June 1, 2015

Notice of Convocation
The 149th Ordinary General Meeting of Shareholders

Teijin Limited

Disclaimer: Please note that the following is a translation of the original Japanese documents prepared
for the convenience of our non-Japanese shareholders with voting rights. Although this translation isintended to be complete and accurate, the Japanese original shall take precedence in the case of any
discrepancies between this translation and the original. Certain information regarding voting proceduresthat is not applicable for shareholders resident outside Japan has been omitted or modified as applicable.
In addition, these materials will not facilitate your status as a registered shareholder authorized to attend
the Ordinary General Meeting of Shareholders. Every shareholder attending the Ordinary General
Meeting of Shareholders is required to present the Voting Card, which is sent to the registeredshareholder together with the original Notice of Convocation in Japanese, to the receptionist at themeeting.
Please note that, as a result of a recent review of our English translation of these documents, the English
wording in some parts may be different from that in the previous documents, even in cases where theJapanese content has not been changed.

Contents
Notice of Convocation of the 149th Ordinary General Meeting of Shareholders
Reference Documents for the General Meeting of Shareholders
Proposals and Reference
Attached Reports
Reports on Operations for the 149th Fiscal Year
1. Current Status of the Teijin Group(1) Progress and Results of Operations(2) Changes in Assets and Profit and Loss
(3) Capital Investments(4) Financing(5) Medium-to Long-term management strategy and Tasks Ahead(6) Primary Businesses(7) Primary Business Places(8) Employees(9) Significant Subsidiaries(10) Primary Lenders and Amount of Borrowings
2. Matters Regarding the Shares of the Company
3. Stock Option
4. Directors and Corporate Auditors
5. Accounting Auditor
6. Corporate Governance System
7. Summary of Resolution to Maintain Systems to Ensure Appropriate Business Operations
8. Basic Policy Regarding the Control of the Company
9. Policy Regarding the Determination of Dividends from Retained Earnings
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Comprehensive Income (Reference)
Consolidated Statements of Cash Flows (Reference)

(Securities code: 3401)
Jun 1, 2015
Dear Shareholder,

Notice of Convocation ofth

the 149 Ordinary General Meeting of Shareholders

You are cordially invited to attend the 149th Ordinary General Meeting of Shareholders of Teijin Limited (“theCompany”) to be held as set forth below.

If you do not expect to attend the meeting, you may vote on the proposals for voting using the following method.
Please refer to the following Reference Documents for the General Meeting of Shareholders, and exercise
your voting rights by 5 p.m., Tuesday, June 23, 2015.(Japan Time)[In case of voting by Mail]
Please indicate your approval or disapproval of the proposals on the enclosed Document for the
Exercise of Voting Rights, and mail the document so that it arrives by the above deadline.

[In case of voting by Internet etc.]
Please access to the web-site to exercising voting rights (http:www.evote.jp/) through personal Computer, Smartphoneor cellar phone with the log-in ID and temporary password indicated in the enclosed Document for the Exercise of
Voting Rights, and input your approval or disapproval of the proposals according to the instructions on the window.
In case of personal computer or smartphone, you may access to the web-site to exercise voting rights from theCompany’s web-site.

Sincerely,

Jun Suzuki
President and Representative Director
Teijin Limited
6-7, Minami-Hommachi 1-chome,
Chuo-ku, Osaka 541-8587,
Japan3

Details
1. Date and Time of the Meeting:
Wednesday, June 24, 2015, at 10 a.m.(Japan Time)(The door opens at 9 a.m.)
2. Place:
The Westin Osaka, 2nd Floor, Rose Room, 1-20, Oyodonaka 1-chome, Kita-ku, Osaka , Japan

3. Purposes
Reports:
The Business Report, Consolidated Financial Statements, Non-Consolidated Financial Statements and the Report by
the Accounting Auditor and the Board of Corporate Auditors of the results of audit on the Consolidated Financial
Statements, for the 149th Fiscal Year (April 1, 2014 to March 31, 2015)
Proposal 1: Partial Amendments to the Articles of Incorporation
Proposal 2: Election of Ten (10) Directors
Proposal 3: Election of Two (2) Corporate Auditors
Proposal 4: Revision to Remunerations for Directors
Proposal 5: Renewal of the Countermeasure to Large-Scale Acquisitions of Teijin Shares (Takeover Defense
Measures)4. Decision on Convocation(1) If you do not indicate either approval or disapproval on the Document for the Exercise of Voting
Rights, we shall treat such “no answer” as your “approval” on the proposal.
(2) In the event of an overlap in the exercise of voting rights via the Document for the Exercise of Voting
Rights and the Internet voting system, the exercise of voting rights via the Internet voting system shall prevail.
(3) If you vote more than once using the same method, your last vote shall prevail.
5. Attachments to Notice of Convocation and Reference Documents for the General Meeting of Shareholders
If any revision should be required to the Business Report, Consolidated Financial Statements, Non-Consolidated
Financial Statements, or Reference Documents for the General Meeting of Shareholders, such revision will be postedon the Company’s website. (http://www.teijin.com/) If you attend the General Meeting of Shareholders, please submit the attached Document for the Exercise of
Voting Rights to the reception of the meeting.
If you attend the General Meeting of Shareholders by proxy, you may exercise your voting rights byauthorizing one(1) other shareholder with voting rights to act as its proxy as stipulated in the Companys
Article of Incorporation.
4

Reference Documents for the General Meeting of Shareholders
Proposal and Reference
Proposal 1: Partial Amendments to the Articles of Incorporation
Reasons for Proposal
The “Act on Partial Amendment of Companies Act” (Act No. 90 of 2014) came into force on May 1, 2015, pursuant towhich it is now permitted to enter into a liabilities limitation agreement with a Director who is not an Executive Director,
etc. and a Corporate Auditor who is not an Outside Corporate Auditor. In line with this amendment, the Company will makenecessary amendments to Article 27 and Article 37 of the current Articles of Incorporation so that such Directors andCorporate Auditors may fully fulfill the role originally expected of them.
All the Corporate Auditors have approved these amendments to Article 27 of the Articles of Incorporation.
(The “Corporate Code” in the Articles of Incorporation is synonymous with the “Companies Act.”)(The underlined portions have been changed.)
Current Articles

Amended Articles

Article 27. (Liabilities Limitation Agreement with
Outside Directors)
The Company may enter into an agreement with any
Outside Director which limits his/her liabilities to theamount equal to the higher of twenty million yen (Yen
20,000,000) and the amount aggregated by each Itemof Article 425, Paragraph 1 of the Companies Act,with respect to the liabilities stipulated in Article 423,
Paragraph 1 of the Companies Act, in case that such
Outside Director performed his/her duties in goodfaith and without gross negligence in relation to such
performance.

Article 27. (Liabilities Limitation Agreement with
Directors)
The Company may enter into an agreement with any
Director (excluding Executive Director) which limits
his/her liabilities to the amount equal to the higher oftwenty million yen (Yen 20,000,000) and the amountaggregated by each Item of Article 425, Paragraph 1 of
the Companies Act, with respect to the liabilities
stipulated in Article 423, Paragraph 1 of the Companies
Act, in case that such Director performed his/her duties ingood faith and without gross negligence in relation tosuch performance.

Article 37. (Liabilities Limitation Agreement with
Outside Corporate Auditors)
The Company may enter into an agreement with any
Outside Corporate Auditor which limits his/her
liabilities to the amount equal to the higher of twenty
million yen (Yen 20,000,000) and the amountaggregated by each Item of Article 425, Paragraph 1of the Companies Act, with respect to the liabilities
stipulated in Article 423, Paragraph1 of theCompanies Act, in case that such Outside Corporate
Auditor performed his/her duties in good faith andwithout gross negligence in relation to such
performance.

Article 37. (Liabilities Limitation Agreement with
Corporate Auditors)
The Company may enter into an agreement with any
Corporate Auditor which limits his/her liabilities to theamount equal to the higher of twenty million yen (Yen
20,000,000) and the amount aggregated by each Item of
Article 425, Paragraph 1 of the Companies Act, withrespect to the liabilities stipulated in Article 423,
Paragraph1 of the Companies Act, in case that such
Corporate Auditor performed his/her duties in good faithand without gross negligence in relation to such
performance.

5

Proposal 2: Election of Ten (10) Directors
The terms of office of ten (10) Directors— Shigeo Ohyagi, Jun Suzuki, Osamu Nishikawa, Yoshio Fukuda, Yo Goto,
Yoshihisa Sonobe, Hajime Sawabe, Yutaka Iimura, Nobuo Seki and Kenichiro Senoh—will expire at the conclusion of this
General Meeting of Shareholders.
Shareholders are therefore requested to elect the following ten (10) Directors (of whom eight (8) are up for reelection).
The candidates for Director are as follows.
No.

Candidate’s Name
(Date of Birth)

Personal History, Positions andSignificant Concurrent Positions
Mar. 1971
Jun. 1999
Jun. 2001
Apr. 2002
Jun. 2002
Apr. 2003
Oct. 2003

1

Shigeo Ohyagi(May 17, 1947)<Participation in Board of
directors meetings>
12 times out of 12 (100%)

Apr. 2005
Jun. 2005
Jun. 2006
Apr. 2007
Jun. 2008
Jun. 2010
Apr.2014

Joined Teijin Limited
Corporate Officer; Manager of Tokyo Branch, Medical &Pharmaceutical Business Division
Executive Officer; Deputy General Manager,
Pharmaceuticals Marketing Division
General Manager, Medical & Pharmaceutical Business
Division
Senior Executive Officer
General Manager, Medical & Pharmaceutical BusinessGroup
President & Representative Director, Teijin Pharma
LimitedCIO (Chief Information Officer), Teijin Limited
Managing Director
Senior Managing Director
CSO (Chief Strategy Officer)
President ,Representative Director ,CEO (Chief Executive officer)
President , Teijin Limited
Chairman of the Board (Incumbent),

Number ofCompany’s
Shares Owned

242,000
shares<Significant Concurrent Positions>
Chairman, Japan Bio Plastics Association
Permanent Officer, Keidanren(Japan Business Federation)
Officer, Japan Association of Corporate Executives (Keizai Doyukai)
Outside Director, Sharp Corporation
Outside Director, Recruit Holdings Co., Ltd
Outside Corporate Auditor, JFE Holdings, Inc.
<Reason of the nomination of the candidate for director>
Shigeo Ohyagi assumed a post as President, Representative Director (CEO) of the Company in June 2008 and has worked on the
structural reforms of the Company. Furthermore, he assumed a post as Chairman of the Board in April 2014 and has been
concentrating his efforts on the operations of the Board of Directors as Chairman and conducting appropriate supervision on
Executive Directors, etc.

6

No.

Candidate’s Name
(Date of Birth)

Personal History, Positions andSignificant Concurrent Positions
Apr.1983
Apr.2011
Apr.2012

2

Jun Suzuki(February 19,1958)<Participation in Board of
directors meetings>
12 times out of 12 (100%)

Joined Teijin Limited
President, Teijin Holdings Netherlands B.V.
Corporate Officer, Teijin Limited
Chief Marketing Officer
Director, BRICs business
Apr.2013
Executive Officer, Teijin Limited
General Manager, Advanced Fibers & Composites
Business Group
General Manager ,Carbon Fibers and Composites
Business Unit
President & Representative Director, Toho Tenax Co.,Ltd.
Director, Executive Officer
June.2013
President , (Incumbent)
Apr.2014
Representative Director , (Incumbent)
CEO (Chief Executive officer) (Incumbent)<Significant Concurrent Positions>
Vice Chairman, Japan Chemical Fibers Association

Number ofCompany’s
Shares Owned

91,000Shares<Reason of the nomination of the candidate for director>
Jun Suzuki assumed a post as President, Representative Director (CEO) in April 2014 and formulated revised medium-term plan inNovember of the same year, and has been promoting the completion of structural reforms on which his predecessor worked and thegrowth strategy for the future.
Apr.1977
Joined Teijin Limited
Apr.2009
CENO(Chief Engineering Officer)
Deputy CSRO (Chief Social Responsibility Officer), (forAccident/Disaster/Fire Prevention)
President & Representative Director, Teijin Entech Co.,Ltd.
Yo GotoJun.2009
Corporate Officer, Teijin Limited(January 23,1953)
Apr.2012
Chief Engineering Officer
45,000<Participation in Board of3
Apr.2013
Executive Officer, Teijin Limited
Sharesdirectors meetings>
Apr.2014
General Manager, Technology Center(Incumbent)
9 times out of 9 (100%)
Supervisor of Iwakuni, Matsuyama and Mihara factory(Incumbent)
June,2014
Director, Executive Officer
Supervisor of Safety Control(Incumbent)
Apr,2015
Representative Director(Incumbent)
Senior Executive Officer, Teijin Limited(Incumbent)<Reason of the nomination of the candidate for director>
Yo Goto assumed posts as General Manager, Technology Center in April 2014, as Director, Senior Executive Officer in June of thesame year, and as Representative Director, Senior Executive Officer in April 2015, and has been making efforts to promote theresearch and technological development which is expected to generate revenue in the medium term and long term as a core growthstrategy of the Company.

7

No.

Candidate’s Name
(Date of Birth)
Candidate for new
Director

Personal History, Positions andSignificant Concurrent Positions

Number ofCompany’s
Shares Owned

Apr. 1981
Jun. 2009

Joined Teijin Limited
Corporate Officer, Teijin Limited
Director, Teijin Pharma Limited
Apr.2011
Senior Executive Director, Teijin Pharma Limited
Hiroshi Uno
Jun.2011
Executive Officer, Teijin Limited
41,0004(September 18,1955)
Apr.2013
Senior Executive Officer, Teijin Limited (Incumbent)
SharesPresident & Representative Director, Teijin Pharma
Limited (Incumbent)
General Manager, Healthcare Business Group(Incumbent)<Reason of the nomination of the candidate for director>
Hiroshi Uno assumed posts as Senior Executive Officer, Teijin Limited, as General Manager, Healthcare Business Group and as
President & Representative Director, Teijin Pharma Limited in April 2014, and has been making efforts to expand revenue of thehealthcare business which forms a part of the core strategies of the Company and working on the integration of “healthcare”, “IT” and“composites and advanced fibers” which are the theme of growth strategy of the Company.
Candidate for new
Apr.1975
Joined Teijin Limited
Director
Apr.2008
Corporate Officer, Infocom Corporation CFO
Jun.2011
Corporate Officer, Teijin Limited
General Manager, IT Business Group
Kazuhiro Yamamoto
President & Representative Director, Infocom
21,0005(September 27, 1952)
Corporation
SharesApr.2012
General Manager, Corporate Strategy Office
Apr.2014
Executive Officer, Teijin Limited (Incumbent)
CFO(Chief Finance Officer), Accounting, Finance &Purchase Division (Incumbent)<Reason of the nomination of the candidate for director>
In 2011, Kazuhiro Yamamoto assumed a post as Corporate Officer of Teijin Limited and served as President & Representative
Director, CEO of Infocom Corporation, which is a listed subsidiary. He assumed a post as Executive Corporate Officer, Teijin limitedin April 2014 and serves as CFO, Accounting, Finance & Purchase Division, striving for cost management, IR activities, etc. as thehead of the counting-related departments and divisions of the Company.
Apr.1980
Jun,2009
Apr.2010

Joined Teijin Limited
Corporate Officer, Teijin Limited
Deputy CFO(Chief Finance Officer) (for/Accounting/
Finance/ Budget Control)
General Manager, Accounting and Finance Office
General Manager, Corporate Strategy Office
Teijin Creative Staff Co., Ltd. General Manager,
Apr.2011
CFO
Yoshihisa Sonobe
General Manager, Accounting and Finance Division(October 17,1956)
Teijin Creative Staff Co., Ltd. Representative Director,<Participation in Board of
20,000Executive Officer(General Manager, Accounting and6
directors meetings>
sharesFinance Division)
9 times out of 9 (100%)
Member, Global Policy Board Teijin DuPont Films
Global Joint Venture
Apr.2012
CFO, Accounting, Finance & IR Division
Apr.2014
General Manager, Corporate Strategy Office (Incumbent)
Supervisor of Raw Materials & Polymers
Division(Incumbent)
June,2014
Director, Corporate Officer (Incumbent)
Supervisor of IT, Healthcare Project(Incumbent)
Apr,2015
Chairman, Teijin DuPont Films(Incumbent)<Reason of the nomination of the candidate for director>
Yoshihisa Sonobe assumed posts as Corporate Strategy Officer in April 2014 and as Director in June of the same year, and has been
making efforts for the planning of strategies toward the achievement of structural reforms and growth strategy which are the mostimportant issues of the Company.

8

No.

Candidate’s Name
(Date of Birth)
Candidate for Outside
Director

Hajime Sawabe(January 9, 1942)<Participation in Board of
directors meetings>
12 times out of 12 (100%)78Personal History, Positions andSignificant Concurrent Positions
Joined Tokyo Denki Kagaku Kogyo K.K. (currently TDK
Corporation)
Jun.1996
Director, TDK Corporation
Jun.1998
President & Representative Director, TDK Corporation
Jun.2006
Chairman & Representative Director, TDK Corporation
Jun.2008
Director, Teijin Limited (Incumbent);
Member of the Advisory Board, Teijin Limited(Incumbent)
Jun.2011
Chairman of the Board & Director, TDK Corporation
Jun.2012
Counselor , TDK Corporation (Incumbent)<Significant Concurrent Positions >Counselor, TDK Corporation
Outside Corporate Auditor, Nikkei Inc.
Vice Chairman of Council , Waseda University

Number ofCompany’s
Shares Owned

Apr.1964

47,000Shares<Reason of the nomination of the candidate for outside director>
Hajime Sawabe has served as President and Chairman of the Board of TDK Corporation, and he is expected to provide
advice on the Company’s business operations based on his abundant business experience and high level insight.
Nomura Securities Co., Ltd. where he served as an outside director until June 2011, received a business improvement orderfrom the Financial Services Agency in August 2012 in connection with its employees’ action of leaking corporate information
on public offerings of shares. During his tenure as outside director of Nomura Securities Co., Ltd., he made proposals from theperspective of the legal compliance at the Board of directors meetings.
Candidate for Outside
Apr.1969
Joined Ministry of Foreign Affairs, Japan (MFA)
Director
Aug.1999
Director, General, Economic Cooperation Bureau, MFA
Feb. 2001
Deputy Vice-Minister, MFA
Sep. 2001
Assistant Vice-Minister, MFA
Jul. 2002
Ambassador of Japan in Indonesia
Nov.2002
Ambassador of Japan in Indonesia and the Democratic
Republic of Timor-Leste (East Timor)
Apr. 2006
Ambassador of Japan in France and
The Principality of Andorra (Andorra)
May.2007
Ambassador of Japan in France, Andorra
and the Principality of Monaco
Yutaka Iimura
Jul. 2009Retired from MFA(October 16,1946)
Special Envoy of the Government of Japan
16,000<Participation in Board offor the Middle East and Europe (Incumbent)
Sharesdirectors meetings>
Sep. 2009
Adviser, Taisei Corporation(Incumbent)
12 times out of 12 (100%) Jun.2011
Director, Teijin Limited (Incumbent)
Member of the Advisory Board, Teijin Limited(Incumbent)
Aug.2014
Councilor, MFA (Southeast Asia cooperation chargeambassador ) (Incumbent)<Significant Concurrent Positions >Councilor, MFA(Southeast Asia cooperation charge ambassador)
Vice-Chairman, Japan-Indonesia Association, Inc.
Adviser, Taisei Corporation
Visiting member professor, The University of Tokyo Public Policy graduate
school<Reason of the nomination of the candidate for outside director>
Yutaka Iimura has served at the Ministry of Foreign Affairs, and he is expected beneficial to the business of the Company interms of a global viewpoint, based on his ample wisdom and expertise. And so the Company judges he can fulfill his duties
appropriately as Outside Director.

9

No.

Candidate’s Name
(Date of Birth)
Candidate for Outside
Director

910

Personal History, Positions andSignificant Concurrent Positions

Number ofCompany’s
Shares Owned

Apr.1970
Apr.1992
Jun.1997
Jun.1998
Aug.2000

Joined Chiyoda CorporationVice-President, Chiyoda International Corporation
Director, Chiyoda Corporation
Managing Director, Chiyoda Corporation
Senior Managing Director & Representative Director,
Chiyoda Corporation
Nobuo Seki
Apr.2001
President & CEO, Chiyoda Corporation(September 21,1944)
Apr.2007
Chairman of the Board, Chiyoda Corporation
15,000<Participation in Board of Apr.2009
General Corporate Advisor , Chiyoda Corporation
Sharesdirectors meetings>
Jun.2012
Director, Teijin Ltd (Incumbent)
12 times out of 12 (100%)
Member of the Advisory Board, Teijin Limited(Incumbent)
Jul.2012
Adviser Chiyoda Corporation<Significant Concurrent Positions>
Outside Director, KAMEDA SEIKA Co., Ltd
Outside Director, Weathernews Inc.
Outside Corporate Auditor, SUGIYO Co., Ltd.
<Reason of the nomination of the candidate for outside director>
Nobuo Seki has served as President and Chairman of the Board of Chiyoda Corporation, and he is expected to provide advice
on the Company’s business operations based on his abundant business experience and high level insight.
Candidate for Outside
Apr.1976
Joined Fuji Photo Film Co., Ltd.(currently FUJIFILM
Director
Corporation)
Dec.1999
Representative Vice-President Keio Academic EnterpriseCo., Ltd.
Apr.2001
Professor, Graduate school of Keio University Media andGovernment
Kenichiro Senoh
Apr.2004
President & Chairperson, The Industry- Academic(January 1,1954)
Collaboration Initiative (NPO) (Incumbent)
27,000<Participation in Board of Jun.2012
Director, Teijin Limited (Incumbent)
Sharesdirectors meetings>
Member of the Advisory Board, Teijin Limited
12 times out of 12 (100%)(Incumbent)<Significant Concurrent Positions>
President & Chairperson, The Industry-Academia Collaboration Initiative (NPO)Visiting Professor, Hitotsubashi University Graduate School of Commerceand Management (MBA program)Vice Chairman, The Japan Society for Science Policy and Research Management

Director, Intellectual Property Association of Japan<Reason of the nomination of the candidate for outside director>
Kenichiro Senoh is serving many officers and committee members, and is expected to provide advice based on his specialist
viewpoint of industry and business field.

