May 31, 2017

Notice of Convocation
The 151st 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 151st Ordinary General Meeting of Shareholders
Reference Documents for the General Meeting of Shareholders
Proposals and Reference
Attached Reports
Reports on Operations for the 151st 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 and Medium & Long-Term strategies(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(12) Other important items concerning the current status of the Teijin Group2. Matters Regarding the Shares of the Company
3. Stock Option
4. Directors and Statutory Auditors
5. Accounting Auditor
6. Corporate Governance System
7. Systems to Ensure Appropriate Business Operations and the Status of its Implementation
8. Basic Policy Regarding the Control of the Company (Excluding Takeover Defense Measures)
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 31, 2017
Dear Shareholder,

Notice of Convocation ofst

the 151 Ordinary General Meeting of Shareholders
You are cordially invited to attend the 151st 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., Wednesday, June 21, 2017. (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,
Smartphone or 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 thewindow. In case of personal computer or smartphone, you may access to the web-site to exercise voting rights fromthe Company’s web-site.

Sincerely,

Jun Suzuki
President and Representative Director
Teijin Limited
2-4, Nakanoshima 3-chome,
Kita-ku, Osaka 530-8605,
Japan

3

Details
1. Date and Time of the Meeting:Thursday, June 22, 2017, 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 Statutory Auditors of the results of audit on the Consolidated Financial
Statements, for the 151st Fiscal Year (April 1, 2016 to March 31, 2017)
Proposal 1: Election of Ten (10) Directors
Proposal 2: Election of One (1) Statutory Auditor

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. (https://www.teijin.com/)• If you attend the General Meeting of Shareholders, please submit the attached Document for the Exercise of
Voting Rights to the reception of the meeting.
・If you attend the General Meeting of Shareholders by proxy, you may exercise your voting rights byauthorizing one(1) other shareholder with voting rights to act as its proxy as stipulated in the Company’s
Article of Incorporation.
・The Company consolidated its common shares at a ratio of five shares to one share on the effective date ofOctober 1, 2016. The results of prior fiscal years are displayed reflecting this merger.

4

Reference Documents for the General Meeting of Shareholders
Proposal and Reference
Proposal 1: Election of Ten (10) Directors
The terms of office of ten (10) Directors,— Shigeo Ohyagi, Jun Suzuki, Yo Goto, Hiroshi Uno, Kazuhiro
Yamamoto,Yoshihisa Sonobe, Yutaka Iimura, Nobuo Seki, Kenichiro Senoh and Fumio Ohtsubo —will expire at
the conclusion of this General Meeting of Shareholders.
Shareholders are therefore requested to elect the following ten (10) Directors (of whom nine (9) are up for
reelection).
The candidates for Director are as follows.
No.

Candidate’s Name
(Date of Birth)

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

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

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

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

Number ofCompany’s
Shares Owned

56,700Shares<Significant Concurrent Positions>
Permanent Officer, Keidanren (Japan Business Federation)
Vice Chairman, Japan Association of Corporate Executives (Keizai
Doyukai)
Outside Director, Recruit Holdings Co., Ltd.
Outside Statutory Auditor, JFE Holdings, Inc.
<Reason of the nomination of the candidate for director>
Shigeo Ohyagi assumed a post as President, Representative Director (CEO) of the Company in June 2008 and has worked on the structural reforms of
the Company. Furthermore, he assumed a post as Chairman of the Board in April 2014 and has been concentrating his efforts on the operations of theBoard of Directors as Chairman and conducting appropriate supervision on Executive Directors, etc.

5

No.

Candidate’s Name
(Date of Birth)

Personal History, Positions andSignificant Concurrent Positions
Apr.1983
Apr.2011
Apr.2012【Reappointment】

Apr.2013

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

Joined Teijin Limited
President, Teijin Holdings Netherlands B.V.
Corporate Officer, Teijin Limited
Chief Marketing Officer
Director, BRICs business
Executive Officer, Teijin Limited
General Manager, Advanced Fibers & Composites
Business Group
General Manager, Carbon Fibers and Composites
Business Unit

Number ofCompany’s
Shares Owned

29,700SharesPresident & Representative Director, Toho Tenax Co.,Ltd.

Director, Executive Officer, Teijin Limited
President , (Incumbent)
Representative Director , (Incumbent)
CEO (Chief Executive officer) (Incumbent)<Significant Concurrent Positions>
Officer, Japan Association of Corporate Executives (Keizai Doyukai)

Jun.2013
Apr.2014<Reason of the nomination of the candidate for director>
After assuming the post of President, Representative Director (CEO) in April 2014, Jun Suzuki formulated a revised medium-term plan in Novemberof the same year, and promoted the completion of structural reforms on which his predecessor worked. He formulated a new medium-term plan in
February 2017 and he is promoting growth strategies for the future.
Apr.1975
Joined Teijin Limited
Apr.2008
Corporate Officer, Infocom Corporation CFO
Jun.2011
Corporate Officer, Teijin Limited
General Manager, IT Business Group
President & Representative Director, CEO, Infocom
Corporation【Reappointment】
Apr.2012
General Manager, Corporate Strategy Officer, Teijin
Limited
Kazuhiro Yamamoto
7,200
Apr.2014
Executive Officer, Teijin Limited(September
27,
1952)
Shares3
CFO (Chief Finance Officer) (Incumbent)<Participation in Board ofGeneral Manager, Accounting, Finance & Procurement
directors meetings>
Division
12 times out of 12 (100%)
Jun.2015
Director, Executive Officer, Teijin Limited
Apr.2016
Director, Senior Executive Officer, Teijin Limited
Apr.2017
Representative Director, Executive Vice President , Teijin
Limited (Incumbent)
CIIO(Chief Information & Innovation Officer)(Incumbent)<Reason of the nomination of the candidate for director>
In 2011, Kazuhiro Yamamoto assumed the post of Corporate Officer, Teijin Limited and served as President & Representative Director, CEO of
Infocom Corporation which is a listed subsidiary. He assumed the posts of Executive Officer, Teijin limited in April 2014, Director, Executive Officer inJune 2015, Director, Senior Executive Officer in April 2016, and Executive Vice President in April 2017. While serving as CFO and CIIO, he is putting
effort into cost management, IR activities, information strategy, etc.

6

No.

Candidate’s Name
(Date of Birth)

Personal History, Positions andSignificant Concurrent Positions
Apr. 1981
Jun. 2009【Reappointment】

Apr.2011
Jun.2011
Apr.2013

Hiroshi Uno
4(September 18,1955)<Participation in Board of
directors meetings>
12 times out of 12 (100%)

Jun.2015
Apr.2017

Joined Teijin Limited
Corporate Officer, Teijin Limited
Director, Teijin Pharma Limited
Senior Executive Director, Teijin Pharma Limited
Executive Officer, Teijin Limited
Senior Executive Officer, Teijin Limited
General Manager, Healthcare Business Group
President & Representative Director, Teijin Pharma
LimitedDirector, Senior Executive Officer, Teijin Limited(Incumbent)
Responsible for Healthcare Business of Teijin Group(Incumbent)

Number ofCompany’s
Shares Owned

11,800Shares<Reason of the nomination of the candidate for director>
Hiroshi Uno assumed the posts of Senior Executive Officer; Teijin Limited, General Manager, Healthcare Business Group; and President &Representative Director, Teijin Pharma Limited in April 2013, Director, Senior Executive Officer, Teijin Limited in June 2015, and Responsible for
Healthcare Business of Teijin Group in April 2017, and has been working to expand revenue of the healthcare business which forms a part of the core
strategies of the Company and working on the integration of “healthcare”; “IT” and “composites and advanced fibers” which are the themes of theCompany’s growth strategy.
Apr.1980
Joined Teijin Limited【New Candidate】
Jun.2010
Corporate Officer, Teijin Limited
CHO, General manager of Human Resources
President & Representative Director, Teijin Creative Staff
Co., Ltd
Apr.2012
General Manager, Human Resources Division, Teijin
LimitedApr.2013
General Manager, Resin & Plastic Processing Business
Group
7,400
Apr.2015
General Manager, Electric Materials & Performance
Shares
5 Yasumichi Takesue
Polymer Products Business Group(July 1,1956)
Apr.2016
Executive Officer, Teijin Limited
General Manager, Electric Materials & Performance
Polymer Products Business Group
Apr.2017
Senior Executive Officer, Teijin Limited (Incumbent)
Responsible for Material Business of Teijin Group(Incumbent)
Director, Teijin Frontier Co., Ltd. (Incumbent)
Director, Continental Structural Plastics Holdings
Corporation (Incumbent)<Reason of the nomination of the candidate for director>
Yasumichi Takesue assumed the posts of Corporate Officer, Teijin Limited in June 2010 and under the title of CHO, he promoted thetask of global human resources and general affairs. He also assumed the posts of Executive Officer, Teijin Limited and General
Manager, Electric Materials & Performance Polymer Products Business Group, in April 2016; Senior Executive Officer, Teijin
Limited; and he became responsible for the Material Business of Teijin Group in April 2017. He has been working to expand revenueof the Material Business which forms a part of the core strategies of Company.

7

No.

