Consolidated Financial Statements Summary (For the year ended March 31, 2016) [Teijin] (PDF:967KB)

Consolidated Financial Results of FY2015 Consolidated Financial Statements Summary

(For the year ended March 31, 2016)

English translation from the original Japanese-language document

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan) May 6, 2016

Company name : TEIJIN LIMITED (Stock code 3401)

http://www.teijin.com

Contact person : Masahiro Ikeda General Manager, TEL: +81-(0)3-3506-4395

Finance & Investor Relations Department

1. Results of FY2015 (April 1, 2015 through March 31, 2016)

   (Amounts less than one million yen are omitted)

2. Consolidated financial results (Percentages are year-on-year changes)

   Net sales	Operating income	Ordinary income	Profit (loss) attributable to owners of parent
   FY2015	Million yen %	Million yen %	Million yen %	Million yen %
   	790,748 0.6	67,130 71.7	60,316 42.3	31,090 －
   FY2014	786,171 0.2	39,086 116.2	42,378 113.1	(8,086) －

   cf. Comprehensive income :15,799 million yen (FY2014: 6,033 million yen)

   E.P.S. *1	Diluted E.P.S.	ROE *2	ROA *3	Ratio of operating income to net sales
   FY2015	Yen	Yen	%	%	%
   	31.63	28.68	10.6	7.3	8.5
   FY2014	(8.23)	－	-2.8	5.3	5.0

   *1 E.P.S.: Earnings per share

   *2 ROE: Ratio of Profit (loss) attributable to owners of parent to Shareholders' equity

   *3 ROA: Ratio of Ordinary income to Total assets

   cf. Equity on gain and losses of unconsolidated subsidiaries and affiliates: (2,943) million yen (FY2014: 2,435 million yen)

3. Consolidated financial position

   Total assets	Net assets	Shareholders' equity ratio	Shareholders' equity per share
   FY2015	Million yen	Million yen	%	Yen
   	823,429	314,412	36.4	305.23
   FY2014	823,694	303,635	34.9	292.09

   cf. Shareholders' equity: 300,112 million yen (FY2014: 287,074million yen)

4. Consolidated cash flows

5. From operating activities	From investing activities	From financing activities	Cash & cash equivalents at end of period
   FY2015	Million yen	Million yen	Million yen	Million yen
   	80,640	(40,322)	(8,316)	100,955
   FY2014	76,030	(49,624)	10,393	70,561

6. Dividends

   	Dividends per sh					arTeotal dividends paid (Annual)	Payout ratio (Consolidated)	Dividend on equity ratio (Consolidated)
   Period	1Q	2Q	3Q	4Q	Annual
   FY2014	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
   	―	2.00	―	2.00	4.00	3,930	―	1.4
   FY2015	―	3.00	―	4.00	7.00	6,881	22.1	2.3
   FY2016 (Outlook)	―	5.00	―	5.00	10.00	27.3

7. Forecast for operating results in the year ending March 31, 2017 (Fiscal 2016)

   (Percentages are interim-on-interim and year-on-year changes)

   Net sales	Operating income	Ordinary income	Profit attributable to owners of parent	E.P.S.
   FY2016 interim	Million yen %	Million yen %	Million yen %	Million yen %	Yen
   	370,000 -5.6	24,000 -32.1	24,000 -33.0	14,000 -42.8	14.24
   FY2016	775,000 -2.0	58,000 -13.6	58,000 -3.8	36,000 15.8	36.62

8. Other information

9. Changes in specific subsidiaries involving changes in the scope of consolidation: None

10. Shares issued (common stock)

11. Shares issued (including treasury stock) at end of term

    End of fiscal 2015	984,758,665
    End of fiscal 2014	984,758,665
    Treasury stock End of fiscal 2015	1,530,571
    End of fiscal 2014	1,925,911

    Average shares outstanding during the period Fiscal 2015 982,948,899

    Fiscal 2014 982,749,176

    Reference: Individual results of FY2015 (April 1, 2015 through March 31, 2016)

12. Individual financial results (Percentages are year-on-year changes)

    Net sales	Operating income	Ordinary income	Net income (loss)
    FY2015	Million yen %	Million yen %	Million yen %	Million yen %
    	142,173 -2.8	17,207 56.9	25,532 22.5	11,490 ―
    FY2014	146,305 -12.8	10,970 236.4	20,837 30.1	(4,776) ―

    E.P.S.	Diluted E.P.S.
    FY2015 FY2014	Yen 11.69 (4.86)	Yen 10.58 ―

13. Individual financial position

Total assets	Net assets	Shareholders' equity ratio	Shareholders' equity per share
FY2015	Million yen	Million yen	%	Yen
	534,202	238,023	44.4	241.31
FY2014	517,276	237,897	45.8	241.24

cf. Shareholders' equity: 237,259 million yen (FY2014: 237,095 million yen)

Appropriate Use of Forecasts and Other Information and Other Matters

All forecasts in this document are based on management's assumptions in light of information currently available and involve certain risks and uncertainties. Actual results to differ materially from these forecasts. For information on these forecasts, refer to "Qualitative Information on Forecast for Operating Results," beginning on page 8.