Notes: 1. Hajime Sawabe, Yutaka Iimura, Nobuo Seki and Kenichiro Senoh are candidates for Outside Directors. The
Company requires the candidate for Outside Director to satisfy all the requirements of Independent Director
stipulated by the Company. These four (4) candidates satisfy all such requirements. Since they also satisfy therequirements of independency as stipulated by Tokyo Stock Exchange Group, Inc., they were registered by theCompany as “Independent Director / Auditor”. Refer to 31-32 pages the contents of the requirements of“Independent Director” stipulated by the Company.
2. The Company has entered into liability limitation agreements with Hajime Sawabe, Yutaka Iimura, Nobuo Seki and
Kenichiro Senoh being incumbent Outside Directors, which limit the liabilities of each Outside Director to ¥20
million or the minimum amount stipulated in Article 425, Paragraph 1, of the Companies Act, whichever is higher,in accordance with the provisions of Article 427 of the Companies Act and the Company’s Articles ofIncorporation.
In case the election of Hajime Sawabe, Yutaka Iimura, Nobuo Seki and Kenichiro Senoh are approved, theCompany intends to enter into the same liability limitation agreement with them. In case the election of Shigeo
Ohyagi is approved, on the condition that Proposal 1 “Partial Amendments to the Articles of Incorporation” isapproved and passed, the Company will enter into an equivalent liabilities limitation agreement with him.

10

3. There are no special interests between the candidates and the Company.
4. The chart below indicates the dates of the first appointment of the Outside Director for each candidate and thetenures in position as Outside Director before the closing of this General Meeting of Shareholders.
Name

Date of First Appointment

Tenure in Position

Hajime Sawabe

June 20, 2008

7 years

Yutaka Iimura

June 22,2011

4 years

Nobuo Seki

June 22,2012

3 years

Kenichiro Senoh

June 22,2012

3 years

Proposal 3: Election of Two (2) Corporate Auditors
The terms of office of two (2) Corporate Auditors—Atsuo Amano , Toshiharu Moriya , —will expire at the conclusion ofthis General Meeting of Shareholders.
Shareholders are therefore requested to elect the following two (2) Corporate Auditors
If Gen Ikegami’s election is approved, he is scheduled to assume the post as of July 1, 2015.
The Board of Corporate Auditors has already approved this proposal.
The candidates for Corporate Auditor are as follows.
No.

Candidate’s Name
(Date of Birth)
Candidate for new
Corporate Auditor

1

2

Personal History, Positions andSignificant Concurrent Positions

Number ofCompany’s
SharesOwned

Apr.1980
Jun.2003
Mar.2006

Joined Teijin Limited
TEIJIN POLYCARBONATE CHINA LTD.
Pharmaceutical Planning Department Teijin Pharma
14,000Atsushi Mugitani
LimitedShares(June 17, 1956)
Jul.2007Manager, New Business Development Department
New Business Development Group
Apr.2013
Manager, Corporate Audit Department (Incumbent)<Reason of the nomination of the candidate for Corporate Auditor>
Atsushi Mugitani assumed a post as Manager, Corporate Audit Department in April 2013, and has been conducting
internal audits covering the reliability of financial reporting, legal compliance, etc. and contributing to the internal
control of the Company and the Teijin Group.
Candidate for new
Sep.1980
Joined Showa Accounting (currently ERNST & YOUNG
Outside Corporate
SHINNIHON LLC )AuditorMar. 1983
Registered as Certified Public Accountant
Apr.1984
Singapore country residence
Jun.1988
U.S.A residence
Gen Ikegami
May.1992
Registered as CPA the state of California, U.S.A
0 Share(January 10, 1955)
May.2000
Audit corporation Ota Showa Century representative
partner(currently ERNST & YOUNG SHINNIHON LLC
Senior Parter) (Incumbent)
Jun.2015
ERNST & YOUNG SHINNIHON LLC Senior Parter expected
to retire<Reason of the nomination of the candidate for Outside Corporate Auditor>
Although Gen Ikegami has never been involved in the company management in the past, he is expected to contributeto the maintenance and improvement of compliance by the Company with his abundant knowledge and experience as
Certified Public Accountant. Therefore, the Company judges that he is able to perform duties as Outside Corporate
Auditor properly.

Notes: 1. Gen Ikegami is a candidate for Outside Corporate Auditor. The Company requires the candidate for Outside
Corporate Auditor to satisfy all the requirements of Independent Corporate Auditor stipulated by the Company. This
candidate satisfies all such requirements. Since he also satisfies the requirements of independency as stipulated by
Tokyo Stock Exchange Group, he was registered by the Company as “Independent Director / Auditor”. Refer to
31-32 pages the contents of the requirements of “Independent Director” stipulated by the Company.

11

2. If Gen Ikegami’s election is approved, the Company will enter into a liabilities limitation agreement with him,
which limits his liabilities to ¥20 million or the minimum amount stipulated in Article 425, Paragraph 1, of theCompanies Act, whichever is higher, in accordance with the provisions of Article 427 of the Companies Act and theCompany’s Articles of Incorporation. Furthermore, if Atsushi Mugitani’s election is approved, on the condition that
Proposal 1 “Partial Amendments to the Articles of Incorporation” is approved and passed, the Company will enter
into an equivalent liabilities limitation agreement with him.
3. There are no special interests between the candidates and the Company.

12Proposal 4: Revision to Remunerations for Directors
The amount of remunerations for directors of the Company has hitherto been an annual amount of up to ¥700 million, as
approved at the 140th Ordinary General Meeting of Shareholders held on June 23, 2006. This amount has hitherto been thesum of the following, as approved at the 146th Ordinary General Meeting of Shareholders held on June 22, 2012: (1) ¥630
million of annual remuneration (of which ¥60 million is for outside directors), and (2) ¥70 million for the fair value of stockcompensation-type stock options.
As further advancement of adoption and increase of the number of outside directors in domestic companies are expected
due to amendments of the Companies Act, etc., and changes to the environment over the treatment of outside directors are
anticipated, the Company would like to revise the amount of remunerations for directors as follows within the current frame(maximum of ¥700 million per annum) and abolish the frame (¥60 million) for outside directors
The current number of directors is ten, including four outside directors. If Proposal 2 is approved as proposed, thenumber of directors will be ten, including four outside directors, as before.
<Amount of remunerations>
The amount of remunerations for directors of the Company is unchanged at an annual amount of up to ¥700 million, and thecomposition of the amount is also unchanged as follows: (1) ¥630 million of annual remuneration, and (2) ¥70 million for
the fair value of stock compensation-type stock options. The remunerations for outside directors is still composed of annual
remuneration only. In addition, the amount of remunerations for directors still does not include the portion of employee
salaries for directors concurrently serving as employees.
The standard for calculating the annual remuneration for directors other than outside directors (hereinafter “insidedirectors”) and outside directors is as follows.
<Inside directors>
The amount is determined based on results for each fiscal year such as the Company’s ROA (Return on Assets; ratio ofconsolidated operating income to total assets, ROE (Return on Equity; ratio of consolidated net income to equity), thedegree of improvement in its operating income, and the degree to which budget targets are achieved, in addition toevaluations of the duties of individual directors. Reference is also made to the average remuneration level of inside directors
at other companies in the same industry in Japan.
<Outside directors>
The amount is a fixed amount that is not linked with the performance of the Company, and is determined with reference tothe average remuneration level of outside directors at other companies in the same industry in Japan.

13Proposal 5: Renewal of the Countermeasure to Large-Scale Acquisitions of Teijin Shares (Takeover
Defense Measures)
Teijin Limited (the “Company” or we) implemented the “Countermeasure to Large-Scale Acquisitions of Teijin Shares(Takeover Defense Measures)” (hereinafter the “Former Plan”) with the aim of securing and improving the corporate valueof the Company and, in turn, the common interests of the shareholders. However, the effective period of the Former Plan
will expire at the conclusion of the Ordinary General Meeting of Shareholders of the Company to be held on June 24, 2015
(hereinafter “this Ordinary General Meeting of Shareholders”).
In view of the approaching expiry of the effective period of the Former Plan, the Company’s board of directors(hereinafter the “Board of Directors”) has examined the possibility of renewing the Former Plan. As a result, the Company
decided at a Board of Directors meeting held on May 8, 2015 to renew the Former Plan with some amendments thereto(hereinafter the revised plan shall be referred to as “this Plan”), in light of the trends in business practice since theintroduction of the Former Plan, subject to the approval of the shareholders at this Ordinary General Meeting of
Shareholders.
The Company hereby proposes that the shareholders at this Ordinary General Meeting of Shareholders approve therenewal of This Plan, in accordance with Article 19 of the article of incorporation, as described below.
The status of the major shareholders of the Company as of March 31, 2015 is provided in Attachment 1 “Top 10
shareholders of the Company.” As of Today, we have not specifically received any large-scale purchase proposal from athird party.
1. Basic Policy Regarding Teijins Shareholders(Basic Policy Regarding Persons Who Control Decisions on the Company’s Financial Matters and Business Policies” asprovided for in Article 118, item 3 of the Ordinance for Enforcement of the Companies Act.)The Company believes its shareholders exist through free transactions in the stock market and therefore the Company’s
shareholders should make the final decisions as to whether to accept a large-scale purchase proposal that would involve atransfer of control of a stock company.
However, it is envisioned that some large-scale acquisitions of the Company’s shares or such proposals might entail thefollowing:(i) Acquisitions that may cause obvious harm to the corporate value of the Company and, in turn, the common interestsof the shareholders, in view of the presumed purposes of such acquisition and management policies thereafter.
(ii) Acquisitions that threaten to have the effect of compelling the shareholders to sell their shares.
(iii) Acquisitions that do not provide the Company a reasonably necessary period to present alternative proposals for the
proposal.
(iv) Acquisitions conducted without providing sufficient information reasonably necessary for the Company’s
shareholders to assess and examine the proposal.
(v) Acquisitions whose compensation is insufficient in view of the corporate value of the Company.
The Company believes such a large-scale acquirer of the Company’s shares or a person who proposes such an action isinappropriate as an exception to control the decision of the Company’s financial and business policies.
2. Measures Contributing to Realizing the Basic Policy
We have been implementing the following measures as our efforts to improve the corporate value of the Company and, inturn, the common interests of shareholders so that a large number of investors consistently invest in Teijin for a long term.
We believe that these measures will also contribute to realizing the basic policy in 1. above.
(1) Enhancing corporate value through dramatic restructuring initiatives and forward-looking transformation and growthstrategies, the twin pillars of our revised medium-term management plan
In November 2014, we introduced a revised medium-term management plan, which centers on restructuring initiatives
and transformation and growth strategies, to guide our efforts through fiscal 2016.
Under the plan’s restructuring initiatives, we are narrowing our focus by analyzing each of our businesses from theperspectives of market growth potential, competitive advantages and profitability, and will promote the targeted
allocation of corporate resources in promising businesses. We are also integrating and streamlining our production and
R&D bases, as well as revamping our business structure. We estimate that the combined positive impact of such efforts
on operating income will be ¥17.5 billion when fully realized.
Transformation and growth strategies will center on maximizing our position as a unique corporate entity withcapabilities in three business domains, namely, high-performance materials, healthcare and IT. Our emphasis going14

forward will be on integrating capabilities and advantages from these domains to realize new value for customers. In
particular, we will seek to leverage key Teijin Group capabilities to capitalize on business opportunities in areas we
recognize as particularly promising—which we have grouped into three categories: environment and energy
conservation; safety, security and disaster mitigation; and demographic change and increased health consciousness—tofoster groundbreaking, distinctively Teijin businesses.
Between now and the end of fiscal 2016, we expect results to be bolstered by the positive impact of restructuringinitiatives and by the growth of our core strategic advanced fibers and composites and healthcare businesses.
Accordingly, we are targeting ROE of 8% or higher in fiscal 2016. In the next few years, we will promote further
restructuring initiatives designed to unify our various materials businesses, in line with our ultimate goal of evolving
toward a solutions-oriented business model that is more than simply an extension of our traditional business model.
Through these efforts, we will endeavor to realize ROE of 10% or higher by around fiscal 2020.
Our basic policy for profit sharing is to ensure dividends are in line with our consolidated results. We also giveconsideration to the need to ensure financial soundness and to our ability to maintain stable dividend payments over the
medium to long term.
(2) Measures to Improve Corporate Value through Strengthening Corporate GovernanceRegarding as an essential system to improve the corporate value of the Company and, in turn, the common interests ofthe shareholders, we have strived to strengthen corporate governance, as one of our key issues.
Concretely, it is executed as shown below:(a) Separation and Reinforcement of Three Managerial Functions (Decision-Making, Execution of Business andMonitoring/Auditing)We, with the aim of rapid decision-making and clarified responsibility for business execution, specified the number
of Directors to be not more than ten (10) in the Articles of Incorporation, of which four (4) are Outside Directors. By
introducing autonomous independence requirements equivalent to those adopted by US stock exchanges, theindependence of the Outside Directors is guaranteed. Furthermore, the Outside Directors also satisfy therequirements for independence specified by the Tokyo Stock Exchange.
In order to reinforce the monitoring/auditing function of the Board of Directors, the Board of Directors is chairedby Chairman, a non-executive director.
The Board of Corporate Auditors comprises five (5) members, of which Outside Corporate Auditors are three (3),which form a majority of the Board. We demand the Outside Corporate Auditors to satisfy the requirements ofautonomous independence the Company set and by this secure the transparency of audits by Corporate Auditors.
Furthermore, the Outside Directors also satisfy the requirements for independence specified by the Tokyo Stock
Exchange.
(b) Advisory Board
We have established an Advisory Board that serves in a consultative capacity and is tasked with advising on
management issues and evaluating the performance of top executives. The Advisory Board comprises five (5) toseven (7) outside Advisers—of whom two (2) or three (3) are non-Japanese—as well as the Chairman of the Boardand the President & CEO. The Advisory Board is also charged with deliberating the alternation of Presidents & CEO
and the nomination of successors, as well as compensation systems and level of compensation for directors and thecorporate auditors of the Teijin Group and evaluating the performance of the President & CEO and other
Representative Directors.
(c) Establishment of Corporate Governance Guide
Teijin positions the Corporate Governance Guide as our concrete guidelines for our corporate governance including
above-mentioned various measures. The Corporate Governance Guide was established by the Board of Directors andwidely disclosed. Teijin has declared to comply with the Corporate Governance Guide to the shareholders throughthis disclosure, and our business management in compliance with the said Guide has been more secured.
3. Details of This Plan
(1) Purpose of Renewal of This Plan
This Plan is renewed as measures to prevent the Company’s decisions on financial and business policies from being
controlled by such persons regarded as inappropriate according to the basic policy described in 1. above. The purpose of
the renewal of this Plan is to secure and improve the corporate value of the Company and, in turn, the common interestsof its shareholders by securing information and time necessary for its shareholders to make appropriate decisions and by
negotiating with the Acquirer (defined in item (a) of “(4) Procedure for Triggering and Abolition of This Plan” below;
hereinafter the same shall apply) when the purchase of the Company’s share certificates, etc. (defined as “Acquisition”
in item (a) of “(4) Procedure for Triggering and Abolition of This Plan” below; and hereinafter the same shall apply) is
implemented.
15

(2) Overview of This Plan(a) Procedures an Acquirer Is Required to Comply with
With the purpose to secure and improve the corporate value of the Company and, in turn, the common interests of theshareholders, this Plan requires the Acquirer to provide information about the Acquisition in advance. This Plan
stipulates procedures to ensure a sufficient period for the Company to collect information about and examine theAcquisition, present the Board of Directors’ plan and alternative proposals to shareholders, and negotiate with theAcquirer.
(b) Countermeasure in Case an Acquirer Does Not Comply with the Prescribed Procedures for Purchase
If an Acquirer effects an Acquisition without compliance with the procedures prescribed in this Plan, the Company
intends to allot stock acquisition rights with call, which carry terms of acquisition that the Acquirer shall not beallowed to exercise the rights and that the stock acquisition rights can be acquired by the Company in exchange for
the Company’s shares from anybody other than the Acquirer (such stock acquisition rights, hereinafter the “Stock
Acquisition Rights”), to all the shareholders of the Company (excluding the Company) registered or recorded as of
the allotment date without contribution.
Decisions on the implementation or non-implementation of an allotment of the Stock Acquisition Rights without
contribution made by the Board of Directors shall require decisions of an independent committee consisting ofmembers appointed by the Board of Directors from among those persons who are either an Outside Director of theCompany or an Outside Corporate Auditor of the Company. In case that an allotment of the Stock Acquisition Rights
without contribution is implemented in accordance with this Plan, the ratio of the Acquirer’s voting rights of sharesof the Company may be diluted to a maximum of 50% if the Company’s shares are delivered to shareholders otherthan the Acquirer as a result of the exercise of the Stock Acquisition Rights or acquisition thereof by the Company.
(3) Establishment of the Independent Committee
To prevent the Board of Directors from making an arbitrary decision on the implementation or non-implementation of anallotment of the Stock Acquisition Rights without contribution, the judgment shall require decisions of the Independent
Committee, which consists of members appointed by the Board of Directors from among those persons who are either an
Outside Director of the Company or an Outside Corporate Auditor of the Company, in accordance with the Independent
Committee Rules (“Attachment 2: Outline of the Independent Committee Rules”).
The number of members of the Independent Committee shall be five (5), as a general rule. The term of office of the
Independent Committee members shall be until the conclusion of the Ordinary General Meeting of Shareholders for thelast business year that ends within one (1) year after their appointment.
The name and career profile of each member of the Independent Committee when this Plan is renewed are shown in
Attachment 3 hereof.
(4) Procedures for Triggering and Abolition of This Plan(a) Applicable Acquisitions
Whether to implement the allotment of the Stock Acquisition Rights without contribution pursuant to the proceduresprescribed in this Plan will be considered if a purchase of shares or any similar act or proposal1 that falls under either(i) or (ii) (hereinafter, collectively, the “Acquisition” and the person who makes the Acquisition the “Acquirer”) of
the following takes place.
(i) A purchase or any other form of acquisition that would result in the holding ratio of share certificates, etc.
(kabuken tou hoyuu wariai)4 of share certificates, etc. (kabuken tou)2 issued by the Company of a holder(hoyuusha)3 amounting to 20% or more(ii) A tender offer (koukai kaitsuke)6 that would result in the ownership ratio of share certificates, etc. (kabuken tou
shoyuu wariai)7 of share certificates, etc. (kabuken tou)5 issued by the Company held by the person who has
proposed the tender offer and the ownership ratio of share certificates, etc. held by a person having a special
relationship (tokubetsu kankei-sha)8 therewith totaling 20% or more(b) Request to the Acquirer for Provision of Information
The Acquirer conducting an Acquisition as defined in (a) above shall submit to the Board of Directors theinformation necessary for consideration of the terms of the proposed Acquisition as shown in the following items(hereinafter, the “Required Information”) and a statement that, in conducting the Acquisition, the Acquirer pledges tocomply with the procedures prescribed in this Plan regarding the Acquisition (hereinafter, collectively, the“Acquisition Statement”) in a form prescribed by the Company in Japanese before execution of the Acquisition
unless the Board of Directors determines that the Acquisition Statement is unnecessary. Receiving the Acquisition
Statement, the Board of Directors will promptly disclose the fact of such reception of the Acquisition Statement fromthe Acquirer and immediately send the Acquisition Statement to the Independent Committee.