Candidate’s Name
(Date of Birth)

Personal History, Positions andSignificant Concurrent Positions
Apr.1980
Jun,2009
Apr.2010

Number ofCompany’s
Shares Owned

Joined Teijin Limited
Corporate Officer, Teijin Limited
Deputy CFO (for/Accounting/ Finance/ Budget Control)
General Manager, Accounting and Finance Office
General Manager, Corporate Strategy Office
General Manager, Teijin Creative Staff Co., Ltd.
Apr.2011
CFO
General Manager, Accounting and Finance Division
Representative Director, Executive Officer, Teijin
5,700【Reappointment】
Creative Staff Co., Ltd. (General Manager, Accounting
Sharesand Finance Division)
Yoshihisa Sonobe
Member, Global Policy Board Teijin Dupont Films(October 17,1956)
6
Global Joint Venture<Participation in Board of
Apr.2012
CFO
directors meetings>
General Manager, Accounting, Finance & IR Division
12 times out of 12 (100%)
Apr.2014
Corporate Strategy Officer
Supervisor of Raw Materials & Polymers DivisionJun.2014
Director, Corporate Officer
Supervisor of IT, Healthcare Project
Apr.2015
Chairman, Teijin Dupont Films
Apr.2016
Director, Executive Officer Teijin Limited (Incumbent)
Apr.2017
Responsible for Corporate Strategy (Incumbent)
Responsible for Legal and Intellectual Property(Incumbent)
Responsible for Global Strategy (Incumbent)<Reason of the nomination of the candidate for director>
Yoshihisa Sonobe assumed the posts of Corporate Strategy Officer in April 2014, Director, Corporate Officer in June of the same year, Director,
Executive Officer in April, 2016, and he became responsible for Corporate Strategy, Legal and Intellectual Property and Global Strategy in April 2017.
He has been working on the planning of strategies toward the achievement of structural reforms and growth strategy which are the most important issues
for the Company.
Apr.1969
Joined Ministry of Foreign Affairs, Japan (MFA)【Reappointment】
Aug.1999
Director, General, Economic Cooperation Bureau, MFA
Candidate for Outside
Feb. 2001
Deputy Vice-Minister, MFA
Director
Sep. 2001
Assistant Vice-Minister, MFA
Jul. 2002
Ambassador of Japan in Indonesia
Nov.2002
Ambassador of Japan in Indonesia and the Democratic
Republic of Timor-Leste (East Timor)
Apr. 2006
Ambassador of Japan in France andYutaka Iimura
The Principality of Andorra (Andorra)(October 16,1946)
May.2007
Ambassador of Japan in France, Andorra<Participation in Board ofand the Principality of Monaco
directors meetings>
Jul.
2009
Retired from MFA
11 times out of 12 (92%)
Jul. 2009
Special Envoy of the Government of Japanfor the Middle East and Europe
Jun.2011
Director, Teijin Limited (Incumbent)
7
Member of the Advisory Board, Teijin Limited
4,400(Incumbent)
SharesAug.2014
Councilor, MFA (Incumbent)<Significant Concurrent Positions >Councilor, MFA
Vice-Chairman, Japan-Indonesia Association, Inc.
Adviser, Taisei Corporation
Special Participation, Inpex Corporation
Committee, Management Consultation, Tokyo University
Senior Fellow, National Graduate Institute For Policy Studies<Reason of the nomination of the candidate for outside director>
Although Yutaka Iimura does not have direct experience in corporate management except as an outside director, he has servedat the Ministry of Foreign Affairs, and he is expected beneficial to the business of the Company in terms 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.

8

No.

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

Nobuo Seki
(September 21,1944)<Participation in Board of
directors meetings>
12 times out of 12 (100%)

Personal History, Positions andSignificant Concurrent Positions
Apr.1970
Apr.1992
Jun.1997
Jun.1998
Aug.2000
Apr.2001
Apr.2007
Apr.2009
Jun.2012
Jul.2012

Joined Chiyoda CorporationVice-President, Chiyoda International Corporation
Director, Chiyoda Corporation
Managing Director, Chiyoda Corporation
Senior Managing Director & Representative Director,
Chiyoda Corporation
President & CEO, Chiyoda Corporation
Chairman of the Board, Chiyoda Corporation
General Corporate Advisor , Chiyoda Corporation
Director, Teijin Limited (Incumbent)
Member of the Advisory Board, Teijin Limited(Incumbent)
Adviser Chiyoda Corporation

Number ofCompany’s
Shares Owned

4,700
Shares89<Significant Concurrent Positions >Outside Director, KAMEDA SEIKA Co., Ltd
Outside Director, Weathernews Inc.
Outside Director, Yokogawa Electric Corporation<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.
Apr.1976
Joined Fuji Photo Film Co., Ltd.(currently FUJIFILM【Reappointment】
Corporation)
Candidate for Outside
Dec.1999
Representative Vice-President Keio Academic Enterprise
DirectorCo., Ltd.
Apr.2001
Professor, Graduate school of Keio University Media andGovernment
Apr.2004
President & Chairperson, The Industry- Academic
Kenichiro Senoh
7,700
Collaboration Initiative (NPO) (Incumbent)(January 1,1954)
SharesDirector, Teijin Limited (Incumbent)<Participation in Board of Jun.2012
Member of the Advisory Board, Teijin Limited
directors meetings>(Incumbent)
12 times out of 12 (100%)<Significant Concurrent Positions>
President & Chairperson, The Industry-Academia Collaboration Initiative (NPO)

Outside Director, Mitsubishi Pencil Co., Ltd
Visiting Professor, Hitotsubashi University Graduate School of Commerceand Management (MBA program)Participation, The Japan Society for Research Policy and Innovation
Management
Director, Intellectual Property Association of Japan<Reason of the nomination of the candidate for outside director>
Kenichiro Senoh is serving many officers and committee members, and is expected to provide advice based on his specialist
viewpoint of industry and business field.

9

No.

Candidate’s Name
(Date of Birth)[Reappointment]

Apr.1971
June.1998
June. 2000
June. 2003

Fumio Ohtsubo(September 5, 1945)<Participation in Board of
directors meetings>
8 times out of 9 (89%)

Number ofCompany’s
Shares Owned

Personal History, Positions andSignificant Concurrent Positions

June. 2006
Jun. 2012
July. 2013
Jun.2016

Joined Matsushita Electric Works, Ltd., (currently
Panasonic Corporation)
Director, Matsushita Electric Works, Ltd.,Managing Director, Matsushita Electric Works, Ltd.,
Representative Senior Managing Director, Matsushita
Electric Works, Ltd.,
President, Representative Director, Matsushita ElectricWorks, Ltd.,
Chairman of the Board, Representative Director,
Panasonic Corporation
Special Advisor, Panasonic Corporation (Incumbent)
Director, Teijin Limited (Incumbent)
Member of the Advisory Board, Teijin Limited(Incumbent)

3 ,000Shares10<Significant Concurrent Positions>
Trustee, Nippon Life Ins.*
Director, Kansai University
Trustee, Japan-Indonesia Association, Inc.
Partner Chairman, Monozukuri, Nippon,Conference Nikkan Kogyo
Shimbun, Ltd.
<Reason of the nomination of the candidate for outside director>
Fumio Ohtsubo has served as President and Chairman of the Board of Panasonic Corporation, and he is expected to provide
advice on the Company’s business operations based on his abundant business experience and high level of insight.
*”Nippon Life has a Board of Trustees that serves as a management advisory body to ensure the appropriateness of management. Trustees areelected at the Meeting of Representatives from among policyholders and academic experts. Trustees give opinions on advisory matters andimportant management issues and deliberate on policyholder opinions regarding corporate management. The results of these opinions anddeliberations are reported at the Meeting of Representatives.”
Fumio Ohtsubo provides advice etc. to Nippon Life from the viewpoint of an outside expert, however, he is not directly engaged inmanagement or execution of business. Although the said company is one of the Company’s major shareholders, the Company recognizes that
he satisfies the requirements of Independent Director stipulated by the Company.

Notes: 1. Yutaka Iimura, Nobuo Seki, Kenichiro Senoh and Fumio Ohtsubo 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 independence stipulated by Tokyo Stock Exchange Group, Inc., they were registered by theCompany as “Independent Director / Auditor”. Refer to the pages 12-13 for the contents of the requirements of“Independent Director” stipulated by the Company.
2. The Company has entered into liabilities limitation agreements with Shigeo Ohyagi, Yutaka Iimura, Nobuo Seki,
Kenichiro Senoh and Fumio Ohtsubo, who are currently Directors (excluding Executive Directors), which limit theliabilities of each Director to ¥20 million or the minimum amount stipulated in Article 425, Paragraph 1, of theCompanies Act, whichever is higher, in accordance with the provisions of Article 427 of the Companies Act and theCompany’s Articles of Incorporation.
3. There are no special interests between the candidates and the Company.
4. The chart below indicates the dates of the first appointment of the Outside Director for each candidate and thetenures in position as Outside Director before the closing of this General Meeting of Shareholders.
Name

Date of First Appointment

Tenure in Position

Yutaka Iimura

June 22,2011

6 years

Nobuo Seki

June 22,2012

5 years

Kenichiro Senoh

June 22,2012

5 years

Fumio Ohtsubo

June 22,2016

1 year

10

Proposal 2: Election of One (1) Statutory Auditor
The terms of office of one (1) Statutory Auditor—Noriko Hayashi —will expire at the conclusion of this General
Meeting of Shareholders.
Shareholders are therefore requested to elect the following one (1) Statutory Auditor
The Board of Statutory Auditors has already approved this proposal.
The candidate for Statutory Auditor is as follows.
No.
Candidate’s Name
(Date of Birth)
New Candidate for Outside
Statutory Auditor

Personal History, Positions andSignificant Concurrent Positions
Apr.1991
May.1994
Apr.2011
Apr.2013

Registered as a lawyer (The Second Tokyo Bar
Association)
Joined Kasumigaseki-Sogo Law Offices
Partner lawyer, Kasumigaseki-Sogo Law Offices(Incumbent)
Vice Chairperson, The Second Tokyo Bar
Association
Executive Director, Japan Federation of Bar
Association

Number ofCompany’s
SharesOwned

0 ShareHitomi Nakayama(November 14 , 1955)
Committee, Board of Education Meguro City
Committee, Examination Committee for Certification of Sickness and Disability,
Ministry of Health, Labour and Welfare
Committee, Administrative dissatisfied board of review, Ministry of Internal
Affairs and Communications
Director, Public Interest Incorporated Foundation “ Automotive Dispute
Resolution Center”
Auditor, Japan Electric Meters Inspection Corporation<Reason of the nomination of the candidate for Statutory Auditor>
Although Hitomi Nakayama does not have direct experience in corporate management, the Company expects her to contribute
her abundant insight and experience as a lawyer toward maintaining and improving compliance of the Company and judges that
she is capable of suitably performing her duties as Outside Statutory Auditor.

Notes: 1. Hitomi Nakayama is a candidate for Outside Statutory Auditor. The Company requires candidates for Outside
Statutory Auditor to satisfy all the requirements to become Independent Statutory Auditor stipulated by theCompany. This candidate satisfies all such requirements. Since she also satisfies the requirements of independence
as stipulated by Tokyo Stock Exchange Group Inc., she was registered by the Company as “Independent Director /Auditor”. Refer to pages 12-13 for the contents of the requirements of “Independent Statutory Auditor” stipulatedby the Company.
2. If Hitomi Nakayama’s election is approved, the Company will enter into a liabilities limitation agreement with her,
which limits her liabilities to ¥20 million or the minimum amount stipulated in Article 425, Paragraph 1, of theCompanies Act, whichever is higher, in accordance with the provisions of Article 427 of the Companies Act and theCompany’s Articles of Incorporation.
3. There are no special interests between the candidate and the Company.