1. Qualitative Information and Financial Statements Qualitative Information on Results of Operations Analysis of Consolidated Results of Operations

Global economic conditions in fiscal 2015, ended March 31, 2016, saw stronger stagnation amid a continuing deceleration of growth in the People's Republic of China (PRC) and other emerging countries and resource-rich nations, although they were underpinned on the whole by firm business conditions in advanced countries, primarily the United States. The Japanese economy followed a modest growth track, against the backdrop of slowing growth in exports, personal consumption and other factors.

In this environment, for fiscal 2015, consolidated net sales totaled ¥790.7 billion, an increase of 0.6% year on year, owing primarily to increases in the Trading and Retail and Healthcare segments, despite the impact of decreased sales from the halt of production at our resin plant in Singapore. Operating income rose 71.7%, or ¥28.0 billion, to

¥67.1 billion, underpinned by substantial increases in our materials businesses, which reflected falling prices for raw materials and fuel, and the positive impact of restructuring initiatives, and by steady gains in our Healthcare segment, thanks to robust results for core products and services.

Additionally, ordinary income increased 42.3%, or ¥17.9 billion, to ¥60.3 billion, despite the recording of equity in loss on affiliates (loss on valuation of investment in affiliates, etc.). Profit attributable to owners of parent increased ¥39.2 billion to ¥31.1 billion, owing in part to a decrease in extraordinary losses. Profit attributable to owners of parent per share rose ¥39.86 to ¥31.63.

Business Segment Results Advanced Fibers and Composites

Sales in the Advanced Fibers and Composites segment totaled ¥133.0 billion, while operating income was ¥18.5 billion.

High-Performance Fibers

Sales remained firm for automotive applications.

In aramid fibers, sales of Twaron para-aramid fibers expanded firmly for automotive applications, including for tires in Europe. Sales for use in ballistic protection products showed a recovery. In contrast, sales for use in uniforms and in optical fiber applications were weak. Sales were favorable for Technora para-aramid fibers for automotive applications in Japan and infrastructure-related applications overseas, leading to strong improvement in earnings. Technora is being used in an expanding range of applications under more extreme conditions given the positive assessment of its outstanding fatigue resistance, chemical barrier and other properties, and production has continued at full capacity. Therefore, in March 2016, we decided to boost production capacity of Technora by around 10%, mainly by increasing fiber production facilities. Sales of Teijinconex meta-aramid fibers were robust for use in automotive applications such as turbocharger hoses, as well as protective clothing and industrial applications, despite persistently fierce competition in the growing market for filter applications.

In this environment, we commenced production and sales of Teijinconex neo, a new meta-aramid fiber offering superior heat resistance and dyeability, at a new production facility in Thailand in August 2015. Motivated by increasingly stringent regulations pertaining to flame-retardant materials and environmental safety, we have continued to focus on expanding this particular business in promising Asian markets and emerging markets.

In polyester fibers, sales growth was sluggish for automotive applications at our subsidiary in Thailand, but earnings held firm thanks to solid sales of personal hygiene products, wadding, and other materials, as well as contributions from lower prices for raw materials and other cost reductions. In Japan, amid lackluster growth in sales for automobile applications, income was bolstered by higher sales for use in reverse osmosis membrane support layers for water treatment applications, as well as by efforts to cut costs. Moreover, we are striving to further strengthen our competitiveness by realigning our domestic production configuration and transferring production of certain items to subsidiaries in Thailand..

Carbon Fibers and Composites

Favorable sales for use in aircraft and general industrial applications, while progress was made on new product development and downstream business expansion..

Sales of TENAX carbon fibers for use in aircraft were favorable, as orders from aircraft manufacturers remained firm. Among other applications, sales for use in general industrial applications were robust. However, the supply-demand balance softened for sports and leisure equipment applications in Asia from midway through last year. Sales of Pyromex Oxidized PAN fiber were strong, reflecting brisk demand for use in aircraft brake pads. Declining prices for raw material and fuel prices, which have persisted since autumn 2014, helped boost profitability.

Against this backdrop, we have been accelerating new product development, including TENAX XMS32, a new grade of carbon fiber with high-tenacity and high-tensile modulus properties for aircraft and automotive applications, and a woven fabric prepreg with high-tenacity, high-rigidity and fire-retardant properties that uses thermoplastic. In the field of railcars, we jointly developed a carbon fiber reinforced plastic (CFRP) leaf spring for the efWING new-generation railcar truck developed by Kawasaki Heavy Industries, Ltd. and began supplying this product to this company.

We are working to expand operations in profitable, high-growth markets by promoting the expansion of downstream business. As part of these efforts, we strove to develop an integrated production system for CFRP in Europe using a high-pressure resin transfer molding (HP-RTM) process in combination with Part via Preform (PvP), a one-step carbon fiber to part technology. We are carrying out procedures to acquire land in the United States, with a view to constructing a new plant.

In addition, in the area of structural components for mass-produced vehicles made with our innovative thermoplastic CFRP Sereebo, we are continuing to implement activities with General Motors Company and other automobile manufacturers to achieve future commercialization.