Notice regarding making film business joint ventures in Japan and Indonesia into wholly-owned subsidiaries of Teijin [Teijin] (PDF:110KB)

To whom it may concern

August 19, 2016

Company: Teijin Limited Stock code: 3401 (First Section, Tokyo Stock Exchange) Representative: Jun Suzuki, President and CEO

Contact: Masahiro Ikeda, General Manager, Finance and Investor Relations Department

Tel: +81-3-3506-4395

Teijin Limited ("Teijin") hereby announce that it has agreed to acquire the interests owned by

1. I. du Pont de Nemours and Company ("DuPont") in the film business joint ventures in Japan and Indonesia.
2. Backgroud of acquisition

   Teijin and DuPont have integrated polyester film business in 2000 and have been operating the business on a global scale by establishing joint ventures in seven countries worldwide. However, business environment has become increasingly severe primarily due to the sluggish demand driven by the slowdown of the Chinese economy as well as by the rise of new Chinese competitors and a need for transformation of business structure has become imminent.

   Structural reform has already been promoted that domestic production site will be consolidated into Utsunomiya factory by the end of September 2016 in order to focus on the high value-added applications, but to achieve further growth by improving flexibility of management and speed of decision-making , it has hereby agreed to acquire the interests in the Japan joint venture, as well as the Indonesia joint venture.

3. Particulars of the agreement

   Teijin Limited and DuPont have agreed that Teijin will acquire DuPont Kabushiki Kaisha's interests in Teijin DuPont Films Japan , effective immediately, and DuPont's interests in Indonesia Teijin DuPont Films, effective after obtaining appropriate regulatory approvals.

4. Future operation policy

   For the two companies becoming wholly owned subsidiaries going forward, Teijin intends to increase profitability and competitiveness through utilization of high-performance materials other than polyester, combining and integrating materials other businesses of Teijin Group, and promoting new business development through external alliances under an accelerated decision-making process of Teijin Group management. The new company names for each of the Japan and Indonesian entities will be Teijin Film Solutions Limited and P.T. Indonesia Teijin Film Solutions.

5. Impact of decision on income

Teijin expects any impact of this move on its full-term consolidated operating results to be minimal.

Reference : Outline of Joint venture (Japan / Indonesia)

[ Japan ]

・Company Name : Teijin DuPont Films Japan Limited

・Established : January 2000

・Location : 2-1,Kasumigaseki 3-chome,Chiyodaku,Tokyo,Japan

・Representative : Yoshihiro Noumi

・Capital : 10,010 million yen

(Investment ratios: Teijin Limited 60.0%, DuPont Kabushiki Kaisha 49.0%)

[ Indonesia ]

・Company Name : P.T.Indonesia Teijin Dupont Films

・Established : January 2000

・Location : JL. M.H. Thamrin Kel. Panunggangan Kotamadya-Tangerang 15001, Indonesia

・Representative : Yuichi Hanawa

・Capital : 44,000 thousand USD

(Investment ratios: Teijin Limited 50.1%, E. I. du Pont de Nemours and Company 49.9%)