16(i) Detailed information11 of the Acquirer and its group (including a joint holder (kyodo hoyusha)9, a person having a
special relationship with the Acquirer and persons having a special relationship with the person that controls the
Acquirer as its controlled corporation, etc. (hishihai-hojin tou)10) (including names, businesses engaged in,personal or corporate history, corporate governance system, progress of measures taken for corporate social
responsibility (CSR), capital structure, financial position, status of legal compliance and details about previoustransactions similar to the Acquisition by the Acquirer)(ii) The purposes, method and terms of the Acquisition (including the value and type of consideration for theAcquisition, Acquisition timing, related transaction systems, the legality of the Acquisition method and theprobability of the Acquisition being executed)(iii) The basis for determination of the Acquisition price (including facts and suppositions that form the assumptions,the calculation method, the numerical data used in the calculation, and the details, amount and basis forcalculation of any expected synergies from any series of transactions relating to the Acquisition)(iv) Information on previous acquisitions of the Company’s share certificates, etc., by the Acquirer(v) Information on financial support for the Acquisition (including the specific name of the person or group offering or
substantially offering the funds for the Acquisition and the method of raising the funds and related transactions)(vi) Post-Acquisition management policy (including the way to handle the stakeholders of the Company), businessplans, capital policies, and dividend policies(vii) Other information regarded as reasonably necessary by the Independent Committee.
(c) Consideration of Terms of the Acquisition, Negotiation with the Acquirer and Presentation of Alternative Proposals
When the Acquirer submits the Acquisition Statement and the Required Information additionally requested by the
Independent Committee (if any), the Independent Committee may also request the Board of Directors to present its
opinion about the details of the Acquisition by the Acquirer and supporting documents therefor as well as alternative
proposals (if any) and other information and materials deemed to be necessary by the Independent Committee within
the period deemed to be reasonably necessary by the Independent Committee (a maximum of 30 days)(Notes)
1. Including acts to solicit a third party for such acquisition.
2. Defined in Article 27-23, paragraph 1, of the Financial Instruments and Exchange Act; hereinafter this definition shall apply throughout
this document unless otherwise specified.
3. Including a person described as a holder under Article 27-23, paragraph 3, of the Financial Instruments and Exchange Act (including
persons that the Board of Directors regards as applicable); hereinafter this definition shall apply throughout this document.
4. Defined in Article 27-23, paragraph 4, of the Financial Instruments and Exchange Act; hereinafter this definition shall apply throughout
this document.
5. Defined in Article 27-2, paragraph 1, of the Financial Instruments and Exchange Act.
6. Defined in Article 27-2, paragraph 6, of the Financial Instruments and Exchange Act; hereinafter this definition shall apply throughout
this document.
7. Defined in Article 27-2, paragraph 8, of the Financial Instruments and Exchange Act; hereinafter this definition shall apply throughout
this document.
8. Defined in Article 27-2, paragraph 7, of the Financial Instruments and Exchange Act (including persons that the Board of Directors
regards as applicable); Provided, however, that persons provided for in Article 3, paragraph 2, of the Cabinet Office Ordinance on
Disclosure of a Tender Offer by an Acquirer other than the Issuing Company are excluded from the persons set forth in Article 27-2,
paragraph 7(1), of the Financial Instruments and Exchange Act; hereinafter this definition shall apply throughout this document.
9. Defined in Article 27-23, paragraph 5, of the Financial Instruments and Exchange Act, including persons regarded as a joint holder as per
paragraph 6 of said Article (including persons that the Board of Directors regards as applicable); hereinafter this definition shall apply
throughout this document.
10. Defined in Article 9, paragraph 5, of the Order for Enforcement of the Financial Instruments and Exchange Act.
11. Including information corresponding to that required under item (i), with regard to partners and other constituent members in case theAcquirer is a fund.

17

After the Independent Committee receives the information and materials from the Acquirer and the Board of
Directors (if requested as mentioned above), the Independent Committee considers the terms of the Acquisition andthe alternative proposals presented by the Board of Directors and collects information on, compares and examines thebusiness plans of the Acquirer and the Board of Directors in order to make more objective judgments through thecomparison and examination during a maximum of 60 days (however, the Independent Committee can extend theperiod according to the provision in (d) (iii) below. The period is hereinafter the “Independent Committee
Assessment Period.”). The Independent Committee shall discuss and negotiate with the Acquirer, directly or
entrusting the Board of Directors, as deemed necessary, to improve the terms of the Acquisition from the perspectiveof securing and improving the corporate value of the Company and the common interests of the shareholders.
To ensure that the decision made by the Independent Committee benefits the corporate value of the Company and,in turn, the common interests of the shareholders, the Independent Committee may receive advice from independent
third parties such as financial advisors, certified public accountants, attorneys at law, consultants and otherprofessionals at the Company’s expense.
The Independent Committee will disclose to shareholders the fact that the Independent Committee Assessment
Period has started as well as any part of the Required Information and other information that the Independent
Committee considers appropriate to be disclosed at the time when the Independent Committee deems appropriate.
(d) The Independent Committee’s Decision-Making Process
The Independent Committee will undertake the following procedures when an Acquirer emerges.
The Independent Committee will disclose information regarding the content of any recommendation and otherdecision promptly after the decision in any of the following cases.
(i)

In case the Independent Committee determines that the Acquisition by the Acquirer does not fall under any of therequirements stipulated in the following (5) “Requirements for Allotment of the Stock Acquisition Rights Without
Contribution,” or if an allotment of the Stock Acquisition Rights without contribution is not deemed appropriateeven though the Acquisition by the Acquirer satisfies the requirements as a result of its consideration of the termsof the Acquisition and negotiation with the Acquirer, or in case the Board of Directors does not submit its opinion
and information and materials requested by the Independent Committee, which are stipulated in (c) above, despite
the Independent Committee’s demand within the prescribed period, the Independent Committee will recommend
the Board of Directors not to implement an allotment of the Stock Acquisition Rights without contribution
regardless of whether the Independent Committee Assessment Period is over.
Regardless of the preceding paragraph, even after the Independent Committee has once recommended thenon-implementation of an allotment of the Stock Acquisition Rights without contribution, it may provide a newrecommendation that an allotment of the Stock Acquisition Rights without contribution should be made in caseany significant change occurs in the facts that were the basis of the decision of the former recommendation,
thereby satisfying the requirements as prescribed in the following item (ii).

(ii) If the Acquisition by the Acquirer falls under any of the requirements stipulated in the following (5)“Requirements for Allotment of the Stock Acquisition Rights Without Contribution” and an allotment of theStock Acquisition Rights without contribution is determined to be appropriate, the Independent Committee will
recommend the Board of Directors to implement an allotment of the Stock Acquisition Rights without
contribution regardless of the beginning or ending of the Independent Committee Assessment Period. If the
Independent Committee must determine whether an Acquisition falls under any of the cases for triggering thisPlan, which are described in items (b) through (d) of “(5) Requirements for Allotment of the Stock Acquisition
Rights Without Contribution,” the Independent Committee may attach a reserve that prior approval of ashareholders’ meeting should be obtained to the recommendation with regard to the implementation of anallotment of the Stock Acquisition Rights without contribution.
Regardless of the above paragraph, even after the Independent Committee has already recommended an
implementation of the allotment of Stock Acquisition Rights without contribution, if the Independent Committee
determines that the Acquisition falls under either of the following cases, it may provide a new recommendationthat the Company should cancel the allotment of Stock Acquisition Rights without contribution during the period
up until the business day immediately before the previous business day of the ex-rights date relating to theallotment of Stock Acquisition Rights without contribution or that the Company should acquire the Stock
Acquisition Rights without contribution during the period from the effective date of the allotment of the Stock
Acquisition Rights up until the day immediately preceding the exercise-period start date for the Stock Acquisition
Rights.
(a)

The Acquirer withdraws the Acquisition or otherwise the Acquisition ceases to exist after therecommendation.
(b) There is an important change in the facts or circumstances on which the recommendation decision was made,thereby eliminating the reason for triggering this Plan, which is set forth in (5) “Requirements for Allotmentof the Stock Acquisition Rights Without Contribution” below.
18

(iii) In case the Independent Committee is notable to make a recommendation for either the implementation or
non-implementation of an allotment of the Stock Acquisition Rights without contribution by the end of the
Independent Committee Assessment Period, the Independent Committee may extend the Independent Committee
Assessment Period (a maximum of 30 days) within a period deemed to be reasonably necessary to consider theterms of the Acquisition, negotiate with the Acquirer and make alternative proposals.
(e) Resolutions by the Board of Directors and Convocation of a Shareholders’ Meeting
The Board of Directors shall respect and adhere to the aforementioned recommendation from the Independent
Committee and finally pass a resolution on the implementation or non-implementation of an allotment of the Stock
Acquisition Rights without contribution in accordance with the said recommendation as soon as practicable after
having received such a recommendation.
However, unless holding a shareholders’ meeting is extremely difficult the Board of Directors shall convene ashareholders’ meeting as soon as practicable and raise a proposal on the implementation of the allotment of Stock
Acquisition Rights without contribution as a matter to be resolved thereat, in case the Independent Committee has
attached a reserve that prior approval of a shareholders’ meeting should be obtained to the recommendation when it
provided the Board of Directors with a recommendation that an allotment of the Stock Acquisition Rights without
contribution should be implemented. If the matter to be resolved on the implementation of the allotment of Stock
Acquisition Rights without contribution is passed at the shareholders’ meeting, the Board of Directors shall pass a
resolution that the allotment of Stock Acquisition Rights without contribution be implemented. Whereas, if the matterto be resolved on the implementation of the allotment of Stock Acquisition Rights without contribution is rejected at
the shareholders’ meeting, the Board of Directors shall pass a resolution that the allotment of Stock Acquisition
Rights without contribution not be implemented.
The Acquirer and its group (including a joint holder, a person having a special relationship with the Acquirer andpersons having a special relationship with the person or company that controls the Acquirer as its controlled
corporation) shall not be able to execute the Acquisition by and before a resolution on the non-implementation of theallotment of Stock Acquisition Rights without contribution is passed by the Board of Directors.
The Board of Directors will disclose the information on the content of such resolutions and other matters
promptly after such resolution.
(5) Requirements for Allotment of the Stock Acquisition Rights Without Contribution
The Company intends to implement an allotment of the Stock Acquisition Rights without contribution upon resolution of
the Board of Directors, which is stipulated in item (e) of (4) “Procedure for Triggering and Abolition of This Plan” above,in case the Acquisition by the Acquirer falls under any of the following requirements and it is deemed reasonable toimplement an allotment of the Stock Acquisition Rights without contribution. As described in item (d) of (4) “Procedure
for Triggering and Abolition of This Plan” above, the determination on whether the Acquisition falls under any of thefollowing requirements and it is deemed reasonable to implement an allotment of the Stock Acquisition Rights without
contribution must be by way of deliberation by the Independent Committee (and additionally by way of the judgment of ashareholders’ meeting in case the Independent Committee has placed a reserve that prior approval of a shareholders’meeting should be obtained for the recommendation when it provided the Board of Directors with a recommendation thatan allotment of the Stock Acquisition Rights without contribution should be implemented).
(a) In case the Acquisition does not comply with the procedure set forth in this Plan;(b) In case the Acquisition may cause obvious harm to the corporate value of the Company and, in turn, the common
interests of the shareholders, in view of the purpose of the Acquisition and the post-acquisition management policy,
etc. and that falls under any of the below-mentioned actions:(i) Buy out of the Company’s shares to demand that the Company purchase said shares at an inflated price;(ii) Management that achieves an interest for the Acquirer to the detriment of the Company, such as temporary
control of the Company’s management for the low-cost acquisition of the Company’s material assets, etc.;(iii) Diversion of the Company’s assets to secure or use as a source of funds to repay debts of the Acquirer or its groupcompany; and(iv) Temporary control of the Company’s management to bring about a disposal of high-value assets, etc. that have nocurrent relevance to the Company’s business and declaring temporarily high dividends from the profits of thedisposal, or selling the shares at a high price taking advantage of the opportunity afforded by the sudden rise inshare prices created by the temporarily high dividends.
(c) In case the Acquisition threatens to have the effect of compelling shareholders to sell their shares, such as a coercive
two-tier tender offer (meaning acquisition of shares including a tender offer that does not offer to acquire all shares in
the initial acquisition, and sets unfavorable acquisition terms for the second stage or does not set clear terms for thesecond stage); and(d) In case the compensation of the Acquisition is insufficient in view of the corporate value of the Company.
19

(6) Summary of the Stock Acquisition Rights
The Stock Acquisition Rights which are allotted, by means of an allotment without contribution, based on this Plan are assummarized below.
(a) Number of the Stock Acquisition Rights
The number of the Stock Acquisition Rights shall be the same as the last total number of issued shares of theCompany on a certain date (hereinafter the “Allotment Date”) separately determined in a resolution by the Board of
Directors related to the allotment of the Stock Acquisition Rights without contribution (hereinafter the “Allotment
Resolution”) (excluding the number of shares in the Company held by the Company at that time).
(b) Shareholders Eligible for Allotment
The Company will implement an allotment of the Stock Acquisition Rights to those shareholders other than the
Company, who appear or are recorded in the Company’s final shareholder register on the Allotment Date at a ratio ofone (1) Stock Acquisition Right for every one (1) share held.
(c) Effective Date of the Allotment of the Stock Acquisition Rights Without Contribution
The effective date of an allotment of the Stock Acquisition Rights without contribution shall be a date separately
determined in the Allotment Resolution.
(d) Number of Shares to Be Acquired upon Exercise of the Stock Acquisition Rights
The number of shares to be acquired upon exercise of each of the Stock Acquisition Rights (hereinafter the“Applicable Number of Shares”) shall be one (1) share.
(e) Value of Property to Be Invested upon Exercise of the Stock Acquisition Rights
Contributions upon the exercise of the Stock Acquisition Rights are to be in cash, and the value of the property to beinvested upon the exercise of the Stock Acquisition Rights for each Company share shall be an amount to be
separately determined in the Allotment Resolution, which shall be within the range between the lower limit of one (1)yen and the upper limit of half the market value of one (1) Company share in the stock market. Such market value
shall be the amount that corresponds to the average of the closing prices (including nominal prices) for ordinarytransactions of the Company’s common share at the Tokyo Stock Exchange during the period of 90 days preceding
the Allotment Resolution (excluding days on which no transactions were established), and the resulting fractions ofless than one (1) yen shall be rounded up.
(f) Exercise Period of the Stock Acquisition Rights
The exercise period of the Stock Acquisition Rights shall start from the date separately determined in the Allotment
Resolution (this first date of the exercise period shall be hereinafter the “Exercise Period Start Date”), and such period
shall be, in principle, a duration from one (1) month to six (6) months long as separately determined in the Allotment
Resolution.
(g) Conditions for the Exercise of the Stock Acquisition Rights
The following parties may not exercise the Stock Acquisition Rights (the parties falling under (I) through (VI) below
shall collectively be referred to as “Non-Qualified Parties”):(I) Specified large-scale holders (tokutei tairyo hoyusha)12;(II) Joint holders of specified large-scale holders;(III) Specified large-scale acquirers (tokutei tairyo kaitsukesha)13;(IV) Persons having a special relationship with specified large-scale acquirers;(V) Any transferee of or successor to the Stock Acquisition Rights of any person falling under (I) through (IV) above
without the approval of the Board of Directors; or(VI) Any related person (kanrensha)14 of any person falling under (I) through (V) above.
Furthermore, nonresidents of Japan who are required to follow certain procedures under foreign applicable laws andregulations to exercise the Stock Acquisition Rights may not, as a general rule, exercise the Stock Acquisition Rights(provided, however, that the Stock Acquisition Rights held by nonresidents will be subject to the acquisition by theCompany in exchange for shares of the Company as set out in item (i) (2) below on the condition that it is confirmedthat they do not infringe any applicable laws or regulations.). Furthermore, those who have not submitted a written
oath in the format specified by the Company, which includes a representation and warranty clauses on satisfaction of
the exercise conditions of the Stock Acquisition Rights, etc., an indemnity clause and other covenants, may not
exercise the Stock Acquisition Rights.
(h) Restriction on Transfer of the Stock Acquisition Rights
Any acquisition of the Stock Acquisition Rights via transfer thereof shall require the approval of the Board of
Directors.

20(i) Acquisition of the Stock Acquisition Rights by the Company(a) The Company may acquire, upon arrival of the date determined by the Board of Directors, all the Stock Acquisition
Rights without contribution at any time on or before the date immediately before the Exercise Period Start Date incase the Board of Directors deems that it is appropriate for the Company to acquire such Stock Acquisition Rights.

(Notes)12. “Specified large-scale holder” means, in principle, a person who is a holder of share certificates, etc., issued by the Company and whose
holding ratio of share certificates, etc., in respect of such share certificates, etc., is at least 20% (including persons that the Board of
Directors regards as applicable). Provided, however, that a person that the Board of Directors regards as a person who came to fall under
the above on an involuntary basis as a result of the Company’s purchase of treasury stock or any other understandable reason (though
excluding the case of subsequent acquisition of the Company’s share certificates, etc., on its own will), a person that the Board of
Directors regards as a person whose acquisition or holding of share certificates, etc., of the Company is not contrary to the Company’s
corporate value or the common interests of shareholders or certain other person that the Board of Directors separately determines in the
Allotment Resolution is not a specified large-scale holder. This definition shall apply throughout this document.
13. “Specified large-scale acquirer” means, in principle, a person who makes a public notice of purchase, etc. (as defined in Article 27-2,
paragraph 1, of the Financial Instruments and Exchange Act; the same shall apply throughout this Note), of share certificates, etc. (asdefined in Article 27-2, paragraph 1, of the Financial Instruments and Exchange Act; the same shall apply throughout this Note), issued by
the Company through a tender offer and whose holding ratio of share certificates, etc., in respect of such share certificates, etc., owned bysuch person after such purchase, etc. (including similar ownership as prescribed in Article 7, paragraph 1, of the Order for Enforcement of
the Financial Instruments and Exchange Act), is at least 20% when combined with the ratio of ownership of share certificates, etc., of aperson having a special relationship with the person (including persons that the Board of Directors regards as applicable). Provided,
however, that a person that the Board of Directors regards as a person whose acquisition or holding of share certificates, etc., of theCompany is not contrary to the Company’s corporate value or the common interests of shareholders or certain other person that the Boardof Directors separately determines in the Allotment Resolution is not a specified large-scale acquirer. This definition shall apply
throughout this document.
14. A “related person” of a given person means a person who substantially Controls, is Controlled by or is under common Control of suchgiven person (including persons that the Board of Directors regards as applicable), or a person deemed by the Board of Directors to act inconcert with such given person. “Control” means to “control the decisions on the company’s financial matters and business policies” (asdefined in Article 3, paragraph 3, of the Ordinance for Enforcement of the Companies Act) of other corporations or entities.

21

(b) Upon the arrival of the date determined by the Board of Directors, the Company may, pursuant to a decision made by
the Board of Directors, acquire all the Stock Acquisition Rights held by persons other than the Non-Qualified Parties,
which have not been exercised before or on the day immediately before the date determined by the Board of
Directors. Then, the Company may, in exchange, deliver the Company’s shares in a number equivalent to the numberof the Applicable Number of Shares for every one (1) Stock Acquisition Right. Furthermore, if, on or after the dateon which such acquisition takes place, the Board of Directors recognizes the existence of any person holding Stock
Acquisition Rights other than the Non-Qualified Parties (e.g., if there is a person who has been transferred or has
inherited the Stock Acquisition Rights from any Non-Qualified Parties with an approval of the Board of Directors on
or after the acquisition date above), the Company may, upon the arrival of the date determined by the Board of
Directors after the date on which the acquisition described above takes place, acquire all of the Stock Acquisition
Rights held by that person that have not been exercised by or on the day immediately before such date determined by
the Board of Directors and, in exchange, deliver the Company’s shares in a number equivalent to the number of the
Applicable Number of Shares for every one (1) Stock Acquisition Right. The same shall apply hereinafter.
(j) Delivery of the Stock Acquisition Rights in Cases of Merger, Absorption-Type Company Split (kyushu-bunkatsu),
Incorporation-Type Company Split (shinsetsu-bunkatsu), Share Exchange (kabushiki-kokan) and Share Transfer(kabushiki-iten)
The delivery of Stock Acquisition Rights in cases of merger, absorption-type company split , incorporation-typecompany split, share exchange and share transfer shall be separately stipulated in the Allotment Resolution.
(k) Issuance of Stock Acquisition Right Certificates
Stock acquisition right certificates for the Stock Acquisition Rights will not be issued.
(l) OtherIn addition to the aforementioned matters, details of the Stock Acquisition Rights shall be separately stipulated in the
Allotment Resolution.
(7) Effective Period of This Plan
This Plan shall be effective from the conclusion of the Ordinary General Meeting of Shareholders for the fiscal year
ended March 2015 (fiscal 2014) to the conclusion of the Ordinary General Meeting of Shareholders for the fiscal year
ending March 2018 (fiscal 2017).
(8) Abolition or Modification of This Plan
Even before the expiry of the effective period of this Plan after this Plan is introduced, this Plan shall be abolished
immediately (i) in case a proposal that this Plan be abolished is approved at a shareholders’ meeting of the Company, or(ii) in case a resolution that this Plan be abolished is adopted by the Board of Directors in accordance with the
Independent Committee’s recommendation. As a consequence, this Plan can be abolished according to the intent of theshareholders. Moreover, even during the effective period of this Plan, the Board of Directors may modify this Plan, upon
approval of the Independent Committee’s recommendation, in case any applicable law, ordinance or the regulations of
any Japanese financial instruments exchange has been newly established or revised and it is appropriate to incorporatesuch new establishment or revision on this Plan, in case it is appropriate to amend the wording due to typographicalerrors and/or omissions or in case the intended amendment/revision does not put any shareholders of the Company at a
disadvantage. Moreover, the Board of Directors may review and modify this Plan in accordance with the Independent
Committee’s recommendation or consider other measures to prevent the Company’s decisions on financial and business
policies from being controlled by such persons regarded as inappropriate according to the basic policy.
The Company will promptly disclose the fact of such abolishment or modification and the content of modification orother related matters (if any modification is made), in case of the abolishment or modification of this Plan.
(9) Amendments due to the Amendments to the Relevant Laws and Regulations, etc.
The provisions of the laws and regulations referenced in this Plan suppose that the relevant laws and regulations effective
as of May 8, 2015 will continue. If any revision or amendment to the clause or the meaning of terms set out in each ofthese provisions becomes necessary due to the new establishment, abolition or amendment of any relevant law or
regulation after this date, the subjected clause or term in each of these provisions shall be deemed to be appropriately
replaced to the extent reasonable in view of the intent of such establishment, abolition or amendment.

