These relate to financial instruments that are included on the balance sheet and currency forward contracts and currency options for hedging future transactions and cash flows.

The Company does not trade in financial derivatives and follows procedures and code of conduct to limit the size of the credit risk with each counterparty and market. If a counterparty fails to meet its payment obligations to the Company, the resulting losses are limited to the fair value of the instruments in question. The contract value or principal amounts of the financial instruments serve only as an indication of the extent to which such financial instruments are used, and not of the value of the credit or fair risks.

The Company’s activities are exposed to a variety of financial risks: foreign exchange, interest, credit and liquidity risk. The Company’s financial risk management policy focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative financial instruments to hedge foreign exchange and interest risk exposures.

 Foreign exchange risk

The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar and the Japanese yen. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities in foreign currencies. It is the Company’s policy to hedge at least 50% of anticipated transactions (mainly export sales) in the major currencies, as mentioned above, for the subsequent twelve months, as far as practically possible. In the financial year 2013/2014, the impact of these risks was reassessed and hedging over a time frame of three years was anticipated for.

The US dollar is by far the most important foreign currency to the Company. If the US dollar rises or falls against the euro, it impacts the turnover and operating result of the Company (transaction and economic risk).

 Exchange risk related to financing

The Company issues Medium Term Notes (MTN) and borrows money from Japanese banks for its fund raising. Most of the MTNs and some of the loans are in Japanese yen as most investors and lenders are Japanese corporations and financial institutions that understand the creditworthiness of the Company’s parent company and guarantor, Teijin Limited. The Company uses foreign currency swaps (mainly from yen to euro) to mitigate the currency risk, so management believes the risk on foreign exchange related to financing is limited.

[42]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

 Interest risk

The Company does not have substantial interest-bearing assets, but does have increasing interest- bearing liabilities. Major part of these liabilities bear a fixed interest rate. Therefore, the Company’s net result and operational cash flow are to a large extent independent of changes in market interest rates. For intra-group loans, the Company chooses between fixed rates and floating rates for interest payments subject to which rate (fixed or floating) is being used for loans issued to group companies. To match the interest methods (fixed or floating) between loans receivable and payable, the Company uses applicable interest swaps in the circumstances. For the loans for own use, there is no specific policy in choosing between fixed or floating. However, generally speaking, management strives to fix interest rates for long-term loans as is also the case for intra-group loans.

The interest rate risk is presented by the interest payment schedule presented below:

1 year Amount or less 1-3 Year

Fixed interest rate loans receivable 114,898 114,898 - Variable interest rate loans receivable 27,517 27,517 - Fixed interest rate loans payable (136,140) (131,140) (5,000) Variable interest rate loans payable (157,794) (83,262) (74,532)

Net position (151,519) (71,987) (79,532) Derivatives 114,532 60,000 54,532

Net interest position (36,987) (11,987) (25,000)

In case interest rates as of March 31, 2014 would rise with 1%, leaving all other assumptions constant, interest income would decrease by EUR 0.2 million in 2013/2014 (2012/2013: increase by EUR 0.4 million). Due to volatility in the variable interest rate loans and due to the renewal of fixed rate loans, the entity runs an interest rate risk. This risk can be presented as followed:

Loans payable Loans receivable 2013/2014 2012/2013 2013/2014 2012/2013 EUR EUR EUR EUR

Less than 6 months 203,802 102,540 Less than 6 months 130,315 111,978 6-12 months 10,600 145,000 6-12 months 12,100 15,000 1-3 years 79,532 102,015 1-3 years - 12,100

Total 293,934 349,555 Total 142,415 139,078

[43]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

 Credit risk

Credit risk is the risk of financial loss to the entity if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Groups’ receivables from customers.

The Company has no significant concentrations of credit risk. The credit risk of trade receivables has been spread by worldwide sales to more than thousand customers, each having a sales volume of less than 5% of total sales of the Company. In addition the Company has a very tight credit management policy for all customers which have led to minor write-offs in the past.

 Liquidity risk

The Company monitors its cash position by using successive liquidity budgets. The management ensures that the cash position is sufficient to meet the Company’s financial obligations towards creditors and to stay within the limits of any loan covenants.

