May 26, 2014

Notice of Convocation
The 148th Ordinary General Meeting of Shareholders
Teijin Limited

Disclaimer: Please note that the following is a translation of the original Japanese documents prepared for theconvenience of our non-Japanese shareholders with voting rights. Although this translation is intended to be complete
and accurate, the Japanese original shall take precedence in the case of any discrepancies between this translation andthe original. Certain information regarding voting procedures that 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 aregistered 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 the meeting.

Contents
Notice of Convocation of the 148th Ordinary General Meeting of Shareholders
Reference Documents for the General Meeting of Shareholders
Proposals and Reference
Attached Reports
Reports on Operations for the 148th 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) Tasks Ahead(6) Primary Businesses(7) Primary Business Places(8) Employees(9) Significant Subsidiaries(10) Primary Lenders and Amount of Borrowings(11) Acquisition or disposal of the stocks and other shares of other companies, or a share stock option
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)
May 26, 2014
Dear Shareholder,

Notice of Convocation of
the 148 Ordinary General Meeting of Shareholdersth

You are cordially invited to attend the 148th 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., Thursday, June 19, 2014.(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,
Japan

Details
1. Date and Time of the Meeting:day, June 20, 2014, 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 148th Fiscal Year (April 1, 2013 to March 31, 2014)
Proposal for voting:
Proposal: Election of Ten (10) Directors

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 0f 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.

Reference Documents for the General Meeting of Shareholders
Proposal and Reference
Proposal: Election of Ten (10) Directors
The terms of office of ten (10) Directors— Shigeo Ohyagi, Norio Kamei, Osamu Nishikawa,Takashi Takahashi,
Yoshio Fukuda, Jun Suzuki, Hajime Sawabe, Yutaka Iimura, Nobuo Seki and Kenichiro Senoh—will expire at theconclusion 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
Joined Teijin Limited
Corporate Officer; Manager of Tokyo Branch, Medical &Pharmaceutical Business Division
Executive Officer; Deputy General Manager,
Jun. 2001
Pharmaceuticals Marketing Division
General Manager, Medical & Pharmaceutical Business
Apr. 2002
Division
Jun. 2002
Senior Executive Officer
Apr. 2003
General Manager, Medical & Pharmaceutical Business
Group
Oct. 2003
President & Representative Director, Teijin Pharma
LimitedApr. 2005
CIO (Chief Information Officer), Teijin Limited
Jun. 2005
Managing Director
Jun. 2006
Senior Managing Director
Apr. 2007
CSO (Chief Strategy Officer)
Jun. 2008
President ,Representative Director ,CEO (Chief Executive officer)
Jun. 2010
President , Teijin Limited
Apr.2014
Chairman of the Board (Incumbent),<Significant Concurrent Positions>
Chairman, Japan Bio Plastics Association
Permanent Officer, Keidanren(Japan Business Federation)

Number ofCompany’s
Shares Owned

Mar. 1971
Jun. 1999

1

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

212,000
shares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>
9 times out of 9 (100%)

Apr.2013

June.2013
Apr.2014

Apr. 1975
Jun. 2004
Jun. 2006
Jun. 2007
Apr. 2008

3

Osamu Nishikawa(April 14, 1950)<Participation in Board of
directors meetings>
12 times out of 12 (100%)

Jun. 2008
Apr. 2010
Apr. 2011

Jun.2011
July 2011
Apr.2012

June 2012

Joined Teijin Limited
President, Teijin Holdings Netherlands B.V.
Corporate Officer, Teijin Limited
Chief Marketing Officer
Director, BRICs business
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
President , (Incumbent)
Representative Director , (Incumbent)
CEO (Chief Executive officer) (Incumbent)
Joined Teijin Limited
Corporate Officer, Teijin Limited
Director, Teijin Pharma Limited
Executive Officer, Teijin Limited
Senior Managing Director & Representative Director,
Teijin Pharma Limited
General Manager, Medical & Pharmaceutical BusinessGroup, Teijin Limited
President & Representative Director, Teijin Pharma
LimitedSenior Executive Officer, Teijin Limited (Incumbent)
CIO (Chief Information Officer), Teijin Limited
CSRO (Chief Social Responsibility Officer), Teijin
LimitedSupervisor of Legal Office and Corporate Audit OfficeDirector
Director, Effective Utilization of Factories Project(Incumbent)
Chief Social Responsibility Officer(Incumbent)
Supervisor of Corporate Audit Office(currently Corporate
Audit Department ) (Incumbent)
Representative Director (Incumbent)

Number ofCompany’s
Shares Owned

50,000Shares46,000SharesNo.

Candidate’s Name
(Date of Birth)

Personal History, Positions andSignificant Concurrent Positions
Apr. 1976
Jun. 2006

May. 2007
Apr. 20104

Yoshio Fukuda(March 1, 1953)<Participation in Board of
directors meetings>
12 times out of 12 (100%)

Jun. 2010
Jun.2011
Apr.2012

Apr.2013
Apr.2014
Apr.1977
Apr.2009*5

Yo Goto(January 23,1953)

Jun.2009
Apr.2012
Apr.2013
Apr.2014

Apr.1980
Jun,2009
Apr.2010*6

Yoshihisa Sonobe(October 17,1956)

Apr.2011

Apr.2012
Apr.2014

Joined Teijin Limited
Corporate Officer, Teijin Limited
Director & General Manager, Raw Materials & Polymers
Business Division, Teijin Fibers Limited
President & Director, P.T.Teijin Indonesia Fiber
Corporation Tbk
General Manager , Corporate Strategy Division, Teijin
LimitedDirector, Teijin Limited (Incumbent)
Executive Officer
Chairman, Teijin DuPont Films(Incumbent)
General Manager, Electric Materials & Performance
Polymer Products Business Group (Incumbent)
General Manager, Resin & Plastic Processing Business
Unit
President & Representative Director, Teijin Chemicals
Ltd.
Vice-President & Representative Director, Win
Tech Polymer
Senior Executive Officer (Incumbent)
General Manager, Films Business Unit (Incumbent)
Joined Teijin Limited
CENO(Chief Engineering Officer)
Deputy CSRO (Chief Social Responsibility Officer), (forAccident/Disaster/Fire Prevention)
President & Representative Director, Teijin Entech
Co., Ltd.
Corporate Officer, Teijin Limited
Chief Engineering Officer
Executive Corporate Officer, Teijin Limited (Incumbent)
General Manager, Technology Center(Incumbent)
Supervisor of Iwakuni, Matsuyama and Mihara factory(Incumbent)
Joined Teijin Limited
Corporate Officer, Teijin Limited(Incumbent)
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,
CFO
General Manager, Accounting and Finance Division
Teijin Creative Staff Co., Ltd. Representative Director,
Executive Officer(General Manager, Accounting and
Finance Division)
Member, Global Policy Board Teijin Dupont Films
Global Joint Venture(Incumbent)
CFO, Accounting, Finance & IR DivisionCorporate Strategy Officer(Incumbent)
For Raw Materials & Polymers Division(Incumbent)

Number ofCompany’s
Shares Owned

62,000Shares37,000Shares

16,000sharesNo.

Candidate’s Name
(Date of Birth)8

Number ofCompany’s
Shares Owned

Joined Tokyo Denki Kagaku Kogyo K.K. (currently TDK
Corporation)
Director, TDK Corporation
Jun.1996
President & Representative Director, TDK Corporation
Jun.1998
Chairman & Representative Director, TDK Corporation
Jun.2006
Director, Teijin Limited (Incumbent);
Hajime Sawabe
Jun.2008
Member of the Advisory Board, Teijin Limited
39,000(January 9, 1942)<Participation in Board of(Incumbent)
Sharesdirectors meetings>
Jun.2011
Chairman of the Board & Director, TDK Corporation
12 times out of 11 (92%)
Jun.2012
Counselor , TDK Corporation (Incumbent)<Significant Concurrent Positions >Counselor, TDK Corporation
Outside Corporate Auditor, Nikkei Inc.
Councilor , Waseda University<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.
Joined Ministry of Foreign Affairs, Japan (MFA)
Candidate for Outside
Apr.1969
Director, General, Economic Cooperation Bureau, MFA
Director
Aug.1999
Deputy Vice-Minister, MFA
Feb. 2001
Assistant Vice-Minister, MFA
Sep. 2001
Ambassador of Japan in Indonesia
Jul. 2002
Ambassador of Japan in Indonesia and the Democratic
Nov.2002
Republic of Timor-Leste (East Timor)
Yutaka Iimura(October 16,1946)
Apr. 2006
Ambassador of Japan in France and<Participation in Board of
The Principality of Andorra (Andorra)
directors meetings>
May.2007
Ambassador of Japan in France, Andorra
12,00012 times out of 11 (92%)
and the Principality of Monaco
SharesJul. 2009Retired from MFA
Jul. 2009
Special Envoy of the Government of Japanfor the Middle East and Europe (Incumbent)
Jun.2011
Director, Teijin Limited (Incumbent)
Member of the Advisory Board, Teijin Limited(Incumbent)<Significant Concurrent Positions>
Special Envoy of the Government of Japan for the Middle East and Europe
Vice-Chairman, Japan Indonesia Association<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.
Candidate for Outside
Director

7

Personal History, Positions andSignificant Concurrent Positions
Apr.1964

No.