22

4. This Plan Complies with the Basic Policy, Agrees with the Corporate Value of the Company and, in turn, theCommon Interests of the Shareholders and Shall Not Aim to Protect the Positions of Any of the Companys
Directors and Corporate Auditors
In designing this Plan, the Company believes that it shall comply with “1. Basic Policy Regarding Teijin’s Shareholders,”
agree with the corporate value of the Company and, in turn, the common interests of the shareholders and shall not aim toprotect the positions of any of the Company’s Directors and Corporate Auditors.
(1) Satisfying the Requirements in the Guidelines Regarding Takeover Defense Measures
This Plan satisfies all the three basic principles formulated in the “Guidelines Regarding Takeover Defenses for the
Purposes of the Protection and Enhancement of Corporate Value and Shareholders’ Common Interests” jointly releasedby the Ministry of Economy, Trade and Industry and the Ministry of Justice on May 27, 2005: (i) the principle of theprotection and enhancement of corporate value and shareholders’ common interests; (ii) the principle of prior disclosureand shareholders’ intentions; and (iii) the principle of securing necessity and reasonableness. The substance of this Planalso reflects “Takeover Defense Measures in Light of Recent Environmental Changes” released on June 30, 2008, by the
Corporate Value Study Group of the Ministry of Economy, Trade and Industry.
(2) Reflection of the Shareholders’ Intent
This Plan will become effective subject to the approval of the shareholders at this Ordinary General Meeting of
Shareholders, and the effective period of this Plan shall expire at the conclusion of the Ordinary General Meeting of
Shareholders for the fiscal year ending March 2018. Moreover, as the term of office of the Company’s Directors is one(1) year, the shareholders’ intent may be well reflected by way of the election of Directors. Furthermore, as described in“3. (8) Abolition or Modification of This Plan” above, even before the expiry of the effective period after this Plan is
introduced, this Plan shall be abolished immediately in case a proposal that this Plan be abolished is approved at ashareholders’ meeting of the Company. In this way, the shareholders’ intent may be well reflected.
(3) Emphasis on Decision of Highly Independent Outsiders
In implementing this Plan, the Company established the Independent Committee as a highly independent organ thatmakes substantial judgments objectively for the sake of the shareholders to prevent the Board of Directors from making
an arbitrary decision on the actual operation of this Plan including the cases for triggering this Plan. The Independent
Committee consists of members elected by the Board of Directors from among those persons who are either an Outside
Director of the Company or an Outside Corporate Auditor of the Company. By introducing autonomous independence
requirements equivalent to those adopted by U.S. stock exchanges, the independence of the Outside Directors and theOutside Corporate Auditors is sufficiently guaranteed. Furthermore, this Plan is operable with high transparency as thesummary of any judgment of the Independent Committee is disclosed to the shareholders.
(4) Setting of Rational and Objective Requirements for Triggering This Plan
As described in 3. (5) “Requirements for the Allotment of the Stock Acquisition Rights Without Contribution” above, thisPlan is structured not to be easily triggered unless rational, detailed and objective requirements are satisfied. In addition,such objective requirements correspond to the cases set out in “1. Basic Policy Regarding Teijin’s Shareholders” as aperson who is deemed inappropriate to control the decisions of the Company’s financial and business policies. This idea
serves to prevent arbitrary triggering this Plan by the Board of Directors.
(5) Consistent Reinforcement of Corporate Governance of the Company(i)

The Company intends to separate and reinforce three managerial functions (decision-making, execution of businessand monitoring/auditing) by electing four (4) Outside Directors whose independence is secured, which comprises a
maximum of ten (10) Directors, and three (3) Outside Corporate Auditors comprising a majority of the Corporate
Auditors.

(ii) The Company has also established an Advisory Board that serves in a consultative capacity and is tasked withadvising on management issues and evaluating the performance of top executives. The Advisory Board comprises
five (5) to seven (7) outside Advisers—of whom two (2) or three (3) are non-Japanese—as well as the Chairman of
the Board and the President & CEO. The Advisory Board is also charged with deliberating the alternation of
Presidents & CEO and the nomination of successors, as well as compensation systems and level of compensation for
directors and the corporate auditors of the Teijin Group and evaluating the performance of the President & CEO andother Representative Directors.
(iii) Guidelines on corporate governance of the Company including these measures above are disclosed in the form of the
Corporate Governance Guide.
The above measures are viewed as groundbreaking initiatives to create a mechanism for disciplining the conduct of the23management team, in other words, corporate governance among the listed companies that have introduced the Board of
Corporate Auditors system in Japan. This mechanism should have the effect of strongly braking the self-protective
conduct of the Company’s Directors and Corporate Auditors and is expected to play an important role in preventing thearbitrary application of this Plan.
(6) No Dead-Hand or Slow-Hand Takeover Defense Measures
This Plan is designed so that it may be abolished by a Board of Directors that includes several Directors who have been
elected at a shareholders’ meeting of the Company through nomination by a person who has acquired a large number ofshare certificates, etc., in the Company. Therefore, this Plan is not a Dead-Hand Takeover Defense Measure (a Takeover
Defense Measure in which even if a majority of the members of the Board of Directors are replaced, the triggering of thisPlan cannot be stopped). Also, as the Company has not adopted a staggered board, this Plan is not a Slow-Hand Takeover
Defense Measure either (a Takeover Defense Measure in which triggering takes more time to stop due to the fact that the
Directors cannot be replaced all at once).
5. Impact on Shareholders(1) Impact on Shareholders at the Time of Renewing This Plan
As an allotment of the Stock Acquisition Rights without contribution would not be implemented at the time this Plan isrenewed, it would not have any direct or material impact on the rights or interests of shareholders and investors.
(2) Impact on Shareholders at the Time of Allotment of the Stock Acquisition Rights without Contribution
If the Company’s Board of Directors passes an Allotment Resolution, the Allotment Date is decided in the resolution andpublicly announced. In this case, the Company will allocate the Company’s shares without contribution to shareholders
who appear or are recorded in the Company’s final register of shareholders on the Allotment Date (hereinafter the“Shareholders Eligible for Allotment”) at a ratio of one (1) Stock Acquisition Right for every one (1) share held. The
Shareholders Eligible for Allotment will not need to take any application procedures because they will become Stock
Acquisition Right holders as a matter of course on the effective date of the allotment of the Stock Acquisition Rights
without contribution.
Even after the Allotment Resolution has been made, the Company may cancel the allotment of Stock Acquisition
Rights without contribution during the period up until the business day immediately before the previous day of theex-rights date relating to the allotment of Stock Acquisition Rights without contribution or acquire the Stock Acquisition
Rights without contribution during the period from the effective date for the allotment of Stock Acquisition Rights
without contribution up until the day immediately preceding the Exercise Period Start Date, in accordance with therecommendation of the Independent Committee described in (d) (ii) of 3. (4) “Procedure for Triggering and Abolition ofThis Plan.” In these cases, any dilution of stock value for the Company’s shares is not incurred, and shareholders andinvestors who made selling transactions on the assumption of dilution may suffer corresponding effect of stock pricefluctuation.
(3) Procedures Required for Shareholders upon Allotment of the Stock Acquisition Rights Without Contribution(a) Procedures for Exercising the Stock Acquisition Rights
The Company will deliver documents to be submitted by shareholders upon the exercise of the Stock Acquisition
Rights (in a form prescribed by the Company and containing necessary matters such as the content and number of theStock Acquisition Rights for exercise and the exercise date for the Stock Acquisition Rights, as well as representations
and warranties regarding matters such as whether the shareholders themselves satisfy the requirements for the exerciseof the Stock Acquisition Rights, indemnity clauses and other covenants) and other documents to the Shareholders
Eligible for Allotment. After the allotment of the Stock Acquisition Rights without contribution is made, theshareholders will be delivered the Company’s shares at a ratio of one (1) Company share for one (1) Stock Acquisition
Right. Such delivery of shares will occur on the submission of the necessary documents above during the exercise
period of the Stock Acquisition Rights and payment of an amount that corresponds to the exercise price, which shall bewithin the range between the lower limit of one (1) yen and the upper limit of half the market value of one (1)Company share in the stock market, determined in the Allotment Resolution through a predetermined payment method.
The exercise of the Stock Acquisition Rights by any Non-Qualified Parties shall comply with the procedure separately
determined by the Company in adherence with the intent of item (g) of 3. (6) “Summary of the Stock Acquisition
Rights.”In case a shareholder neither exercises the Stock Acquisition Rights nor pays the money corresponding to theexercise price, the Company’s shares held by the shareholder would be diluted, probably affected by the exercise of theStock Acquisition Rights by other shareholders.
However, the Company may, in some cases, acquire Stock Acquisition Rights from the shareholders other than the
Non-Qualified Parties in accordance with the procedure described in (b) below and, in exchange, deliver theCompany’s shares to the holders of the Stock Acquisition Rights. If the Company follows this acquisition procedure,24

then the shareholders other than the Non-Qualified Parties need to neither exercise the Stock Acquisition Rights nor
pay the money that corresponds to the exercise price and would receive the corresponding Company’s shares.
Accordingly, the shares held by the shareholders would not be diluted.
(b) Procedure for Acquisition of the Stock Acquisition Rights by the Company
If the Board of Directors determines to acquire the Stock Acquisition Rights, the Company may, upon the arrival of thedate determined by the Board of Directors, acquire all of the Stock Acquisition Rights from all the shareholders otherthan the Non-Qualified Parties in accordance with the statutory procedures and deliver shares in the Company to the
Stock Acquisition Right holders in exchange for the acquisition of the Stock Acquisition Rights. In this case,shareholders holding the Stock Acquisition Rights to be acquired will receive the Company’s shares at a ratio of one(1) Company share for one (1) Stock Acquisition Right, as consideration for the acquisition of the Stock Acquisition
Rights by the Company, without paying money equivalent to the exercise price. (Provided, however, that said
shareholders may be separately requested to submit, in a form prescribed by the Company, representations andwarranties regarding matters such as the fact that they are not Non-Qualified Parties, indemnity clauses and othercovenants.)
In addition to the above, the Company will disclose information or notify all of its shareholders with respect to theparticulars of the allotment method of the Stock Acquisition Rights, the exercise method of the Stock Acquisition Rights
and the procedure for acquisition of the Stock Acquisition Rights by the Company after they are determined in the
Allotment Resolution, so we request that shareholders check these details at that time.

25

Attachment 1

Top 10 shareholders of the Company(As of March 31, 2015)
Investment in the Company

Shareholders

Number of shares held

Shareholding ratio (%)

1
74,047,000
7.53
The Master Trust Bank of Japan, Ltd. (Trust account)2
Japan Trustee Service Bank, Ltd.(Trust account )59,504,000
6.05
3Nippon Life Insurance Company
35,227,509
3.58
4The Employee Stock Ownership Association of Teijin
25,141,992
2.56
5The Bank of Tokyo-Mitsubishi UFJ, Ltd.
20,694,935
2.11
6
14,751,000
1.50Japan Trustee Service Bank, Ltd.(Trust account 9 )710,841,859
1.10
STATE STREET BANK WEST CLIENT-TREATY 505234
8
10,837,714
1.10
STATE STREET BANK AND TRUST COMPANY 505223
9
10,297,975
1.05
STATE STREET BANK AND TRUST COMPANY 505001
109,766,292
0.99
Nisshinbo Holdings Inc.
Note: The shareholding ratio has been calculated after excluding Treasury stocks (1,925,911 shares) from theIssued shares.

26

Outline of the Independent Committee Rules

Attachment 2

1) The Independent Committee shall be established by a resolution of the Board of Directors.
2) As a general rule, members of the Independent Committee shall be appointed by the Board of Directors from either
Outside Directors of the Company or Outside Corporate Auditors of the Company, who satisfy the independence
requirements set by the Company and are independent from the management which conducts the execution of thebusiness of the Company.
3) The number of Independent Committee members shall be five (5), in principle.
4) Unless otherwise determined by a resolution of the Board of Directors, the term of office of members of the
Independent Committee shall be until the conclusion of an ordinary general meeting of shareholders pertaining to thelast fiscal year that ends within one (1) year after their election.
5) The Independent Committee shall make decisions on the matters listed below and submit recommendations to theBoard of Directors containing the details of and reasons for the recommendation.
The Board of Directors shall make final decisions respecting and in accordance with such recommendation of the
Independent Committee. Each member of the Independent Committee and each Director of the Company must makesuch decisions with a view to whether the corporate value of the Company and, in turn, the common interests of its
shareholders will be enhanced, and they must not serve solely for the purpose of their own personal interests or those of
the Company’s officers.
(i)
The implementation or non-implementation of the allotment of Stock Option without contribution (including thecase in which a reserve that prior approval of a general meeting shareholders should be obtained is attached).
(ii) The cancellation of the allotment of Stock Option without contribution or the acquisition of Stock Option
without consideration.
(iii) The abolition or modification of This Plan.
(iv) The implementation of any measures other than This Plan to prevent the Company’s decisions on financial andbusiness policies from being controlled by persons or companies regarded as inappropriate according to thebasic policy.
(v) Any other matters that are for determination by the Board of Directors in respect to which it has consulted with
the Independent Committee.
6) In addition to the matters prescribed above, the Independent Committee shall conduct the matters listed below.
(i)
Determining an Acquisition addressed by This Plan;(ii) Determining the information that the Acquirer and the Board of Directors should provide to the Independent
Committee;(iii) Examination and consideration of the terms of the Acquirer’s Acquisitions;(iv) Negotiation and discussions with the Acquirer;(v) Request to the Board of Directors for consideration and submission of the alternative proposal with regard to
the Acquirer’s Acquisitions;(vi) Determining the extension of the Independent Committee Assessment Period;(vii) Any other matters that This Plan prescribes that the Independent Committee may conduct; and(viii) Any matters that the Board of Directors separately determines that the Independent Committee may conduct.
7) If the Independent Committee decides that the Acquisition Statement is inadequate as the Required Information, it may
request that the Acquirer submit additional necessary information. Furthermore, if the Independent Committee receives
from the Acquirer the Acquisition Statement and other information requested by the Independent Committee, it may
request that the Board of Directors provide within a certain period an opinion regarding the terms of the Acquisition by
the Acquirer and materials supporting that opinion, an alternative proposal and any other information and the like that
the Independent Committee may consider necessary from time to time.
8) If it is necessary to improve the terms of the Acquirer’s Acquisition from the standpoint of ensuring and enhancing thecorporate value of the Company and, in turn, the common interests of its shareholders, the Independent Committee
shall, either directly or entrusting the Board of Directors, discuss and negotiate with the Acquirer.
9) To collect the necessary information, the Independent Committee may request the attendance of a Director, a Corporate
Auditor or an employee of the Company, or any other person that the Independent Committee considers necessary, andmay require explanation of any matter it requests.
10) The Independent Committee may receive advice from independent third parties such as financial advisors, certified
public accountants, attorneys at law, consultants and other professionals at the Company’s expense.
11) Any member of the Independent Committee may convene a meeting of the Independent Committee when an
Acquisition arises, or at any other time.
12) Resolutions of a meeting of the Independent Committee shall, as a general rule, pass with the majority votes cast when
all of the members of the Independent Committee are in attendance. However, in case of unavoidable reason, theIndependent Committee may pass a resolution with a majority of the votes cast when a majority of the members are inattendance.
27

Attachment 3

Names and Career Profiles of the Members of the Independent Committee (planned)
Hajime Sawabe
Apr. 1964

Joined Tokyo Denki Kagaku Kogyo K.K. (Currently TDK Corporation)

Jun. 1996

Director

Jun. 1998

President & Representative Director

Jun. 2006

Chairman & Representative Director

Mar. 2008

Outside Director, Asahi Glass Co., Ltd. (Incumbent)

Jun. 2008

Outside Director, Teijin Limited (Incumbent)
Member of the Advisory Board, Teijin Limited (Incumbent)
Outside Director, Nomura Securities Co.,Ltd

Jun. 2009

Outside Director, Nomura Holdings Inc

Nov. 2010

Trustee, Waseda University

Mar. 2011

Outside Corporate Auditor, Nikkei Inc. (Incumbent)

Jun. 2011

Chairman of the Board & Director, TDK Corporation

Oct. 2011

Councilor, Waseda University (Incumbent)

Jun. 2012

Counselor. TDK Corporation (Incumbent)

Jul. 2014

Vice Chairman Council, Waseda University (Incumbent)

Yutaka Iimura
Apr.1969

Joined Ministry of Foreign Affairs, Japan (MFA)

Aug.1999

Director-General, Economic Cooperation Bureau

Feb. 2001

Deputy Vice-Minister

Sep. 2001

Assistant Vice-Minister

Jul. 2002

Ambassador of Japan in Indonesia

Nov. 2002

Ambassador of Japan in Indonesia and the Democratic Republic of Timor-Leste(East Timor)

Apr. 2006

Ambassador of Japan in France and The Principality of Andorra (Andorra)

May. 2007

Ambassador of Japan in France, Andorra and the Principality of Monaco

Jul. 2009Retired from MFASpecial Envoy of the Government of Japan for the Middle East and Europe

Sep. 2009

Adviser, Taisei Corporation(Incumbent)

Jun. 2011

Outside Director, Teijin Limited (Incumbent)
Member of the Advisory Board, Teijin Limited (Incumbent)

Aug. 2014

Councilor, MFA (Southeast Asia cooperation ambassador) (Incumbent)

May, 2015

Visiting member professor, The University of Tokyo Public Policy graduate school (Incumbent)

28

Nobuo Seki
Apr. 1970

Joined Chiyoda Corporation

Apr. 1992

Vice-President, Chiyoda International Corporation

Jun. 1997

Director, Chiyoda Corporation

Jun. 1998

Managing Director

Aug. 2000

Senior Managing Director, Project Operations

Apr. 2001

President & CEO

Apr. 2007

Chairman of the Board

Apr. 2009

General Corporate Advisor

Jun. 2012

Outside Director, Teijin Limited (Incumbent)
Member of the Advisory Board, Teijin Limited (Incumbent)
Outside Corporate Auditor SUGIYO Co., Ltd. (Incumbent)

Jul. 2012

Adviser Chiyoda Corporation

Jun. 2014

Outside Director, KAMEDA SEIKA Co., Ltd. (Incumbent)

Aug. 2014

Outside Director, Weathernews Inc. (Incumbent)

Kenichiro Senoh
Apr.1976

Joined Fuji Photo Film Co., Ltd. (Currently FUJIFILM Corporation)

Dec.1999

Representative Vice-President, Keio Academic Enterprise Co., Ltd.

Apr. 2001

Professor, Graduate school of Keio University Media and Government

Apr. 2004

President & Chairperson, The Industry-Academic Collaboration Initiative (NPO) (Incumbent)

Jun. 2012

Outside Director, Teijin Limited (Incumbent)
Member of the Advisory Board, Teijin Limited (Incumbent)

Oct.2014

Vice Chairman, The Japan Society for Science Policy and Research Management (Incumbent)

Nov. 2014

Director, Intellectual Property Association of Japan (Incumbent)

Noriko Hayashi
Apr. 1968

Registered as a lawyer (Tokyo Bar Association)

Apr. 1994

Member of the Family Affairs Conciliation Committee, Tokyo Family Court

Dec. 1996

Member of the Construction Work Disputes Committee, Tokyo Metropolitan Government

Apr. 2000

Chairperson, Committee on Equality of Men and Women, Tokyo Bar Association

May 2000

Representative, Hayashi Law Office (Incumbent)

Apr. 2001

Public Interest Member, Central Labor Relations Commission

Apr. 2005

Member of the Labor Policy Council and Chairperson, committee on Equal Employment
Opportunity and Treatment to Both Sexes, Ministry of Health, Labor and Welfare

Jun. 2009

Outside Corporate Auditor, Teijin Limited (Incumbent)

Jun. 2010

Chairperson of Committee on labor Law Legislation, Japan Federation of Bar Associations(Incumbent)29

(Reference)

Flow Chart of Countermeasures
Large-Scale Acquisition of Teijin Shares

Acquisition Statement

Acquisition Statement

Provided

Not Provided

Evaluation and Judgment by the Independent Committee

Board of Directors Presents Opinions, etc.

• (If necessary) Request opinions, etc., from the Board of Directors, and(Up to a maximum of 30 days after submissionof the acquisition statement)• Discuss to determine whether to allot or not to allot stock acquisitionrights without contribution(Within 60 days after the Board of Directors submits opinions)

Recommendation from the Independent Committee
to the Board of Directors

Board of Directors decides
Against an allotment of stockacquisition rights without
contribution

Board of Directors decides inFavor of an allotment of stockacquisition rights without
contribution

Allotment of stock acquisitionrights without contribution Not
Implemented

Board of Directors decides to Submit a
Proposal to a General Meeting of
Shareholders before implementing an allotmentof stock acquisition rights without contribution

General Meeting of
Shareholders resolves that theallotment of stock acquisitionrights without contribution Be
Implemented, andGeneral Meeting of
Shareholders resolves that theallotment of stock acquisitionrights without contribution Not
Be Implemented, andBoard of Directors decides to
Implement the allotment ofstock acquisition rights
without contribution

Board of Directors decides Not
to Implement allotment ofstock acquisition rights without
contribution

Allotment Implemented

Company’s shares
DeliveredCompany’s shares
Not Delivered

Allotment Not Implemented(Note)

Note: For example, if after an allotment of share acquisition rights without contribution a potential acquirer withdraws the proposed acquisition of the Company’s
shares, the Company may choose not to deliver Company’s shares but acquire the stock acquisition rights without contribution.