Fluctuations in working capital may lead to (temporarily) exceeding limits of financing agreements with banks. These risks are mitigated by a combined treasury policy within the Teijin Group, executed together with the Company.

The Company has sufficient credit lines with banks. With a history of long-term relationships with these banks, partially guaranteed by parent company Teijin Limited., and other alternative funding sources available (such as MTN from the capital markets), liquidity risk of the Company is considered to be limited.

The company will refinance the external debt (bank loans and MTN) falling due in 2014/2015 by means of using available credit facilities with the banks or by issuing MTN.

[44]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Financial instruments recognized in the balance sheet

Financial instruments recognized in the balance sheet substantially include trade receivables, granted short-term loans, cash and cash equivalents, taken-up subordinated and long-term loans, taken-up short-term loans and trade payables. The estimated fair values of the financial instruments included in the balance sheet as at March 31, 2014 approximate their carrying amounts unless indicated otherwise. Reference is made to the notes of these balance sheet items.

The notional or contract amounts of financial instruments, as specified below, are a breakdown of the Company’s use of derivatives, but are not necessarily a measure for the exposure to market or credit risk through its use of derivative financial instruments.

Derivative financial instruments are recognized in the balance sheet at fair value. The total contract/notional amounts and fair values of forward exchange contracts and swap contracts as at March 31, 2014 can be specified as follows:

Derivative financial instruments with positive fair value

Total contract Fair value notional amount 31/03/2014 31/03/2013 Forward exchange contracts (USD sell) 103,200 5,997 2,229 Forward exchange contracts (JPY sell) 1,890,000 5,760 7,413 SWAP (JPY fixed to EUR fixed) 49,282 28 654 SWAP (USD floating to EUR fixed) 25,000 - 930

11,785 11,226

Derivative financial instruments with negative fair value

Total contract Fair value notional amount 31/03/2014 31/03/2013 Forward exchange contracts (USD sell) 103,200 - (1,196) SWAP (USD floating to EUR fixed) 25,000 (653) - SWAP (EUR floating to EUR fixed) 90,000 (456) (1,297) SWAP (EUR floating to EUR floating) 6,900 (7) (2,272)

(1,116) (4,765)

The respective derivative financial instruments do not contain any margin calls issued by Teijin Limited. Some SWAP contracts are guaranteed by Teijin Limited.

[45]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

The total notional amount of forward exchange contracts matures within one year (JPY contracts: 1,890,000 thousand; USD contracts: 103,200 thousand).

Part of the total notional amount of SWAP contracts matures within one year (JPY contracts: 49,282 thousand; EUR contracts: 66,900 thousand) and the remaining part (USD contract: 25,000 thousand; EUR contracts: 30,000 thousand) matures after 2014 but within 3 years.

The positive fair value of the contracts is reported under current assets as derivative financial instruments, and the negative fair value of the contracts is reported under current liabilities as derivative financial instruments.

The fair values of the swaps and forward exchange contracts are presented under the following balance sheet items:

31/03/2014

Current assets : Fair value SWAP contracts and forward exchange results 11,785 Current liabilities : Fair value SWAP contracts and forward exchange results (1,116) Total fair value Forward exchange and swap contracts 10,669

The fair values of the financial instruments are reported in the following balance sheet items:

31/03/2014 Fair value forward exchange contracts 11,757 Fair value SWAP contracts 28

Derivative financial instruments receivables 11,785

31/03/2014 Fair value forward exchange contracts - Fair value SWAP contracts (1,116)

Derivative financial instruments payables (1,116)

[46]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

15 Off balance sheet assets and liabilities

Joint and several liability

The Company yearly issues a declaration of joint and several liability to Teijin Aramid B.V. (since 2008) and to Teijin Kasei Europe B.V. (since 2012) pursuant to Section 2:403 of the Netherlands Civil Code.

Tax entity

Together with its subsidiary Teijin Aramid B.V., the Company forms a tax entity for corporate income tax and value-added tax purposes; the standard conditions stipulate that each of the companies is liable for the tax payable by all companies belonging to the tax entity.