11

＜Reference＞
Teijin Limited Independent Director and Independent Statutory 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 Statutory Auditors," which covers outside statutory 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 statutory auditor requirements, the Company has formulated and operates regulations
concerning independent directors and independent statutory auditors of its own accord. The primary content of these requirements
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 Statutory 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 Statutory
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 statutory 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 firm that provides accounting audit services to the Teijin Group or has been a member of such a firm within thepast five years(2) In the event that the person or the person´s "family" provides, or has provided within the past three years, services otherthan accounting services that involved compensation of more than 7 million yen (or US$60,000) and fall into thefollowing 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" (Note3) 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 statutory auditor holds a director position in a company inJapan or overseas or an equivalent executive position in a for-profit organization, and a director or statutory auditor of the
Teijin Group currently holds a director, statutory 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

12

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 ormarriage within two degrees of consanguinity
Note 3: "Major customer or business partner" describes a person or an entity whose total annual transaction relationship,
either as a seller or a purchaser, has exceeded 2% of consolidated net sales at any time within the past three years. (Ifthe 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, this amount 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
statutory auditor, operating officer or positions higher than general manager.
This "Teijin Limited Independent Director and Independent Statutory 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 Statutory Auditor Regulations as prescribed by the Company and is not a rigorously defined recordof these regulations, Company Law or any other legislation.

13

Attached Reports
Reports on Operations for the 151st Fiscal Year (April 1, 2016 to March 31, 2017)
1. Current State of the Teijin Group(1)Progress and Results of Operations
1) Progress and Results of Operating Activities①Sales and Income
Global economic conditions in FY 2016, ended March 31, 2017, tracked a gradual expansionary path as a whole, as
developed countries centered on the U.S. drove firm growth, and the People’s Republic of China (PRC) economy turned
upward from the second half of the fiscal year due to economic stimulus measures. Meanwhile, the Japanese economy
saw signs of improvement, including an upturn in business confidence in the manufacturing industry due to a recovery inexports and other factors despite sluggish growth in personal consumption.
In this environment, for FY 2016, consolidated net sales totaled ¥741.3 billion, a decrease of 6.3% year on year. Thisdecrease was due in part to the impact of optimizing our production configuration associated with restructuring initiatives
mainly in the resin business, in addition to the stronger yen in the first half of the fiscal year, although sales weregenerally steady across all businesses on the whole. Operating income decreased 15.8% to ¥56.5 billion, due in part to theimpacts of foreign exchange movements, new drug licensing costs and downward revisions to NHI drug reimbursement
prices, despite efforts to steadily expand the earnings base by driving growth in existing businesses and executing
restructuring initiatives. Ordinary income decreased 7.3% to ¥55.9 billion.
Profit attributable to owners of parent increased 61.3% to ¥50.1 billion, partly due to a large decrease in tax expense inconjunction with the adoption of tax effect accounting in connection with a decision to withdraw from the homehealthcare business in the U.S. Earnings per share rose ¥96.77 to ¥254.91.

②Analysis of Assets, Liabilities and Net Assets
Total assets as of March 31, 2017 amounted to ¥964.1 billion, up ¥140.6 billion from the end of FY 2015. The increase intotal assets was primarily the result of increases in fixed assets, including goodwill, and certain other items due to thecompletion of the acquisition of Continental Structural Plastics Holdings Corporation (Headquarters: Michigan, U.S.A.;“CSP”) in January 2017. There was also an increase in deferred tax assets in conjunction with the adoption of tax effectaccounting following the decision to withdraw from the U.S. home healthcare business.
Total liabilities amounted to ¥612.2 billion, up ¥103.2 billion from the end of FY 2015. Interest-bearing debt accountedfor ¥376.2 billion of the total, up ¥72.9 billion mainly due to an increase in line with the procurement of funds for theacquisition of CSP.
Total net assets amounted to ¥351.8 billion, up ¥37.4 billion from the end of FY 2015. Total shareholders’ equity and total
accumulated other comprehensive income together represented ¥338.4 billion of the total, an increase of ¥38.3 billion
from the end of FY 2015.
There was an increase in line with profit attributable to owners of parent, but this was partially offset by the payment ofdividends and by a decrease in foreign currency translation adjustment in connection with the stronger yen.

14

Segment operating results (sales and operating income) of the Teijin Group are as follows.
(Billions of yen / %)Fiscal 2015
Advanced Fibers and Composites

Fiscal 2016

ChangePercentage¥133.0¥136.8

+¥3.7

+2.8%

163.7

134.4

-29.3

-17.9

Health Care

147.5

147.5

+0

+0.0

Trading & Retail

270.9

259.6

-11.3

-4.2

Sub-Total¥715.2¥678.3-¥36.5-5.2

Others

75.6

63.0

-12.6

-16.7

Total

¥790.7¥741.3-¥49.5-6.3

Advanced Fibers and Composites

¥18.5

¥13.8

-¥4.7

-25.2

22.3

18.5

-3.8

-17.1

Health Care

28.8

27.6

-1.2

-4.3

Trading & Retail

5.3

6.7

+1.4

+25.8

Sub-Total

¥74.9

¥66.6

-¥8.3

-11.1

Others

6.5

5.4

-1.1

-17.2

Elimination and corporate(14.3)( 15.5)

-1.2

-

Total

¥ 67.1¥56.5- ¥10.6-15.8

Electric

Materials&

Performance

Polymer Products
Net sales

Electric

Materials&

Operating income

Polymer Products

Performance15

Business Segment Results for fiscal 2016 were as follows:■Advanced Fibers and Composites
Sales in the Advanced Fibers and Composites segment totaled ¥136.8 billion, while operating income was ¥13.8 billion.

High-Performance Fibers
Sales remained firm for automotive applications
In aramid fibers, sales of Twaron para-aramid fibers expanded firmly for automotive applications, including for tires in
Europe. In contrast, sales for oil drilling and ballistic protection applications were weak. Sales were firm for Technora
para-aramid fibers both for automotive applications in Japan and also for infrastructure-related applications overseas.
Technora is being used in an expanding range of applications under more extreme conditions given the positive
assessment of its outstanding fatigue resistance, chemical barrier and other properties.
Sales of Teijinconex meta-aramid fibers were robust for use in automotive applications such as turbocharger hoses, aswell as protective clothing and industrial applications, despite persistently fierce competition in the growing market for
filter applications. Moreover, at a new production facility in Thailand, where production and sales commenced in theprevious fiscal year, we are focused on expanding this particular business in promising Asian markets and emerging
markets, where high growth is expected against the backdrop of increasingly stringent regulations pertaining toflame-retardant materials and environmental safety.
In polyester fibers, solid sales were recorded for automotive applications, such as seat belts, conveyor belts and hose
cords, and for use in personal hygiene products, wadding, and reverse osmosis membrane support layers for water
treatment applications. Moreover, we are striving to further strengthen our competitiveness by realigning our domestic
production configuration and by transferring production of certain items to subsidiaries in Thailand.

Carbon Fibers and Composites
Sales for use in aircraft grew steadily; U.S.-based Continental Structural Plastics acquired.
Sales of TENAX carbon fibers continued to grow steadily for use in aircraft. Among other applications, sales for wind
power generation in the Americas and Europe were robust, but the supply-demand balance softened for general industrialuse, and for sports and leisure applications in Asia. In addition, Pyromex Oxidized PAN fiber has continued to post steadysales, reflecting favorable demand for use in aircraft brake pads. In response, a carbon fiber production line is being
converted into a Pyromex production line at Toho Tenax America, Inc.
We are working to expand business centered on composite materials in the field of high-performance materials to be usedin mass-produced automotive components. As part of these efforts, in January 2017, we acquired CSP, a global leader in
automotive lightweight composite technologies. CSP became our wholly owned subsidiary. Going forward, we will
integrate CSP’s glass fiber reinforced plastic (GFRP) and our fiber reinforced plastic (FRP) technologies, specificallycarbon fiber reinforced thermoplastic (CFRTP) and carbon fiber reinforced plastic (CFRP), along with driving growth of
CSP’s components business model in the Americas and global market expansion of this business model to Europe, Japanand Asia. Through this process, we will establish a strong business platform in automotive composite products and willseek to become a supplier of Tier 1 components in this business.
Furthermore, to address further growth in demand for carbon fiber primarily in North America, we have completed theacquisition of land in the United States and are considering the construction of a new carbon fiber plant.
In addition, we carried out a fuel conversion of in-house power generation equipment at the Mishima Factory, a key
carbon fiber production site, by switching from steam turbine generation using heavy oil to gas turbine power generation,and commenced operation of the converted equipment. As a result, we will push ahead with the reduction of ourenvironmental impact in conjunction with improving power generation efficiency.

■Electronics Materials & Performance Polymer Products
The Electronics Materials & Performance Polymer Products segment reported sales of ¥134.4 billion and operating
income of ¥18.5 billion.

16

Resin and Plastics Processing
Steady performance by polycarbonate resins, with a focus on further expanding high-performance applications.
Our mainstay Panlite and Multilon polycarbonate resin products saw firm supply-demand dynamics and maintained
steady profitability, owing to high capacity utilization maintained at both production sites in the PRC and Japan, plus an
improved sales mix, despite a reduction in profits due to the impact of foreign currency conversion reflecting the stronger
yen. In this environment, we are taking initiatives to further expand high-performance applications. In the automotive
market, we are working to apply polycarbonate resin molded products incorporating advanced coating technology toautomotive windows. Also, we are actively expanding a copolymer polycarbonate featuring a high surface hardness toapplications such as automotive interior panels. In growing markets such as disaster readiness infrastructure, housing, andhealthcare, we are offering proposals encompassing the supply of products as well as materials, both of which are
centered on high value added polycarbonate resins and their compounds. In addition, we are actively pushing ahead with
providing weight reduction, metal replacement and other solutions using proprietary composite materials that combine
polycarbonate resins with the Teijin Group’s high-performance fibers (aramid fibers, carbon fibers).
In high-performance resins, we are working to upgrade and expand our lineup of specialty polycarbonate resins forcamera lenses in order to offer optimal products for smartphones as well as for use in vehicle and surveillance cameras
expected to see market expansion. In addition, we are accelerating the expansion of polyethylene-naphthalate (PEN) resin
to various pressure vessels by taking advantage of the features of PEN resin, including its chemical and gas barrier
resistance properties. In flame retardants, we are expanding the market for new phosphorous products that lend highflame retardancy and bring easy colorability to polyester fibers as well as resins, alongside our existing lineups, which are
generating steady earnings.
In regard to the “super engineering plastic” polyphenylene sulfide (PPS) resin, for which a mass-production structure is
being established at INITZ Co., Ltd., a joint venture with SK Chemicals Ltd. of the Republic of Korea (ROK), we aredeveloping distinctive compound products leveraging Teijin’s proprietary technologies centered on automotive andelectronics applications.