Candidate’s Name
(Date of Birth)10

Number ofCompany’s
Shares Owned

Joined Chiyoda CorporationVice-President, Chiyoda International Corporation
Director, Chiyoda Corporation
Managing Director, Chiyoda Corporation
Senior Managing Director & Representative Director,
Chiyoda Corporation
Nobuo Seki
President & CEO, Chiyoda Corporation(September 21,1944)
Apr.2001<Participation in Board of Apr.2007
Chairman of the Board, Chiyoda Corporation
8,000
directors meetings>
Apr.2009
General Corporate Advisor , Chiyoda Corporation
Shares
12 times out of 12 (100%) Jun.2012
Director, Teijin Ltd (Incumbent)
Member of the Advisory Board, Teijin Limited(Incumbent)
Jul.2012
Adviser Chiyoda Corporation<Significant Concurrent Positions>
Outside Corporate Auditor, SUGIYO Co., Ltd.
Professor , Graduate School of Shibaura Institute of Technology
Member of Management Committee , Tokyo Institute of Technology<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.
Joined Fuji Photo Film Co., Ltd.(currently FUJIFILM
Candidate for Outside
Apr.1976
Corporation)
Director
Representative Vice-President Keio Academic Enterprise
Dec.1999
Co., Ltd.
Professor, Graduate school of Keio University Media and
Kenichiro Senoh
Apr.2001
Government(January 1,1954)
President & Chairperson, The Industry- Academic<Participation in Board of Apr.2004
directors meetings>
Collaboration Initiative (NPO) (Incumbent)
12 times out of 12 (100%) Jun.2012
Director, Teijin Limited (Incumbent)
18,000Member of the Advisory Board, Teijin Limited
Shares(Incumbent)<Significant Concurrent Positions>
President & Chairperson, The Industry-Academia Collaboration Initiative(NPO)
Chairman, Intellectual Property Strategy Headquarters By Intellectual
President, CIEC( Community for Innovation of Education and learning
through Computers and communication networks
Committee Member, Ministry of Agriculture, Forestry and Fisheries ,Agriculture, Forestry and Fisheries Research Council<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.
Candidate for Outside
Director

9

Personal History, Positions andSignificant Concurrent Positions
Apr.1970
Apr.1992
Jun.1997
Jun.1998
Aug.2000

Notes: 1. The candidate marked with * are candidates for new Directors.
2. 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 9-10 page the contents of the requirements of “Independent
Director” stipulated by the Company.
3. 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 of Incorporation.
In case the election of is approved, the Company intends to enter into the same liability limitation agreement withthem.

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

6 years

Yutaka Iimura

June 22, 2011

3 years

Nobuo Seki

June 22, 2012

2 years

Kenichiro Senoh

June 22, 2012

2 years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 more
(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.

Attached Reports
Reports on Operations for the 148th Fiscal Year (April 1, 2013 to March 31, 2014)
1.Current State of the Teijin Group(1)Progress and Results of Operations
1)Progress and Results of Operating Activities
Sales and Income
While the pace of economic growth in developed countries, particularly the United States, saw a gradual return tostability, growth worldwide lacked strength in fiscal 2013, ended March 31, 2014, as conditions in emerging
economies, notably the People’s Republic of China (PRC), remained generally weak. In Japan, signs of revival
persisted, shored up by firm domestic demand, but a self-sustained recovery remained elusive, owing to a variety offactors, including the weakness of both exports and capital investment.
In this environment, consolidated net sales rose 5.2%, to ¥784.4 billion. Despite sagging results in the Electronics
Materials and Performance Polymer Products segment, operating income climbed 46.3%, to ¥18.1 billion, as results in
the Advanced Fibers and Composites segment recovered. Ordinary income, at ¥19.9 billion, was approximately double
the fiscal 2012 result, an improvement attributable to the positive impact of an adjustment for tax effect accounting on
the results of equity method affiliates, among others. Net income amounted to ¥8.4 billion, up from a net loss of ¥29.1
billion in fiscal 2012, owing to the impact of extraordinary items, which included a gain on sales of investment
securities and a decrease in impairment loss on fixed assets. Net income per share was ¥8.50.

Analysis of Assets, Liabilities and Net Assets
Total assets as of March 31, 2014, amounted to ¥768.4 billion, up ¥6.0 billion from the end of fiscal 2013, as theweaker yen enhanced the value of assets denominated in other currencies. While stock purchases and other factors led
to a sharp increase in the value of investment securities, cash and time deposits declined. The impact of depreciationand impairment accounting pushed down noncurrent assets.
Total liabilities, at ¥468.3 billion, were down ¥2.0 billion from the fiscal 2013 year-end. Interest-bearing debt, which
includes short-term loans payable and long-term loans payable, rose ¥10.8 billion, to ¥281.5 billion, mainly a result of
an increase in the yen value of outstanding debt denominated in other currencies, owing to the depreciation of the yen.
Total net assets advanced ¥8.0 billion, to ¥300.1 billion. Total shareholders’ equity and total valuation and translation
adjustments together represented ¥281.7 billion of the total, up ¥10.4 billion. This increase was attributable to, among
others, an increase in net income and a decline in the deduction for foreign currency translation adjustments.

Segment operating results (sales and operating income) of the Teijin Group are as follows.

Net sales
Operating income

Advanced Fibers and Composites
Electric Materials & Performance
Polymer Products Polymer
Health Care
Products Converting
Sub-Total
Others
Total
Advanced Fibers and Composites
Electric Materials & Performance
Polymer Products
Health Care
Products Converting
Sub-Total
OthersElimination and corporate
Total(Billions of yen / %)ChangePercentage
¥12.4
11.1%

Fiscal 2012¥111.2

Fiscal 2013¥123.6

175.5

179.4

3.9

2.2

138.3
237.2
¥662.283.5¥745.7
-¥4.7

138.4
254.2
¥695.688.8¥784.4
¥5.7

0.1
17.0
¥33.4
5.3
38.7
¥10.4

0.1
7.2
5.0
6.4
5.2
-

-1.9

-7.2

-5.3

-

24.8
4.7
¥22.9
4.2
(14.8)
¥12.4

24.5
5.2
¥28.2
1.7
(11.9)
¥18.1

-0.3
0.5
¥5.3
-2.5
2.9
¥5.7

-1.1
10.0
23.3
-58.9
46.3

Business Segment Results for fiscal 2013 were as follows:

Advanced Fibers and Composites
Sales in the Advanced Fibers and Composites segment totaled ¥123.6 billion (Increase of 15.8% compared with thepreceding term) , while operating income was ¥5.7 billion(Increase of ¥10.4billion compared with the preceding term).

High-Performance Fibers
Demand recovered, led by that for automotive applications.
Sales of Twaron para-aramid fibers for automotive applications, including tires, recovered in Europe, while sales forinfrastructure-related applications, including optical fiber and rope reinforcements, were firm. In contrast, demand for use inballistic protection products and protective clothing remained lackluster, while pricing competition for all applications
intensified. Demand for Technora para-aramid fibers was stable in Japan for automotive applications, while the weakeningof the yen enhanced the profitability of exports. Teijinconex meta-aramid fibers benefited from firm demand for industrial
applications, while demand for use in filters expanded despite mounting competition. In polyester fibers for industrial
applications, solid sales for automotive and certain other applications helped revive income at our subsidiary in Thailand,
but profitability in Japan was hampered by rising prices for a number of raw materials.
Under these circumstances, we resolved to commercialize a new type of meta-aramid fiber offering superior heat resistanceand dyeability and proceeded with preparations to begin production in Thailand in July 2015. Against a background ofincreasingly stringent regulations pertaining to heat-resistant materials and environmental safety, we will focus on
expanding our business in promising Asian markets and emerging economies. In the PRC, our polyester recycling joint
venture in Zhejiang Province pushed ahead with the construction of a new facility in preparation for the start of operations
in fiscal 2014.

Carbon Fibers and Composites
Sales for principal applications were encouraging.
Demand for TENAX carbon fibers for use in aircraft remained firm, while among general industrial applications demand foruse in pressure vessels for natural gas extraction was favorable in North America, supported by the expansion of shale gas
development. However, demand for other applications languished, reflecting the uncertain economic outlook in Europe and
the PRC. Sales prices, persistently low in recent years, showed signs of recovering, although the outlook remained difficult
to gauge, owing to sales offensives by other manufacturers, particularly late market entrants overseas. In this environment,
steps aimed at strengthening our operations in promising Asian markets, notably India and the Association of Southeast
Asian Nations (ASEAN) region, proceeded smoothly. These include the establishment in July 2013 of Toho Tenax
Singapore Pte. Ltd.
During the period, the Teijin Composites Innovation Center—a facility in Matsuyama, Ehime Prefecture, that spearheads
research in the area of advanced composite materials—sought to cultivate markets for our new thermoplastic carbon
fiber-reinforced plastic (CFRP), which is marketed under the brand name Sereebo, an acronym for “save the earth,revolutionary and evolutionary carbon.” Efforts focused particularly on carving out markets for automotive and generalindustrial applications. Underscoring its revolutionary nature, Sereebo was chosen for use in the structural components ofseveral new digital single-lens reflex (SLR) cameras. Going forward, we will further capitalize on the ability of CFRP to
reduce the weight of finished products to promote Sereebo’s use in structural components for mass-produced vehicles,
which we see as a significant latent market. To this end, our thermoplastic CFRP pilot plant, situated within the Matsuyama
Plant, 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 establishing mass-production procedures, and are making
steady progress on both fronts.