Credit facilities

As at March 31, 2014, the Company and its subsidiaries have credit facilities available, which are denominated in euros, amounting to EUR 311 million (2013: EUR 446 million). The credit facilities with the banks and other credit institutions are guaranteed by Teijin Limited up to the same amount. As at balance sheet date, the guaranteed facilities were used to an amount of EUR 160 million (2013: EUR 238 million).

Rental obligations and operational lease commitments

Long-term operating lease obligations entered into with third parties in respect of other tangible fixed assets amount to EUR 1,538 thousand (2012/2013: EUR 1,761 thousand). Of this amount, EUR 668 thousand is due within one year, EUR 870 thousand is due after one year to five years and no amounts are due after five years.

Rental obligations entered into with third parties in respect of property amount to EUR 31,620 thousand (2012/2013: EUR 36,404 thousand). Of this amount, EUR 3,897 thousand (2012/2013: EUR 3,977 thousand) is due within one year, EUR 14,659 thousand between one year and five years and the remainder of EUR 13,064 thousand after five years.

Purchase commitments in connection with the acquisition of fixed assets and raw materials amount to EUR 4,307 thousand (2012/2013: EUR 6,406 thousand). This amount is due within one year.

Contingent liabilities

Some clients of the Group have lodged claims against the Company’s participating interests, which is considered a normal aspect of the Group’s ordinary course of business. The outcome of individual claims is unpredictable and it is reasonably possible that some of the matters could be decided unfavourable to the Group. Although the amount of the contingent liability with respect to mentioned claims cannot be estimated with reasonable assurance, management is of the opinion that the resulting liability, if any, would not have a material adverse effect on the financial position or operations of the Group.

[47]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

16 Net turnover

Net turnover primarily relates to the para-aramid business. Only a small portion of net turnover relates to the polycarbonate related business.

The composition of net turnover by geographical region is as follows:

2013/2014 2012/2013

The Netherlands 9,099 8,085 Other European countries 205,681 200,762 North America and South America 110,816 132,703 Asia and the rest of the World 124,750 123,006

450,346 464,556

17 Selling and distribution expenses

2013/2014 2012/2013 EUR EUR

Labor cost 11,493 9,313 Other expenses 30,041 31,107 41,534 40,420

Other expenses mainly consists of other selling and distribution expenses in relation to the Group’s Aramid operations in the amount of EUR 28,865 thousand and primarily relates to an agent commission fee of EUR 4,266 thousand, service fees of EUR 6,465 thousand and a project cost of EUR 3,605 thousand. The remaining expenses mainly consist of rent and leasing expenses, travel expenses and insurance costs.

18 Research and development expenses

2013/2014 2012/2013 EUR EUR

Labor cost 12,461 12,936 Other expenses 4,359 8,441 16,820 21,377

Other expenses in the amount of EUR 4,359 thousand consists of other research and development expenses in relation to the Group’s Aramid operations and primarily relates to service fees of EUR 2,355 thousand. The remaining expenses mainly consist of maintenance expenses, rent and leasing expenses and materials costs.

[48]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

19 Depreciation, amortization and impairments of fixed assets

2013/2014 2012/2013

Depreciation 2,540 4,031 Amortization 14,861 14,769 Impairment 14,231 6,541 31,632 25,341 Depreciation in Cost of Sales 66,733 80,895

98,365 106,236

Depreciation and amortization on the assets used in production is allocated to Cost of sales.

20 General and administrative expenses

2013/2014 2012/2013 EUR EUR

Labor cost 11,874 10,047 Other expenses 9,015 7,549 20,889 17,596

Other expenses mainly consists of other general and administrative expenses in relation to the Group’s Aramid operations in the amount of EUR 8,035 thousand and primarily relates to service fees of EUR 2,232 thousand and management fees of EUR 1,958 thousand. The remaining expenses mainly consist of rent and leasing expenses and travel expenses.