Films
Integrated our domestic polyester film production facilities and converted joint ventures in Japan and Indonesia into
wholly owned subsidiaries.
Reflective films for use in liquid crystal display (LCD) televisions remained under pressure in terms of both volume andpricing due to the emergence of Chinese manufacturers. We posted relatively firm sales of Purex release films for
manufacturing processes mainly for use in multilayer ceramic capacitors for smartphones and other devices, as well as
special packaging application exports and polyethylene-naphthalate (PEN) film for use in magnetic materials. Sales also
remained strong for Panlite Sheet, a product made of polycarbonate resin, and ELECLEAR transparent electroconductive
film, primarily for use in vehicle display applications. In addition, PURE-ACE optical film using specialty polycarbonate
resin saw expanded sales for reverse-dispersion solvent-cast retardation film for use as an organic electroluminescentdisplay (OLED) antireflective film, along with expanded sales for use in flexible printed circuits.
In this climate, profit increased from the previous fiscal year, owing to improvements in the sales mix of both polyesterand polycarbonate films, as well as contributions from lower costs due to the integration of domestic polyester film
production facilities. Moreover, we acquired the shares held by our joint venture partner E.I. du Pont de Nemours andCompany (Du Pont) in the film business joint ventures in Japan and Indonesia. Business operations in Japan haverecommenced under the new company name Teijin Film Solutions Limited. In Indonesia, business operations haverecommenced under the new company name of P.T. Indonesia Teijin Film Solutions. This deal will enable us to improve
management flexibility and decision-making speed, as well as utilize an even more diverse range of materials and film
production methods than before, in order to create and further enhance value for customers.
Looking at overseas sites, in the PRC, sales volume was mostly unchanged from the previous year as market conditions
remained sluggish. In the Americas and Europe, demand was relatively firm centered on packaging applications.

17

■Healthcare
Sales in the Healthcare segment came to ¥147.5 billion, while operating income was ¥27.6 billion.

Pharmaceuticals
Sales of our novel treatment for hyperuricemia and gout expanded favorably.
The domestic pharmaceuticals market continues to face a challenging business environment. In this climate, sales ofhyperuricemia and gout treatment FEBURIC (febuxostat) and Somatuline®*, a treatment for acromegaly, continued to
expand steadily. In addition, we are providing patients with a wider range of choices through new formulations, such as an oral®
jelly and an intravenous drip of the osteoporosis treatment Bonalon †, and Mucosolvan L Tablet 45 mg, a novel

reduced-sized tablet-form version of the sustained-release expectorant Mucosolvan. Also, we are working to expand salesof the transdermal anti-inflammatory analgesic patch formulation LOQOA Tape, which it began jointly marketing withTaisho Toyama Pharmaceutical Co., Ltd. in January 2016.
On the R&D
front, in July 2016, we applied for a new indication for treatment of neuroendocrine tumors forSomatuline®*, a treatment for agromegaly. In parallel, we began the clinical development of TMX-049DN (UK, Phase 1)
as a new treatment for diabetic nephropathy in Type 2 diabetes. In August 2016, we signed an exclusive license andsupply agreement with Versartis, Inc. of the U.S. for the development and marketing of Somavaratan (VRS-317), a novel,
long-acting form of recombinant growth hormone (rhGH) developed by Versartis, Inc. with its first planned indication
being dwarfism caused by pediatric growth hormone deficiency (PGHD). In November 2016, we received a request from
the Ministry of Health, Labour and Welfare to develop an expanded indication of Somatuline®* for thyroid stimulating
hormone-secreting pituitary tumors, and have begun taking actions targeting the start of clinical trials within one year.
Also, in December 2016, we entered into a collaboration and license agreement with Amgen Inc. of the U.S. regarding
research and development of new therapeutic agents for kidney diseases and disorders. In February 2017, we started
phase Ⅲ clinical trials of ITM-058, a new treatment for osteoporosis. In March 2017, we started phase Ⅱ clinical trials
of TMX-049, a new treatment for hyperuricemia and gout, and phase Ⅱ clinical trials of TMG-123, a new treatment forType 2 diabetes.
Sales of febuxostat also continued to expand encouragingly overseas. We have secured exclusive distributorshipagreements for febuxostat covering 117 countries and territories. The drug is currently sold in 67 of these countries andterritories (including Japan), and we are in the process of obtaining regulatory approval to make it available in the others.

Home Healthcare
Rental volumes either remained high or increased for all offerings.
In Japan, we firmly maintained a high level of rental volume for therapeutic oxygen concentrators for home oxygentherapy (HOT). Looking ahead, we will strive to further boost rental volume by enhancing the lineup and expanding theuse of portable oxygen concentrators (Hi-Sanso Portable α (alpha), Hi-Sanso Portable α II), which are designed to
expand the range of patients’ daily activities, along with efforts to achieve the same for non-portable oxygen
concentrators such as Hi-Sanso 5S. Rental volume for continuous positive airway pressure (CPAP) ventilators for thetreatment of sleep apnea syndrome (SAS) continued to increase favorably, due to increasing the appeal of NemLink, amonitoring system for CPAP ventilators that uses mobile phone networks, and to the use of the SAS2100 sleep disorderdiagnostic system. We will continue seeking to further boost rental volume by expanding the use of SLEEPMATE10, amodel featuring a built-in heater-humidifier in addition to NemLink functions. To further fortify support services forindividuals, we sought to improve our ability to respond to patient needs by capitalizing on our home healthcare callcenters in Fukuoka and Osaka, Japan.
Meanwhile, in September 2015 we commenced sales of VitalLink, a multidisciplinary collaboration and information
sharing system. We have steadily expanded sales of VitalLink by making progress on signing agreements with physicians
through medical associations, in addition to signing agreements directly with primary care physicians. Moreover, inregard to a repetitive transcranial magnetic stimulation device developed through an industry-academia partnership with
Osaka University and other partners, investigator-initiated clinical trials of intractable chronic pain using this device areunder way at several facilities. We also continued to expand our marketing efforts for the WalkAide System, aneuromuscular electrical stimulation device providing walking assistance in the case of gait impairment resulting fromstroke or other causes launched in FY 2013, which initially focused on the Tokyo metropolitan area, to medical
institutions elsewhere in the country. Additionally, we launched ReoGo-J, a portable robotic arm that supports therehabilitation of paralyzed upper limbs due to stroke. Besides expanding sales of both products, we will continue toupgrade and enhance our lineup of these types of rehabilitation devices going forward.
†

Bonalon® is the registered trademark of Merck Sharp & Dohme Corp., Whitehouse Station, NJ, U.S.A.
18

Overseas, we had been considering bold reorganization measures targeting the home healthcare business in the U.S. On
April 27, 2017(U.S. time), we decided to withdraw from the home healthcare business in the U.S. by selling all of ourequity in this business to a company affiliated with Quadrant Management, Inc.†, We will continue to undertake the homehealthcare business in Spain and the ROK.

■Trading & Retail
The Trading & Retail segment yielded sales of ¥259.6 billion and operating income of ¥6.7 billion.
Fiber Materials and Apparel
Focused on strengthening the operating structure and expanding differentiated businesses.
In fiber materials, sales of high-performance materials for sports and outdoor use grew in the Americas and Europe, andthe Japanese market, but profitability declined due to the impact of the stronger yen. In addition, in polyester yarn,
although sales volume for use in automobiles declined due to the negative impact of domestic production adjustments byautomakers, we posted expanded sales of differentiated, high performance yarn for interior goods to major retailers, aswell as differentiated yarn for apparel, leading to a large improvement in earnings. In uniform materials, earnings
improved owing to cost reductions through the transfer of production overseas and an increase in individual orders.
In functional textiles and apparel, the business environment in Japan remained under pressure due to a downturn inspending on apparel, inventory adjustments by customers, and other factors. In this environment, we promoted
production at optimal sites and improved quality control in the production process. In conjunction with this, we strove todrive earnings growth by expanding business targeting prominent retailers and apparel sectors, leveraging our strengths inplanning and proposal-oriented business based on our unique material SOLOTEX and the DELTA series. In June andNovember 2016, we proposed and presented our differentiated businesses to the markets through comprehensive
exhibitions of textiles and apparel staged by Teijin Frontier Co., Ltd., which enabled us to capture customer needs andexpand business.
Industrial Textiles and Materials
Favorable performance by automotive materials and civil engineering materials.
In sales of automotive materials, sales of reinforcement materials for tires, conveyor belts, and automotive hoses were
firm. With the sales volume of air-bag fabric remaining on a growth track, we have set our sights on further expanding
production. Sales of automotive interior materials and equipment struggled because of inventory adjustments bycustomers, but sales of fabric for synthetic leather grew significantly.
In other industrial textiles and related materials, in the Japanese market, we recorded solid sales of civil engineering
materials including Technora SAMM Sheet concrete flaking prevention sheets for use in disaster reconstruction projects
and arterial highways. In addition, we saw surging demand for AEROSHELTER provisional tents for disaster-readinesspurposes and events. Sales were also solid for materials for agriculture, fisheries, electronics and the environment.
Moreover, in overseas markets, we expanded business involving environmental materials for PRC on the back of market
expansion.
In living related materials, particularly interior materials, we recorded increased profits from curtain materials due to thestronger yen, along with firm sales of wall-covering materials and floor-covering materials. We also posted solid sales ofwiping-related materials. In wellness related products, we steadily increased sales of personal hygiene products andexpanded the healthcare-related business with a major convenience store chain.
In resin and films, sales of PET films turned upward in the second half of the fiscal year in step with a recovery inproduction in the market for electronic components, but this did not make up for the sluggish sales in the first half.
In initiatives to create other new businesses, we focused on expanding sales of our “wearable cosmetics” Raffinan,disaster mitigation-related products, Motanka, an emergency blanket, and Pullshelter, a disaster-readiness curtain. We
also steadily advanced initiatives to commercialize products using wearable electrode textiles.