Electronics Materials and Performance Polymer Products
The Electronics Materials and Performance Polymer Products segment reported sales of ¥179.4 billion (Increase of 2.2%
compared with the preceding term) and an operating loss of ¥7.2 billion (Decrease of ¥5.3billion compared with thepreceding term)

Resin and Plastics Processing
A supplydemand imbalance persisted for polycarbonate resin.
Pricing competition in the market for mainstay polycarbonate resin intensified, owing to sluggish demand —a consequenceof decelerating growth in the PRC, among others—and moves by competitors to maintain operating rates and implement
year-end inventories adjustments. Under these circumstances, we sought to preserve sales volumes through flexible pricing
and to reduce costs by suspending production on certain lines at our plant in Singapore. Despite these actions, profitability
was severely undermined.
In the area of specialty polycarbonate resin, sales were steady in Taiwan, the PRC and the Republic of Korea (ROK) for use
in lenses for smartphone and mobile phone cameras and for onboard vehicle cameras. In processed plastics products, salesof Panlite Sheet were encouraging for use in dummy cans for vending machines, automotive instrument panels andmotorcycle windshields, as were sales of PURE-ACE polycarbonate retardation film for use as antireflective film in vehicle
navigation systems. In plastic glazing*, in October 2013 Nissan Motor Company began using Panlite polycarbonate resin
for the driver–passenger partition in its NV200 taxicabs, which it markets to taxi operators in New York City. With the goalof building plastic glazing into a full-scale business, we also took steps to create a dedicated production configuration. Other
highlights included the addition of Fireguard FCX-210, a new phosphorus flame retardant suitable for use in a broad rangeof resins, to our lineup, which previously centered on brominated products, positioning us to market flame retardants forelectronics, automotive and other applications.

Films
The integration of domestic polyethylene terephthalate (PET) film production facilities continued to bolster costcompetitiveness.
We have a number of polyester films joint ventures with E.I. du Pont de Nemours and Company (DuPont) of the UnitedStates around the world. In the area of products for electronics applications, sales of release films for manufacturing
processes remained firm for use in smartphones and tablet computers. In contrast, films for use in liquid crystal display(LCD) televisions struggled, owing to a glut of LCDs in the market and increasingly fierce competition with overseas films
manufactures, which have driven down sales prices. Demand for films for specialized packaging and for magnetic
applications tapered, as a result of which profitability waned. In this environment, we suspended operations on the PET film
line at our domestic joint venture’s Ibaraki factory and integrated the company’s other production facilities. Looking ahead,
we will focus on further enhancing production line efficiency, with the aim of restoring cost competitiveness. In the area of
release films for manufacturing process and other applications, we will endeavor to fortify collaboration with customers, aswell as to broaden marketing.
Overseas, cost reductions were insufficient to offset flagging demand in the United States. In contrast, sales in Europe were
solid for packaging and general industrial applications. With demand in the PRC steady, despite the impact of facility
expansion by local manufacturers, which amplified competition, we sought to maintain profitability by leveraging our
superior technological and quality control capabilities.

* Made with injection-molded polycarbonate resin, plastic glazing is an attractive alternative to metal and glass for vehicle

parts.

Healthcare
Sales in the Healthcare segment came to ¥138.4 billion (Increase of 0.1% compared with the preceding term), while
operating income was ¥24.5 billion (Decrease of 0.1% 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 launch of rival products, aswell as to rising sales of generic drugs. Despite overall market conditions, sales of hyperuricemia and gout treatment
Feburic (febuxostat) expanded favorably, further boosting our leading share of the Japanese market for such treatments. We
also continued working to achieve further market penetration for osteoporosis treatment Bonalon® by adding new
formulations to our osteoporosis drug lineup, including an intravenous and an oral jelly, both firsts for Japan.
Sales of febuxostat also continued to expand favorably overseas. We have secured exclusive distributorship agreements forfebuxostat covering 117 countries and territories. The drug is currently sold in 37 of these countries and territories, and weare in the process of obtaining regulatory approval to make it available in the others.
In R&D, we commenced clinical trials in Japan for ADC3680 (development code: PTR-36)—a treatment for bronchialasthma licensed in from U.K. firm Pulmagen Therapeutics (Asthma) Limited—in June 2013. In the United States, we
proceeded with clinical development of KTP-001, a treatment for herniated lumbar discs, which began in 2012. In
February 2014, we filed an application with Japan’s Ministry of Health and Welfare for approval to manufacture and market
NA872ET, a small, sustained-release tablet form of expectorant Mucosolvan. We also pressed forward with clinical trials for
new indications for other drugs in our portfolio.
Also in June 2013, we concluded a drug discovery contract and an R&D and marketing option agreement with Amgen Inc.
of the United States for novel treatments for autoimmune diseases. Under this agreement, we will collaborate with Amgenin research aimed at discovering truly groundbreaking new drugs.

Home Healthcare
Rental volumes remained high or increased.
We currently provide home healthcare services to approximately 430,000 individuals in Japan and overseas. In Japan, rental
volume for mainstay therapeutic oxygen concentrators for home oxygen therapy (HOT) remained firm, thanks to the releaseof new therapeutic oxygen concentrator models Hi-Sanso 3S and Hi-Sanso Portable (alpha). Rental volume forcontinuous positive airway pressure (CPAP) ventilators for the treatment of sleep apnea syndrome (SAS) advanced
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 enhance the effectiveness of treatment. Rentals of ournoninvasive positive pressure ventilators (NPPVs) (the NIP NASAL series and AutoSet CS) and for SAFHS (Sonic
Accelerated Fracture Healing System) also rose encouragingly. To fortify support services for individuals, we established a
new home healthcare call center in Osaka, improving our ability to respond effectively to patient needs. In April 2013, welaunched the WalkAide System, a neuromuscular electrical stimulation device for the treatment of gait impairment resulting
from stroke. Looking ahead, we will gradually broaden marketing efforts for this device, which initially focused on medical
institutions in the Tokyo metropolitan area, with the goal of expanding rentals.
Overseas, we currently provide home healthcare services in the United States, Spain and the 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 and other factors. We responded by taking steps to restore profitability, including
integrating sales bases and reducing headcount.



Bonalon® is the registered trademark of Merck Sharp & Dohme Corp., Whitehouse Station, NJ, U.S.A.
KTP-001 was discovered and is under development by Teijin Pharma Limited and Kaketsuken (The
Chemo-Sero-Therapeutic Research Institute), a general incorporated foundation, based on an enzyme
engineered by Professor Hirotaka Haro of the University of Yamanashis Graduate School of Medicine andEngineering Advanced Medical Science and Dr. Hiromichi Komori, assistant head of the Department ofOrthopaedic Surgery at Yokohama City Minato Red Cross Hospital.

Products Converting
The Products Converting segment yielded sales of ¥254.2 billion (Increase of 7.2% compared with the preceding term) andoperating income of ¥5.2 billion (Increase of 10.0% compared with the preceding term).
During the period, the segment sought to showcase the board synergies between its trading and manufacturing businesses,
which enable it to propose innovative solutions.
In the fiber materials and apparel business, exports of textiles for use in fashion apparel and sportswear were robust toEurope and North America, bolstered by the depreciation of the yen. To expand sales, we promoted the development ofstate-of-the-art high-performance materials, including the Delta series, created in collaboration with leading sportswear
manufacturers overseas, as well as by enhancing our fabric supply capabilities in the ASEAN region.
In textiles and apparel, we stepped up efforts to shore up our production bases in the ASEAN region, including our new
subsidiary in Myanmar, to reinforce our integrated global supply configuration, which encompasses everything from raw
materials through to finished products. Sales in our mainstay OEM business rose on the strength of favorable shipments inearly autumn and last-minute demand in advance of a consumption tax hike in Japan, although yen depreciation and higher
production costs overseas combined to squeeze profitability in all product categories.
In industrial textiles and materials, sales of materials and components for use in seats, tires and transmission belts and hoses
increased sharply worldwide, as production and sales levels at domestic and overseas automakers remained solid. In
general-purpose materials, shipments of tents and materials for fisheries applications slowed as reconstruction-related
demand in areas affected by the Great East Japan Earthquake wound down, but sales of materials for civil engineering andconstruction-related applications were firm, as were sales of sewing thread. Shipments of interior materials and films andplastics slackened, a consequence of sluggish market conditions.
In this environment, subsidiary Teijin Frontier Limited, which marked its first anniversary, staged a comprehensive
exhibition of segment products. Through this event, the company sought to encourage customer and market appreciation forthe broad synergies it realized as a company that combines the functions of a trading company and a manufacturer.

