2021年2月
June
23, 2021
2021年2月

Ordinary General
Meeting of
Shareholders

TheTeijin
TeijinGroup’sGroup’s
The
InitiativesContributing
Contributingto
toInitiatives
SustainableWorld
World
aaSustainable
Teijin Limited
Jun Suzuki
President and CEO, Representative
Director of the Board
Any statements in this document, other than those of historical facts, are forward-looking statements about the future performance of Teijin and its Group companies, which are based on
management’s assumptions and beliefs in light of information currently available, and involve risks and uncertainties. Actual results may differ materially from these forecasts.

Long-Term Corporate Vision:
Be a company that supports the society of the future through three solutions
Corporate
Philosophy
Long-Term
VisionMaterial
Societal Issues

Value
Proposition

In Harmony with Society

Enhancing the Quality of Life

Empowering Our People

A Company that Supports the Society of the Future
Climate Change
mitigation and adaptation

Safety and security of people
and local communities

Achievement ofa circular economy

Realization of healthy andcomfortable living for people

Contribute to a Sustainable World through the Three Solutions
Safety, Security and
Demographic Change andEnvironmental Value
Disaster Mitigation
Increased Health
Solutions
Solutions
Consciousness Solutions＋

Material
Management
IssuesFurther strengthening of our sustainable management baseTechnological Base, Human Resources, Corporate Governance,
CSR, Diversity & Inclusion1Medium-Term Management Plan 2020 - 2022 “ALWAYS EVOLVING”
Positioning the current Medium-Term Management Plan as the “Creating growth platform period" forsustainable growth toward 2030 in line with the direction set in the previous medium termPrevious MTP
2017-2019
Prioritizing Business Areas andClarifying Challenges

Medium-Term
Management Plan
2020-2022
Creating Growth
Platforms

Toward 2030
Sustainable Growth
Contribution to realizea Sustainable World・Next core businesses creation
・Basic earning power improvement

2How to seize the business opportunity in the Teijin GroupWe have seized business opportunities at the intersection of megatrends of social issues and our business areas

3

COVID-19 Related Initiatives◼ Supply of medical gowns for healthcare professionals, disclosureof medical gown patterns

Medical gowns◼ Joined the “OPEN COVID-19 DECLARATION” as a founding
member◼ Contribution in the Healthcare-related business

Disposable type

Washable type

• Ensuring the safety of patients, healthcare professionals and employees• Stable supply of pharmaceuticals and medical equipment, continuous provision of medical services• Contribution to the prevention and treatment of COVID-19 infection＜Example: Oxygen concentrators, etc. for respiratory management＞✓ Domestic: Cooperation with the Setagaya Ward project to strengthen support for people
receiving treatment at home (Yomiuri Shimbun dated May 5, 2021)✓ Overseas: Supply oxygen cylinders and other medical supplies to India by group company
Esteve Teijin (Spanish newspaper dated May 6, 2021)

Oxygen concentrator

Disaster response in home medical care (July 2020 torrential rain in Kyushu, February 13, 2021 M7.1
earthquake off the coast of Fukushima Prefecture)

Our unique disaster response support system, D-MAP, enabled us to locate patients in theaffected areas who were receiving home oxygen therapy. Supplied oxygen cylinders

Also played an active role in the Great East Japan
Earthquake that occurred on March 11, 20114

How to seize the business opportunity in the Teijin GroupWe have seized business opportunities at the intersection of megatrends of social issues and our business areas
Changes in social structure due to COVID-19 accelerate the changes in the direction Teijin is aiming for

COVID-19

Acceleration
5

FY2020 and FY2021 Initiatives
FY2020 (first year of MTP)••

Profit targets in the Materials Business, mainly in the carbon fibers

FY2021 (second year of MTP)•

The Materials Business and the Fibers & Products Converting

business, were revised under the severe impact of the COVID-19

Business will continue to recover from the impact of the COVID-19

pandemic especially in the first half of the term

pandemic.