†

An investment firm based in the U.S. that has a portfolio including a major home healthcare provider boasting one of
the largest home healthcare businesses in the country.
19

■Others
Others, which does not qualify as a reportable operating segment, generated sales of ¥63.0 billion and operating incomeof ¥5.4 billion.
The IT business posted a steady performance mainly due to steady growth in sales of Meccha Comics, an e-book
distribution service in the net services category. In the IT services category, specifically in the healthcare business, webolstered sales of medical information systems including a radiology information system. At the same time, we are taking
steps to expand into the nursing care field. Notably, we began providing monitoring services using the Internet of Things(IoT)* and a nursing care recordkeeping system.
In new business development, sales of LIELSORT lithium-ion battery (LiB) separators were sluggish due to market
conditions. In parallel, we stepped up our focus on developing new customers.
In the area of new healthcare initiatives, we decided to establish a joint venture company in July 2017 that will be a
medical company spun off from Takiron Co., Ltd. in the field of implantable medical products. We will promote businessdevelopment over the medium to long term in tandem with improving profit through combining Teijin Group's marketingand technological capabilities with the knowhow of Teijin Nakashima Medical Co., Ltd., which has already entered themarket.
In the field of functional food ingredients, we made efforts to conduct development and marketing activities that are
resulting in food manufacturers steadily increasing their adoption of BARLEYmax, an enhanced barley product. Looking
ahead, we will continue to focus on evidence acquisition and promotion to accelerate future business development.

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 Teijin Group aims for the sustainable development of both business and society. Of the issues related tosustainability including social and environmental problems, in 2015, we identified and took proactive initiatives onimportant CSR issues related to business activities, which are three governance issues, three environmental issues, andseven social issues. In 2016, the important issue of “CSR Procurement” was added to social issues. In one designatedissue, “Reducing Environmental Impact,” in addition to working to reduce its greenhouse gas emissions in
manufacturing both within Japan and abroad, the Group made further efforts to reduce waste, both by reducing thetotal amount of waste produced and by promoting various recycling programs, achieving a large overall reduction in
the amount of non-recyclable waste emissions. Furthermore, we have identified solutions of environmental value as animportant CSR issue, and we are supplying products and services that lower the environmental burden in order tocontribute toward reducing CO2 emissions and saving energy.
The Teijin Group does not discriminate by nationality, age, gender, race, or physical disability with respect to hiringand promotion, and while respecting the values held by its diverse human resources, it supports everyone’s efforts torealize their potential. The Group carries out efforts to promote active roles for women through a dedicatedorganization that it established in 2000 after establishing a special committee in 1999. When hiring new graduates, thefive major group companies in Japan follow a guideline of aiming for at least 30% female intake. In 2016 and 2017,
we achieved this level with 33% and 32%, respectively. Concerning female representation in managerial positions, thenumber of female managers exceeded 100 as of March 2016, which is ten times the initial number. Aiming to further
increase the number of female managers, we are giving attention to a female leader development program. In addition,
we are actively implementing initiatives aimed at reforming the working styles of all Group employees, and striving to
implement measures that support work-life balance. The Teijin Group has introduced a system for scheduling reduced
working hours and a system for working at home for employees with child-raising or caregiving responsibilities, aswell as a system for the re-hiring of employees who retired for family reasons. We have also formulated a system in2014 that recognizes a three-year leave period associated with a spouse being relocated overseas.
Furthermore, based on shared Group guidelines, the Teijin Group proactively approaches social contribution
activities in line with the characteristics of the different business groups and regions. Among these approaches, we
believe next-generation education is particularly important, and through the Teijin Kumura Scholarship systemprovided by the Teijin Scholarship Foundation, we have supported around 1,600 science and engineering students over*

The IoT (Internet of Things) is a concept that describes the interconnection of a vast array of devices worldwide via theInternet. Such advanced connectivity will facilitate the realization of a wider range of new services.
20

more than 60 years, and in 2010, launched a scholarship system in China.
Furthermore, we are working to support youth sports such as by being a sponsor of the All Japan High School
Soccer Tournament, and creating TEIJIN ACADEMY FUJI, a human resource development center in cooperation withJapan Football Association (JFA).
Additionally, we provide continual relief support for the areas affected by the Tohoku-Pacific Offshore Earthquake,as well as continually operating a range of initiatives to support employee volunteer activities.
These activities have been recognized through the inclusion of the Teijin Group in multiple social development
investment indices including the DJSI Asia Pacific, FTSE4Good, and MSCI ESG Index.
Going forward, as a good corporate citizen, to realize both sustainable social and corporate development, we willcontinue to proactively participate in and support initiatives for the environment and social problems, as well as
various social contribution activities.

(2) Changes in Assets and Profit and Loss
Fiscal Period

148th Fiscal Period 149th Fiscal Period 150th Fiscal Period 151st Fiscal Period
FY2013

FY2014FY2015Items

FY2016(Current period)

Net sales

784,424

786,171790,748

741,291

18,07839,086

67,13056,512

19,88742,37860,31655,9338,356△8,08631,09050,13342.51△41.15158.15254.91

768,411

823,694

823,429

964,053

300,112303,635

314,412351,829(Millions of yen)
Operating income(Millions of yen)
Ordinary income(Millions of yen)
Profit attributable to owners ofparent(Millions of yen)

Net earnings per share(Yen)
Total assets(Millions of yen)
Net assets(Millions of yen)

(3) Capital Investments
Capital investments by the Group in fiscal 2016 totaled ¥46.2 billion, mainly for maintenance and renewal..

(4) Financing
The Company secured finance through long-term debts and allocated these funds to an enterprise purchase fund. As aresult, the interest-bearing debt in long-and short-term loans of the Company amounted to ¥376.2 billion, an increased of¥72.9 billion from the end of the previous year.

(5) Tasks Ahead and Medium & Long-Term strategies
1) Basic Management Policies of the Teijin GroupAs declared in the Teijin Group’s corporate philosophy, we are committed to enhancing the quality of life of people
everywhere through our deep insight into human nature and the application of our creative abilities. At the same time, our21

corporate philosophy commits us to Grow In Harmony With Society, and to Grow By Empowering Our People.
Accordingly, as our long-term vision, we pledge to create the new value needed by society by utilizing its workforce
diversity, thereby aiming to become an enterprise that is essential to tomorrow’s society.

2) Principal Performance Targets
The Teijin Group has identified ROE and EBITDA as key performance indicators.
3) Tasks Ahead and Medium & Long-Term strategies
In February 2017, the Teijin Group formulated and announced its new medium-term management plan for 2017-2019,“ALWAYS EVOLVING,” as a three-year action plan to realize its long-term vision. Guided by the medium-term
management plan, the Teijin Group will improve core earnings through growth strategies, establish new core businesses
through transformation strategies and strengthen its basic management systems to support those strategies.
a) Working to realize the long-term vision
The Teijin Group is aiming to achieve the following vision as an enterprise that is essential to tomorrow’s society.
◆ An enterprise that helps to solve social issues
Teijin will strive to capture business opportunities leveraging its strengths from the issues facing society, and tostrengthen the management base.
Core priority fields for business development
Environmental value solutions
Safety, security and disastermitigation solutions
Demographic change andincreased health consciousness
solutions

Supply weight-reducing materials that enhance environmental
performance for transportation
Enhance disaster-readiness measures and social infrastructuredevelopment
Support health maintenance and enhancement in response to theprogression of demographic change and increasing lifestylediseases◆ An enterprise that achieves continuous transformation by anticipating changes in the external
environment
In an increasingly uncertain external environment, Teijin will take the initiative to contribute to evolution,
instead of chasing trends, for sustainable growth.
◆ An enterprise that continues to create new value at all times
Teijin will create products and services that accelerate the evolution of society.

22b) Business Strategies in Medium-Term Management Plan
Teijin will implement both growth and transformation strategies focusing on the materials and healthcare businessfields as the pillars of its operations and develop new businesses that are not yet contributing to profits at present into
its core earnings sources, without merely relying on the continuation of existing businesses.

I. Growth strategies for Materials business field◆ Focus on aircraft and automobile businesses (environmental value solutions)
Step up development of strong, lightweight high-performance materials in response to demands for higher fuelefficiency in line with stricter environmental regulations
 Address infrastructure needs (safety, security and disaster mitigation solutions)
Accurately respond to disaster mitigation awareness and needs for improved and expanded infrastructureII.

Growth strategies for Healthcare business field Strengthen solutions in high-growth domains (demographic change and increased health consciousness
solutions)
Maximize earnings from existing growth drivers and emphasize drug discovery research

III. Transformation strategies for material business field
Transform the business model from supplying customers with materials to close-to-customer businesses to develop
composites that incorporate multiple materials, and thereby win the competition amongst multiple
materials.
 Automotive composite products (environmental value solutions)
Rather than merely extending materials businesses into downstream fields, Teijin will leverage its strengths incomposite technologies to expand business with a view to becoming a supplier of multi-material
components.
 Lithium-ion battery separator and membranes (environmental value solutions)
Leveraging technologies and expertise developed in membrane production, Teijin will roll out high-performance,high-productivity products in a wide range of fields.
IV. Transformation strategies for healthcare business field
Strengthen existing healthcare business to deliver comprehensive patient-service systems, even those notreimbursed under the Japanese health insurance system
 Diversified product/service lineups (demographic change and increased health consciousness solutions)23

Diversify lineups of medical equipment, digital healthcare, implantable medical products and functional foodmaterials
 Healthcare business creation (demographic change and increased health consciousness solutions)
Establish a healthcare business platform for pre-symptomatic condition, diseases and nursing care, and new
business using the group’s information platformc) Strengthening of the Management System Platform
I. Structural reorganization
Teijin will pursue inter-business integration by integrating materials-related businesses into one materials businessfield. The New Business Development Business Unit will be split into units for materials and healthcare businessto deepen group-wide collaboration with and absorption of these individual businesses. A newly established Global
Strategy Officer will develop cross-business regional strategies and a newly established Information Strategy
Representative will pursue smart projects on a group-wide basis.
II.