OthersOthers, which does not qualify as a reportable operating segment, generated sales of ¥88.8 billion (Increase of 6.4%
compared with the preceding term) and operating income of ¥1.7billion (Decrease of 58.9% compared with the precedingterm).
In the IT business, sales from the distribution of e-books and other factors contributed to firm sales in the net services
category. To create an operating structure capable of supporting the further expansion of this business, we spun off the net
services operations of subsidiary Infocom Corporation into a separate company, which began operating in October 2013
under the name Amutus Corporation. The new company’s sales from the distribution of e-books have continued to expand
since and are currently estimated at ¥10 billion-plus on an annual basis. We also took steps to bolster our share of thehealthcare-related information services market, including acquiring the medical radiology information systems business of
AJS Inc. Going forward, we will seek to further strengthen our ability to develop and market sales support systems forpharmaceuticals manufacturers.
In the polyester raw materials and polymerization business, we discontinued in-house production and sales of paraxylene(PX) in March 2014. This move was in response to a disruption of the supply–demand balance, which significantly
damaged profitability.
In new business development, we sought to expand sales of LIELSORT lithium-ion battery (LiB) separators, manufactured
in the ROK, to capitalize on soaring demand for these separators—which have already been adopted for use by multiple
battery manufacturers—in promising Asian markets. On another front, we responded to rapidly increasing wastewater
treatment needs in the PRC by expanding related operations in that country, which are anchored by subsidiary Teijin(Shenyang) Environmental Technologies Co., Ltd. We also moved ahead with efforts to commercialize nanosilicon inks,
which are used in printable electronics; BIOFRONT, a highly heat-resistant bioplastic that is attracting increased attention
for use in shale gas and petroleum extraction; and advanced medical materials, including those for tissue repair and drugdelivery systems. With the aim of hastening the commercialization of promising new products, in April 2014 wereorganized our New Business Development Group and renamed it the New Business Development Business Unit.

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 the Group’s important effort relating to all business operations. Specifically, as an effort
to reduce the environmental burden to address climate change issues, the Group had endeavored to cut CO2 emissions at
its domestic locations for production, logistics and office operations aiming toward a reduction target of 20% or more ofgreenhouse gas emissions by fiscal 2020 compared with fiscal 1990 levels. As a result of such efforts, the Group has
already achieved a more than 50% reduction, reaching the target ahead of schedule. Furthermore, throughout the entire
Group, including our overseas bases, we are striving to attain our new annual target of a 1% or more reduction in CO2emissions. To reduce waste, we strove to reduce total waste emissions and promoted various recycling processes. As aresult of such efforts, the Group has already achieved a reduction of 90% or more in the amount of non-recyclable waste
emissions compared with the fiscal 1998 levels, exceeding the target of a reduction of 85% well ahead of the fiscal 2020
schedule.
The Group’s efforts to reduce its environmental impact also include the Design for Environment initiative: All of our
products, manufacturing processes and IT services are designed to minimize their environmental impact in accordancewith the Teijin Group Design for Environment Guidelines, which assess the environmental impact throughout a product’s
life cycle. In addition, the reduction of environmental impact is promoted by 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 line with the social contribution policy shared by all Group companies, the Group is actively engaged in corporatesocial contribution activities leveraging the distinctive characteristics of each business group and each region.
For the areas affected by the Great East Japan Earthquake, the Group continued to provide support for restoration, mainly
by promoting interaction via Iwanuma “House for Everyone”.1 The facility was established in 2013 in Iwanuma-shi,
Miyagi Prefecture, by Infocom Corporation, a Group company operating in the IT business. In March 2014, we provided
support for the operation of a Junior Soccer Camp in Iwanuma-shi, inviting coaches from FC Schalke 04, a renowned
foreign soccer club on which Atsuto Uchida plays, when he is not representing Japan in international competition.
As part of our international exchange activities, Nantong Teijin Co., Ltd., a Group company in China, is contributing toNantong, Jiangsu, China, to establish a Nantong Teijin charitable scholarship fund to supply scholarships to students from
low-income families in the city. Teijin Polyester (Thailand) Limited, a Group company in Thailand, is helping teachchildren in Southeast Asia the joy of soccer as an official sponsor for the Japan Dream Football Association (JDFA),2 a
general incorporated association. The Group also participated in “TABLE FOR TWO” 3, an initiative that helps to solve
social issues such as starvation in developing nations. We also continued the “Book Dream Project” by providing picture
books to libraries in Indonesia and Thailand. This is made possible through the efforts of the Group’s employees who sell
used books and other items to purchase the picture books.
The Group encourages the participation of its employees in volunteer activities, adopting days off and leave reserved forvolunteer activities. We promote the Volunteer Support Program, which financially supports the volunteer activities of
employees of the Group companies and is funded by donations from volunteer employees and financial aid from Group
companies. Moreover, the Group has an authorized leave system for bone marrow transplant donors and registeredvolunteer firefighters at local communities.
To be a conscientious corporate citizen that can cohabitate in harmony with society, the Group will promote active
participation and support for academic, educational, cultural and sports activities, as well as environmental preservationand disaster prevention activities.
Notes: 1. Iwanuma “House for Everyone”, which was established by Infocom Corporation in Iwanuma-shi, Miyagi Prefecture,
to provide continuing support for the areas affected by the Great East Japan Earthquake, is a multipurpose facility
equipped with IT equipment such as optical lines, personal computers and videoconferencing systems. This facility
has been used as a venue for community residents to gather and communicate and to revitalize agriculture.
2. The Japan Dream Football Association (JDFA) was organized in 2011 by Masao Kiba, a former captain of GAMBAOSAKA, a member of Japan’s professional football league, the J.League, a general incorporated association. In searchof the first J.League player from Southeast Asia, JDFA is holding soccer clinics in Southeast Asian countries, visiting
and assessing local leagues, evaluating and selecting high potential players, and scouting for talent, etc., throughwhich JDFA seeks to offer a dream to children along with our aim to develop Japanese and Asian soccer leagues.
3. TABLE FOR TWO is a social contribution initiative originated in Japan and led by the nonprofit organization
TABLE FOR TWO International. Part of the sales of the beverage vending machines and company cafeterias
participating in the initiative is donated to provide school lunches to children in developing countries.

(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)145th Fiscal Period 146th Fiscal Period 147th Fiscal Period 148th Fiscal Period
FY2011FY2012FY2013
FY2014(Current period)
815,655
854,370
745,712784,424
48,56034,044

12,357

18,07850,34534,283

9,786

19,88725,182

11,97929,130

8,356

25.59

12.17

29.61

8.50

761,534

762,118

762,399

768,411

307,698

312,217292,127

300,112(3) Capital Investments
Capital investments by the Group in fiscal 2013 totaled ¥ 30.2 billion, mainly for maintenance and renewal..

(4) Financing
While raising long term debts partially to secure finance, for short-term financing, we made efforts to reduce financing
costs through direct financing markets. We also strove to reduce interest-bearing debt, but resulting in an increase ininterest-bearing debt in long- and short-term loans by ¥10.8 billion from the end of the previous year and amounted to¥281.5billion by the effect of fluctuation exchange (depreciation of the yen) in foreign-currency interest-bearing debt.

(5)Tasks Ahead
In the coming years, the evolution of emerging economies is likely to further intensify global competition. This, combinedwith changes in structure of key markets and ever-shorter product and technology life cycles, is expected to result in an
increasingly harsh operating environment. In response, we will remain committed to creating value for customers by driving
our evolution toward a solutions-based business model, as set forth in our current medium-to lomg-term management vision.
To this end, we will continue to implement a variety of measures—balancing our two key priorities, namely, businessrestructuring initiatives and growth strategies—with the aim of achieving sustainable growth.
The goal of restructuring initiatives, which commenced in fiscal 2013, is to further rationalize our business portfolio byreassessing current businesses using four basic criteria: market potential, technological superiority, profitability andsuitability for our business model. Based on this, we will take steps to optimize the scale, location and configuration of
production in each area using five specific approaches:• Shut down/integrate production and R&D facilities in Japan and overseas• Actively seek beneficial strategic alliances, OEM arrangements and M&A opportunities• Optimize the location and scale of commoditized materials businesses and concentrate investment in growth businesses• Increase the efficiency of support departments and promote ongoing Groupwide efforts to reduce costs
Growth strategies will center on the continued allocation of management resources to core strategic business, namely
advanced fibers and composites and healthcare, as well as to areas that overlap these businesses, with the aim of boosting
operating results in the years ahead. In our materials businesses, we will expand our focus to also include components,
finished products and services, capitalizing on our high-performance materials, which help make the items in which they areused smaller, lighter, stronger and more attractive, and on our technologies, which facilitate the production of composites
combining multiple materials. In healthcare, we will work to accelerate business growth by further maximizing synergies
between our pharmaceuticals and home healthcare businesses and by capitalizing on our nationwide home healthcare
service network. We will also draw on the collective capabilities of the Teijin Group to cultivate new businesses that
integrate materials or healthcare and in some cases also incorporate IT services, thereby positioning us to secure profitable,
sustainable growth, as well as to build value that responds to the needs of our customers and society at large.