30

Reference
Independent Director and Independent Corporate Requirements
Teijin Limited Independent Director and Independent Corporate Auditor Requirements
On April 1, 2003, Teijin Limited (the Company) prescribed "Requirements for Independent Directors" for outside directors,
including candidates. These conditions for appointment are designed to increase the level of precision and ensure the transparencyof the management supervisory function of the Board of Directors. At the same time, the Company also prescribed "Requirements
for Independent Corporate Auditors," which covers outside corporate auditors and candidates. These requirements are intended toenhance the precision and transparency of the auditing of duties of internal directors and the management team. With regard to
independent director and independent corporate auditor requirements, the Company has formulated and operates regulations
concerning independent directors and independent corporate auditors of its own accord. The primary content of theserequirements is described below.
Note: Hereinafter, the "Teijin Group" is used to refer collectively to 1) "Teijin Limited," 2) "subsidiaries of Teijin Limited" and 3)"equal joint venture partners."
Independent Director and Independent Corporate Auditor Requirements(1) Persons having no significant special interests in the Teijin Group.
(2) Persons to whom items (a) through (e) below do not apply are deemed to be Independent Directors or Independent Corporate
Auditors having no significant special interest in the Teijin Group.
(a) Internal officers or employees and former internal officers or employees of the Teijin Group(b) Providers of specialized services to the Teijin Group(c) Persons having customer or business partner relations with the Teijin Group(d) Persons having "inter-directorship" relations with the Teijin Group(e) Persons having other special interests in the Teijin Group
Detailed Internal Standards Concerning Persons Falling under Items (a) through (e) Above
Applicability of the category(a) Internal officers or employees and former internal officers or employees of the Teijin Group(1) In the event that the person does not satisfy the requirements under Company Law (Please refer to Company Law, Article 2,
No. 15 and 16) for outside director or outside corporate auditor of Teijin Limited(2) In the event that the person is a director of an "equal joint venture company," (including persons defined as "management
executives" in Note 1 below) or has held such a position within the past five years(3) In the event that a member of the person´s "family" (Note 2) is currently a director of the Teijin Group (including persons
defined as "management executives")(b) Providers of specialized services to the Teijin Group(1) In the event that the person or the person´s "family" provides accounting audit services to the Teijin Group or has done so
within the past five years, or in the event that the person or the person´s "family" is currently a member of an outside auditing firmthat provides accounting audit services to the Teijin Group or has been a member of such a firm within the past five years(2) In the event that the person or the person´s "family" provides, or has provided within the past three years, services other thanaccounting services that involved compensation of more than 7 million yen (or US$60,000) and fall into the following categories:(i) Lawyers, (ii) certified public tax accountants, (iii) chartered patent agents, (iv) judicial scriveners, (v) management, financial,technical or marketing consultants(c) Persons having customer or business partner relations with the Teijin GroupIn the event that the person currently holds the position of Director or any of "Executives and top managers" (Note 4) in acompany or other for-profit organization in Japan or overseas that is presently a "major customer or business partner" (Note 3) of
the Teijin Group(d) Persons having "inter-directorship" relations with the Teijin Group(1) In the event that the relationship exists wherein the outside director currently holds the position of director in a company inJapan or overseas or holds a position in a for-profit organization that is equivalent to the director position, and a director of the
Teijin Group currently holds a director or equivalent executive position in that same organization(2) In the event that the relationship exists wherein the outside corporate auditor holds a director position in a company in Japan oroverseas or an equivalent executive position in a for-profit organization, and a director or auditor of the Teijin Group currently
holds a director, auditor or equivalent executive position in that same organization(e) Persons having other special interests in the Teijin Group(1) In the event that the person currently receives contributions, financing or debt guarantees from the Teijin Group(2) In the event that the person´s "family" currently receives contributions, financing or debt guarantees from the Teijin Groupamounting to 1 million yen or more31

(3) In the event that the person or the person´s "family" currently holds the position of Director or any of "Executives and top
managers" (Note 4) in a company or for-profit organization in Japan or overseas that currently receives contributions, financing or
debt guarantees from the Teijin Group amounting to 1 million yen or more
The terminology used above is defined below.
Note 1: "Management executives" are employees who hold positions of importance, including operating officers, senior officers
or positions higher than general manager.
Note 2: "Family" includes spouses, children, people sharing the same household and other persons related by blood or marriage
within two degrees of consanguinity
Note 3: "Major customer or business partner" describes a person or an entity whose total annual transaction relationship, either asa seller or a purchaser, has exceeded 2% of consolidated net sales at any time within the past three years. (If the Teijin Group is
the seller, this amount refers to the percentage of consolidated net sales of Teijin Limited. If the Teijin Group is the buyer, thisamount refers to the percentage of consolidated net sales of the other party.)
Note 4: "Executives and top managers" are employees, counselors or advisors who hold positions of importance, including auditor,
operating officer or positions higher than general manager.
This "Teijin Limited Independent Director and Independent Corporate Auditor Requirements" document is intended as a reference
to help deepen the reader´s understanding of the Teijin Group. This document is an overview of the Independent Director
Regulations and Independent Corporate Auditor Regulations as prescribed by the Company and is not a rigorously defined recordof these regulations, Company Law or any other legislation.

32

Attached Reports
Reports on Operations for the 149th Fiscal Year (April 1, 2014 to March 31, 2015)
1. Current State of the Teijin Group(1)Progress and Results of Operations
1) Progress and Results of Operating Activities
Sales and Income
The global economy was comparatively stable in fiscal 2014, ended March 31, 2015, supported by firm conditions in the
United States, although growth in the People’s Republic of China (PRC) and a number of emerging economies
decelerated visibly. The second half of the period saw significant fluctuations in currency rates and crude oil prices, theimpact of which varied in different countries and territories. The Japanese economy slumped following the April 2014
consumption tax hike, and although signs of a rally were seen in the second half of the period the pace of recovery
remained sluggish.
Under these conditions, consolidated net sales remained essentially level, edging up ¥1.7 billion, to ¥786.2 billion, as
sales were generally favorable in all segments, bolstered by the weak yen, which largely countered the impact of the
discontinuation of in-house production and sales of paraxylene. Operating income soared 116.2%, or ¥21.0 billion, to¥39.1 billion, underpinned by solid results in our materials businesses—specifically, a recovery in the Advanced Fibers
and Composites segment and the positive impact of restructuring initiatives, primarily in the Electronics Materials andPerformance Polymer Products segment—and by yen depreciation and declining prices for raw materials and fuel.
Ordinary income climbed 113.1%, or ¥22.5 billion, to ¥42.4 billion, a result that also reflected foreign exchange gains.
Owing to extraordinary losses arising from restructuring and other initiatives, which amounted to ¥47.1 billion, we
reported a net loss of ¥8.1 billion, down from net income of ¥8.4 billion in fiscal 2013. Net loss per share was ¥8.23,
compared with net income per share of ¥8.50 in the previous fiscal year.

Assets, Liabilities and Net Assets
Despite a decline in fixed assets attributable to the application of impairment accounting, total assets as of March 31,
2015, amounted to ¥823.7 billion, up ¥55.3 billion from the end of fiscal 2013. This was primarily due to an increase in
the yen value of assets denominated in foreign currencies, a consequence of the weaker yen, and to higher stock
purchases, which pushed up investment securities.
Total liabilities, at ¥520.1 billion, were up ¥51.8 billion from the fiscal 2013 year-end. Interest-bearing debt, which
includes loans payable and bonds payable, rose ¥26.7 billion, to ¥308.2 billion, with contributing factors including theissue of convertible bonds.
Total net assets rose ¥3.5 billion, to ¥303.6 billion. Notwithstanding the net loss reported for the period, total shareholders’equity and total valuation and translation adjustments together increased ¥5.4 billion, to ¥287.1 billion, bolstered by anincrease in valuation difference on available-for-sale securities.

33

Segment operating results (sales and operating income) of the Teijin Group are as follows.
(Billions of yen / %)Fiscal 2013
Advanced Fibers and Composites

Fiscal 2014

ChangePercentage¥123.6¥135.5

¥12

9.7%

179.4

184.8

5.3

3.0

Health Care

138.4

141.7

3.3

2.4

Products Converting

254.2

259.4

5.2

2.0

Sub-Total¥695.6¥721.4¥25.8

3.7

Others

88.8

64.8

-24.1

-27.1

Total

¥784.4¥786.2

1.7

0.2

¥5.7

¥14.4

¥8.6

150.0

-7.2

3.4

10.6

-

Health Care

24.5

24.8

0.3

1.2

Products Converting

5.2

4.2

-0.9

-18.1

Sub-Total

¥28.2

¥46.8

¥18.6

65.8

Others

1.7

4.0

2.2

128.8

Elimination and corporate(11.9)(11.7)

0.2

-

Total

¥ 18.1¥ 39.1¥21.0

Electric Materials & Performance
Polymer Products
Net sales

Advanced Fibers and Composites
Electric Materials & Performance
Operating income

Polymer Products

34

116.2

Business Segment Results for fiscal 2014 were as follows:

Advanced Fibers and Composites
Sales in the Advanced Fibers and Composites segment totaled ¥135.5 billion (Increase of 9.7% compared with thepreceding term), while operating income was ¥14.4 billion (Increase of 150.0% compared with the preceding term).

High-Performance Fibers
Demand remained firm for automotive applications and expanded for infrastructure-related applications.
Sales of mainstay Twaron para-aramid fibers rose steadily for automotive applications, including for tires in Europe, andfor use as reinforcements for optical fibers, cables and hoses for oil drilling and other infrastructure-related applications.
Sales for use in ballistic protection products showed signs of recovery, shored up by expanded demand in Asia and the
Middle East. The profitability of Technora para-aramid fibers improved, reflecting brisk domestic sales for automotive
applications and exports for infrastructure-related applications, as well as the weaker yen. Despite rising demand, sales of
Teijinconex meta-aramid fibers for use in filters were hampered by persistently harsh competition, although sales for use
in protective clothing and for industrial applications remained solid. Under these circumstances, we pressed forward withpreparations to begin production of Teijinconex neo, a new type of meta-aramid fiber offering superior heat resistance anddyeability, in Thailand in July 2015. Motivated by increasingly stringent regulations pertaining to flame-retardantmaterials and environmental safety, we will continue to focus on expanding this particular business in promising Asianmarkets and emerging economies.
In polyester fibers, income at our subsidiaries in Thailand rose gradually—notwithstanding flagging sales for automotive
applications attributable to a negative rebound in local sales, which were robust in fiscal 2013—thanks to an increase insales volume for use in personal hygiene and general-purpose products, as well as to falling prices for raw materials andthe reduction of costs. In Japan, sales volume for automotive applications slipped amid sagging demand, while sales of
products used in bedding were also sluggish. Nonetheless, profitability was buttressed by higher sales for infrastructureand civil engineering-related applications and for use in reverse osmosis membrane support layers for water treatment
applications, as well as by efforts to cut costs. Looking ahead, we will strive to further strengthen our competitiveness by
gradually realigning our domestic production configuration and transferring production of certain items to theaforementioned subsidiaries in Thailand.

Carbon Fibers and Composites
Demand for use in aircraft and in pressure vessels advanced, and efforts to realize new technologies were accelerated.
Sales of TENAX carbon fibers for use in aircraft remained favorable, as rising demand worldwide for commercial aircraft
propelled a sharp increase in orders, prompting an increase in production by aircraft manufacturers. Among otherapplications, sales for use in pressure vessels remained steady, supported by favorable sales in North America for natural
gas storage and in Asia for use in sports and leisure equipment, as did sales for use in reinforcement materials for civilengineering-related applications. Sales of Pyromex flame-resistant fibers were stable, supported by higher demand for use
in aircraft brake pads. The depreciation of the yen and declines in prices for raw materials and fuel, particularly evident
since autumn 2014, also helped boost profitability.
Against this backdrop, in the area of products for aircraft applications TENAX thermoplastic consolidated laminate(TPCL) was qualified for use in Airbus S.A.S.’ A350 XWB all-new, extra-wide body midsize jetliner and subsequently
adopted for use in the A350 XWB family. On another front, we accelerated efforts to realize various new technologies,
promoting the development of production technologies for thermosetting carbon fiber-reinforced plastic (CFRP) and of
rapid-curing and super-heat-resistant varieties of prepreg.
We also pressed ahead with the development of structural components for mass-produced vehicles made with ourinnovative thermoplastic CFRP Sereebo. To this end, the Teijin Composites Innovation Center, situated within our
Matsuyama Plant, which is in Ehime Prefecture, and the Teijin Composites Application Center, located in Metro Detroit,in the United States, are collaborating on multiple projects targeted at developing specific components and establishingmass-production procedures, and are making solid progress on both fronts. Our joint development work with General
Motors Company is entering the final stage of preparation for commercialization, and with Sereebo now officiallyregistered on General Motors’ materials list we have begun looking into the establishment of a new carbon fibers
production facility in the United States.

Electronics Materials and Performance Polymer Products
The Electronics Materials and Performance Polymer Products segment reported sales of ¥184.8 billion (Increase of 3.0%
compared with the preceding term) and operating income of ¥3.4 billion. (Increase of ¥10.6 billion compared with the35preceding term)..

Resin and Plastics Processing
Profitability soared, bolstered by a decline in prices for key raw materials and the positive impact of restructuringinitiatives.
Full-term results for mainstay polycarbonate resin products rallied, bolstered by falling prices for key raw materials, a
consequence of declines in crude oil prices since autumn 2014, and by the positive impact of ongoing restructuringinitiatives. Nonetheless, with competition expected to remain harsh over the medium term, owing to a global product glut,
we will step up strategic efforts to strengthen our earnings foundation by taking advantage of the halt of production at ourplant in Singapore, scheduled for December 2015, to optimize production capacity and shrink fixed costs. Concurrently,
we will promote the growth and expansion of our resin business by capitalizing on copolymerized polycarbonate resin, as
well as on polyphenylene sulfide (PPS) polymer manufactured using innovative production processes at joint venture
INITZ Co., Ltd.’s new production facility, which is scheduled to begin commercial production in autumn 2015, and by
developing innovative composite materials that combine these resins with high-performance fibers.
In processed plastics, sales of ELECLEAR transparent electroconductive polycarbonate film for use in capacitive touch
screens for vehicle navigation systems and of Panlite Sheet polycarbonate resin sheet for use in automotive instrument
panels and dummy cans for vending machines were firm. During the period, we stepped up efforts to market retardation
film that leverages the unique optical properties of polycarbonate for use as antireflective film on wearable devices. We
also sought to expand our plastic glazing business, which maximizes our large-scale molding and coating technologies.
Among high-performance resins, sales of specialty polycarbonate resin for use in smartphone camera lenses were healthy.
In addition to broadening our lineup of specialty polycarbonate resin products that take advantage of our outstanding
competitive edge in terms of product quality, we pressed forward with the expansion of applications of polyethylene
naphthalate (PEN) resin, a key strategic material.

Films
Sales of products for use in smartphones and other devices were solid, but products for other mainstay applications
struggled.
Overall operating conditions remained harsh. In the area of films for use as reflective film for liquid crystal display(LCD) televisions, the emergence of manufacturers from the PRC intensified pricing competition, while demand for PEN
film for use in magnetic materials remained sluggish. Nonetheless, sales of PUREX release films for manufacturing
processes remained firm for use in multilayer ceramic capacitors and polarizers for smartphones and other devices. In thisenvironment, we continued to promote efforts to reduce costs, particularly fixed costs, as a result of which segment
operating income was up from the fiscal 2013 level. Going forward, we will proceed with the integration of our domestic
production facilities, announced in January 2015, to reinforce our cost competitiveness, as well as with efforts to foster
new applications for products, thereby enhancing profitability. To support the further evolution of this business, we will
also allocate management resources to the development of non-polyester high-performance films.
Overseas, demand for packaging applications and for use in solar cells, among others, flagged in the Americas and Europe.
Nonetheless, we sought to maintain profitability by reducing costs. Profitability in the PRC remained encouraging, sustained bysteady demand.

Healthcare
Sales in the Healthcare segment came to ¥141.7 billion (Increase of 2.4% compared with the preceding term), while
operating income was ¥24.8 billion (Increase of 1.2% compared with the preceding term).

Pharmaceuticals
Sales of our novel treatment for hyperuricemia and gout expanded favorably.
Operating conditions for our domestic pharmaceuticals business remained harsh, owing to the April 2014 revision ofreimbursement prices for prescription pharmaceuticals under Japan’s National Health Insurance (NHI) scheme and tohigher sales of generic drugs, which pushed down sales of long-listed originator drugs. In contrast, sales of hyperuricemia
and gout treatment Feburic (febuxostat) rose steadily, further boosting our leading share of the Japanese market for such

36

treatments. Sales of Somatuline®*, a treatment for acromegaly, also increased favorably. Drugs for which new
formulations have been developed include osteoporosis treatment Bonalon®, which has been made available not only intablet form but also as an oral jelly and an intravenous drip, thereby broadening choices available to osteoporosis
sufferers.
Sales of febuxostat also continued to expand encouragingly overseas. We have secured exclusive distributorshipagreements for febuxostat covering 117 countries and territories. The drug is currently sold in 42 of these countries andterritories, and we are in the process of obtaining regulatory approval to make it available in the others.
In R&D, we signed an agreement in May 2014 with U.K. pharmaceuticals manufacturer Sigma-Tau Pharma Ltd., gaining
exclusive development and distribution rights in Japan for EZN-2279, a therapeutic agent for adenosine deaminase(ADA) deficiency developed by Sigma-Tau, and began preparing for domestic clinical trials. We also proceeded with thedevelopment of KTF-374, an innovative sheet-type fibrin surgical sealant that integrates pharmaceuticals and materials
technologies, while core segment subsidiary Teijin Pharma Limited and Kaketsuken (The Chemo-Sero-Therapeutic
Research Institute) prepared for the start of clinical trials in Japan. In line with this, in September 2014 we resolved tobuild a new integrated pharmaceuticals development laboratory, the Technology Integrated Pharmaceutics Center, inIwakuni, Yamaguchi Prefecture. In December 2014, we embarked on Phase II clinical trials for bronchial asthma
treatment PTR-36, while in February 2015 we obtained approval from Japan’s Ministry of Health, Labour and Welfare to
manufacture and market Mucosolvan® L Tablet 45 mg, a novel reduced-sized once-daily tablet-form expectorant that iseasier to swallow and has the same effectiveness as regular-sized tablets. Sales of the new drug are scheduled to begin in
the first half of fiscal 2015. In March 2015, we concluded an agreement with Taisho Pharmaceutical Co., Ltd., granting us
the distribution rights in Japan for TT-063, an anti-inflammatory analgesic patch.

Home Healthcare
Rental volumes remained high or increased.
We currently provide home healthcare services to more than 400,000 individuals in Japan and overseas. In Japan, rental
volume for mainstay therapeutic oxygen concentrators for home oxygen therapy (HOT) remained firm, thanks to therelease of new models Hi-Sanso 3S and Hi-Sanso Portable (alpha). In June 2014, we launched Hi-Sanso 5S and Sanso
Saver 5, a new unit that helps resolve concerns and inconvenience for HOT patients in the event of a disaster or a major
power failure. Rental volume for continuous positive airway pressure (CPAP) ventilators for the treatment of sleep apnea
syndrome (SAS) continued to increase favorably, augmented by the launch of NemLink, a monitoring system for CPAP
ventilators that uses mobile phone networks and which also provides pertinent data to medical care facilities to enhancethe effectiveness of treatment. Rentals of our noninvasive positive pressure ventilators (NPPVs) (the NIP NASAL series
and AutoSet CS) also rose encouragingly. To fortify support services for individuals, we sought to improve our ability torespond to patient needs by capitalizing on new home healthcare call centers in Fukuoka and Osaka, the latter establishedin fiscal 2013. We are also gradually expanding our marketing efforts for the WalkAide System, a neuromuscularelectrical stimulation device for the treatment of gait impairment resulting from stroke and other causes launched in fiscal
2013, which initially focused on the Tokyo metropolitan area, to medical institutions in other areas of the country.
Overseas, we currently provide home healthcare services in the United States, Spain and the Republic of Korea(ROK).
In the period under review, operating conditions in the United States remained harsh, a consequence of healthcare system
reform and sizeable ensuing declines in medical treatment fees, as well as other factors. We responded by taking steps torestore profitability, including integrating sales bases and reducing headcount.

Trading and Retail
The Trading and Retail segment yielded sales of ¥259.4 billion (Increase of 2.0% compared with the preceding term) andoperating income of ¥4.2 billion (Decrease of 18.1% compared with the preceding term).

Fiber Materials and Apparel
Collaboration with leading overseas sportswear manufacturers in the area of strategic materials expanded dramatically.
Overall sales of fiber materials and apparel were healthy, bolstered by efforts to reinforce brand deployment for
high-performance materials for use in sportswear and outdoor apparel. Of note, collaboration with leading overseas
sportswear manufacturers expanded dramatically, particularly for DELTAPEAK, which we have positioned as a key
strategic material. In the uniforms business, margins were hampered by the depreciation of the yen, which pushed up*Somatuline® is a registered trademark of Ipsen Pharma S.A.S., Paris, France.
Bonalon® is the registered trademark of Merck Sharp & Dohme Corp., Whitehouse Station, NJ, U.S.A.
37

procurement costs. In the fibers and yarn business, standard imported yarns struggled, owing to bitter competition, aconsequence of the weaker yen and a shortage of physical space for production among midstream companies. In textiles,
sales remained firm as the waning yen buttressed exports, principally to Europe.
In functional textiles and apparel, yen depreciation and rising overseas sewing costs combined to squeeze the profitabilityof our mainstay OEM business, while orders for both summer and autumn/winter apparel stagnated, reflecting
persistently unseasonable weather. Against this backdrop, we pushed ahead with efforts to establish a solid network of
sewing bases and other facilities, focusing on Vietnam and Myanmar, with the aim of bolstering our supply capabilities in
the Association of Southeast Asian Nations (ASEAN) region. In a move designed to strengthen our sales capabilities, we
fortified our original design manufacturer (ODM) business by maximizing our materials development capabilities. Efforts
included proposing innovative compound materials made with SOLOTEX polytrimethylene terephthalate (PTT)
fiber—another strategically important material—and natural fibers.

