Teijin : Flash Report -FY2017 1Q Financial Performance & FY2017 Outlook-

Flash Report

FY2017 1Q Financial Performance

&

FY2017 Outlook

Teijin Limited

August 1, 2017

Outline of FY2017 1Q Results

1. Outline of FY2017 1Q Results

   Performance Highlights FY2017 1Q Results compared with FY2016 1Q

   Net Sales Operating Income

   Profit Attributable to Owners of Parent

   Free Cash Flow

   +13.8% +22.0% +17.1%

   198.2 9.7 174.2 15.7 19.1 11.4 13.4 -4.6

   FY16 1Q FY17 1Q

   FY16 1Q FY17 1Q

   FY16 1Q FY17 1Q

   FY16 1Q FY17 1Q

   : Increased

   • Solid overall sales performance across all businesses

   • Positive impact from the consolidation of CSP*1 in composites

     : Increased

   • Strong sales of aramid fibers for automobiles

   • The upfront payment from Merck.*2

: Increased

Mainly due to the increase in operating income

: Decreased

In FY2016 1Q, free cash flow had increased due to a decrease in working capital

*1 Continental Structural Plastics Holdings Corporation: Became a consolidated subsidiary in January 2017

*2 The impact of licensing out of an investigational antibody candidate targeting tau for a possible new treatment of Alzheimer's disease 2

1. Outline of FY2017 1Q Results

   FY16 1Q	FY17 1Q	Difference
   Net Sales	174.2	198.2	+24.0
   Operating Income	15.7	19.1	+3.4
   Nonoperating Items (Net)	(1.3)	0.9	+2.2
   Ordinary Income	14.4	20.0	+5.6
   Extraordinary Items (Net)	(0.6)	(0.5)	+0.2
   Income Before	13.8	19.6	+5.8
   Income Taxes
   Profit Attributable to	11.4	13.4	+2.0
   Owners of Parent
   ROE *1	15.5%	15.3%	-0.2%
   ROIC *2	12.4%	12.2%	-0.2%
   EBITDA *3	25.1	30.3	+5.2

   • Operating Results

(¥ billion)

*1 ROE= Profit attributable to owners of parent / Shareholders' equity

*2 ROIC based on operating income = Operating income / invested capital (Invested capital = Net assets + Interest-bearing debt - Cash and deposits )

*3 EBITDA = Operating income + Depreciation & amortization

*4 CAPEX includes investments in intangible assets

Note : Quarterly ROE and ROIC are determined by multiplying profit in 1Q by a factor of four

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