(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, 2014)
Business Segments
Business Fields
Principal Products and Businesses
Advanced Fibers andAramid 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
Oxygen Concentrator for home oxygen
Therapy(HOT), Continuous Positive Airway Pressure Unit
(CPAP), Ultrasound Bone Fracture Treatment Devices
Products Converting
Textiles and Apparel Fiber materials, Textiles, Apparel products, General merchandise
Industrial Textiles
Industrial and vehicle materials, Living and interior goods,
and Materials
Resin films, Packing and construction materials,
OthersIT Services
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
Net BusinessSupply of contents and e-commerce, etc. for cell phones or
smartphones
Raw Materials,
PET / PEN recycle, Polyester raw materials
Polymers
Notes: PET (Polyethylene terephthalate), PEN (Polyethylene naphthalate), PBN (Polybutylene naphthalate)(7) Primary Business Places
Business
The Company
Advanced Fibers andComposites

Electric Materials &Performance Polymer
Products

Health Care

Products Converting

OthersFunction
Headquarters
Manufacturing
bases
Operation bases(As of March 31, 2014)
Location

Osaka, Tokyo
Ehime, Yamaguchi, Shizuoka, Gifu
U.S.A., Germany, the Netherlands, China ,Thailand
Tokyo, Osaka
U.S.A., Germany, the Netherlands, China ,Thailand
Research bases Osaka, Shizuoka, Ehime
U.S.A., Germany , the Netherlands ,Thailand
Manufacturing Gifu, Tochigi, Ehime, Hiroshima
bases
China, Singapore, Indonesia
Operation bases 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 bases 12 branches throughout Japan
U.S.A
Research bases Tokyo, Yamaguchi
U.S.A., U.K.
Manufacturing Ishikawa, Fukui,
bases
China, Thailand, Vietnam, Indonesia,
Operation bases Tokyo, Osaka, Aichi
U.S.A., Germany, China, Thailand, Hong Kong
Manufacturing Tokyo, Ehime
bases
Operation bases Tokyo, Osaka, Kanagawa, Fukuoka, Ehime, Yamaguchi
Research bases Tokyo, Osaka, Yamaguchi

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

147th Fiscal Period
148th Fiscal Period
FY2012FY2013(As of March 31, 2013) (As of March 31, 2014)(Current period)
4,439
4,078

Change in thenumber of
employees
361

2,427

2,327

100

4,142
3,078
2,551
16,637

3,643
3,029
2,679
15,756499
49881

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(2,325 employees for the 147th fiscal period and 2,193 employees for the 148th fiscal period)

(9) Significant Subsidiaries
Business segments

Subsidiary (Location of
The Head Office)Advanced fibers
Toho Tenax Co., Ltd.
and Composites(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)Teijin Home Health Care Ltd(Tokyo)Braden Partners L.P. (U.S.A.)
Product
Converting
OthersTeijin Frontier Co., Ltd(Osaka)Nantong Teijin Co., Ltd.
(China)
Infocom Corporation(Tokyo)Teijin Engineering Ltd.
(Osaka)Teijin Logistics Co., Ltd.
(Osaka)Capital¥500
million0.025million
euro
US$12.5
million0.02million
euro
800millionbath
548million
bath¥10,010
millionUS$75
million(As of March 31, 2014)
Investment
Principal businessratio (%)
99.75 Production and sales of carbon
fibers and Oxidized PAN fibers
100.00 Production and sales of carbon
fibers100.00 Production and sales of carbon
fibers and Oxidized PAN fibers
100.00 Production and sales ofpara-aramid fibers
100.00 Production and sales ofpolyester fibers
66.87 Production and sales ofpolyester fibers
60.00 Production and sales ofpolyester films
100.00 Production and sales ofpolycarbonate resins

720million
RMB
143million
RMB

100.00¥10,000
million100.00¥100
million
US$134
million¥2,000
million¥4,000
million¥1,590
million¥475
million¥80
million100.00100.00100.00100.00100.0058.08
Notes3100.00100.00

Production and sales ofpolycarbonate resin
Coloration, processing and salesof polycarbonate resins
Production and sales of
medicinal drugs and medical
equipment
Home health care services
providerHome health care services
providerSales of textiles and others
Production and sales ofpolyester textile goods
Development and sales ofcomputer software, etc.
Engineering services, design andsales of plants and equipment
Transportation and custody of
goods

Notes: 1. The Teijin Group has 69 consolidated companies including the aforementioned 18 significant subsidiaries;
78 companies are accounted for via the equity method.
2.
indicates the investment ratio including investment by subsidiaries.
3. The Company’s ratio of investment in Infocom Corporation increased to 58.08% at the end of the year under review
from 57.54% at the previous year-end because Infocom Corporation acquired its treasury shares on March 2014.
4. The Company conducted the absorption-type merger with Teijin Chemicals Limited on April 1, 2013.

(10) Primary Lenders and Amount of Borrowings
Primary Lenders
The Bank of Tokyo-Mitsubishi UFJ, Ltd. *Development Bank of Japan Inc.
Mizuho Corporate Bank, Ltd. *Japan Bank for International Cooperation
Sumitomo Mitsui Banking Corporation*(as of March 31,2014)
Balance of borrowings
Millions of yen
66,36630,00027,8658,880
5,958

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¥93,994 million under syndicated loans.

(11) Acquisition or disposal of the stocks and other shares of other companies, or a share stock option
In April 2013, The Company acquired 7.59millions shares of Kyorin Holdings, Inc. (shareholding
ratio:10.13%) for purpose of construction of strategic alliance relation in field of HealthCare Businesss R&D,
production and sales/logistics.

2. Matters Regarding the Shares of the Company (as of March 31, 2014)(1) Issuable shares(2) Issued shares(3) Number of shareholders(4) Top 10 shareholders of the Company
Shareholders

3,000,000,000 shares
984,758,665 shares
115,132

Investment in the Company
Number of shares held
Shareholding ratio (%)
1
The Master Trust Bank of Japan, Ltd. (Trust account)
75,252,000
7.66
2Japan Trustee Service Bank, Ltd.(Trust account )49,526,000
5.04
3Nippon Life Insurance Company
39,630,509
4.03
4The Employee Stock Ownership Association of Teijin
25,749,953
2.62
5The Bank of Tokyo-Mitsubishi UFJ, Ltd.
20,694,935
2.11
6The Bank of New York, Non-Treaty Jasdec Account
16,855,933
1.72
7Japan Trustee Service Bank, Ltd.(Trust account 9 )13,430,000
1.37
8Nisshinbo Holdings Inc.
9,766,292
0.99
9State Street Bank West Client Treaty
9,678,859
0.98
10
Tam Two
9,083,000
0.92
Note: The shareholding ratio has been calculated after excluding Treasury stocks (1,995,089 shares) from theIssued shares.

3. Stock Option(1) Status of Stock Option as of the last day of the subject Fiscal Year
5th
6th
7th
8th
Time of Issue(July 10, (July 5,(July 7,
(July 9,(Issue date)
2006)
2007)
2008)
2009)

9th
(July 9,
2010)

10th
(Mar 12,
2012)

11th
(Mar 15,
2013)

12th
(Mar 14,2014)

Number of Issued Stock
Option (unit)

146

207

328

420

349

737

698

618

Class and Number of
Shares (Common Stock) to
be acquired by the Stock
Option146,000

207,000

328,000

420,000

349,000

737,000

698,000

618,000

Issue Price of Stock
Option (per share)

¥663

¥610

¥307

¥253

¥261

¥245

¥196

¥228

Exercise Price of Stock
Option (per share)

¥1

¥1

¥1

¥1

¥1

¥1

¥1

¥1

July 10,
2006
July 9,2026

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,
Mar15,
20122013~Mar 11, ~Mar 14,
2032
2033

Mar14,
2014~Mar13,2034

Period during which theStock Option may be
exercised

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)(As of March 31, 2014)
Directors
Corporate Auditors
Number of
Issue
Number of Directors
Number of Units
Number of Units Corporate Auditors
Holding Rights
Holding Rights
The 5 th Issue of the Stock Option

12

4

2

1

th

21

5

7

2

th

41

5

10

2

th

55

5

13

2

th

The 6 Issue of the Stock Option
The 7 Issue of the Stock Option
The 8 Issue of the Stock Option
The 9 Issue of the Stock Option

50

5

12

2

th

118

5

17

1

th

156

6

-

-

th

141

6

The 10 Issue of the Stock Option
The 11 Issue of the Stock Option
The 12 Issue of the Stock Option

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 12th Issue of the Stock Option noted in (1) above.
Status of Stock Option distributed to employees of the Company in the 12th Issue of Stock Option.
No. of Unites
No. of Recipients
477
34

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

Name

(As of March 31, 2014)
Duty, State of significant positions concurrently
Held at other companies

President,
Representative
Director

Shigeo Ohyagi

CEO (Chief Executive Officer)
Chairman, Japan Bio Plastics Association
Permanent Officer, Keidanren(Japan Business Federation)

Executive
Vice-President,
Representative
Director

Norio Kamei

Managing GM, Advanced Fibers & Composites Business Group,
Electric Materials & Performance Polymer Products Business Groupand Raw Materials, Polymers & Procurement Division

Senior Executive
Officer,
Representative
Director

Osamu Nishikawa

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

Senior Executive
Officer, Director

Takashi Takahashi

Chief Science and Technology Officer
Supervisor of Iwakuni, Matsuyama and Mihara factory
Supervisor of Safety Control

Senior Executive
Officer, Director

Yoshio Fukuda

General Manager, Electric Materials & Performance Polymer Products
Business Group,
Chairman, Teijin DuPont Films*Executive Officer,
Director

Jun Suzuki

General Manager, Advanced Fibers & Composites Business Group
General Manager, Carbon Fibers & Composites Business Unit
President & Representative Director, Toho Tenax Co., Ltd.