Maintaining the direction of the Medium-Term Management Plan,•

The Healthcare Business and the IT Business will remain firm

the Group made investments suitable in the period for creating•

The Group will continue to make growth investment, aiming to

growth platforms toward sustainable growthachieve the medium -/long term goals

6Strategy for the Materials Business Field
Accelerating the development of high value-added applications with high-performance materials and multi-materialization
Reducing the environmental impact in terms of lightweight mobility, product demand longevity and recyclability
Materials

Parts

Multi-materials

Longer product lifespans and utilization of recycling technologies

High

High-performance materials
business expansion

High value-added intermediate materials, parts, andmodulesValue-added & Competitive edge

Carbon fiber intermediate materials for aircraft© AIRBUS

Teijin’s materials
Composites for automotive applications

Combined with othercompanies’ materials

Resin

Aramid fibers

Profitable Growth

Carbon fibers

Strategic Focus
7

Initiatives in the Materials Business Field
The need to reduce environmental impact, including lightweight mobility, is accelerating
Materials

Parts

Multi-materials

Longer product lifespans and utilization of recycling technologies

High

High-performance materials
business expansion

High value-added intermediate materials, parts, andmodulesValue-added & Competitive edge

Carbon fiber intermediate materials for aircraft
Contributed to mobility weight reduction
Proactively responded to environmental needs

Promotion of operation preparation for
Carbon fiber plant in North America© AIRBUS

Teijin’s materials
Composites for automotive applications

Combined with othercompanies’ materials

Strengthen
production capacity

Resin

Aramid fibers

Profitable Growth

Carbon fibers

Implemented proactive investment in the automotive
composite materials business in response to thegrowing demand for automotive weight reduction

Strategic Focus
8

Providing Lightweight Mobility Materials Required by Society- Composites for Automotive Applications
CSP*1 is the largest Tier 1 supplier in North America⚫ Glass fiber composites, our main product, realize both excellent appearance and automotive weight reduction⚫ Provide total solutions from design to assembly. Aim to expand our business by promoting the multi-materialization⚫

GM Chevrolet Corvette
Body panels for doors,
fenders, etc.
(Glass fiber composites)

Jeep Wrangler
Roof Freedom Panels(Glass fiber composites)

Large panels and flooring material(CFRTP*2, Sereebo) inside the“CarbonPro” bed of the GMC Sierra
Won the 2019 SPE Innovation Award

Development of multimaterial battery boxes(Glass fiber and carbon
fiber composites)
炭素繊維強化複合材料*1 Continental Structural Plastics, Inc. , *2 carbon fiber reinforced thermoplastic

9

Providing Lightweight Mobility Materials Required by Society- Composites for Automotive Applications
Promote global expansion from North America to China and Europe⚫ Strengthen joint development among global R&D bases⚫

Technology development for
automotive composites and parts•Prototyping and evaluation of
automotive composites and parts•Market development and technology
research for the development of
next-generation vehicles

CSP-Victall (China)
February 2019 - Reached thedecision to build a second plant
December 2020 - Converted toa wholly owned subsidiary

Advanced Technologies
Center (U.S.) Autumn 2020

Benet (Czech
Republic)

CSP Europe (France)

Acquired in August
2019

CSP (North America)

Teijin Composites
Innovation Center (Japan)
R&D in materials, molding,
processing, design, andjoining related to advanced
composite materials

Teijin Automotive Center
Europe (Germany) Feb. 2020

U.S.: Head office, 10 plants
Mexico: 2 plants

CSP Head office(Michigan, U.S.)

Inapal (Portugal)
Acquired in August 2018

*A new plant underconstruction in Texas, U.S.