21 Wages and salaries, social security charges and pension expenses

Labor cost is specified as follows: 2013/2014 2012/2013

Salaries and wages 82,527 87,988 Pension expense 13,842 12,480 Other social security contributions 10,441 11,337 106,810 111,805

During the financial year 2013/2014, the average number of staff employed in the Group, converted into full-time equivalents, amounted to 1,333 people (2012/2013: 1,405 people), of which 85 people (2012/2013: 81 people) were employed outside the Netherlands. This staffing level (average number of staff) can be divided into the following staff categories:

[49]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

Domestic 2013/2014 2012/2013

Production and R&D 1,088 1,148 Sales 59 57 Other 101 119 1,248 1,324

Abroad Sales 66 58 Other 19 23 85 81

22 Financial Income and Expense

Financial income and expense can be specified as follows:

2013/2014 2012/2013 Participating Participating interests and interests affiliated and affiliated companies Other Total companies Other Total Interest income 1,935 208 2,143 2,800 208 3,008 Interest expense (1,842) (4,576) (6,418) (1,694) (7,878) (9,572) Other financial income - (84) (84) - (144) (144) Currency exchange gain/(loss) - (2,548) (2,548) - 568 568

93 (7,000) (6,907) 1,106 (7,246) (6,140)

23 Tax on result from ordinary activities

The Company forms a tax entity for corporate income tax purposes together with its wholly owned participating interest Teijin Aramid B.V. Each of the companies recognizes the portion of corporate income tax that the relevant company would owe as an independent taxpayer, taking into account the tax facilities applicable to the company.

The Company is subject to Dutch corporate income tax in the Netherlands of which the maximum progressive rate is 25.0% and the first EUR 200,000 is taxed at a rate of 20.0%.

In the financial year 2013/2014, the corporate income tax recorded in the profit and loss account amounts to EUR 167 thousand (2012/2013: tax income of EUR 25,496 thousand).

[50]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the consolidated financial statements (Currency – thousands of euros)

The tax computation for financial year 2013/2014 can be detailed as follows:

2013/2014 2012/2013 EUR EUR Tax using the Company’s domestic tax rate 76 (5,623) Non-deductible expenses 3,500 3,486 Innovation box reduction (3,459) (22,998) Tax exempt income (participation exemption) (436) (52) Adjustment for prior periods and prepaid tax 152 (309) Tax expense (income) (167) (25,496)

24 Transactions with related parties

The Company has a related party relationship with Teijin Limited (parent company), the companies within the Teijin Limited Group, their supervisory directors, their managing directors, executive officers and key management personnel.

In the ordinary course of business, the Company, its participating interests and other Teijin Group companies enter into a substantial number of related party transactions. Generally those transactions are conducted on a commercial basis under comparable conditions that apply to transactions with third parties.

In addition to the entities mentioned under the heading ‘Group structure’, the following companies are considered to be a related party:

 Teijin Limited – Osaka, Japan  Teijin Aramid USA Inc. – Conyers, USA  Teijin Aramid do Brasil Ltda – Sao Paolo, Brazil  Teijin Aramid de Mexico SA de CV – San Pedro Garda Garcia, Mexico  Toho Tenax Europe GmbH. －Wuppertal, Germany  Teijin Frontier Europe GmbH.－Hamburg, Germany

In the year ended 31 March 2014, approximately 31% (2013: 38%) of the revenues were generated with affiliated companies. In total, approximately 7% (2013: 6%) of the cost of sales (representing goods) were purchased from affiliated companies. Approximately 4% (2013: 4%) of the total cost was charged by affiliated companies for certain services provided (sales commissions, corporate costs and management fees).

Significant transactions with related parties are further disclosed in notes 3, 5, and 15. The remuneration of the Board of Managing Directors is included in note 38.

25 Subsequent events

There have been no events after balance sheet date which have a significant impact on, or should be disclosed in, the 2013/2014 financial statements. [51]

Teijin Holdings Netherlands B.V. Arnhem

Company balance sheet as at March 31, 2014 (Before profit appropriation) (Currency – thousands of euros)

note 31/03/2014 31/03/2013

ASSETS

Fixed assets Intangible fixed assets 26 93,419 107,362 Financial fixed assets 27 456,102 487,744

Total Fixed assets 549,521 595,106

Current assets Accounts receivable from group and 28 202,707 255,715 affiliated companies Derivative financial instruments 29 28 1,584 Other receivables and prepaid expenses 30 6,696 4,303 Cash and cash equivalents 31 3 1,678

Total Current assets 209,434 263,280

Total Assets 758,955 858,386

The notes on pages 55 to 63 are an integral part of these company financial statements.