Director

Hajime Sawabe

Counselor of TDK Corporation
Outside Corporate Auditor, Nikkei Inc.
Councilor, Waseda University

Director

Yutaka Iimura

Special Envoy of the Government of Japan for Mid-East & Europe
Vice-Chairman, Japan-Indonesia Association, Inc.

Director

Nobuo Seki

Outside Corporate Auditor, SUGIYO Co., Ltd.
Professor, Graduate School of Shibaura Institute of Technology
Management Committee member , Tokyo Institute of Technology

Director

Kenichiro Senoh

President & Chairperson, The Industry-Academia Collaboration Initiative(NPO)
President, CIEC( Community for Innovation of Education and learning
through Computers and communication networks
Committee Member, Ministry of Agriculture, Forestry and Fisheries
Agriculture, Forestry and Fisheries Research Council

Full-time
Corporate Auditor

Atsuo Amano

Full-time
Corporate Auditor

Toshiaki Yatabe

Corporate Auditor

Toshiharu Moriya

Professor, Graduate School of Accounting, Hosei University
Outside Corporate Auditor, NIFTY Corp.
Outside Corporate Auditor, Fujitsu Frontech Limited.
Auditor, Kanagawa Dental College

Corporate Auditor

Noriko Hayashi

Representative, Hayashi Legal Office, Lawyer
The Chairperson of Committee on Labor Law Legislation, Japan
Federation of Bar Associations

Corporate Auditor

Nobuo Tanaka

Global Associate, The Institute of Energy Economics Japan
Outside Corporate Auditor, Innotech Corporation
Part-time employee, INPEX Corporation
Professor, Graduate School of Public Policy,Tokyo University

Notes:1. The director marked with * was newly elected at the 147th Ordinary General Meeting of Shareholders held on June 21,
2013.
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 to the
9-10 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 9-10 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 and Corporate Auditors retired as of June 21, 2013.
Director
Toru Nagashima

8. Changes in posts and duties of Directors during the subject fiscal year are as follows.
Name
New Post
Former Post
Executive Officer, ,Jun Suzuki
Executive Officer, Director ,General Manager, Advanced Fibers General Manager, Advanced Fibers& Composites Business Group& Composites Business Group
General Manager, Carbon Fibers & General Manager, Carbon Fibers &Composites Business Unit
Composites Business Unit
President & Representative Director, President & Representative Director,
Toho Tenax Co., Ltd.
Toho Tenax Co., Ltd.

Date of Change
June 21, 2013

9. Changes in posts and duties of Directors following the subject fiscal year are as follows.
Name
New Post
Former Post
Date of Change
Shigeo Ohyagi
Chairman of the Board
President, Representative Director April 1, 2014
CEO (Chief Executive Officer)
April 1, 2014
Jun Suzuki
President, Representative Director Executive Officer, Director ,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.
Senior Executive Officer, Director
April 1, 2014
Yoshio Fukuda
Senior Executive Officer, Director
General Manager, Electric Materials General Manager, Electric Materials& Performance Polymer Products & Performance Polymer Products
Business Group
Business Group
General Manager, Films Business Chairman, Teijin DuPont films
Unit
Chairman, Teijin DuPont films
April 1,2014
Norio Kamei
Director
Executive Vice-President,
Advisor
Representative Director
Managing GM, Advanced Fibers &Composites Business Group,
Electric Materials & Performance
Polymer Products Business Groupand Raw Materials, Polymers &Procurement Division
April 1,2014
Takashi Takahashi
Director
Senior Executive Officer, Director
Advisor
Chief Science and Technology
Supervisor of Safety Control
OfficerSupervisor of Iwakuni, Matsuyama
and Mihara factory
Supervisor of Safety Control(2) Remuneration for Directors and Corporate Auditors
1) Remuneration for Directors during the subject fiscal year
Inside Directors
Number ofAmount of
Directors
Remuneration
7
320

Outside Directors
Number ofAmount of
Directors
Remuneration
4
63(millions of yen)
Total
Number ofAmount of
Directors
Remuneration
11
383

Notes:1. Inside directors means directors other than outside directors.
2. The Company has no director who is also an employee of the Company.
3. 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).
4. 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.
5. The amounts of above remuneration include ¥37 million, an expected amount of performance-based remuneration to be
paid to the six (6) inside directors appointed at the 147th Ordinary General Meeting of Shareholders held on June 21,
2013. Performance-based remuneration was not paid to outside directors. The amounts of above remuneration include¥32 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.
6. Apart from the amounts of above remuneration, retirement benefits of ¥362 million were paid to one (1) inside directors
who retired during the fiscal 2013. The Company abolished the retirement benefits payment system for retiring insidedirectors at the close of the 145th Ordinary General Meeting of Shareholders held on June 22, 2011. Retirement benefits
are not paid to outside directors.

2) Remuneration for Corporate Auditors during the subject fiscal year
Inside Corporate Auditors
Number ofAmount of
Corporate
Remuneration
Auditors
2
78

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

Number of
Corporate
Auditors
5107

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
Main Activities
Attended 12 of the 11 meetings of the Board of Directors held
Hajime Sawabe
during the relevant fiscal year and offered valuable commentsfrom his extensive management experience and knowledge.
Attended 12 of the 11 meetings of the Board of Directors held
during the relevant fiscal year and offered valuable comments
Yutaka Iimura
from his expertise and knowledge cultivated over many years as a
Outside Directors
diplomat.
Attended 12 of the 12 meetings of the Board of Directors held
Nobuo Seki
during the relevant fiscal year and offered valuable commentsfrom his extensive management experience and knowledge.
Attended 12 of the 12 meetings of the Board of Directors held
Kenichiro Senoh
during the relevant fiscal year and offered valuable commentsfrom his specialist viewpoint of business model field.
Attended 12 of 12 meetings of the Board of Directors and 7 of 7
meetings of the Board of Corporate Auditors held during the
Toshiharu Moriya
relevant fiscal year and offered valuable comments from his
professional knowledge as a Certified Public Accountant.
Attended 12 of 12 meetings of the Board of Directors and 7 of 7
meetings of the Board of Corporate Auditors held during the
Noriko Hayashi
relevant fiscal year and offered valuable comments from her
Outside Corporate
professional knowledge as lawyer, and offered, in particular,
Auditors
advice and suggestions Concerning compliance
Attended 12 of 11 meetings of the Board of Directors and 7 of 7
meetings of the Board of Corporate Auditors held during therelevant fiscal year and offered valuable comments from his
Nobuo Tanaka
experience at the government agencies and internationalorganization and offered, in particular, advice and suggestions
Concerning corporate governance.
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 ofeach 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
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(Millions of yen)Amount156
308

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

(3) Policy for Dismissal or Non-Reappointment of Accounting Auditor
The Company has a policy that the Board of Corporate Auditors will dismiss its accounting auditor based on an
unanimous approval of corporate auditors in the event that it falls under any item of Article 340, Paragraph 1, of
the Companies Act.
Furthermore, the Company has a policy of submitting a proposal regarding dismissal or non-reappointment 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.

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: execution ofbusiness and management oversight and supervision. The governance system deemed appropriate is therefore basedon these two core functions, with execution of business led by the Company’s inside directors on the one hand, andmanagement oversight and supervision focused on by outside directors and carried out by corporate auditors and theBoard 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 committees” are effectively achieved via an “Advisory Board”, a“Board of Directors and executive officer system that includes independent outside directors,” and a “Board ofAuditors system that includes independent outside corporate auditors.”(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
to management in general and to evaluate the top managements, and operates as a consultative body to the Boardof Directors. The Advisory Board is made up of five to seven outside advisors consisting of two or three
non-Japanese advisors as well as the Chairman of the Board* and the President & CEO, and the Chairman of theBoard chairs the Advisory Board. The Advisory Board also functions as a nominations and remunerationcommittee, 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 the performance 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 theBoard of Directors are independent outside directors. In addition, the Articles of Incorporation sets the term ofoffice for directors at one year. The Board of Directors is chaired by the Chairman of the Company*, as a means ofseparating oversight and supervision 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 auditors of Group companies, exists to enhance the effectiveness of group-wide oversightand audit of the entire Group, which correspond to group consolidated management and ensure impartial auditing.
The Company and its Group companies have a three-pronged audit system, which includes internal audits inaddition to the corporate audits by corporate auditors and the accounting audits by the accounting auditors
stipulated by the Companies Act and the Financial Products and Exchange Act. These three components work inmutual cooperation to enhance corporate governance.
Internal Audit System
The Corporate Audit Office, reporting directly to CEO, has been established as an internal audit organization,and carries out Group-wide and global audits to evaluate efficiency and validity of internal control functions.