Smart projects
Teijin will leverage IT to create new businesses and enhance group-wide business styles. In the medium-term, thiswill involve healthcare services development, smart plantations and innovation in business operating process, andthe allocation of JPY ten billion centered on establishing the business platform.

III. Cost restructuring initiatives
By FY 2019, Teijin aims to reduce total costs by JPY 20 billion from the FY 2016 level. This will be realized bycompleting measures in the revised medium-term management plan in 2014 and strengthening product costcompetitiveness centered on growth businesses (JPY 11 billion), and restructuring into a small head officecommensurate with business scale after the implementation of restructuring initiatives (JPY 9 billion).
d) Performance Targets
New key performance indicators (KPIs) will be established with an emphasis on both investment efficiency and earnings power.
ROE will be chosen as a profitability indicator and EBITDA will be chosen as a growth indicator. ROIC, based on operating
income, will be chosen as an indicator of efficiency of generating profits relative to capital invested. Also, in order to visualize andmonitor business portfolio transformation, net sales from transformation strategy projects and degree of diversity promotion will be
set as original KPIs, including non-financial information, with follow-up progress. The targets until FY 2019 are as follows.

ROE

10%+

EBITDA

Over ¥ 120 billion

ROIC based on operating income

8%+

Invested Resources

CAPEX + M&A¥ 300 billion (three-year total)

Dividend Payout Ratio

30% of the profit attributable to owners of parent (guidance)

Note: Return on equity (ROE) :Profit attributable to owners of the parent  Average* total shareholders’ equity* ([Beginning balance + Ending balance]  2)

Earnings before interest, tax, depreciation and amortization (EBITDA) :Operating income + Depreciation & amortization
Return on invested capital (ROIC) based on operating income :Operating income  Invested capital** (Total shareholders’ equity + Non-controlling interests + Interest-bearing debt – Cash and deposits)

Italicized product names and service names in this report are trademarks or registered trademarks of the Teijin Group in
Japan and/or other countries. Where noted, other italicized product names and service names used in this document areprotected as the trademarks and/or trade names of other companies.

24

(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, Trading & Retail,and Others segments.
(As of March 31, 2017)
Business Segments
Business Fields
Principal Products and Businesses
Advanced Fibers andAramid Fibers
Para-aramid fibers, Meta-aramid fibers,Composites
High-performance polyethylene
Polyester Fibers
PET・PEN fibers, Artificial leather
Carbon Fibers
Carbon fibers, Oxidized PAN fibers
Composite products The automotive composite products
Plastics
Electric Materials &Polycarbonate resin・sheet, molding product
Performance Polymer
PET・PEN ･PBN resin, Frame-retardant agents
Products
Films
PET・PEN film, Polycarbonate resin film, Transparent conductive
film
Health Care
Pharmaceuticals
Treatment for Hyperuricemia and gout, Agent for Osteoporosis,
Agent for Infection, Sustained-release expectorant,
Transdermal anti-inflammatory analgesic patch formulation
Treatment for acromegaly and pituitary gigantism
Home Health Care
Trading & Retail

Textiles and Apparel

OthersIndustrial Textiles
and Materials
IT Services

Net Business
New Businessdevelopment
Raw Materials,
Polymers

Oxygen Concentrator for Home oxygen Therapy (HOT),
Continuous Positive Airway Pressure Unit (CPAP), UltrasoundBone Fracture Treatment Devices
Fiber materials, Textiles, Apparel products, General merchandise
Industrial and vehicle materials, Living and interior goods,
Resin・films, Packing and construction materials,
General Corporation information system, Information system for
hospital, Information system for Care Business, Document control
system, Web-ERP(Integration Business Software Package),
Emergency Call / Safety Confirmation system
Electronic book delivery service, E-commerce of foods
Lithium-ion battery separators
Medical equipment for joint prostheses, bone joining material,etc.,
PET / PEN recycle, Polyester raw materials

Notes: PET (Polyethylene terephthalate), PEN (Polyethylene naphthalate), PBN (Polybutylene naphthalate)25

(7) Primary Business Places(As of March 31, 2017)
Business

Function

Location

The Company

Headquarters

Osaka, Tokyo

Advanced Fibers andManufacturing

Ehime, Yamaguchi, Shizuoka, Gifu

Composites

bases

U.S.A., Mexico, Germany, the Netherlands, China ,Thailand

Operation bases Tokyo, Osaka
U.S.A., Mexico, Germany, the Netherlands, China ,Thailand
Research bases Shizuoka, Ehime
U.S.A., Germany , the Netherlands ,France, Thailand, China
Electric Materials &Manufacturing

Tochigi, Ehime, Hiroshima

Performance Polymer

bases

China, Indonesia

Products

Operation bases Tokyo, Osaka, Aichi
U.S.A., the Netherlands, China, Taiwan, Malaysia, Indonesia, Thailand
Research bases Gifu, Ehime, Chiba, Hiroshima
China

Health Care

Manufacturing

Yamaguchi

bases
Operation bases 12 branches throughout Japan
U.S.A
Research bases Tokyo, Yamaguchi
U.S.A.
Trading & Retail

Manufacturing

Ishikawa, Fukui, Shiga, Fukuoka

bases

China, Thailand, Vietnam

Operation bases Tokyo, Osaka, Aichi, Niigata, Gifu
U.S.A., Germany, China, Vietnam, Indonesia, Myanmar, Mexico
OthersManufacturing

Tokyo, Ehime, Okayama,bases

South Korea

Operation bases Tokyo, Osaka, Fukuoka, Ehime, Yamaguchi, Okayama
South Korea
Research bases Tokyo, Osaka, Yamaguchi, U.S.A
Note 1:
Note 2:

The function of headquarters is indicated in The Company, and the manufacturing, operation and research bases
are indicated in each business segments.
The Operation Base of Health Care Business in U.S.A ceased to exist by selling its shares on April 27, 2017
(U.S.Time).

26

(8) Employees(As of March 31, 2017)

Business segments

150th Fiscal Period

151st Fiscal Period

FY2015FY2016(As of March 31, 2016) (As of March 31, 2017)(Current period)

Change in thenumber of
employees

4,301

7,769

+3,468

2,141

1,851

△ 290

Health Care

3,633

3,750

+117

Trading & Retail

2,966

3,154

+188

Others

2,715

2,768

+53

15,756

19,292+3,536

Advanced Fibers and Composites
Electric Materials & Performance
Polymer Products

Total
Notes:
1.
2.

The number of employees stated above represents the numbers of employees in each segment.
The number of employees stated above does not include temporary employees(2,535 employees for the 150th fiscal period and 2,301 employees for the 151st fiscal period)
3. The number of employees increased 3,536 from FY2015 to FY2016. However, this was primarily due to theacquisition of CSP.
4. The number of employees in the Health Care segment will decrease 829 by withdrawing from the home health carebusiness in U.S.A.in April 2017.

27

(9) Significant Subsidiaries(As of March 31, 2017)
Business segments

Subsidiary (Location of

CapitalThe Head Office)Advanced fibers

Toho Tenax Co., Ltd. (Tokyo)

and Composites

Investment
ratio (%)

¥500

99.75

millionToho Tenax EuropeGmbH(Germany)

Toho Tenax America, Inc.
(U.S.A.)

0.025 million ※100.00
US$12.5 ※100.00(the Netherlands)

euro

Teijin Polyester (Thailand)
Limited (Thailand)

Production and sales of carbon
Production and sales ofpara-aramid fibers

800 million ※100.00

Production and sales ofpolyester fibersbaht
548 million

Production and sales of carbon

fibers and Oxidized PAN fibers

million0.02 million ※100.00(Thailand)

Production and sales of carbon
fibers and Oxidized PAN fibers

fiberseuro

Teijin Aramid B.V.
Teijin (Thailand) Limited

Principal business

66.87

baht

Production and sales ofpolyester fibers

Continental Structural Plastics

US$829 ※100.00

Production and sales of

Holdings Corporation(U.S.A.)

millionElectric Materials Teijin Films Solutions Limited¥10,010100.00(Tokyo)millionComposite products
Production and sales ofpolyester films

100.00

Production and sales of& Performance

Polymer Products Teijin Polycarbonate China

720 million

Ltd.(China)
Teijin Chemicals Plastic
Compounds Shanghai Ltd.
( China)

RMB

Health Care

143 million

polycarbonate resin100.00

RMB

Teijin Pharma Limited¥10,000(Tokyo)millionColoration, processing and salesof polycarbonate resins

100.00

Production and sales of
medicinal drugs and medical
equipment

Teijin Home Health Care Ltd

Trading & Retail¥100 ※100.00

Home health care services(Tokyo)millionproviderBraden Partners L.P. (U.S.A.)

US$134 ※100.00

Home health care services

millionproviderTeijin Frontier Co., Ltd¥2,000(Osaka)millionNantong Teijin Co., Ltd.

¥4,000(China)million28

100.00

Sales of textiles and others

100.00

Production and sales ofpolyester textile goods

Business segments

Subsidiary (Location of

CapitalThe Head Office)
Others¥1,590(Tokyo)millionTeijin Engineering Ltd.

¥475

58.08

¥80

Development and sales ofcomputer software, etc.

100.00

millionTeijin Logistics Co., Ltd.
(Osaka)Principal businessratio (%)

Infocom Corporation(Osaka)Investment

Engineering services, design andsales of plants and equipment

100.00

millionTransportation and custody of
goods

Notes: 1. The Teijin Group has 89 consolidated companies including the aforementioned 18 significant subsidiaries;
75 companies are accounted for via the equity method.
2. ※ indicates the investment ratio including investment by subsidiaries.
3. Teijin Polycarbonate Singapore Pte Ltd. is in the process of withdrawal from its business, and the Company decided
to exclude it from the list of Significant Subsidiaries from FY 2016.
4. The Teijin Group’s shareholding of Braden Partners L.P. was completely sold on April 27, 2017(U.S Time).

(10) Primary Lenders and Amount of Borrowings(As of March 31, 2017)
Primary Lenders

Balance of borrowings
Millions of yen

The Bank of Tokyo-Mitsubishi UFJ, Ltd.*102,683

Development Bank of Japan Inc

35,000Mizuho Bank, Ltd. *21,836

Mitsubishi UFJ Trust & Banking Corporation*

10,685

Sumitomo Mitsui Banking Corporation

5,048

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 ¥129,537 million
under syndicated loans.