10

Materials Business Field’s Projected Contributions to Earnings (EBITDA)
Resin & aramid: Contribute to earnings solidly with continued competitive advantages⚫ Composites for automotive applications: Contribute to medium- to long-term earnings throughproductivity improvement and sales start for several new programs⚫ Carbon fiber intermediate materials for aircraft: Contribute to earnings from a long-term perspective
through superior
thermoplastic technology, etc.
1400⚫

© AIRBUS

Carbon fibers for aircraft＜Mass production ofintermediate materials＞(EBITDA projections)
1200

Strategic
1000
Focus

B
Program A

800
Texas plant starts
operations

Composites forautomotive applications

Aramid fibers

AramidResin

Carbon fiber plantin North America
starts operations＜Expansion of valueadded products＞

Resin
0

FY2019Profitable
Growth＜Sales increase throughenhanced capacity＞

200

-200

C

＜Sales start for several
new programs＞

600

Profitable 400
GrowthStrategic
Focus

FY2020

FY2021
outlook

FY2022
outlook

FY2025target

FY2030target11

Strategy for the Healthcare Business Field
Develop comprehensive community-based healthcare business that goes beyond treatment to include
rehabilitation, nursing care, prevention and health promotion, utilizing our strengths developed in the existing
businesses
Treatment

Rehabilitation / Nursing care

Prevention / Health promotion

High

Innovative medical treatment

Medical technologies and services
To support self-reliance

InnovativenessDrug discovery,
Device, Material technologies

Home healthcare business platform
Drug discovery, device technologies

Teijin’s Strengths• Experience and knowledge of thehealthcare business• Science and technologies• Close connection with patients andphysicians

Pharmaceuticals, Medical devices andmaterials

Profitable Growth

New business related to comprehensive
community-based healthcare system
Create comprehensive community-basedHome healthcare business platform
healthcare business to develop new markets
Digital technologies
Functional foods business
Exploring new materials
Evidence establishment
Brand value

Specialize in foods with scientific evidence

Strategic Focus
12

Initiatives in the Healthcare Business Field
Strengthened business platform by acquiring the sales rights for diabetes drugs, and accelerated efforts to provide
services to prevent severe disease progression
Entered into the business field of regenerative medical products
Treatment

Rehabilitation / Nursing care

Prevention / Health promotion

High

Innovative medical treatment

InnovativenessEntering the regenerative medicine businessthrough the conversion of J-TEC* into a
subsidiary (collaborative area)

Drug discovery,
Device, Material technologies

Medical technologies and services
To support self-reliance

Various partnerships related to comprehensive
community-based healthcare service

Home healthcare business platform
Drug discovery, device technologies

Teijin’s Strengths
Maintaining and strengthening thebusiness platform

New business related to comprehensive
community-based healthcare system
Create comprehensive community-basedHome healthcare business platform
healthcare
to develop
new markets
Acceleratedbusinessdevelopmentof health administration
Digital technologies
support business
Functional foods business

Acquisition of sales rights for diabetes drugs
from Takeda PharmaceuticalPharmaceuticals, Medical devices andmaterials

Profitable Growth* Japan Tissue Engineering Co., Ltd.

Exploring new materials
Evidence establishment
Brand value

Specialize in foods with scientific evidence

Strategic Focus
13

Healthcare: Changing the Profit-Making Model◼ Establish sales system with multidisciplinary team for
local community◼ Promote deployment of core products and services
Treatment for hyperuricemia andgout FEBURIC®

Treatment for
hyperuricemia
and gout“FEBURIC®”

Oxygen Concentrator
Hi-Sanso®i

OxygenConcentrator "HiSanso®i”

4 products for diabetes treatment

Nesina®

Liovel®

Inisync®

Zafatek®

Automatic pressure
control CPAP* device
SLEEPMATE® 10

Automatic pressure
control CPAP* device
SLEEPMATE® 10* CPAP therapy: Continuous Positive Airway Pressure (CPAP) therapy

14

Establishment of a new business base (food, community-based integrated care,creation of innovative medical treatment)
New business related to community-based
integrated care system

Functional foods businessPrebiotics material *1(Dietary fiber)