Industrial Textiles and Materials
Sales of products for environmental and safety-related applications were brisk.
Among industrial fabrics, demand for materials used in child safety seats and other automotive accessories were sluggish,owing to a negative rebound following the last-minute demand rush that preceded Japan’s April 2014 consumption tax
hike. Sales of materials for tire cords, belts, hoses and other automotive applications were firm overall, althoughprofitability of imported products deteriorated as a consequence of the yen’s sharp downturn in the second half. Overseas,
we established a new tire cord production joint venture in Thailand, the operations of which will encompass twisting,weaving and adhesive treatment. The new company is expected to commence operations in December 2015. We alsobegan building a new processing line for automotive hose cords at subsidiary Teijin Cord (Thailand) Co., Ltd. Demand
for airbag fabrics rose in the PRC, Thailand and Japan.
In the area of general-purpose materials, demand remained healthy for materials for civil engineering-related applications
and membrane materials, used in temporary tents, among others, for disaster mitigation-related applications. In mainstay
materials for environmental applications, sales of filters for use in wastewater processing in the PRC expanded. We also
reported robust exports of short-cut fibers and high-performance materials, notably aramid, to Europe and the Americas,
and of carbon materials to Asia. In interior materials, sales of home-use wiping cloths and related products were solid, but
sales of curtains and wall- and floor-covering materials were generally weak. In the area of chemical products, domestic
shipments of plastic films and related products were firm, bolstered by a partial recovery in demand from thesemiconductor and electronics industries.

OthersOthers, which does not qualify as a reportable operating segment, generated sales of ¥64.8 billion (Decrease of 27.1%
compared with the preceding term) and operating income of ¥4.0 billion (Increase of 128.8% compared with thepreceding term).
In the Raw Materials & Polymers business, at the end of March 2014 the Company discontinued in-house production andsales of paraxylene, which had upset the supply-demand balance and hampered profitability, resulting in a substantial
decrease in sales but an improvement in profit compared with the preceding term.
In the IT business, the favorable expansion of sales from the distribution of e-books contributed to firm sales in the net
services category. In the IT services category, we established EverySense, Inc., in partnership with two other companies,
with the aim of developing and offering new services in the Internet of Things (IoT) market, and continued to provide
mental health support services for corporate employees on overseas assignment. In the healthcare category, we launched
Digital Health Connect, Japan’s first IT tool designed to facilitate collaboration between innovators in the healthcare fieldand IT service providers. We also took steps to establish a presence in new areas of the IT services market. Of note, welaunched Athlete Stories, a program designed to support the efforts of athletes seeking to reach the top ranks in their
particular sport.
In new business development, sales of LIELSORT lithium-ion battery (LiB) separators continued to expand favorably.
With the aim of further expanding this business, we installed a second line at our production facility in the ROK, which
commenced operation in December 2014. This has doubled our production capacity for LIELSORT LiB separators,
positioning us to respond to further increases in demand. During the period, we also developed NanoGram silicon paste
for use in the production of high conversion-efficiency solar cells, as well as a new processing technology that maximizes
this product’s performance features, and promoted marketing to solar cell manufacturers. In collaboration with KansaiThe IoT is a concept that describes the interconnection of a vast array of devices worldwide via the Internet. Suchadvanced connectivity will facilitate the realization of a wide range of new services.
38

University, we developed the world’s first polylactic acid (PLA) piezoelectric fabrics for use in wearable devices thatsense human movement and transforms it into data.
In the area of advanced medical materials, we are involved in a project to develop a groundbreaking patch to replacedamaged cardiac tissue that delivers both the strength and extensibility required for long-term use. This project, which
was selected for support under a program launched by Japan’s Ministry of Economy, Trade and Industry to promotecollaboration between medical institutions and industry, is a joint effort with Osaka Medical College and Fukui Warp
Knitting Co., Ltd. On another front, we acquired a stake in Nakashima Medical Co., Ltd., with the aim of establishing a
new joint venture, Teijin Nakashima Medical Co., Ltd., thereby facilitating our entry into the market for joint prostheses.
The joint venture will capitalize on Nakashima Medical’s metalworking technologies and expertise in joint prostheseswith our materials technologies and sales capabilities. In addition to establishing itself as a leading manufacturer ofdomestically produced joint prostheses, the joint venture will lay a foundation for its eventual expansion into global
markets.
In March 2015, ongoing efforts to advance businesses that integrate our capabilities in the IT and healthcare businesses
resulted in the launch of Sleep Styles, a comprehensive sleep support service that includes, among others, the provision ofrelated information via the Internet and a sleeping app.

2) Progress and Results of Non-Operating Activities
The progress and results of non-operating activities conducted by the Teijin Group (“the Group”) during the fiscal year
under review were as follows.
The Group is actively engaged in efforts to reduce its environmental impact, conserve energy and resources and makeeffective use of waste as part of its important efforts relating to all business operations. Specifically, as an effort to reduce
the environmental burden by addressing climate change issues, we have been working continuously to reduce its
emissions of greenhouse gases. To reduce waste, we strove to reduce total waste emissions and promoted various
recycling processes. As a result, we have already achieved a significant reduction in the amount of non-recyclable waste
emissions and are continuing our efforts to reduce them further.
We actively promote reduction of our environmental impact through efforts to design products, manufacturing processes
and IT services in ways that minimize their environmental impact in accordance with the Teijin Group Design forEnvironment Guidelines, which assess the environmental impact throughout a product’s life cycle, and by pushing ahead
with the Group’s “environmental businesses,” including the development of weight trimming materials that contribute to
reducing CO2 emissions and recycling technologies that enable the reuse of water and other resources.
In the previous fiscal year, the Group’s efforts at “reducing emissions of CO2, toxic substances and waste,”“implementing safety management of chemical substances” and “developing business based on clean technologies andproducts” such as carbon fibers and bioplastics products were recognized in the form of an AAA rating in the ESG Index
of globally recognized authority Morgan Stanley Capital International Inc. (MSCI). The AAA rating is the highest ratingon the index, which selects companies achieving outstanding performance on environmental, social, and corporate
governance aspects.
In line with the policy shared by all Group companies, the Group is actively engaged in corporate social contribution
activities leveraging the distinctive characteristics of each business group and each region.
In Japan, the Group continued to support the restoration of areas affected by the Great East Japan Earthquake. Other
initiative included active support for amateur sports and youth sports by sponsoring the All Japan High School Soccer
Tournament. At the same time, we continued various schemes to support volunteer activities by employees.
In the Group’s international exchange activities, in China it has helped to establish a fund to provide scholarships tostudents from low income families. In Southeast Asia we have been supporting sports events for children and donating
picture books to libraries. We are also continuing to participate in social contribution programs aiming to solve issues
such as famine in developing countries.
Going forward, as conscientious corporate citizen, the Group will continue to promote active participation and support for
academic, educational, cultural and sports activities, as well as environmental preservation and disaster prevention
activities.

39

(2) Changes in Assets and Profit and Loss
Fiscal Period
Items
Net sales(Millions of yen)
Operating income(Millions of yen)
Ordinary income(Millions of yen)
Net income(Millions of yen)
Net earnings per share(Yen)
Total assets(Millions of yen)
Net assets(Millions of yen)146th Fiscal Period 147th Fiscal Period 148th Fiscal Period 149th Fiscal Period
FY2011FY2012FY2013
FY2014(Current period)
854,370

745,712784,424

786,171

34,044

12,357

18,07839,08634,283

9,786

19,88742,378

11,97929,130

8,356

8,086

12.17

29.61

8.50

8.23

762,118

762,399

768,411

823,694

312,217292,127

300,112303,635(3) Capital Investments
Capital investments by the Group in fiscal 2014 totaled ¥ 28.1 billion, mainly for maintenance and renewal..

(4) Financing
While raising long-term debt to secure stable funds, the Group also strove to reduce its financing cost by utilizing direct
financing markets in the form of convertible bonds and commercial paper. The Group’s interest-bearing debt, such as
long-term debt, increased by ¥26.7 billion from the end of the previous fiscal year to ¥308.2 billion, as the Company raised¥40 billon by the Zero Coupon Convertible Bonds due to 2018 (bonds with stock acquisition rights) and the Zero Coupon
Convertible Bonds due to 2021 (bonds with stock acquisition rights) in December 2014.

(5) Medium-to Long-term management strategy and Tasks Ahead
Revised Medium-Term Management Plan
In November 2014, we introduced a revised medium-term management plan, which centers on restructuring initiatives
and transformation and growth strategies, to guide our efforts through fiscal 2016.

Restructuring initiatives
The goals of our restructuring initiatives are to ensure full awareness of and further reinforce the basic strengths wehave amassed to date and to build a new structure capable of supporting transformation and growth strategies. To thisend, we have narrowed our focus by analyzing each of our businesses from the perspectives of market growth potential,
competitive advantages and profitability, and will promote the targeted allocation of corporate resources in promising
growth businesses. Based on the results of this process, we will promote key strategic efforts:
Electronics materials and performance polymer products
We will streamline our production configuration with the aim of shrinking businesses that center on commoditized
products and shifting our emphasis to high-value-added products.
Advanced fibers and composites
To reinforce our competitiveness, we will expand our production base in Thailand and centralize our domestic
production and R&D bases.
Raw materials and polymerization
With the aim of dramatically revamping our production model for polyester products, we will discontinue in-houseproduction of dimethyl terephthalate (DMT) and centralize our domestic polymerization facilities.
Healthcare
We will promote a dramatic reorganization of our U.S. home healthcare business.
40

We expect the positive impact of restructuring initiatives on operating income in fiscal 2016 to be ¥13.0 billion higher
than in fiscal 2014. We estimate that the annual combined positive impact of such efforts, when fully realized, will be¥17.5 billion.

Transformation and growth strategies
The Teijin Group is a unique corporate entity with capabilities in three core business domains, namely,
high-performance materials, healthcare and IT. While to date we have sought to grow businesses in each domain
independently, our emphasis going forward will be on integrating capabilities and competitive advantages from these
domains to realize new value for our customers.
Of note, we will seek to leverage key Group capabilities to capitalize on business opportunities arising frommacroeconomic trends in areas we recognize as particularly promising—which we have grouped into three categories:
environment and energy conservation; safety, security and disaster mitigation; and demographic change and increased
health consciousness—to foster groundbreaking, distinctively Teijin businesses in line with four specific growthconcepts.
Offer high-performance composite materials that realize new value for customers
Automotive devices, battery components
Expand the scope of our monitoring services
Smart wearables, super-tough structural materials
Diversify our home healthcare services model and create new markets
Open healthcare platforms, support for community healthcare
Commercialize biocompatible medical materials
Materials for tissue repair, artificial replacement materials

41Medium-term management targets
We expect results in the years ahead to be bolstered by the positive impact of restructuring initiatives and by thegrowth of our core strategic advanced fibers and composites and healthcare businesses. Accordingly, we will continue
working to achieve the targets we have set for fiscal 2016, notably operating income of ¥50.0 billion and ROE of 8%
or higher.

Future outlook
In the years ahead, we will promote further restructuring initiatives with the goal of unifying our various materials
businesses. By around fiscal 2020, we intend to evolve as an extensive corporate group with two principal businesses,
one being healthcare and the other being composites and high-performance materials, supported by two stable-profit
businesses, namely, trading and retail and IT.

42

(6) Primary Businesses
The Teijin Group conducts various businesses including the manufacture and sale of the products below, operating in the
Advanced Fibers and Composites, Electric Materials & Performance Polymer Products, Health Care, Products Converting,and Others segments.
(As of March 31, 2015)
Business Segments
Business Fields
Principal Products and Businesses
Advanced Fibers and Aramid Fibers
Para-aramid fibers, Meta-aramid fibers,Composites
High-performance polyethylene, Artificial leather
Carbon Fibers
Carbon fibers, Oxidized PAN fibers
Polyester Fibers
PET PEN fibers
Electric Materials &Plastics
Polycarbonate resin sheet film, molding product
Performance Polymer
Transparent conductive film,
Products
PET PEN PBN resin, Frame-retardant agentsFilms
PET PEN film
Health Care
Pharmaceuticals
Agent for Osteoporosis, Agent for Infection, Expectorant,
Inhaled Corticosteroid Agent for Adult Asthma,
Agent for Hyperlipidemia, Treatment for Hyperuricemia and gout
Agent for treating pain associated with osteoarthritis of the kneeHome Health Care
Products Converting

Textiles and Apparel

OthersIndustrial Textiles
and Materials
IT Services

Net Business
New Businessdevelopment
Raw Materials,
Polymers

Oxygen Concentrator for home oxygen Therapy(HOT),
Continuous Positive Airway Pressure Unit (CPAP),
Ultrasound Bone Fracture Treatment Devices
Fiber materials, Textiles, Apparel products, General merchandise
Industrial and vehicle materials, Living and interior goods,
Resin films, Packing and construction materials,
Planning, development and consultation of information systems
for cell-phone operators, general-companies, medical-relatedorganizations, public offices and educational research institutions
Supply of a variety of services of the planning, management of
information systems
Supply of contents and e-commerce, etc. for cell phones or
smartphones
Lithium-ion battery separators
PET / PEN recycle, Polyester raw materials

Notes: PET (Polyethylene terephthalate), PEN (Polyethylene naphthalate), PBN (Polybutylene naphthalate)43

(7) Primary Business Places(As of March 31, 2015)

Business
The Company
Advanced Fibers andComposites

Function
Headquarters
Manufacturing
bases
Operationbases
Research bases

Electric Materials &Performance Polymer
Products

Manufacturing
bases

Health Care

Products Converting

China, Singapore, Indonesia
Tokyo, Osaka, Aichi
U.S.A., the Netherlands, China, Korea, Taiwan, Singapore, Malaysia,
Indonesia ,Thailand
Research bases Gifu, Ehime, Chiba, Hiroshima
China
Manufacturing Yamaguchi
bases
Operation
12 branches throughout Japan
bases
U.S.A
Research bases Tokyo, Yamaguchi
U.S.A., U.K.
Manufacturing Ishikawa, Fukui, Shiga
bases
China, Thailand, Vietnam
Operation
bases

Operation
bases
Manufacturing
bases
Operationbases
Research bases

OthersLocation
Osaka, Tokyo
Ehime, Yamaguchi, Shizuoka, Gifu
U.S.A., Germany, the Netherlands, China ,Thailand
Tokyo, Osaka
U.S.A., Germany, the Netherlands, China ,Thailand
Osaka, Shizuoka, Ehime
U.S.A., Germany , the Netherlands ,Thailand, China
Gifu, Tochigi, Ehime, Hiroshima

Tokyo, Osaka, Aichi, Niigata
U.S.A., Germany, China, Thailand, Hong Kong, Vietnam, Indonesia
Tokyo, Ehime, Korea
Tokyo, Osaka, Kanagawa, Fukuoka, Ehime, Yamaguchi
Tokyo, Osaka, Yamaguchi, U.S.A

Note: The function of headquarters is indicated in The Company, and the manufacturing, operation and research bases areindicated in each business segments.

(8) Employees
Business segments
Advanced Fibers and Composites
Electric Materials & Performance
Polymer Products
Health Care
Products Converting
OthersTotal

148th Fiscal Period
149th Fiscal Period
FY2013
FY2014(As of March 31, 2014) (As of March 31, 2015)(Current period)
4,078
4,307

Change in thenumber of
employees
+229

2,327

2,152

175

3,643
3,029
2,679
15,756

3,701
3,010
2,610
15,780

+58
19
69
+24

Notes:
1. The number of employees stated above represents the numbers of employees in each segment.
2. The number of employees stated above does not include temporary employees(2,193 employees for the 148th fiscal period and 2,367 employees for the 149th fiscal period)44

(9) Significant Subsidiaries
Businesssegments
Advanced fibers
and Composites

Subsidiary (Location of
The Head Office)Toho Tenax Co., Ltd. (Tokyo)

Toho Tenax EuropeGmbH (Germany)
Toho Tenax America, Inc.
(U.S.A.)
Teijin Aramid B.V.
(the Netherlands)
Teijin (Thailand) Limited(Thailand)
Teijin Polyester (Thailand)
Limited (Thailand)Electric Materials Teijin DuPont Films Japan& Performance
Limited (Tokyo)
Polymer Products Teijin Polycarbonate
Singapore Pte Ltd.
(Singapore)
Teijin Polycarbonate China
Ltd.(China)
Teijin Chemicals Plastic
Compounds Shanghai Ltd.
( China)
Health Care
Teijin Pharma Limited(Tokyo)Product
Converting
Others(As of March 31, 2015)
CapitalInvestment
Principal businessratio (%)
¥500
99.75 Production and sales of carbon
millionfibers and Oxidized PAN fibers
0.025 million
100.00 Production and sales of carbon
euro
fibers
US$12.5
100.00 Production and sales of carbon
millionfibers and Oxidized PAN fibers
0.02 million
100.00 Production and sales of
europara-aramid fibers
800 million
100.00 Production and sales ofbathpolyester fibers
548 million
66.87 Production and sales ofbathpolyester fibers¥10,01060.00 Production and sales of
millionpolyester films
US$75
million100.00 Production and sales ofpolycarbonate resins

720 million
RMB
143 million
RMB

100.00 Production and sales ofpolycarbonate resin100.00 Coloration, processing andsales of polycarbonate resins¥10,000
million100.00 Production and sales of
medicinal drugs and medical
equipment
100.00 Home health care services
providerTeijin Home Health Care Ltd(Tokyo)¥100
million

Braden Partners L.P. (U.S.A.)
Teijin Frontier Co., Ltd(Osaka)Nantong Teijin Co., Ltd.
(China)
Infocom Corporation(Tokyo)Teijin Engineering Ltd.
(Osaka)

US$134
million¥2,000
million¥4,000
million¥1,590
million¥475
millionTeijin Logistics Co., Ltd.
(Osaka)¥80
million100.00 Home health care services
provider100.00 Sales of textiles and others
100.00

Production and sales ofpolyester textile goods
58.08 Development and sales ofNotes3 computer software, etc.
100.00 Engineering services, designand sales of plants andequipment
100.00 Transportation and custody of
goods

Notes: 1. The Teijin Group has 69 consolidated companies including the aforementioned 18 significant subsidiaries;
77 companies are accounted for via the equity method.
2.
indicates the investment ratio including investment by subsidiaries.

45

(10) Primary Lenders and Amount of Borrowings(As of March 31, 2015)
Balance of borrowings
Millions of yen
49,98330,00023,2075,200
4,929

Primary Lenders
The Bank of Tokyo-Mitsubishi UFJ, Ltd. *Development Bank of Japan Inc.
Mizuho Bank, Ltd. *The Norinchukin Bank
Sumitomo Mitsui Banking Corporation*

Notes: 1. * indicates that the balance of borrowings includes loans from overseas affiliate banks.
2. In addition to loans indicated in the balance of borrowings above, the Company borrows¥106,733 million under syndicated loans.

2. Matters Regarding the Shares of the Company (As of March 31, 2015)(1) Issuable shares(2) Issued shares(3) Number of shareholders(4) Top 10 shareholders of the Company

3,000,000,000 shares
984,758,665 shares
98,874

Shareholders

Investment in the Company
Number of shares held

Shareholding ratio (%)

1
The Master Trust Bank of Japan, Ltd. (Trust account)
74,047,000
7.53
2Japan Trustee Service Bank, Ltd.(Trust account )59,504,000
6.05
3Nippon Life Insurance Company
35,227,509
3.58
4The Employee Stock Ownership Association of Teijin
25,141,992
2.56
5The Bank of Tokyo-Mitsubishi UFJ, Ltd.
20,694,935
2.11
6Japan Trustee Service Bank, Ltd.(Trust account 9 )14,751,000
1.50
STATE STREET BANK WEST CLIENT-TREATY 505234
7
10,841,859
1.10
STATE STREET BANK AND TRUST COMPANY 505223
8
10,837,714
1.10
STATE STREET BANK AND TRUST COMPANY 505001
910,297,975
1.05
10Nisshinbo Holdings Inc.
9,766,292
0.99
Note: The shareholding ratio has been calculated after excluding Treasury stocks (1,925,911 shares) from theIssued shares.

3. Stock Option(1) Status of Stock Option as of the last day of the subject Fiscal Year
5th
(July 10,
2006)

6th
(July 5,
2007)

146

207

328

420

Class and Number of
Shares (Common Stock) to beacquired by the Stock Option

146,000

207,000

328,000

Issue Price of Stock Option(per share)

¥663

¥610

¥1
July 10,
2006
July 9,2026

Time of Issue(Issue date)
Number of Issued Stock
Option (unit)

Exercise Price of Stock
Option (per share)
Period during which the Stock
Option may be exercised

7th(July 7,2008)

8th
(July 9,2009)

9th
(July 9,
2010)

10th
(Mar 12,
2012)

11th
(Mar 15,
2013)

12th
(Mar 14,
2014)

349

737

698

618

379

420,000

349,000

737,000

698,000

618,000

379,000

¥307

¥253

¥261

¥245

¥196

¥228

¥385

¥1

¥1

¥1

¥1

¥1

¥1

¥1

¥1

July 5,
2007
July 4,
2027

July 7,
2008
July 6,
2028

July 9,2009
July 8,2029

July 9,2010
July 8,2030

Mar 12,
2012~Mar 11,2032

Mar15,
2013~Mar 14,
2033

Mar14,
2014~Mar13,2034

Mar18,
2015~Mar17,2035

Of the above, total number of unexercised Stock Option held by Directors and Corporate Auditors of theCompany (breakdown by each issue of the Stock Option)
46

13th(Mar 18,
2015)

Directors
Issue
The 5 th Issue of the Stock Option
The 6 th Issue of the Stock Option
The 7 th Issue of the Stock Option
The 8 th Issue of the Stock Option
The 9th Issue of the Stock Option
The 10th Issue of the Stock Option
The 11th Issue of the Stock Option
The 12th Issue of the Stock Option
The 13th Issue of the Stock Option

Number of Units

Number of Directors
Holding Rights

12
21
41
55
50
118
156
141
106

4
5
5
5
5
5
6
6
6

(As of March 31, 2015)
Corporate Auditors
Number of
Number of Units Corporate Auditors
Holding Rights
2
1
7
2
10
2
13
2
12
2
17
1
-

Note:
1. No Stock Option is granted to any Outside Directors and Corporate Auditors.
2. The Stock Option held by the Corporate Auditors were distributed as a consideration of performance of duties
as Director or Corporate Officer prior to assuming the position of Corporate Auditor.