. Summary of Resolution to Establish Systems to Ensure Appropriate Business Operations
Resolutions on Basic Policies for establishment of Internal Control Systems
At a board meeting held on August 1,2013, the Board of Directors made resolution on basic policies forestablishment of internal control systems. This resolution should be regularly reviewed and confirmed at a board
meeting once every year. 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) Systems for Ensuring the Compliance with Laws, Regulations and the Articles of Incorporation in the
Performance of Duties by Directors and Employees
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 the Teijin Group’s employees. In order to establish a compliance system across the entire Teijin Group,
the Company appoints Chief Social Responsibility Officer as the officer in charge of compliance.
All directors, officers and employees of the Teijin Group are required to report to the Teijin entity to which they belong
or to Teijin Limited which is the holding company of the Teijin Group, whether they detect any violations of laws andregulations or other serious information concerning compliance, in accordance with Group Ethics Regulations and otherinternal regulations. Chief Social Responsibility Officer shall direct and supervise investigations to confirm 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. Such measures shall ensure that anonymity of the caller is protected
and that the caller does not get any disadvantageous treatment. Important reports as well as measures taken by the relevant
Teijin entity and their results shall be announced as appropriate to, and shall be recognized by, all directors, officers andemployees of the Teijin Group.
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 TeijinGroup.
(2) 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.

(3) Rules and Systems for Risk Management
The Board of Directors shall operate a total risk management system to deal with any kind of risks that might threaten
sustainable business development.
Total Risk Management (TRM) Committee, shall mainly deal with the business operational risks and strategic risks, andshall propose basic policies and annual plans related to TRM to the Board of Directors. 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 strategic risks and present his/her assessment to theBoard of Directors as an important element upon which managerial decisions are made.

The Company shall implement necessary measures 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 to critical IT
systems.

(4) Systems for Ensuring that Directors Duties Are Performed Efficiently
More than one Independent Outside Director who satisfy the requirements for independence stipulated by the Company
shall be appointed as members of the Board of Directors in order to enhance the validity of the decisions to be made by the
Board of Directors.
The Board of Directors shall have the representative directors and other executives conduct the operation of the Company
and decisions for the items on which the representative directors and other executives have been delegated decision-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 theefficiency of the representative directors and other executives in executing their duties.
The Board of Directors shall organize the basic structure of Teijin Group, and shall establish efficient management,
oversight and supervision system.
(5) Systems for Ensuring that Proper Business Operations Are Conducted within the Group of Companies,
Including Subsidiaries and Parent Companies
The Company shall prepare group regulations that apply to all entities in the Teijin Group, in addition to measures toensure that business activities are conducted in compliance with the relevant laws and regulations and the Articles ofIncorporation.
Transactions within the Teijin Group must be conducted in an appropriate manner according to the social norms.
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 shall operate or supervise internal audits of the Teijin Group’ s business operations andensure the efficiency and validity of internal control functions over the entire business of the Teijin Group.
Corporate Auditors shall establish appropriate systems, such as those for close coordination with the accounting auditors
and Corporate Audit Department, to ensure effective and appropriate supervision and auditing of the Group’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.
(6) Assignment of Employees when the Corporate Auditors request to have Employees Assist in Performing
Their Duties
The Company shall establish Teijin Group Auditors Office and appoint two or more employees, in principle, to assist
Corporate Auditors in performing their duties.
(7) Independence from Directors of the employees Assisting the Corporate Auditors in Performing Their
DutiesTo 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.
No members of Teijin Group Auditors Office can assume any post or function in any Teijin Group entity.
(8) System regarding Reports to Corporate Auditors by Directors, Employees and Others
Representative directors and other executives shall report at the meetings of the Board of Directors and other important
meetings the status of the business operations they are in charge.
Representative directors and other executives shall immediately report to Corporate Auditors when they discoverincidents 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 productliability, significant violations of internal regulations, or other incidents similar thereof.
Directors, corporate officers and employees shall promptly and appropriately respond to requests made by the Corporate
Auditors to report on the business operations or on the conditions of the assets and business of the Teijin Group.

(9) 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 TeijinGroup entities’ corporate auditors 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.

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,among others, the followings:
The likelihood of causing obvious harm to the corporate value of the Company and the common interests of theshareholders.
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) Efforts to Improve Corporate Value through Reforms of Business Structures and Implementing
Growth Strategies
To attain global excellence and show our presence in the world, the Company aims to provide creating value forcustomers by “driving our evolution toward a solutions-based business model”, as set forth in our current medium- tolong-term management vision, and is promoting measures centered on both “Business Restructuring Initiatives” and“Growth Strategies.” The specific measures to be taken in and after fiscal 2014 are included in “1. Current Status of the
Teijin Group, (5) Tasks Ahead.” We will achieve sustainable growth by steadily implementing these specific measures.

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 Japanand overseas 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.

(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 Annual General
Meeting of Shareholders held on June 22, 2012.
The summary of the Plan is as follows:
1) Applicable Acquisitions
Applicable acquisitions are those that lead to holdings of 20% or more of the Company’s shares.
2) Procedures for Negotiations with Acquirer
Acquirers are required to submit in advance an acquisition statement and provide a period that allows theCompany to collect information and examine the acquisition proposal, present the Company management’s plans
and alternative proposals to shareholders and negotiate with the acquirer.
3) Allotment of Stock Option with call in the Event That an Acquirer Does Not Comply with Procedures
If an acquirer does not comply with the aforementioned procedures, in accordance with the recommendation of
the Independent Committee, the Board of Directors will decide to allot all shareholders registered at that time Stock
Option with call, without contribution, at the rate of one Stock Option per one share of stock held.
4) Calling the Stock Option with a Call and Distribution of the Companys Stock
According to the Call Option attached to the stock option, the Company will call the stock option in exchange for
the Company’s shares from all shareholders other than the acquirer and other non-qualified parties at a rate of one(1) share of the Company’s stock per one (1) stock option.
5) Impact on Shareholders Other than the Acquirer and Other Non-qualified Parties
As the Company’s shares are evenly delivered to all the shareholders other than the acquirer and othernon-qualified parties, the shares held by the shareholders would not be diluted. As the Company’s shares are notgranted to the acquirer and other non-qualified parties, this would result in dilution of the acquirer’s voting rights toa maximum of 50%.
6) Requirements for the Allotment of the Stock Option Without Contribution
The allotment of the stock option without contribution will be implemented in case any acquisition falls under
any of the following cases and it is deemed reasonable to implement an allotment of the stock option without
contribution:
In case the acquisition does not comply with the procedure set forth in the Plan;
In case the acquisition is likely to cause obvious harm to the corporate value of the Company and/or thecommon interests of the shareholders in view of the purpose of the acquisition and the post-acquisition management
policy in such cases as, for example, the buyout of the Company’s shares to demand that the Company purchasesaid shares at an inflated price;
In case the acquisition threatens to have the effect of compelling the shareholders to sell their shares;
In case the acquisition conditions are insufficient or inappropriate with a view to the Company’s intrinsic
value.
7) Overview of Process Prior to Triggering The Plan
When the acquirer submits the Acquisition Statement, the Independent Committee consisting of five members
appointed from among the outside directors and outside corporate auditors may require the Company’s Board of
Directors to present its opinion regarding the details of the acquisition by the acquirer within a specified period oftime ( a maximum 30 days ). Following this, the Independent Committee will collect and examine information for a
maximum period of 60 days. The Independent Committee may extend this assessment period for up to 30 days.
Based on its collection and examination of this information, the Independent Committee will make a
recommendation to the Board of Directors for either the implementation or non-implementation of an allotment of
the stock option without contribution. The Company’s Board of Directors shall respect and adhere to theaforementioned recommendation from the Independent Committee and finally resolve whether implement or
non-implement an allotment of the stock option without contribution. However, the Board of Directors shallconvene a shareholders’ meeting as soon as practicable and raise a proposal on the implementation of the allotmentof stock option without contribution as a matter to be resolved thereat, in case the Independent Committee has
placed a reserve that prior approval of a shareholders’ meeting should be obtained for the recommendation that anallotment of the stock option without contribution should be implemented.
Note: Details of the “Countermeasures to Large-Scale Acquisitions of Teijin Shares (Takeover Defense Measures)”are available on the Company’s Internet site (http://www.teijin.com/ir/governance/defense/).