Health management support, prevention ofserious diseases, etc. using data platforms

Probiotics material *2(Bifidobacterium, Lactic acid bacteria)Business alliance with PREVENT for the serious lifestyledisease prevention business
Data analysis business
Medical checkup by healthinsurance association/receipt
data analysis→Predict the risk ofdeveloping lifestyle diseases

Support services for preventing
serious diseases
Individual guidance by medical
professionals using monitoring
equipment→Prevent serious lifestyle diseases• Sales as natural ingredients forhealth food and infant formulas*1 Prebiotics can improve the intestinal environment to support healthy life.
*2 Probiotics are live microorganisms that can offer useful benefits when consumed in appropriate amounts

Medical technologies and services
to support self-reliance

Creation of innovative medical treatment
Regenerative medical products businessthrough the conversion of J-TEC into a
subsidiary• Expand lineup and applications, andmarket globally

Implantable medical materials(Orthopedics)

Functional electricalstimulation device WalkAide

Rehabilitation robot forupper limb paralysis ReoGo-J

J-TEC
Custom joint
prosthesis(First approval in
Japan)

Autologous
cultured
cartilage JACC ®

Expansion of the Regenerative medical products
business
Synergy with other businesses

Integration of Materials and Healthcare

Customosteotomy
guide plates• Provide comprehensive solutions from stroke onset to prognosis incombination with botulinum toxin type A “NT-201” (under development)

15

Healthcare: Products and Services Strategies⚫

Develop a diverse pipeline of medical devices, food materials, etc., not limited to pharmaceuticals, with a communitybased integrated care business platform and multidisciplinary sales team
(FY)
Field
Functional foods

2020

2021

Supplements
WASAbis*1

Probiotics
UREX*2

Implantable medical
materials

Strategic
Focus

Regenerative medical
products

Community-based
integrated care

Profitable
GrowthPharmaceuticals
Home medical caredevices(Business platforms)

2022

2023 ～

2025

2026 and beyond

New products such as prebiotics*3 and probiotics*4

New/improved joint prosthesis
and osteosynthesis products

Cardiovascularand vascular
repair patch

New/improved joint
prosthesis andosteosynthesis products

Cardiovascular andvascular repair patch
application products

Promotion of collaborative projects with J-TEC (CDMO, etc.)
Cultivatedautologous corneal
epithelium

Cultivatedautologous oral
mucosalepithelium

Cultivated autologous epidermis containing melanocytes
Allogeneic cultured
epidermis

Cultivatedautologous
cartilage

Cultivatedautologous CAR-T
cells

Develop new services by leveraging M&As and alliancesServices for the prevention of serious lifestyle diseases
Home nursing web service

Hospitalization and discharge
coordination support service

Functional integration of pharmaceuticals and home medical care

Establish a community-based integrated
care business platform

Launch of new drugs/Development of new medical devices and services
Maximize the value of existing products*1 WASAbis®: A supplement containing 6-methylsulfinylhexyl isothiocyanate (6-MSITC) derived from Japanese horseradish. It has been reported that 6-MSITC has the ability to improve judgment (the ability to process information accurately) and attentiveness, which are partof the cognitive functions of middle-aged and elderly people without exercise habits; *2: UREX: Lactic acid bacteria, which improves the vaginal environment and regulates vaginal health; *3: Prebiotics: Indigestible food ingredient that selectively alters the growth and activityof specific bacteria in the colon, thereby favorably affecting the host and improving host health *4 Probiotics: Live bacteria that exhibit useful effects on the host when taken in appropriate amounts