[52]

Teijin Holdings Netherlands B.V. Arnhem

Company balance sheet as at March 31, 2014 (Before profit appropriation) (Currency – thousands of euros)

note 31/03/2014 31/03/2013

SHAREHOLDER’S EQUITY AND LIABILITIES

Shareholder’s equity Issued capital 80 80 Share premium reserve 392,322 392,322 Other reserves 47,548 34,850 Legal reserve 12,098 15,513 Unappropriated profit 471 3,005 Hedging reserve (358) (3,018) Foreign currency translation reserve (2,671) (936)

Shareholder's equity 32 449,490 441,816

Provisions 33 1,252 1,425

Non-current liabilities Debts to credit institutions 34 79,532 102,015

Total non-current Liabilities 79,532 102,015

Current liabilities Debts to credit institutions 34 214,402 247,540 Derivative financial instruments 29 1,116 3,569 Debts to group and affiliated companies 35 8,920 60,710 Other taxes and social security contributions due 3,232 - Accrued liabilities 1,011 1,311

Total Current liabilities 228,681 313,130

Total Equity and Liabilities 758,955 858,386

The notes on pages 55 to 63 are an integral part of these company financial statements.

[53]

Teijin Holdings Netherlands B.V. Arnhem

Company profit and loss account for the year ended March 31, 2014

(Currency – thousands of euros)

2013/2014 2012/2013

Share of result of participating interests after tax 16,219 20,014 Other result after tax (15,748) (17,009)

Net result 471 3,005

The notes on pages 55 to 63 are an integral part of these company financial statements.

[54]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the company financial statements (Currency – thousands of euros)

General

The company financial statements are part of the 2013/2014 financial statements of the group. For the company profit and loss account, use has been made of the exemption pursuant to Section 2:402 of the Netherlands Civil Code.

Insofar as no further explanation is provided of items in the company balance sheet and the company profit and loss account, please refer to the notes to the consolidated balance sheet and profit and loss account.

Financial reporting period

The reporting period of the company covers from April 1 to March 31.

Accounting policies

The principles for the valuation of assets and liabilities and the determination of the result are the same as those applied to the consolidated profit and loss account, with the exception of the following:

Financial instruments

In the company financial statements, financial instruments are presented on the basis of their legal form.

Share of result of participating interests

This item concerns the Company’s share of the profit or loss of these participating interests. Insofar as gains or losses on transactions involving the transfer of assets and liabilities between the Company and its participating interests or between participating interests themselves can be considered unrealized, they have not been recognized.

[55]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the company financial statements (Currency – thousands of euros)

26 Intangible fixed assets

The movements in intangible fixed assets were as follows:

Goodwill EUR Balance as at April 1, 2013: Purchase price 271,887 Accumulated amortization and impairment (164,525) Carrying amount 107,362

Changes in carrying amount:

Investment 56 Amortization (13,999) Total (13,943)

Balance as at March 31, 2014: Purchase price 271,943 Accumulated amortization and impairment (178,524)

Carrying amount 93,419

Amortization rates applied: 5-20%

As at balance sheet date, the total goodwill balance amounts to EUR 93,419 thousand. The carrying amount mainly relates to the acquisition of Teijin Aramid B.V. in 2000 (EUR 89,178 thousand) and goodwill in relation to the acquisition of Novameer Holding B.V. in 2009 and 2010 (EUR 4,015 thousand).

The goodwill paid upon the acquisition of Teijin Aramid B.V. has an estimated economical useful life of 20 years. The remaining useful life as at balance sheet date is 7 years. The goodwill paid upon the acquisition of Novameer Holding B.V. has an estimated economical useful life of 10 years. The remaining useful life as at balance sheet date is 5 years. The capitalized goodwill is amortized on a straight line basis based on the estimated economical useful life. The Board of Managing Directors believes that the economical useful life is the most appropriate amortization period.

Furthermore, the Board of Managing Directors believes that there has not been any permanent diminution in the value of the Company’s goodwill. Consequently, no impairment losses for permanent diminution in value were recognized during the financial year.