(11) Acquisition or disposal of the stocks and other shares of other companies, or a share stock option
1) On August 1, 2016, the Company decided that its wholly owned subsidiary Teijin Holdings USA, Inc. would
acquire all shares of CSP, which is a leading automotive composite supplier in North America. On September
13, 2016, a share transfer agreement was concluded, and the acquisition was completed on January 3, 2017 (U.S.
Time).
2) The Teijin Group’s shareholding of Braden Partners L.P. was completely sold to a company which is affiliatedwith Quadrant Management, Inc. on April 27, 2017(U.S Time) , making the Group’s withdrawal from the homehealth care business in U.S.A.

(12) Other important items concerning the current status of the Teijin GroupThe Company moved the Osaka Head Office to 2-4 Nakanoshima 3-Chome, Kitaku Osaka on May 8, 2017.

29

2. Matters Regarding the Shares of the Company (as of March 31, 2017)(1) Authorized shares

600,000,000 shares(2) Issued shares

196,951,733 shares(3) Number of shareholders

85,195(4) Top 10 shareholders of the Company
Shareholders

Investment in the Company
Number of shares held

Shareholding ratio (%)

1

Japan Trustee Service Bank, Ltd.(Trust account )18,439,200

9.37

2

The Master Trust Bank of Japan, Ltd. (Trust account)

12,497,400

6.35

3

Nippon Life Insurance Company

7,045,501

3.58

4The Employee Stock Ownership Association of Teijin

4,667,078

2.37

5

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

4,138,987

2.10

6Japan Trustee Service Bank, Ltd.(Trust account 5)

3,144,700

1.60

7Japan Trustee Service Bank, Ltd.(Trust account 9 )2,931,400

1.49

8STATE STREET BANK WEST CLIENT – TREATY 505234

2,882,171

1.47

9STATE STREET BANK AND TRUST COMPANY 505225

2,416,456

1.23

10 Japan Trustee Service Bank, Ltd.(Trust account 2 )2,299,100
1.17
Note: The shareholding ratio has been calculated after excluding Treasury stocks (231,413 shares) from the Issued
shares.
(4) Other important items concerning shares
The Company’s common shares were consolidated at the ratio of 5 shares to 1 share and the number of shares toconstitute one unit was changed from 1,000 shares to 100 shares, on October 1, 2016. As a result, the total number ofauthorized shares changed from 3,000,000,000 shares to 600,000,000 shares on the effective date. The total number ofissued shares changed from 984,758,665 shares to 196,951,733 shares after consolidation.

30

3. Stock Option(1) Status of Stock Option as of the last day of the subject Fiscal YearTime of
Issue(Issue date)

5th(July 10,
2006)

6th
(July 5,
2007)

Number ofIssued Stock
Option (unit)

146

207

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

29,200Issue Price ofStock Option(per share)
Exercise
Price of
Stock
Option(per share)
Period during
which the Stock
Option may be
exercised

7th(July 7,2008)

8th
(July 9,2009)

9th
(July 9,
2010)

10th
(Mar 12,
2012)

11th
(Mar 15,
2013)

12th
(Mar 14,
2014)

13th
(Mar 18,
2015)

14th
(Mar 16,
2016)

15th
(Mar 17,
2017)

328

420

349

737

698

618

379

274

287

41,40065,60084,00069,800147,400

139,600

123,600

75,80054,80057,400¥3,315¥3,050¥1,535¥1,265¥1,305¥1,225¥980¥1,140¥1,925¥1,800¥1,955

¥1

¥1

¥1

¥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,
2012~Mar 11,2032

Mar15,
2013~Mar 14,
2033

Mar14,
2014~Mar13,2034

Mar18,
2015~Mar17,2035

Mar16,
2016~Mar15,2036

Mar17,
2017~Mar16,2037

Of the above, total number of unexercised Stock Option held by Directors and Statutory Auditors of theCompany (breakdown by each issue of the Stock Option)(As of March 31, 2017)
Directors
Statutory Auditors
Number of
Issue
Number of Directors
Number of Units
Number of Units
Statutory Auditors
Holding Rights
Holding Rightsth
The 5 Issue of the Stock Option
4
1
th
The 6 Issue of the Stock Option
6
1
The 7 th Issue of the Stock Option
16
1
th
5
1
The 8 Issue of the Stock Option
36
4
5
1
The 9th Issue of the Stock Option
34
4
th
12
1
The 10 Issue of the Stock Option
91
5
th
14
1
The 11 Issue of the Stock Option
123
6
th
12
1
The 12 Issue of the Stock Option
116
6
th
9
1
The 13 Issue of the Stock Option
103
6
th
8
1
The 14 Issue of the Stock Option
86
6th
The 15 Issue of the Stock Option
96
6
Note:
1. No Stock Option is granted to any Outside Directors and Statutory Auditors.
2. The Stock Option held by the Statutory Auditor was distributed as a consideration of performance of duties as
Director or Corporate Officer prior to assuming the position of Statutory Auditor.

(2) Stock Option distributed during the subject Fiscal Year
Stock Option distributed during the subject Fiscal Year is stated in the 15th Issue of the Stock Option noted in (1)above.
Status of Stock Option distributed to employees of the Company in the 15th Issue of Stock Option.
No. of Unites
No. of Recipients
191
25
31

(3) Other important matters concerning Stock Acquisition Rights
Outlines of the Zero Coupon Convertible Bonds due to 2018 (bonds with stock acquisition rights) and the Zero Coupon
Convertible Bonds due to 2021 (bonds with stock acquisition rights), that were issued based on the resolution of the meetingof the Board of Directors held on November 26, 2014 are stated below.
Title
The total amount ofdebenture
Issue date
Redemption fixed date
Number of stock acquisitionrightsType of shares to be issued
upon exercise of stockacquisition rights
Number of shares to beissued upon exercise of stockacquisition rights
Conversion price*
The contents and the valueof the assets invested on theoccasion of use of the stockacquisition rights
Exercise period of stockacquisition rights

Zero Coupon Convertible Bonds due
to 2018

Zero Coupon Convertible Bonds due
to 2021

20 billion yen

20 billion yen

December 12, 2014
December 12, 2018

December 12, 2014
December 10, 2021

2,000 units

2,000 units

Common shares of the Company

Common shares of the Company

The number is determined by
dividing the aggregate principal
amount of the bonds upon exercise of
the stock acquisition rights by theconversion price¥2,035.70 per share (subject toadjustment in certain
circumstances)
In case of the use of the stockacquisition rights, the Bond holder
will invest the bonds upon exercise of
the stock acquisition rights and theBonds price will equal to the facevalue price.
Between December 26, 2014 andNovember 28, 2018

The number is determined by
dividing the aggregate principal
amount of the bonds upon exercise of
the stock acquisition rights by theconversion price¥2,001.30 per share (subject toadjustment in certain
circumstances)
In case of the use of the stockacquisition rights, the Bond holder
will invest the bonds upon exercise of
the stock acquisition rights and theBonds price will equal to the facevalue price.
Between December 26, 2014 andNovember 26, 2021

Note: Adjustment of Conversion Price pursuant to Condition 5.2.4 of the terms and conditions of the Bonds due to theExtraordinary Dividend (as defined in such Condition 5.2.4) resulting from payment of a dividend of ¥55 per Share. The
payment of such dividend was approved at the board of directors of the Company on 9 May 2017.
(Effective date: As of April 1, 2017)32

4. Directors and Statutory Auditors(1) Directors and Statutory Auditors(As of March 31, 2017)
Post

Name

Duty, state of significant positions concurrently
held at other companies
Permanent Officer, Keidanren(Japan Business Federation)
Vice Chairman, Japan Association of Corporate Executives (Keizai
Doyukai)
Outside Director, Recruit Holdings Co., Ltd
Outside Statutory Auditor, JFE Holdings, Inc.

Chairman of the
Board

Shigeo Ohyagi

President,
Representative
Director

Jun Suzuki

CEO (Chief Executive Officer)
Officer, Japan Association of Corporate Executives (Keizai Doyukai)

Senior Executive
Officer,
Representative
Director

Yo GotoGeneral Manager, Technology Center
Supervisor of Raw Materials & Polymers Division
Supervisor of Iwakuni, Matsuyama and Mihara factory

Senior Executive
Officer, Director
Senior Executive
Officer, Director
Executive Officer,
Director
Director

Hiroshi Uno

Director

Nobuo Seki

Director

Kenichiro Senoh*Director

Fumio Ohtsubo

General Manager, Healthcare Business Group
President & Representative Director, Teijin Pharma Limited
CFO
General Manager, Accounting, Finance & Procurement DivisionCorporate Strategy Officer
Supervisor of IT, Healthcare ProjectCouncilor, Ministry of Foreign Affairs, Japan
Vice-Chairman, Japan-Indonesia Association, Inc.
Adviser, Taisei Corporation
Special Participation, INPEX Corporation
Committee, Management Consultation, Tokyo University
Senior Fellow, National Graduate Institute For Policy Studies
Outside Director, KAMEDA SEIKA Co., Ltd.
Outside Director, Weathernews Inc.
Outside Director, Yokogawa Electric Corporation
President & Chairperson, The Industry-Academia Collaboration Initiative(NPO)
Outside Director, Mitsubishi Pencil Co., Ltd
Visiting Professor, Hitotsubashi University Graduate School of Commerceand Management (MBA program)Participation, The Japan Society for Research Policy and Innovation
Management
Director, Intellectual Property Association of Japan
Trustee, Nippon Life Ins.
Director, Kansai University
Trustee, Japan-Indonesia Association, Inc.
Partner Chairman , Monozukuri, Nippon,Conference Nikkan Kogyo
Shimbun, Ltd.

Full-time
Statutory Auditor*Full-time
Statutory Auditor
Statutory Auditor

Atsushi Mugitani

Noriko Hayashi

Statutory Auditor

Nobuo Tanaka

Kazuhiro
Yamamoto
Yoshihisa Sonobe
Yutaka Iimura

Noriaki Endo
Representative, Hayashi Legal Office Lawyer
The Chairperson of Committee on Labor Law Legislation, Japan
Federation of Bar Associations Certified
Chairman, The Sasakawa Peaceful Fund
Outside Director, Chiyoda Corporation
Outside Statutory Auditor, Innotech Corporation
33

Post
Statutory Auditor

Notes:
1.
2.