(2) Stock Option distributed during the subject Fiscal Year
Stock Option distributed during the subject Fiscal Year is stated in the 13th Issue of the Stock Option noted in (1)above.
Status of Stock Option distributed to employees of the Company in the 13th Issue of Stock Option.
No. of Unites
No. of Recipients273
26(3) Other important matters concerning Stock Acquisition Rights
Outlines of the Zero Coupon Convertible Bonds due to 2018 (bonds with stock acquisition rights) and the Zero Coupon
Convertible Bonds due to 2021 (bonds with stock acquisition rights), that were issued based on the resolution of the meetingof the Board of Directors held on November 26, 2014 are stated below at the end of the fiscal year.
Zero Coupon Convertible Bonds due Zero Coupon Convertible Bonds due
Title
to 2018
to 2021
The total amount of
20 billion yen
20 billion yen
debenture
Issue date
December 12, 2014
December 12, 2014
Redemption fixed date
December 12, 2018
December 10, 2021
Number of stock acquisition
2,000 units
2,000 units
rightsType of shares to be issued
upon exercise of stock
Common shares of the Company
Common shares of the Company
acquisition rights
Number of shares to be
The number is determined by
The number is determined byissued upon exercise of stock dividing the aggregate principal
dividing the aggregate principal
acquisition rights
amount of the bonds upon exercise of amount of the bonds upon exercise of
the stock acquisition rights by thethe stock acquisition rights by theconversion priceconversion price
The contents and the value
In case of the use of the stock
In case of the use of the stockof the assets invested on theacquisition rights, the Bond holder
acquisition rights, the Bond holder
occasion of use of the stock
will invest the bonds upon exercise of will invest the bonds upon exercise of
acquisition rights
the stock acquisition rights and thethe stock acquisition rights and theBonds price will equal to the face
Bonds price will equal to the facevalue price.
value price.
¥417 per share (subject to¥410 per share (subject toConversion priceadjustment in certain
adjustment in certain
circumstances)
circumstances)
Exercise period of stock
Between December 26, 2014 andBetween December 26, 2014 andacquisition rights
November 28, 2018
November 26, 2021
47

4. Directors and Corporate Auditors(1) Directors and Corporate Auditors
Post

Name

Chairman of the
Board

Shigeo Ohyagi

President,
Representative
Director
Senior Executive
Officer,
Representative
Director
Senior Executive
Officer, Director

Jun Suzuki(As of March 31, 2015)
Duty, state of significant positions concurrently
held at other companies
Chairman, Japan Bio Plastics Association
Permanent Officer, Keidanren(Japan Business Federation)
Officer, Japan Association of Corporate Executives (Keizai Doyukai)
Outside Director, Sharp Corporation
Outside Director, Recruit Holdings Co., Ltd
Outside Corporate Auditor, JFE Holdings, Inc.
CEO (Chief Executive Officer)
Vice Chairman, Japan Chemical Fibers Association

Osamu Nishikawa

Chief Social Responsibility Officer
Supervisor of Corporate Audit Department
Director, Effective Utilization of Factories Project

Yoshio Fukuda

General Manager, Electric Materials & Performance Polymer Products
Business Group
General Manager, Films Business Unit
Chairman, Teijin DuPont Films
General Manager, Technology Center
Supervisor of Iwakuni, Matsuyama and Mihara factory
Supervisor of Safety Control
General Manager, Corporate Strategy Office
Supervisor of Raw Materials & Polymers Division
Supervisor of IT, Healthcare Project
Member of, Global Policy Board Teijin DuPont Films Global Joint VentureCounselor, TDK Corporation
Outside Corporate Auditor, Nikkei Inc.
Vice Chairman of Council, Waseda University
Councilor, Ministry of Foreign Affairs, Japan(Southeast Asia cooperationambassador)
Vice-Chairman, Japan-Indonesia Association, Inc.
Adviser, Taisei Corporation
Outside Director, KAMEDA SEIKA Co., Ltd.
Outside Director, Wethernews Inc.
Outside Corporate Auditor, SUGIYO Co., Ltd.
Professor, Graduate School of Shibaura Institute of Technology
President & Chairperson, The Industry-Academia Collaboration Initiative (NPO)Visiting Professor, Hitotsubashi University Graduate School of Commerceand Management (MBA program)Vice Chairman, The Japan Society for Science Policy and Research
Management
Director, Intellectual Property Association of Japan*Executive Officer, Yo Goto
Director*Corporate Officer, Yoshihisa Sonobe
Director
Director

Hajime Sawabe

Director

Yutaka Iimura

Director

Nobuo Seki

Director

Kenichiro Senoh

Full-time
Corporate Auditor
Full-time
Corporate Auditor
Corporate Auditor

Atsuo Amano
Toshiaki Yatabe
Toshiharu Moriya

Corporate Auditor

Noriko Hayashi

Corporate Auditor

Nobuo Tanaka

Certified Public Accountant, Licensed Tax Accountant

Outside Corporate Auditor, NIFTY Corp.
Outside Corporate Auditor, Fujitsu Frontech Limited.
Auditor, Kanagawa Dental College
Representative, Hayashi Legal Office Lawyer
The Chairperson of Committee on Labor Law Legislation, Japan
Federation of Bar Associations
Global Associate, The Institute of Energy Economics, -Japan
Outside Corporate Auditor, Innotech Corporation
Adviser, INPEX Corporation
Professor, Graduate School of Public Policy, Tokyo University
48

Notes:1.

The director marked with * was newly elected at the 148th Ordinary General Meeting of Shareholders held on June 20,
2014.
2. Four (4) Directors— Hajime Sawabe, Yutaka Iimura, Nobuo Seki and Kenichiro Senoh—are outside directors. The
Company requires the candidate for outside director to satisfy the requirements of “Independent Director” stipulated by
the Company. These four (4) Directors satisfied all such requirements and maintained their independence throughout therelevant fiscal year. Because they also satisfy the requirements of independence as stipulated by Tokyo Stock ExchangeGroup, Inc., they were registered by the Company as “Independent Director/Auditor” at the stock exchanges. Refer tothe 31-32 pages for the requirements of “Independent Officer” which Company defines.
3. There are no important interests between the Company and any of the entities at which the abovementioned outside
directors hold positions as director/corporate auditor etc.
4. Three (3) Corporate Auditors— Toshiharu Moriya, Noriko Hayashi and Nobuo Tanaka—are outside corporate auditors.
The Company requires the candidate for outside corporate auditor to satisfy the requirements of “Independent Corporate
Auditor” stipulated by the Company. These three (3) Corporate Auditors satisfied the all said requirements andmaintained their independence throughout the relevant fiscal year. Because they also satisfy the requirements of
independence as stipulated by Tokyo Stock Exchange Group, Inc., they were registered by the Company as“Independent Director/Auditor” at the stock exchanges. Refer to the 31-32 pages for the requirements of “Independent
Officer” which Company defines.
5. There are no important interests between the Company and any of the companies at which the abovementioned outside
corporate auditors hold positions as director/corporate auditor etc.
6. Corporate Auditor Toshiharu Moriya is a Certified Public Accountant and has ample knowledge of finance andaccounting.
7. The following Directors retired as of June 20, 2014.
Director
Norio Kamei
Director
Takashi Takahashi
8. Changes in posts and duties of Directors during the subject fiscal year are as follows.
Name
New Post
Former Post
Date of Change
Shigeo Ohyagi
Chairman of the Board
President, Representative Director
Apr 1, 2014
CEO (Chief Executive Officer)
Jun Suzuki
President, Representative Director
Executive Officer, Director,
Apr 1, 2014
CEO (Chief Executive Officer)
General Manager, Advanced Fibers &Composites Business Group
General Manager, Carbon Fibers &Composites Business Unit
President & Representative Director,
Toho Tenax Co., Ltd.
Yo GotoExecutive Officer, Director
Executive Officer
June 20, 2014
General Manager, Technology Center
General Manager, Technology Center
Supervisor of Iwakuni, Matsuyama and Supervisor of Iwakuni, Matsuyama and
Mihara factory
Mihara factory
Supervisor of Safety Control
Yoshihisa Sonobe
Corporate Officer, Director
Corporate Officer,
June 20, 2014
General Manager, Corporate Strategy
General Manager, Corporate Strategy
OfficeOfficeSupervisor of Raw Materials &Supervisor of Raw Materials &Polymers Division
Polymers Division
Supervisor of IT, Healthcare Project
Member of, Global Policy Board TeijinMember of, Global Policy Board Teijin DuPont Films Global Joint Venture
DuPont Films Global Joint Venture49

9. Changes in posts and duties of Directors following the subject fiscal year are as follows.
Name
New Post
Former Post
Osamu Nishikawa
Director, Advisor
Representative Director,
Senior Executive Officer
Chief Social Responsibility Officer
Supervisor of Corporate Audit
Department
Director, Effective Utilization of
Factories Project President
Yoshio Fukuda
Director, Advisor
Senior Executive Officer, Director
General Manager, Electric Materials &Performance Polymer Products
Business Group
General Manager, Films Business Unit
Chairman, Teijin DuPont Films
Yo GotoRepresentative Director,
Executive Officer, Director
Senior Executive Officer
General Manager, Technology Center
General Manager, Technology Center
Supervisor of Iwakuni, Matsuyama andSupervisor of Iwakuni, Matsuyama and Mihara factory
Mihara factory
Supervisor of Safety Control
Supervisor of Safety Control
Yoshihisa Sonobe
Corporate Officer, Director
Corporate Officer, Director
General Manager, Corporate Strategy
General Manager Corporate Strategy
OfficeOfficeSupervisor of Raw Materials &Supervisor of Raw Materials &Polymers Division
Polymers Division
Supervisor of IT, Healthcare ProjectSupervisor of IT, Healthcare Project
Chairman, Teijin DuPont Films
Member of, Global Policy Board Teijin
DuPont Films Global Joint Venture

Date of Change
April 1, 2015

April 1, 2015

April 1, 2015

April 1,2015(2) Remuneration for Directors and Corporate Auditors
1) Remuneration for Directors during the subject fiscal year
Inside Directors
Number ofAmount of
Directors
Remuneration
8288
Notes:
1.
2.
3.

4.

5.
6.

Outside Directors
Number ofAmount of
Directors
Remuneration
452(millions of yen)
Total
Number ofAmount of
Directors
Remuneration
12
341

Inside directors means directors other than outside directors.
The Company has no director who is also an employee of the Company.
The maximum annual remuneration for directors is ¥700 million, of which ¥630 million is for annual salary and ¥70
million is for the fair value of compensation-type stock options (as resolved by the 140th Ordinary General Meeting of
Shareholders, held on June 23, 2006).
The performance-based remuneration system is applied for the inside directors. The amount of remuneration is basicallydetermined according to the consolidated Return on Assets (ROA) and additionally based on the consolidated Return on
Equity (ROE), the improvement of operating income, achievements relative to budgets, and an evaluation of thedirector’s performance. Outside directors receive a fixed amount of remuneration.
The amounts of above remuneration include ¥40 million as compensation-type stock options granted to inside directors
for their duties performed during the subject fiscal year. Stock options were not granted to outside directors.
The Company abolished the retirement benefits payment system for retiring inside directors at the conclusion of the145th Ordinary General Meeting of Shareholders held on June 22, 2011. For the directors who remained in office after
the conclusion of the said Ordinary General Meeting of Shareholders, it was decided that payments of retirement
benefits corresponding to their respective periods in office up to the abolishment of the retirement benefits payment
system are to be made when each director retires. In accordance with this, apart from the above-mentioned amounts ofremuneration, retirement benefits of ¥25 million were paid to one (1) inside director who retired during the subject fiscal
year. Retirement benefits are not paid to outside directors.

502) Remuneration for Corporate Auditors during the subject fiscal year
Inside Corporate Auditors
Number ofAmount of
Corporate
Remuneration
Auditors
2
66

Outside Corporate Auditors
Number ofAmount of
Corporate
Remuneration
Auditors
3
28(millions of yen)
Total
Amount ofRemuneration

Number of
Corporate
Auditors
594

Notes:
1. Inside corporate auditors means corporate auditors other than outside corporate auditors.
2. The maximum monthly remuneration for corporate auditors is ¥12 million (as resolved by the 133rd Ordinary General
Meeting of Shareholders held on June 25, 1999).

(3) Outside Directors and Outside Corporate Auditors
1) Significant concurrent positions and the relation between the Company and the entities at which Outside Directors
and Outside Corporate Auditors hold such positions.
They are shown in the above-mentioned (1) Directors and Corporate Auditors .
2) Main Activities of Outside Directors and Outside Corporate Auditors
Category

Name
Hajime Sawabe
Yutaka Iimura

Outside Directors
Nobuo Seki
Kenichiro Senoh

Toshiharu Moriya

Outside Corporate
Auditors

Noriko Hayashi

Nobuo Tanaka

Main Activities
Attended 12 of the 12 meetings of the Board of Directors held during therelevant fiscal year and offered valuable comments from his extensive
management experience and knowledge.
Attended 12 of the 12 meetings of the Board of Directors held during therelevant fiscal year and offered valuable comments from his expertiseand knowledge cultivated over many years as a diplomat.
Attended 12 of the 12 meetings of the Board of Directors held during therelevant fiscal year and offered valuable comments from his extensive
management experience and knowledge.
Attended 12 of the 12 meetings of the Board of Directors held during therelevant fiscal year and offered valuable comments from his specialist
viewpoint of business model field.
Attended 12 of 12 meetings of the Board of Directors and 9 of 9
meetings of the Board of Corporate Auditors held during the relevant
fiscal year and offered valuable comments from his professional
knowledge as a Certified Public Accountant and Licensed tax
accountant.
Attended 12 of 12 meetings of the Board of Directors and 9 of 9
meetings of the Board of Corporate Auditors held during the relevant
fiscal year and offered valuable comments from her professional
knowledge as lawyer, and offered, in particular, advice and suggestions
concerning compliance
Attended 12 of 12 meetings of the Board of Directors and 9 of 9
meetings of the Board of Corporate Auditors held during the relevant
fiscal year and offered valuable comments from his experience at the
government agencies and international organization and offered, inparticular, advice and suggestions concerning corporate governance.

513) Liabilities Limitation Agreements
Liabilities Limitation Agreement with Outside Directors
The Company has executed a Liabilities Limitation Agreement with each of four (4) outside directors,
Hajime Sawabe, Yutaka Iimura, Nobuo Seki and Kenichiro Senoh which limits the respective liabilities ofeach outside director to the higher amount of ¥20 million or the minimum liability amount stipulated in
Article 425, Paragraph 1, of the Companies Act.
Liabilities Limitation Agreement with Outside Corporate Auditors
The Company has executed a Liabilities Limitation Agreement with each of three (3) outside corporate
auditors, Toshiharu Moriya, Noriko Hayashi and Nobuo Tanaka which limits the respective liabilities of eachoutside corporate auditor to the higher amount of ¥20 million or the minimum liability amount stipulated in
Article 425, Paragraph 1, of the Companies Act.

5. Accounting Auditor(1) Name of Accounting Auditor
KPMG AZSA LLC.

(2) Amount of Remuneration(Millions of yen)

Details1) The amount of remuneration, etc., to be paid by the Company tothe accounting auditor
2) The total amount of cash or other proprietary interest to be paidby the Company and its subsidiaries to the accounting auditor

AmountNotes:
1.

2.
3.

171
318

The amount described in Item1) of the above table is the total sum of the remunerations for audits under theCompanies Act and the remuneration for the audits under Financial Products & Exchange Act in Japanbecause these are not clearly distinguished from each other in the contract between the Company and theaccounting auditor.
Of the major subsidiaries of the Company, 10 companies, including Teijin Aramid B.V. , undergo auditing byaccounting firm other than the accounting auditor.
The Company pays remuneration to the accounting auditor for ”Making comfort letter service for bond issue ” and soon not specified in Article 2, Paragraph 1,of the Certified Public Accountant Act.

(3) Policy on Determining Dismissal and Non-Reappointment of Accounting Auditor
The Company has a policy that the Board of Corporate Auditors may dismiss the accounting auditor based on theunanimous approval by the corporate auditors in cases where Article 340, Paragraph 1 of the Companies Act isjudged to apply. Furthermore, the Company has a policy of submitting a proposal regarding dismissal of theaccounting auditor to a shareholder’s meeting in the event that it is deemed that a grave obstacle to the Company’s
audit operation involving the accounting auditor has occurred, and similarly submitting a proposal regarding the
non-reappointment of the accounting auditor in the event that it is deemed necessary to change the accounting
auditor in light of the accounting auditors’ independence and reliability, or the status of its performance of duties.
In both cases, the submission of the proposals is based on a decision of the Board of Corporate Auditors.

6. Corporate Governance System(1) Reasons for Choosing the Current Corporate Governance System
The Company has adopted and will adopt from time to time mechanisms for corporate governance which isappropriate for achieving the purposes of the Company. Accordingly, the Company will timely review themechanisms and such changes may be made in accordance with changes in the social and legal environments.
The current Companies Act requires the Board of Directors to appropriately carry out two functions: importantbusiness decision and management oversight and supervision. The governance system deemed appropriate istherefore based on these two core functions, with execution of business led by the Company’s inside directors(limited Executive Directors) on the one hand, and management oversight and supervision focused on by outside
directors and carried out by corporate auditors and the Board of Auditors on the other hand.
Therefore the Company intends to continue to be a company with Board of Corporate Auditors for the time being.
At the Company, the strengthening of the management oversight and supervisory functions and similar corporate
governance that are the aim of a “company with nominating committees” are effectively achieved via an“Advisory Board”, a “Board of Directors and executive officer system that includes independent outside directors,”
and a “Board of Auditors system that includes independent outside corporate auditors.”52

(2) Overview of Current Corporate Governance1) Advisory Board (Management Consultative Committee)
The Advisory Board, comprising both Japanese and non-Japanese experts, has been established to provide advice tomanagement in general and to evaluate the top managements, and operates as a consultative body to the Board of
Directors. The Advisory Board is made up of five to seven outside advisors consisting of two or three non-Japaneseadvisors as well as the Chairman of the Board* and the President & CEO, and the Chairman of the Board chairs theAdvisory Board. The Advisory Board also functions as a nominations and remuneration committee, making
recommendations regarding the alternation of the CEO and nomination of a successor, deliberating the selection of
Chairman, deliberating the system and levels of compensation for Teijin Group directors, and evaluating theperformance of the CEO and representative directors.
*The case of vacant of the Chairman of the Board, Senior Advisor will take the chairmanship of the Advisory Board.

2) Board of Directors and Corporate Officer System that Includes Independent Outside Directors
To expedite decision making and clarify accountability of execution of business, the Company’s Articles ofIncorporation set the maximum members of the Board of Directors to 10 directors, and the Company has introduced a
corporate officer system that delegates broad authority to corporate officers. Four members of the Board of Directors
are independent outside directors. In addition, the Articles of Incorporation sets the term of office for directors at one
year. The Board of Directors is chaired by the Chairman of the Company*, as a means of separating oversight andsupervision from execution of business.
The outside directors also contribute to enhancement of the transparency and accountability of the Board of
Directors, with their oversight function with respect to internal directors and by management advice function based on
their expertise.
*The case of vacant of the Chairman of the Board, the director of Senior Advisor or the outside director will take thechairmanship of the Board.

3) Board of Auditors System that Includes Independent Outside Corporate Auditors
Corporate Audits
The Company’s Board of Auditors consists of five members, of whom a majority of three are independent outside
auditors. This maintains transparency, and achieves the management oversight and audit function including audit of
total risk management. In addition, the Committee of Teijin Group Corporate Auditors, comprising corporate auditorsof Group companies, exists to enhance the effectiveness of group-wide oversight and audit of the entire Group, whichcorrespond to group consolidated management and ensure impartial auditing.
The Company and its Group companies have a three-pronged audit system, which includes internal audits in addition
to the corporate audits by corporate auditors and the accounting audits by the accounting auditors stipulated by theCompanies Act and the Financial Products and Exchange Act. These three components work in mutual cooperation toenhance corporate governance.
Internal Audit System
The Corporate Audit Office, reporting directly to CEO, has been established as an internal audit organization, andcarries out Group-wide and global audits to evaluate efficiency and validity of internal control functions.