[56]

Teijin Holdings Netherlands B.V. Arnhem

Notes to the company financial statements (Currency – thousands of euros)

27 Financial fixed assets

Movements in financial fixed assets were as follows:

Participating Other Accounts Other accounts Total interests in group participating receivable receivable companies interests from group companies EUR EUR EUR EUR EUR Balance as at April 1, 2013: Cost of acquisition 343,060 42,544 90,000 12,140 487,744 Accumulated depreciation - - - - - Carrying amount 343,060 42,544 90,000 12,140 487,744

Changes during the financial year: Loan to group companies - - 30,000 - 30,000 Reclassification to current assets - - (60,000) (12,100) (72,100) Addition of participating interests 475 - - - 475 Addition of guarantee deposit - - - 2 2 Share of result of participating interests 14,617 1,602 - - 16,219 Other comprehensive income (377) 4,920 - - 4,543 Dividend received from participating interests (10,781) - - - (10,781) Total 3,934 6,522 (30,000) (12,098) (31,642)

Balance as at March 31, 2014: Cost of acquisition 346,994 49,066 60,000 42 456,102 Accumulated depreciation and impairment - - - - - Carrying amount: 346,994 49,066 60,000 42 456,102

The Company is at the head of the group. For a detailed description of the Company’s capital interests reference is made to the heading ‘Group structure’.

28 Accounts receivable from group and affiliated companies

Amount Loan receivable Teijin Aramid B.V. 60,000 Toho Tenax Europe GmbH 85,000 DuPont Teijin Films Luxembourg S.A. 26,437 Esteve Teijin Healthcare S.L. 12,100 Cash-pool related receivables 18,605 Other receivables 565 Total accounts receivable from participating interests and affiliated companies 202,707

Interest rate range is 1.1%-2.1%. Receivables of this category are due within one year.

For the loans receivable, the Company’s parent company, Teijin Limited, guarantees any and all obligations which these entities owe or will hereafter owe under or pursuant to the loan agreements. For this reason, the managing directors of the Company did not recognize any impairment on these loans.

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Teijin Holdings Netherlands B.V. Arnhem

Notes to the company financial statements (Currency – thousands of euros)

29 Derivative financial instruments

Derivative financial instruments are recognized in the balance sheet at fair value. The total contract/notional amounts and fair values of the swap contracts as at March 31, 2014 can be specified as follows:

Derivative financial instruments with positive fair value

Total contract Fair value notional amount 31/03/2014 31/03/2013 SWAP (JPY fixed to EUR fixed) 49,282 28 654 SWAP (USD floating to EUR fixed) 25,000 - 930

28 1,584

Derivative financial instruments with negative fair value

Total contract Fair value notional amount 31/03/2014 31/03/2013 SWAP (USD floating to EUR fixed) 25,000 (653) - SWAP (EUR floating to EUR fixed) 90,000 (456) (1,297) SWAP (EUR floating to EUR floating) 6,900 (7) (2,272)

(1,116) (3,569)

The respective derivative financial instruments do not contain any margin calls issued by Teijin Limited. Some SWAP contracts are guaranteed by Teijin Limited.

Part of the total notional amount of SWAP contracts matures within one year (JPY contracts : 49,282 thousand; EUR contracts: 66,900 thousand) and the remaining part (USD contract: 25,000 thousand; EUR contracts: 30,000 thousand) matures after 2014 but within 3 years.

The positive fair value of the contracts is reported under current assets as derivative financial instruments, and the negative fair value of the contracts is reported under current liabilities as derivative financial instruments.

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Teijin Holdings Netherlands B.V. Arnhem

Notes to the company financial statements (Currency – thousands of euros)

30 Other receivables and prepaid expenses

The other receivables and prepaid expenses of EUR 6,696 thousand mature within one year and mainly relate to an interest receivable in the amount of EUR 1,086 thousand.

31 Cash and cash equivalents

The cash and cash equivalents are unencumbered and are, therefore, available on demand.