16Medium-Term Management Plan and Forecast⚫ EBITDA for FY2020 remained at

the pre-COVID-19 FY2019 level⚫ EBITDA for FY2021 will
dramatically increase from the
FY2019 level due to major
investments
150(Billionsof Yen)⚫ We will continue to aim for our FY2022 targets: EBITDA of 150.0 billion yen, ROE of 10% or

more, and ROIC based on operating income, of 8% or more
FY2022 EBITDA
outlook

150.0 ＝ 150.0

130.0
106.8

0
Materials

6.3%

-1.7%

8%

10%+ No change

ROIC (based on
operating income) *3

8.7%

8.6%

7%

*4

8%+ No change

Materials Outlook for FY2022 65.0 billion yen (MTP 80.0 billion yen)

80.0
FY2022 MTP

FY2022 outlook

31.5

FY2020FY201944.9

43.5

FY2021 Outlook

44.6

65.0

ROE*2

The revision reflects the expected significant contribution of the sales
rights for diabetes products we took over from Takeda

67.5

50

FY2022
MTP target

Healthcare Outlook for FY2022 60.0 billion yen (MTP 45.0 billion yen)

60.0

43.7

FY2021
outlookDue to changes in our business environment, we have revised ourforecast of each business’s contribution to EBITDA for FY2022

45.0

100

FY2020MTP

EBITDA*1

107.2

FY2019Healthcare

Others

The revision reflects delays in the plans of certain businesses, including thecarbon fibers business, due to the COVID-19 pandemic*1 EBITDA = Operating income + Depreciation & amortization*2 ROE= Profit attributable to owners of parent / Average* total shareholders’ equity*3 ROIC based on operating income = Operating income / Average* invested capital(Invested capital = Net assets + Interest-bearing debt - Cash and deposits )*Average: ([Beginning balance + Ending balance] / 2)
*4 The invested capital at the beginning of the outlook for FY2021 includes an increase due to thesuccession of sales of diabetes products

17

EBITDA Long-Term Projections
Steady achievement of EBITDA target for FY2022 to set the path for reaching the target for FY2025⚫ Continue to invest resources toward business portfolio transformation by looking to the future and seizing
opportunities in a rapidly changing environment
⚫

1/3

over

200
Growth in the next medium term throughthe investment in the current medium term

(Total: EBITDA Image)FY2025[Aramid]⚫ Become a solid market leader by expanding sales
through additional facilities[Composites]⚫ Sales expansion through contribution of multiple new
CSP programs⚫ Steady market penetration in Europe and China[Carbon fibers]⚫ Strengthen sales for intermediate materials andapplications with strong demand[Healthcare & IT]⚫ Start of digital healthcare in the field of chronic diseases⚫ Orthopedic implantable device lineup effects[Others]⚫
Synergy with J-TEC product pipelines

18

Active Efforts to Reduce Climate Change and Environmental Load
FY2020 Major Actions

Long-term environmental targets (vs. FY2018)• Formulation of a long-term roadmap to realize “netzero” and to reduce environmental burden

FY203020％ reduction (total amount)

FY2050Net Zero Emissions

FY203030％ improvement (per sales unit)• Committed to Science Based Targets initiative

Hazardous
Materials

FY203020％ improvement (per sales unit)• TCFD disclosure (Integrated Report)

Resource
Circulation(Landfill Waste)

FY203010％ improvement (per sales unit)• Promote research in relation to environmental issue,
including LCA (Life-cycle Assessment) studies in business
units

Climate Change(CO2 Emission)

Water(freshwater intake)• Introduction of Internal Carbon Pricing (ICP)

Set additionally after MTP disclosure

CO2

Promote the reduction of CO2 emission,
taking the entire supply chain into scope

by FY2030
FY2019 Results

Total
emissions
Suppliers

Avoidedemissions
Teijin「Total emissions」
4.4Mt-CO2

Customers< 「Avoided emissions」＞

3.3Mt-CO2
19

Environmental Contribution Initiatives◼ Establishment of The Environmental Sustainability Technology Innovation Center : ESTIC (January 2021)
Established in the Netherlands (Arnhem) as a R&D base for environmental value
solutions⚫ Research initiatives for solutions including issues on reducing the environmental impactof each business, in cooperation with European universities, research institutions andcompanies⚫