53

7. Summary of Resolution to Establish Systems to Ensure Appropriate Business Operations
Resolutions on Basic Policies for Establishment of Internal Control Systems
The Company passed a resolution regarding the “Basic Policy for Establishment of Internal Control Systems” at a
Board of Directors meeting held on March 31, 2015. The content of the resolution has been revised in response to therevisions to the Companies Act that came into force on May 1, 2015.
Below is a summary of this resolution, the details of which can be viewed at the Company’s Web site:(http://www.teijin.com/ir/governance/resolution/).
(1) System for Ensuring Compliance with Laws, Regulations and the Articles of Incorporation in the
Performance of Duties by Directors and Employees of the Company and Its Subsidiaries
The Company has declared the basic principles of compliance in its Teijin Group “Corporate Governance Guide”(available on the Company’s Web site at : http://www.teijin.com/ir/governance/guide/ ).
To practice these basic principles, the Company shall establish systems and organizational structures that ensure practicaloperation and thorough observation of the Company’s Corporate Philosophy, Corporate Code of Conduct, Corporate
Standards of Conduct, Group Ethics Regulations and other related internal regulations.
The Company’s representative directors and other executives shall take the initiative and set good examples in observing
laws, regulations and the Articles of Incorporation, social rules and ethics, and shall promote compliance education andawareness among directors, officers and employees of the Company and its subsidiaries. In order to establish a compliancesystem across the entire Teijin Group, the Company appoints Chief Social Responsibility Officer as the officer in charge ofcompliance.
All directors, officers and employees of the Company and its subsidiaries are required to report to the Teijin entity towhich they belong or to Teijin Limited which is the holding company of the Teijin Group, whether they detect any
violations of laws and regulations or other serious information concerning compliance, in accordance with Group Ethics
Regulations and other internal regulations. Chief Social Responsibility Officer shall direct and supervise investigations toconfirm such reported facts and, upon consultation with CEO (President), determine appropriate measures.
The Company shall provide necessary means for directors, officers, employees and business partners to directly reportany violation or doubtful activities of non-compliance in the Company or its subsidiaries. Such measures shall ensure thatanonymity of the caller is protected and that the caller does not get any disadvantageous treatment. Important reports as wellas measures taken by the relevant Teijin entity and their results shall be announced as appropriate to, and shall berecognized by, all directors, officers and employees of the Company and its subsidiaries.
The directors of the Company and its subsidiaries shall have their performance of duties audited by the corporate auditors,
and will respect any advice or recommendations received from the corporate auditors.
The Company places Corporate Audit Department directly supervised by CEO, which performs internal auditing of the
Teijin Group’s execution of business and conducts the evaluation of the internal control system and proposes its
improvement.
The Company shall maintain a resolute attitude toward pressure from antisocial forces, including demands for payoffs
from specific shareholders or interference by crime syndicates, and shall not allow such interference. Chief Social
Responsibility Officer shall be appointed as the person in charge of actions against antisocial forces. Chief Social
Responsibility Officer shall establish action policies and other rules in consort with general manager, Human Resources
Division and shall ensure observance of such policies and rules by directors, officers and employees within the Company
and its subsidiaries.
To intensify the validity of the decision to be made by the Board of Directors, more than one of the directors shall beoutside directors satisfying the requirements for independence stipulated by the company.

(2) Rules and Other Systems for Management of Risk of Loss in the Company and its Subsidiaries
The Board of Directors of the Company shall operate a total risk management system to deal with any kind of risks thatmight threaten sustainable business development.
Total Risk Management (TRM) Committee, shall mainly deal with the business operational risks and strategic risks to
Teijin Group, and shall propose basic policies and annual plans related to TRM to the Board of Directors of the Company.
Chief Social Responsibility Officer is in charge of establishing a system across the Teijin Group to manage business
operation risk, and shall identify problems and deal with such risks upon occurrence thereof. CEO shall assess strategicrisks and present his/her assessment to the Board of Directors of the Company as an important element upon which
managerial decisions are made.
The Company shall establish a system for the Teijin Group to ensure the continuation of businesses when faced with risk
events including disasters, the inappropriate performance of duties by directors, officers or employees, and damage tocritical IT systems.

54

(3) Systems for Ensuring that Duties by Directors and Employees of the Company and Its Subsidiaries Are
Performed Efficiently
The Company shall establish Group regulations to provide the necessary rules and guidelines for the Group to ensure
efficient business operations throughout the Teijin Group.
The Board of Directors of the Company shall have the representative directors and other executives conduct the operationof the Company and decisions for the items on which the representative directors and other executives have been delegateddecision-making powers shall be made by the organization and procedures in accordance with the internal regulations.
These regulations shall be revised as may be necessary to reflect any revision and/or abolition of laws and regulations
and/or to increase the efficiency of the representative directors and other executives in executing their duties.
The Board of Directors of the Company shall organize the basic structure of Teijin Group, and shall establish efficientmanagement, oversight and supervision system.
The Company shall formulate the Group medium-term management plan, and each fiscal year it shall formulate
short-term plans, key management targets, and budgets, as well as carrying out progress checks, in order to realize themedium-term management plan.

(4) Systems for Ensuring that Proper Business Operations Are Conducted within Teijin GroupThe Company shall establish Group Regulations to provide the necessary rules and guidelines for the Group to ensure
appropriate business operations throughout the Teijin Group. Based on the Group regulations, each company shall establish
its own regulations, and use appropriate processes for deciding on important matters.
The Company shall discuss important matters concerning Teijin Group companies at its Group meetings and so forth, andto shall require Teijin Group companies to make reports.
The representative directors and other executives shall provide necessary instructions to ensure that the Teijin Group
entities have appropriate internal control systems.
Corporate Audit Department of the Company shall operate or supervise internal audits of the Teijin Group’ s business
operations and ensure the efficiency and validity of internal control functions over the entire business of the Teijin Group.
Corporate Auditors of the Company shall establish appropriate systems, such as those for close coordination with theaccounting auditors and Corporate Audit Department, to ensure effective and appropriate supervision and auditing of theGroup’s entire business operations.
To ensure the reliability of its financial reporting, the Company shall establish a group-wide internal control system forthe financial reporting and the operation of the Teijin Group individual operational processes, and shall be properly andefficiently operate and assessed such systems.

(5) Systems for the Preservation and Management of Information in Relation with the Directors Performanceof Their Duties
Directors shall appropriately preserve and manage minutes of shareholders’ general meetings, minutes of Board of
Directors’ meetings, and other documents and important information concerning the performance of their duties inaccordance with relevant company regulations. Chairman of the Board*, who chairs the Board of Directors, is responsible
for the supervision and oversight of the preservation and management of such documents and important information.
Documents concerning directors’ performance of their duties shall be preserved for at least ten (10) years and shall beaccessible whenever necessary.
*The case of vacant of the Chairman of the Board, CEO will perform the office of the Chairman.

(6) Provisions Concerning Employees Assigned to Assist the Corporate Auditors in Performing Their Duties,
the Independence from Directors of Such Employees, and the Validity of Instructions Given to Such Employees
The Company shall establish Teijin Group Auditors Office under the direct control of full-time corporate auditors andappoint two or more employees, in principle, to assist Corporate Auditors in performing their duties. The members of TeijinGroup Auditors Office may have corporate auditors of Teijin Group companies performing concurrent duties; however it
shall not have corporate officers connected with performance of duties at Teijin Group companies performing concurrent
duties.
To secure the independence of members of Teijin Group Auditors Office above, all decisions concerning personnel
measures regarding the members of Teijin Group Auditors require the prior consent of the full-time Corporate Auditors.
The full-time Corporate Auditors shall assess the performance of the members of Teijin Group Auditors Office.

55

(7) System for Reporting to Corporate Auditors by Directors, Corporate Officers and Employees of theCompany and its Subsidiaries, and System for Other Reports to Corporate Auditors
The full-time corporate auditors shall attend the meetings of the Board of Directors meetings and other important meetingbodies of the Company, as well as those of the important meeting bodies of the main subsidiaries.
Representative directors and other executives shall report at the meetings of the Board of Directors and otherimportant meetings on their performance of duties with regard to the business operations, functions and subsidiaries
under their charge.
The directors, officers and employees of the Company and its subsidiaries shall immediately report to the corporate
auditors when they discover incidents that causes or may cause significant erosion of public trust of the Company, adverse
effects on the performance of the Company, significant damage to the internal or external environment, safety and health(ESH); or related to product liability, significant violations of internal regulations, or other similar incidents.
The directors, officers and employees of the Company and its subsidiaries shall report on the business operations,functions, and subsidiaries under their charge, when they deem it necessary to do so, or at the request of the corporate
auditors of the Company, and shall cooperate with the investigations of the corporate auditors of the Company.

(8) System for Ensuring that Persons Reporting to the Corporate Auditors Are Not Subject to Unfair
Treatment Because of Such Reporting
The Teijin Group’s Corporate Code of Conduct and other regulations stipulate that no person shall be treated unfairly
because of reporting or giving notice of illegal conduct and so forth.

(9) Policy Concerning Processing of Expenses and Obligations Arising with Respect to the Corporate Auditors
Performance of Duties, Prepayment of Expenses, and Reimbursement Procedures
The Company shall bear the expenses and obligations required for the corporate auditors’ performance of duties, andshall promptly respond to requests for pre-payment of expenses in accordance with laws and regulations after checking therequests.

(10) Other System for Ensuring that the Audits of Corporate Auditors Are Conducted Effectively
To ensure transparency, the majority of corporate auditors consists of independent outside auditors that satisfy therequirements for independence that the Company specifies.
The corporate auditors shall enter into advisory agreements with outside law firms in order for themselves and corporate
auditors of the Company and its subsidiaries to form independent opinions. When they consider it necessary in the course of
conducting audits, the corporate auditors can, at their own discretion, retain outside advisers, including Certified Public
Accountants and other consultants.

56

8. Basic Policy Regarding the Control of the Company(1) Basic Policy Regarding the Companys Shareholders(Basic policy regarding those who control the decision of the companys financial and business policy)
The Company believes the existence of its shareholders is based on free transactions in the market and therefore theCompany’s shareholders should make the final decisions as to whether to accept a proposal of a large-scale acquisition
that would result in a transfer of the Company’s ownership.
However, it is envisioned that some large-scale acquisition of the Company’s shares or such proposals might entail,the following nature and other similar nature:
The likelihood of causing obvious harm to the corporate value of the Company and, in turn, the common interestsof the shareholders.
The threat of compelling the shareholders to sell their shares.
Acquisition conditions that are inappropriate or insufficient with a view to the Company’s intrinsic value.
The Company believes such a large-scale acquirer of the Company’s shares or a person or company who proposessuch an action is exceptionally inappropriate to control the decision of the Company’s financial and business policies.
(2) Measures to Realize the Basic Policy
The Company has already launched the following measures to improve the corporate value of the Company and thecommon interests of the shareholders to ensure that investors can continue to invest in the Company over the longterm. The Company believes such measures will contribute to the realization of the basic policy described in (1)above.
1) Enhancing corporate value through dramatic restructuring initiatives and forward-looking transformationand growth strategies, the twin pillars of our revised medium-term management plan
In November 2014, we introduced a revised medium-term management plan, which centers on restructuringinitiatives and transformation and growth strategies, to guide our efforts through fiscal 2016.
Under the plan’s restructuring initiatives, we are narrowing our focus by analyzing each of our businesses from theperspectives of market growth potential, competitive advantages and profitability, and will promote the targeted
allocation of corporate resources in promising businesses. We are also integrating and streamlining our production and
R&D bases, as well as revamping our business structure. We estimate that the combined positive impact of such
efforts on operating income will be ¥17.5 billion when fully realized.
Transformation and growth strategies will center on maximizing our position as a unique corporate entity withcapabilities in three business domains, namely, high-performance materials, healthcare and IT. Our emphasis going
forward will be on integrating capabilities and advantages from these domains to realize new value for customers. In
particular, we will seek to leverage key Teijin Group capabilities to capitalize on business opportunities in areas we
recognize as particularly promising—which we have grouped into three categories: environment and energy
conservation; safety, security and disaster mitigation; and demographic change and increased healthconsciousness—to foster groundbreaking, distinctively Teijin businesses.
Between now and the end of fiscal 2016, we expect results to be bolstered by the positive impact of restructuringinitiatives and by the growth of our core strategic advanced fibers and composites and healthcare businesses.
Accordingly, we are targeting ROE of 8% or higher in fiscal 2016. In the next few years, we will promote further
restructuring initiatives designed to unify our various materials businesses, in line with our ultimate goal of evolving
toward a solutions-oriented business model that is more than simply an extension of our traditional business model.
Through these efforts, we will endeavor to realize ROE of 10% or higher by around fiscal 2020.
Our basic policy for profit sharing is to ensure dividends are in line with our consolidated results. We also giveconsideration to the need to ensure financial soundness and to our ability to maintain stable dividend payments overthe medium to long term.
2) Measures to Improve Corporate Value through Strengthening Corporate Governance
As an essential system to achieve steady growth in the corporate value of the Company and the common interests ofthe shareholders, the Company has strived to strengthen corporate governance. Concretely, it is executed as shown
below ;
Separated and strengthened the decision-making and business operations and the monitoring/auditing 3 functions.
Established an Advisory Board as the Board of Directors’ consultative body that includes experts from Japan andoverseas to receive advice and recommendations on management of the entire Group, thereby enhancing theeffectiveness and transparency of management. The Advisory Board also evaluates the performance of top executives.
Established and disclosed the Corporate Governance Guide as a concrete guideline for corporate governance.
57

(3) Measures to Prevent Decisions on the Financial and Business Policies of the Company from Being
Controlled by Those Deemed Inappropriate in Light of the Basic Policy (Takeover Defense Measures)
The Company established the Countermeasures to Large-Scale Acquisitions of the Company’s Shares (Takeover
Defense Measures) (hereinafter, “the Plan”), which were approved by shareholders at the 146th Ordinary General
Meeting of Shareholders held on June 22, 2012. A summary of the Plan can be viewed at the Company’s Web site:(http://www.teijin.com/ir/governance/defense/).
*The Company passed a resolution, at the meeting of the Board of Directors held on May 8, 2015, to newly
introduce Countermeasures to Large-Scale Acquisitions of Teijin Shares (Takeover Defense Measures) (hereinafter,“New Plan”), in place of the plan which is due to expire at the conclusion of the 149th Ordinary General Meeting of
Shareholders to be held on June 24, 2015, conditional upon the approval of the New Plan by a majority vote ofshareholders present at said Ordinary General Meeting of Shareholders. For details the New Plan, please refer to the
14-25 pages for “Proposal 5: Renewal of the Countermeasure to Large-Scale Acquisitions of Teijin Shares (Takeover
Defense Measures)”.
9. Policy Regarding the Determination of Dividends from Retained Earnings
Our basic policy for profit sharing is to ensure dividends are in line with consolidated operating results. We also giveconsideration to the need to ensure financial soundness, to our ability to maintain stable dividend payments over the
medium to long term and to securing sufficient internal reserves to fund strategic investments aimed at ensuring future
growth.

58

Consolidated Balance Sheets
FY2013(As of Mar. 31, 2014)< Assets >Current assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Deferred tax assets
Other current assets
Allowance for doubtful accounts

33,134
165,239(Millions of yen)
FY2014(As of Mar. 31, 2015)

Total

79,0149,084
30,56918,644
7,269
24,639(2,687)364,908

45,719172,139
25,00078,357
8,194
28,781
16,421
7,123
25,375(1,108)406,004

Total

69,23891,42943,6909,297
23,204
236,861

60,752
71,111
43,810
10,24622,962
208,883

Total

15,806
13,651
29,457

9,408
11,218
20,62782,0682,059
28,8362,271
25,033(3,085)
137,184
403,502

119,915
2,199
34,5843,874
30,533(2,927)
188,179
417,689

768,411

823,694

Fixed assets
Tangible assets
Buildings and structures, net
Machinery and equipment, net
LandConstruction in progress
Other, net

Intangible assets
Goodwill
Other

Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total
Total fixed assets
Total assets

59Consolidated Balance Sheets< Liabilities >Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Deferred tax liabilities
Accrued expenses
Other
Total
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for business structure improvement
Net defined benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total
Total liabilities<Net assets>
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

60

FY2013(As of Mar. 31, 2014)(Millions of yen)
FY2014(As of Mar. 31, 2015)

80,00384,604
21,811
6,960
2,915
60
17,75734,550248,662

75,49556,427
20,57021,0596,680
33
21,05240,236
241,555

30,000136,401
30,204
1,245
9,782
12,001
219,635
468,298

55,188
153,517
14,68330,407
6,860
6,289
11,557
278,503
520,059

70,816
101,429
111,754(435)
283,564

70,816
101,447
101,201(426)
273,039

10,7581,017(13,025)(634)(1,884)24,226(2,569)(8,102)479
14,034

737
17,694300,112768,411844
15,716
303,635
823,694

Consolidated Statements of Income
FY2013(Apr. 2013-Mar. 2014)
784,424590,091
194,333
176,254
18,078Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Nonoperating revenues
Interest income
Dividends income
Equity in earnings of affiliates
Foreign exchange gains
Gain on valuation of derivatives
Miscellaneous income
Total
Nonoperating expenses
Interest expenses
Foreign exchange losses
Contribution
Miscellaneous loss
Total
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Other
Total
Extraordinary loss
Loss on sales and retirement of noncurrent assets
Loss on valuation of investment securities
Impairment loss
Business structure improvement expenses
Other
Total
Income (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total
Income (loss) before minority interests
Minority interests in income (loss)
Net income (loss)

506
957
4,181
1,495
1,405
8,546

61

(Millions of yen)
FY2014(Apr. 2014-Mar. 2015)
786,171569,499
216,672
177,586
39,086
622
1,308
2,435
1,031
2,663
1,109
9,170

3,358
287
1,043
2,048
6,737
19,887

3,067
903
1,907
5,877
42,378

151
8,296
690
9,139

748
94
115
958

1,676
106
8,781
2,385
1,557
14,507
14,519
5,126
2,781
7,907
6,611
(1,744)
8,356

1,283
4
30,375
16,7591,842
50,264(6,927)
11,521(8,446)
3,074(10,002)(1,915)(8,086)

Consolidated Statement of Changes in Net Assets
FY2014 (Apr. 2014 - Mar. 2015)(Million yen : amounts less than one million yen are omitted)
Shareholders' equity

70,816

101,429

Total
Treasury stock shareholders'equity111,754(435)
283,564

70,816

101,429

113,219

Retainedearnings

Capital stock Capital surplus
Balance as of March 31, 2014
Cumulative effects of changes in accounting policies
Restated balance

1,465

1,465
(435)

285,029

Changes of items during the period
Dividends from surplus(3,930)(3,930)Net income (loss)
Others(8,086)(8,086)

Purchase of treasury stock
Disposal of treasury stock

18

(23)
32

(23)
50

9
(426)

(11,989)
273,039

Net changes of items other than shareholders' equity
Total
Balance at March 31, 2015

70,816

18
101,447(12,017)
101,201

Valuation and translation adjustments

Balance as of March 31, 2014
Cumulative effects of changes in accounting policies
Restated balance

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Subscription
rights tosharesValuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

10,7581,017(13,025)(634)(1,884)

737

17,694

10,7581,017(13,025)(634)(1,884)

737

17,694

Total

Minority
interests

Total net
assets300,112
1,465
301,577

Changes of items during the period
Dividends from surplus
Net income (loss)
OthersPurchase of treasury stock
Disposal of treasury stock(3,930)(8,086)(23)
50

Net changes of items other than shareholders' equity

13,467(3,586)

4,923

1,113

15,918106(1,977)

14,047

Total

13,467
24,226(3,586)(2,569)4,923(8,102)

1,113
479

15,91814,034106
844(1,977)
15,716

2,057
303,635

Balance at March 31, 2015

62

(Reference) Consolidated Statements of Comprehensive Income

Income (loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates accounted for using equity
methodTotal
Comprehensive income (loss)
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income (loss) attributable to minority interests

63(Millions of yen)
FY2013
FY2014(Apr. 2013-Mar. 2014) (Apr. 2014-Mar. 2015)
6,611(10,002)(2,790)(50)
7,957

13,467(3,586)
3,995
1,737

1,504

421

6,620
13,232

16,035
6,033

14,992(1,760)7,832(1,798)(Reference) Consolidated Statements of Cash FlowsFY2013(Apr. 2013-Mar. 2014)
Cash flows from operating activities
Income (loss) before income taxes
Depreciation and amortization of others
Impairment loss
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in provision for business structure improvement
Interest and dividend income
Interest expense
Equity in losses (earnings) of affiliates
Loss (gain) on valuation of derivatives
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued payments due to change in retirement benefit
plan
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash and cash equivalents provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Decrease (increase) in short-term loans receivable
Payments of long-term loans receivableCollections of long-term loans receivable
Other, net
Net cash and cash equivalents used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash and cash equivalents provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
64

14,51945,663
8,781
1,424
1,258
(382)

(Millions of yen)
FY2014(Apr. 2014-Mar. 2015)(1,776)
3,358(4,181)(1,495)
1,524(8,289)106
8,591(2,370)(15,998)(6,927)43,03030,3755,420(2,781)(1,917)
14,683(1,931)
3,067(2,435)(2,663)
535
39
4
1,050
6,766
(9,626)(2,420)(2,082)(5,324)42,9895,403(3,663)(6,143)38,586

2,802
77,4107,067(3,189)(5,258)76,030(30,863)472(2,208)(21,202)
10,847(2,981)(55)
254(1,541)(47,278)(26,527)751(2,364)(22,052)
1,575
2,434
(1,908)329(1,861)(49,624)

11,135
11,110(21,631)51,730(55,339)(3,931)(553)(421)(7,902)869(15,725)
48,70032,975(36,295)
59,210(19,809)37,534(25,805)(3,930)(200)(309)
10,393786
37,58632,97570,561