32 Shareholder’s equity

The movements in shareholder’s equity were as follows: Foreign Share Unapprop Issued Other Legal Hedging currency premium riated Total capital reserves reserve reserve translation reserve profit reserve Balance April 1, 2012 80 187,152 189,454 16,959 45,018 (5,694) (2,151) 430,818 Addition paid-in capital - 205,170 - - - - - 205,170 Dividend paid - - (205,170) - - - - (205,170) Appropriation of net result 2011/2012 - - 45,018 - (45,018) - - 0 Translation differences ------1,215 1,215 Effective portion of changes in fair value of hedging instruments - - (1,002) - - 2,676 - 1,674 Defined benefit plan actuarial gains (losses) - - 5,104 - - - - 5,104 Change in legal reserve - - 1,446 (1,446) - - - 0 Net result 2012/2013 - - - - 3,005 - - 3,005

Balance April 1, 2013 80 392,322 34,850 15,513 3,005 (3,018) (936) 441,816

Balance April 1, 2013 80 392,322 34,850 15,513 3,005 (3,018) (936) 441,816 Addition paid-in capital ------0 Dividend paid ------0 Appropriation of net result 2012/2013 - - 3,005 - (3,005) - - 0 Translation differences ------(1,735) (1,735) Effective portion of changes in fair value of hedging instruments - - 1,058 - - 2,660 - 3,718 Defined benefit plan actuarial gains (losses) - - 5,220 - - - - 5,220 Change in legal reserve - - 10,411 (10,411) - - - 0 Net result 2013/2014 - - - - 471 - - 471

Balance March 31, 2014 80 392,322 54,544 5,102 471 (358) (2,671) 449,490

Issued capital

The Company’s authorized capital, amounting to EUR 90 thousand (2012/2013: EUR 90 thousand), consists of 90,000 ordinary shares of EUR 1 (one) each, of which 80,000 ordinary shares have been issued.

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Teijin Holdings Netherlands B.V. Arnhem

Notes to the company financial statements (Currency – thousands of euros)

Share premium reserve

The share premium concerns the income from the issuing of shares insofar as this exceeds the nominal value of the shares (above par income).

At least EUR 392 million (2013: EUR 392 million) of the share premium reserve can be considered as freely distributable share premium as referred to in the 2001 Income Tax Act.

Foreign currency translation reserve

Exchange gains and losses arising from the translation of foreign operations from functional to reporting currency are accounted for in this statutory reserve. In the case of the sale of a participating interest, the associated accumulated exchange differences are taken to other reserves.

Hedging reserve

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.

Legal reserve

The legal reserve relates to a statutory reserve for capitalized development costs within one of the Company’s participating interests.

Unappropriated profit

At the General Meeting of Shareholders, it will be proposed to approve the following appropriation of the 2013/2014 result after tax: addition of an amount of EUR 471 thousand to the other reserves.

Dividend distribution

The Company can only make payments to the shareholder insofar as (1) the Company can continue to pay its outstanding debts after the distribution (the so-called distribution test), and (2) the shareholder’s equity exceeds the legal reserves and statutory reserves under the articles of association to be maintained (the so-called balance sheet test). If not, management of the Company shall not approve any distribution.

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Teijin Holdings Netherlands B.V. Arnhem

Notes to the company financial statements (Currency – thousands of euros)

33 Provisions

The provision for deferred tax liabilities comprises the tax effect of the temporary differences between the profit determination for financial reporting purposes and for tax purposes.

34 Debts to credit institutions

Reference is made to note 11 to the consolidated financial statements. The debts to credit institutions disclosed in note 11 fully relate to the Company and not to its group companies.

35 Debts to group and affiliated companies

Debts to group and affiliated companies relates to cash-pooling deposits received from subsidiaries and affiliated companies. Repayments take place on a daily basis.

36 Off-balance sheet assets and liabilities

Joint and several liability

The Company yearly issue a declaration of joint and several liability to Teijin Aramid B.V. (since 2008) and to Teijin Kasei Europe B.V. (since 2012) pursuant to Section 2:403 of the Netherlands Civil Code.

Tax entity

Together with its subsidiary Teijin Aramid B.V., the Company forms a tax entity for corporate income tax and value-added tax purposes; the standard conditions stipulate that each of the companies is liable for the tax payable by all companies belonging to the tax entity.