R&D Focus area

◼ Examination of business model• Deployment of chemical recycling
technology* modified to 「Renewable Energy and Renewable Carbon for a Sustainable Future − Graphic」（Renewable Carbon Publications）（https://renewable-carbon.eu/publications/product/renewable-energy-and-renewable-carbon-for-a-sustainable-future-%e2%88%92-graphic/）◼ Sustainability business management
scheme• Establishment of an internal carbon
pricing system• Consideration and implementation of
LCA / other non-financial indicators

20

Key Measures to Create Innovation
Creating innovation is indispensable for growth. We strengthen external
collaboration, while pursuing synergy between in-house businesses andpromoting diversity and inclusion as a foundation for creating innovation
Expand collaborative
businesses
Materials × Fibers & Products Converting

segment
Materials

Healthcare × IT × Materials

Healthcare

Healthcare × Materials
Collaborative Companies,
Public R&D institutions
Academia etc.

Fibers& Products
Converting

IT

Healthcare × IT

Promotediversity
ダイバーシティ＆and inclusion
インクルージョンの推進

Utilize digital andinformation technologies

Strengthen innovation
framework

Human resources

Technology

Organization

21

Initiatives for Diversity & Inclusion
Milestone

Diversity

FY2019FY2022

FY2030Female Executives*1

3

10+

Non-Japanese executives

3

６+ （FY20: 4）
６+（FY20: 5）

Female managers

117

174（7％）

300+（13％）

US

Number of Females in Senior Manager position*2

2

4

10

EU

Number of Promotable Females top and senior management
position*3

0

3

10

9（13％）

12（18％）

5+（10％+）

8+（16％+）

GlobalJapan

Women’s
Advancement

China

Number of Females in Senior Manager or above position* KPI had set in FY2020

Inclusion

Inclusive culture

Goal

12+

ASEAN

Number of Females in Senior Manager or above position

GlobalEmployee engagement ratio in all regions

Japan

Flexible work style * Actual utilization rate of remote work
(excluding employees in plant site) *4

15％

50％

100％

US

Number of ethnic minorities in Senior Manager position

1

3+

10

EU

Number of non-local people in the management team *5

6

9

12

1 +（8％+）

5（38％）

22+（44％+）25+（50％+）

China
ASEAN

To be announced in FY2021

Number of Chinese Executives
Number of Local people in Senior Manager or above position*6* KPI had set in FY2020*1 Total number of board members, auditors, group corporate officers, *2 President or its direct report in a group company, *3 Human resources of female senior managers selected
and certified as executive candidates, *4 4 Actual telework utilization rate (excluding employees working in the factory area), *5 Number of group company officers of nationalities otherthan the country where the group company is located, *6 Number of senior managers of nationality of the country where the group company is located22Shareholder Return Policy◼ Despite our proactive investments, we will make no change to our dividend policy◼ Reflecting the predicted profit growth, the FY2021 annual dividend is forecast to be 55 yen per share, anincrease of 5 yen year on year•

Created cash flows will be given prioritized allocation to “Strategic Investment for Future Growth”,
while maintaining a healthy financial structure (aiming for a debt-to-equity ratio of 0.9 times)•

Stable and sustainable dividends will be considered, and own share repurchasing will be flexibly conducted as well•

Dividends are in line with consolidated operating results, aiming to raise the dividend along with profits growth,and targeting a consolidated payout ratio of 30% of profit attributable to owners of parent for the medium term
（yen／share）

Change in dividend per share（FY）

Payout ratio

Outlookー(net loss)

22%

22%

26%

30%

46%

ー

30%

(net loss)* Including a commemorative dividend of 10 yen/share for our founding centennial

Note) The Company consolidated its common shares at a ratio of five shares to one share effective on October 1, 2016. Dividend amounts per share are converted based on this reverse stock split

23

Long-Term Vision

To Be a Company That Supports
the Society of the Future24