(4) Explanation as to How the Above Measures Comply with the Basic Policy, Do Not Harm the Common
Interests of the Shareholders of the Company and Do Not Pursue the Personal Interests of the Companys
Directors and Corporate Auditors
The Plan was designed to incorporate the following perspectives and therefore the Company believes that it should
comply with the Basic Policy, be consistent with the corporate value of the Company and the common interests of theshareholders and not pursue the personal interests of the Company’s Directors and Corporate Auditors.
1) Respect of Shareholders Intent
The Plan became effective upon its approval at the 146th Ordinary General Meeting of Shareholders, held on
June 22, 2012, and will remain in effect for three years, until the conclusion of the Ordinary General Meeting of
Shareholders pertaining to the business year ending March 2015. 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, even before the expiry of the effective period after The Plan is introduced, The Plan shall be abolished
immediately in case a proposal that The Plan be abolished is approved at a shareholders’ meeting of the Company.
2) Emphasis on the Judgment by Highly Independent Outside Directors and Independent Outside Corporate
Auditors
Upon the introduction of the Plan, the Company established the Independent Committee, an organ with the roleof substantial and objective decision making for the benefit of shareholders while eliminating the possibility ofarbitrary decisions by the Company’s Board of Directors with regard to the actual operation of the Plan. The
Independent Committee consists of members elected and appointed by the Company’s Board of Directors fromamong those persons of outside director or outside corporate auditor.
3) Reinforcement and Continuity of Corporate Governance
The Company intends to separate and reinforce three managerial functions (decision making, execution ofbusiness and monitoring/auditing) by electing four independent outside directors on its Board of Directors, which
comprises a maximum of 10 directors, and having three independent outside corporate auditors comprising amajority of the number of corporate auditors. The Company has also established an Advisory Board- comprising
five to seven outside advisers, the Chairman of the Company*, and the President & CEO – as a consultative body to
the Board of Directors that is charged with deliberating the alternation of President & CEO and nomination of
successors, as well as compensation systems for directors and corporate auditors of the Teijin Group. 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 for corporate governance among Japanese listedcompanies. This mechanism should have the effect of strongly breaking the self-protective conduct of theCompany’s directors and corporate auditors and are expected to prevent the arbitrary application of The Plan. The
Company intends to maintain its corporate governance above during the effective period of This Plan.
*The case of vacant of the Chairman of the Board, Senior Advisor will take the chairmanship of the Advisory Board.

4) Setting of Rational and Objective Requirements for Triggering The Plan
The Plan is structured not to be easily triggered unless rational, detailed and objective requirements are satisfied,and moreover, these objective requirements are consistent with the cases set out for determining a person who isdeemed inappropriate to control the decisions of the Company’s financial and business policies. This idea serves toprevent the Board of Directors from arbitrarily triggering the Plan.
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.

Consolidated Balance Sheets(As of March 31,2014)(Millions of yen)
FY2012FY2013(As of Mar. 31, 2013) (As of Mar. 31, 2014)< Assets >Current assets
Cash and deposits
Notes and accounts receivable-tradeFinished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total

48,858169,015
74,1109,468
28,054
14,483
11,616
20,308(3,659)372,255

33,134
165,239
79,0149,084
30,56918,644
7,269
24,639(2,687)364,908

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

70,359101,287
43,734
9,561
19,913244,856

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

18,104
15,571
33,67615,806
13,651
29,45764,796
2,656
23,00482,0682,059

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

1,691
21,802(2,339)111,611
390,143

28,8362,271
25,033(3,085)
137,184
403,502762,399

768,411

Consolidated Balance Sheets(As of March 31,2014)< 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 retirement benefits
Net defined benefit liability
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(Millions of yen)
FY2012FY2013(As of Mar. 31, 2013) (As of Mar. 31, 2014)
91,87567,32652,38916,9962,890
1217,75840,030289,28180,00384,604
21,811
6,960
2,915
60
17,75734,550248,662

30,000102,247
20,351

30,000136,401

12,65815,733
180,990
470,271

30,204
9,782
13,246219,635
468,298

70,816
101,407
107,328(415)
279,137

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

13,5501,069(22,505)(7,885)

10,7581,017(13,025)(634)(1,884)649
20,226292,127
762,399

737
17,694300,112768,411

Consolidated Statements of Income(April 1,2013 to March 31,2014)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Nonoperating revenues
Interest income
Dividends income
Equity in earnings of affiliates
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
Gain on revision of retirement benefit plan
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)(Millions of yen)
FY2012FY2013(Apr. 2012-Mar. 2013) (Apr. 2013-Mar. 2014)
745,712784,424555,208
590,091
190,504
194,333
178,146
176,254
12,357
18,078
525
822
572
2,617
1,077
5,614

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

3,408
606
998
3,172
8,186
9,786

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

1,407
44
418
495
2,366

151
8,296
690
9,139

1,510
761
29,41758
2,506
34,253(22,101)
4,224
1,884
6,108
(28,209)921(29,130)

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

Consolidated Statement of Changes in Net Assets
FY2012 (Apr. 2012 - Mar. 2013)

Balance as of March 31, 2012
Changes of items during the period
Dividends from surplus
Net income (loss)
OthersPurchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Total
Balance at March 31, 2013

Balance as of March 31, 2012
Changes of items during the period
Dividends from surplus
Net income (loss)
OthersPurchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Total
Balance at March 31, 2013

(Million yen : amounts less than one million yen are omitted)
Shareholders' equity
Total
CapitalRetained
Treasury
Capital stock
shareholders'surplusearnings
stock
equity70,816
101,389
141,441(127)
313,519(4,921)(29,130)(59)
18

70,816

Valuationdifference on
available-forsale
9,913

3,637
3,637
13,55018
101,407(34,112)
107,328(326)
38(4,921)(29,130)
(59)
(326)
56

(288)
(415)

(34,382)
279,137

Valuation and translation adjustments
DeferredForeign
Remeasuregains orcurrency
ments oflosses ontranslation
definedhedgesadjustment benefit plans
306(31,708)

762
762
1,069

9,202
9,202
(22,505)

Total(21,488)

13,603
13,603(7,885)

Subscription
rights tosharesMinority
interests

Total net
assets566

19,619312,217606
606
20,226(4,921)(29,130)
(59)
(326)
56
14,292(20,089)
292,1278282649

Consolidated Statement of Changes in Net Assets
FY2013 (Apr. 2013 - Mar. 2014)

Balance as of March 31, 2013
Changes of items during the period
Dividends from surplus
Net income (loss)
OthersPurchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Total
Balance at March 31, 2014

Balance as of March 31, 2013
Changes of items during the period
Dividends from surplus
Net income (loss)
OthersPurchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Total
Balance at March 31, 2014

(Million yen : amounts less than one million yen are omitted)
Shareholders' equity
Total
CapitalRetained
Treasury
Capital stock
shareholders'surplusearnings
stock
equity70,816
101,407
107,328(415)
279,137(3,931)8,356

21

70,816

Valuationdifference on
available-forsale
13,55021
101,429

4,425
11,754(3,931)
8,356
(78)
59

(78)
80

(19)
(435)

4,426
28,564

Valuation and translation adjustments
DeferredForeign
Remeasuregains orcurrency
ments oflosses ontranslation
definedhedgesadjustment benefit plans
1,069(22,505)

Total(7,885)

Subscription
rights tosharesMinority
interests

Total net
assets649

20,226292,127(3,931)8,356(2,791)(2,791)
10,758

(51)
(51)
1,017

9,479
9,479
(13,025)

(634)
(634)
(634)

6,001
6,001
(1,884)88
88
737(2,531)(2,531)
17,694

(78)
80
3,558
7,985
300,112(For referance)
Consolidated Statements of Comprehensive Income(April 1,2013 to March 31,2014)

Income (loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted for using
equity method
Total
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests(Millions of yen)
FY2012FY2013(Apr. 2012-Mar. 2013) (Apr. 2013-Mar. 2014)(28,209)
6,611
3,638
762
8,785

(2,790)
(50)
7,957

597

1,504

13,784(14,424)

6,620
13,232(15,527)
1,102

14,992(1,760)(For referance)
Consolidated Statements of Cash Flows(Millions of yen)
FY2012FY2013(Apr. 2012-Mar. 2013) (Apr. 2013-Mar. 2014)
Cash flows from operating activities
Income (loss) before income taxes
Depreciation and amortization of others
Impairment loss
Increase (decrease) in provision for retirement benefits
Increase (decrease) in net defined benefit liability
Decrease (increase) in prepaid pension costs
Decrease (increase) in net defined benefit asset
Increase (decrease) in allowance for doubtful receivables
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
Casualty insurance income
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
Increase (decrease) in commercial paper
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(22,101)
46,876
29,417
1,199

14,51945,6638,781
1,424(7,302)475(1,348)3,408(572)(2,617)102
60
761
11,0702,509(4,786)

1,258
(382)
(1,776)
3,358(4,181)(1,495)
1,524(8,289)106
8,591(2,370)(15,998)

6,545(2,420)(4,762)58,936
4,043(3,487)(3,308)8,120
64,305(5,324)42,9895,403(3,663)(6,143)(31,030)
1,928(2,664)(3,947)315(1,563)
(774)
230
(361)
(37,867)(30,863)472(2,208)(21,202)
10,847(2,981)(55)
254(1,541)(47,278)(2,547)(18,000)
23,911(7,695)44,347(46,861)(4,921)(185)(652)(12,605)
1,585
15,41733,28348,700

11,13538,586

11,110(21,631)51,730(55,339)(3,931)(553)(421)(7,902)869(15,725)
48,70032,975