Teijin : Flash Report -3Q Results and FY16 Outlook-

Flash Report

1. Outline of FY2016 3Q Results

2. Consolidated results highlights (¥billion)

Operating Movement (Compared with FY2015 1Q-3Q)

Net sales

Operating income

Profit attributable to owners of parent

FCF

-9.5% -21.4% -2.5% +54.2%

591.3

535.2

55.5

43.6

34.9

34.1

23.2

35.8

FY2015 1Q-3Q	FY2016 1Q-3Q	FY2015 1Q-3Q	FY2016 1Q-3Q	FY2015 1Q-3Q	FY2016 1Q-3Q	FY2015 1Q-3Q	FY2016 1Q-3Q
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1. Outline of FY2016 3Q Results

Operating results	FY2015 1Q-3Q	FY2016 1Q-3Q	Difference
Net sales	591.3	535.2	-56.1
Operating income	55.5	43.6	-11.9
OP margin	9.4%	8.1%	-1.2%
Nonoperating items (net)	1.3	2.2	+0.8
Ordinary income	56.8	45.8	-11.0
Extraordinary items (net)	(10.6)	(4.4)	+6.2
Income before income taxes	46.2	41.4	-4.8
Income taxes	13.2	6.7	-6.6
Profit attributable to non- controlling interests	(2.0)	0.7	+2.6
Profit attributable to owners of parent	34.9	34.1	-0.9
Earnings per share*1 (¥)	177.65	173.23	-4.42

Net sales: Declined, owing to

Impact of optimizing our production configuration associated with restructuring initiatives in the resin business, in addition to the stronger yen, although sales were generally steady across all businesses on the whole

Operating income and Ordinary income: Declined owing to

New drug licensing costs and the impact of foreign exchange movements, despite efforts to steadily improve profitability by driving growth in existing businesses and executing restructuring initiatives

Profit attributable to owners of parent: Declined despite

Lower tax expense due to the impact of changes in tax effect accounting, along with a decline in impairment loss and other factors

EBITDA *2	84.4	71.6	-12.7
CAPEX *3	24.1	28.6	+4.5
Depreciation & amortization	28.9	28.0	-0.8
R&D expenses	23.9	27.0	+3.1
FCF	23.2	35.8	+12.6

xchange rate	FY2015 1Q-3Q	FY2016 1Q-3Q
¥/US$	122	107
¥/€	134	118
US$/€	1.10	1.11

◇PL e

*1 In connection with the consolidation of shares conducted on October 1, 2016, figures were calculated as if the consolidation of shares had been

*3 CAPEX includes investments in intangible assets

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conducted at the beginning of the previous fiscal year

*2 EBITDA = Operating income + Depreciation & amortization