Credit facilities

As at March 31, 2014, the Company and its subsidiaries have credit facilities available, which are denominated in euros, amounting to EUR 311 million (2012/2013: EUR 446 million). The credit facilities with the banks and other credit institutions are guaranteed by Teijin Limited up to the same amount. As at balance sheet date, the guaranteed facilities were used to an amount of EUR 160 million (2012/2013: EUR 238 million).

37 Share of result of participating interests after taxes

This concerns the share of the Company in the results of its participating interests, of which an amount of EUR 14,617 thousand (2012/2013: EUR 19,975 thousand) concerns consolidated participating interests.

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Teijin Holdings Netherlands B.V. Arnhem

Notes to the company financial statements (Currency – thousands of euros)

38 Remuneration of managing and supervisory directors

The emoluments, including pension obligations as referred to in Section 2:381(1) of the Netherlands Civil Code, and including an amount of EUR 24 thousand (2012/2013: EUR 0) with regard to the one time ‘crisis tax (crisisheffing)’, charged in the financial year to the Company and group companies amounted to EUR 511 thousand (2012/2013: EUR 502 thousand) for managing directors and former managing directors.

No emoluments regarding awarded option schemes were granted by the Company to the managing directors (2012/2013: EUR 0). Furthermore, no loans, advances and guarantees were granted by the Company to the managing directors (2012/2013: EUR 0).

Two of the three managing directors of the Company are situated in the Netherlands (2012/2013: two). The other managing director is situated in Japan (2012/2013: one).

The Company does not have a Board of Supervisory Directors.

39 Auditor’s fees

The following fees were charged by KPMG Accountants N.V. to the Company, its subsidiaries and other consolidated companies, as referred to in Section 2:382a(1) and (2) of the Netherlands Civil Code. KPMG Other Total Accountants KPMG KPMG N.V. network 2013/2014 2013/2014 2013/2014

Audit of the financial statements 168 76 244 Other audit engagements 41 1 42 Tax-related advisory services 0 14 14 209 91 300

KPMG Other Total Accountants KPMG KPMG N.V. network 2012/2013 2012/2013 2012/2013

Audit of the financial statements 306 71 377 Other audit engagements 39 3 42 Tax-related advisory services 0 83 83 345 157 502

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Teijin Holdings Netherlands B.V. Arnhem

Notes to the company financial statements (Currency – thousands of euros)

Arnhem, the Netherlands August 28, 2014

The Board of Managing Directors

M. Sano K. Yamamoto

S. Hirota

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Teijin Holdings Netherlands B.V. Arnhem

Other information

Provisions in the articles of association governing the appropriation of profit

Under article 18 of the Company’s Articles of Association, the profit is at the disposal of the General Meeting of Shareholders, which can allocate said profit either wholly or partly to the formation of – or addition to – one or more general or special reserve funds.

Article 18 “Profit and Loss”

18.1 Distribution of profits pursuant to this article shall be made following the adoption of the annual accounts which show that such distribution is allowed.

18.2 The profits shall be at the free disposal of the general meeting.

18.3 The Company may only make distributions to shareholders and other persons entitled to distributable profits to the extent that its equity exceeds the total amount of its issued share capital and the reserves to be maintained pursuant to the law.

Proposal for profit appropriation

The General Meeting of Shareholders will be asked to approve the following appropriation of the 2013/2014 result after taxation: an amount of EUR 471 thousand to be added to the other reserves. The result after tax for 2013/2014 is included under unappropriated profit in shareholder’s equity.

The Netherlands Civil Code stipulates that the Company can only make payments to the shareholder and other parties entitled to the distributable profit insofar as (1) the Company can continue to pay its outstanding debts after the distribution (the so-called distribution test), and (2) the shareholder’s equity exceeds the legal reserves and statutory reserves under the articles of association to be maintained (the so-called balance sheet test). If not, management of the Company shall not approve any distribution.

Subsequent events

There have been no events after balance sheet date which have a significant impact on, or should be disclosed in, the 2013/2014 financial statements.

Independent auditor’s report

The independent auditor’s report is set forth on the following pages.

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