3.
4.

5.
6.
7.

Name
Gen Ikegami

Duty, state of significant positions concurrently
held at other companies
Representative, Gen Ikegami Certified Public Accountant Office, Certified
Public Accountant
Counsel, Certified Public Accountant Assosiation
Outside Director, TAC Co.,Ltd.

The director and statutory auditor marked with * were newly elected at the 150th Ordinary General Meeting of
Shareholders held on June 22, 2016.
Four (4) Directors— Yutaka Iimura, Nobuo Seki, Kenichiro Senoh and Fumio Ohtsubo—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 topages 12-13 for the requirements of “Independent Director” which Company defines.
There are no important interests between the Company and any of the entities at which the abovementioned outside
directors hold positions as director/statutory auditor etc.
Three (3) Statutory Auditors— Noriko Hayashi, Nobuo Tanaka and Gen Ikegami—are outside statutory auditors. The
Company requires the candidate for outside statutory auditor to satisfy the requirements of “Independent Statutory
Auditor” stipulated by the Company. These three (3) Statutory 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 pages 12-13 for the requirements of “Independent
Statutory Auditor” which Company defines.
There are no important interests between the Company and any of the companies at which the abovementioned outside
statutory auditors hold positions as director/ statutory auditor etc.
Statutory Auditor Gen Ikegami is a Certified Public Accountant and has ample knowledge of finance and accounting.
The following Director and Statutory Auditor retired as of June 22, 2016.
Director
Hajime Sawabe
Statutory Auditor
Toshiaki Yatabe

8. Changes in posts and duties of Directors during the subject fiscal year are as follows.
Name
New Post
Former Post
Yo GotoSenior Executive Officer,
Senior Executive Officer,
Representative Director
Representative Director
General Manager, Technology Center General Manager, Technology Center
Supervisor of Raw Materials &Supervisor of Iwakuni, Matsuyama
Polymers Division
and Mihara factory
Supervisor of Iwakuni, Matsuyama
and Mihara factory

Kazuhiro Yamamoto

Senior Executive Officer, Director
CFO
GeneralManager,
Accounting,
Finance & Procurement Division
Executive Officer, Director
Corporate Strategy Officer
Supervisor of IT, Healthcare Project

Executive Officer, Director
CFO
General Manager, Accounting,
Finance & Procurement Division
Yoshihisa Sonobe
Officer, Director
Corporate Strategy Officer
Supervisor of Raw Materials &Polymers Division
Supervisor of IT, Healthcare Project
9. Changes in posts and duties of Directors following the subject fiscal year are as follows.
Name
New Post
Former Post
Yo GotoDirector
Senior Executive Officer,
Representative Director
General Manager, Technology Center
Supervisor of Raw Materials &Polymers Division
Supervisor of Iwakuni, Matsuyama
and Mihara factory
34

Date of Change
April 1, 2016

April 1, 2016

April 1, 2016

Date of Change
April 1, 2017

Kazuhiro Yamamoto

Hiroshi Uno

Yoshihisa Sonobe

Representative
Director,
Vice
President
CFO
CIIO
Senior Executive Officer, Director
Responsible for Healthcare Businessof Teijin Group
Executive Officer, Director
Responsible for Corporate Strategy
Officer
Responsible for Legal andIntellectual Property
Responsible for Global Strategy

Senior Executive Officer, Director
CFO
General Manager, Accounting,
Finance & Procurement Division
Senior Executive Officer, Director
General Manager, Healthcare
Business Group
Representative Director, President,
Teijin Pharma Limited
Executive Officer, Director
Corporate Strategy Officer
Supervisor of IT, Healthcare Project

April 1, 2017

April 1, 2017

April 1, 2017(2) Liabilities Limitation Agreements
1) Liabilities Limitation Agreement with Directors (excluding Executive Director)
The Company has executed a Liabilities Limitation Agreement with each of five (5) directors (excluding
Executive Directors), Shigeo Ohyagi, Yutaka Iimura, Nobuo Seki, Kenichiro Senoh and Fumio Ohtsubo
which limits the respective liabilities of each director to the higher amount of ¥20 million or the minimum
liability amount stipulated in Article 425, Paragraph 1, of the Companies Act.
2)

Liabilities Limitation Agreement with Statutory Auditors
The Company has executed a Liabilities Limitation Agreement with each of five (5) statutory auditors,
Atsushi Mugitani, Noriaki Endo, Noriko Hayashi, Nobuo Tanaka, and Gen Ikegami which limits therespective liabilities of each statutory auditor to the higher amount of ¥20 million or the minimum liability
amount stipulated in Article 425, Paragraph 1, of the Companies Act.

35

(3) Remuneration for Directors and Statutory Auditors
1) Remuneration for Directors during the subject fiscal year
(millions of yen)
Inside Directors

Outside Directors

Total

Number ofAmount of

Number ofAmount of

Number ofAmount of

Directors

Remuneration

Directors

Remuneration

Directors

Remuneration

6
Notes:
1.
2.
3.

408

5

57

11

465

Inside directors means directors other than outside directors.
The Company has no director who is also an employee of the Company.
The amounts of above remuneration include ¥112 million, an expected amount of performance-based remuneration to be
paid to the six (6) inside directors appointed at the 150th Ordinary General Meeting of Shareholders held on June 22,2016. 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.

2) The calculation standard for Directors’ Remuneration<Amount of remunerations>
The maximum annual remuneration for directors of the Company has been ¥700 million, as resolved by the 140th
Ordinary General Meeting of Shareholders, held on June 23, 2006 and the 149th Ordinary General Meeting of
Shareholders, held on June 24, 2015*. The amount of the above remuneration includes (1) ¥630 million of annual salary,and (2) ¥70 million for the fair value of compensation-type stock options. The remuneration for outside directors is only
annual salary. In addition, the amount of remunerations for directors does not include the portion of employee salaries for
directors concurrently serving as employees.
The standard for calculating the annual remuneration for inside directors and outside directors is as follows.
<Inside directors>
The amount is determined based on results for each fiscal year such as the Company’s ROA (Return on Assets; ratio ofconsolidated operating income to total assets, ROE (Return on Equity; ratio of consolidated net income to equity), thedegree of improvement in its operating income, and the degree to which budget targets are achieved, in addition toevaluations of the duties of individual directors. Reference is also made to the average remuneration level of insidedirectors at other companies in the same industry in Japan.
<Outside directors>
The amount is a fixed amount that is not linked with the performance of the Company, and is determined with reference
to the average remuneration level of outside directors at other companies in the same industry in Japan.
*The Company abolished the remuneration frame (¥60 million) for outside directors at the 149th Ordinary General Meeting of
Shareholders, held on June 24, 2015.

3) Remuneration for Statutory Auditors during the subject fiscal year
(millions of yen)
Inside Statutory Auditors

Outside Statutory Auditors

Total

Number ofAmount of

Number ofAmount of

Number ofAmount of

Statutory

Remuneration

Statutory

Remuneration

Statutory

Remuneration

Auditors

Auditors

Auditors
3

57

3

32

6

89

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

36

(4) Outside Directors and Outside Statutory Auditors
1) Significant Concurrent Positions and the relation between the Company and the entities at which Outside
Directors and Outside Statutory Auditors hold such positions.
They are shown in the above-mentioned「(1) Directors and Statutory Auditors」.

2) Main Activities of Outside Directors and Outside Statutory Auditors
Category

Name
Yutaka Iimura

Nobuo Seki
Outside Directors
Kenichiro Senoh

Fumio Ohtsubo

Noriko Hayashi

Outside Statutory
Auditors

Nobuo Tanaka

Gen Ikegami

Main Activities
Attended 11 of the 12 meetings of the Board of Directors held
during the relevant fiscal year and offered valuable commentsfrom his expertise and knowledge cultivated over many years as a
diplomat.
Attended 12 of the 12 meetings of the Board of Directors held
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
during the relevant fiscal year and offered valuable commentsfrom his specialist viewpoint of business model field.
After his appointment on June 22, 2016, he attended 8 of the 9meetings of the Board of Directors held during the relevant fiscal
year and offered valuable comments from his extensive
management experience and knowledge.
Attended 12 of 12 meetings of the Board of Directors and 12of 12
meetings of the Board of Statutory Auditors held during therelevant fiscal year and offered valuable comments from her
professional knowledge as lawyer, and offered, in particular,
advice and suggestions concerning compliance
Attended 12 of 12 meetings of the Board of Directors and 12 of 12
meetings of the Board of Statutory Auditors held during therelevant fiscal year and offered valuable comments from his
experience at the government agencies and internationalorganization and offered, in particular, advice and suggestions
concerning corporate governance.
Attended 12 of 12 meetings of the Board of Directors and 12 of 12
meetings of the Board of Statutory Auditors held during therelevant fiscal year and offered valuable comments from his
professional knowledge as a Certified Public Accountant.

37

5. Accounting Auditor(1) Name of Accounting Auditor
KPMG AZSA LLC.
(2) Amount of Remuneration(Millions of yen)

Details

Amount1) 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
Notes:
1.

2.
3.

149
301

The amount described in Item1) of the above table is the total sum of the remunerations for audits under theCompanies Act and the remuneration for the audits under Financial Products & Exchange Act in Japanbecause these are not clearly distinguished from each other in the contract between the Company and theaccounting auditor.
Of the major subsidiaries of the Company, 11 companies, including Teijin Aramid B.V. , undergo auditing byaccounting firm other than the accounting auditor.
Based on the Company’s scale and characteristics, the Board of Statutory Auditors has given consent to the
remuneration, etc., to be paid the Accounting Auditor as stipulated in Article 399, Paragraph 1 of the Companies Act,
as a result of the confirmation of the audit contents, total audit work done, audit plans of Accounting Auditor and its
rewards estimation.

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

38

6. Corporate Governance System(1) Reasons for Choosing the Current Corporate Governance System
The Company’s Group 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 the mechanisms
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: important businessdecision and management oversight and supervision. The governance system deemed appropriate is therefore based onthese two core functions, with execution of business led by the Company’s inside directors (limited to Executive
Directors) on the one hand, and management oversight and supervision focused on by outside directors and carried out by
statutory auditors and the Board of Statutory Auditors on the other hand.
Therefore the Company intends to continue to be a company with Board of Statutory Auditors for the time being. At theCompany, the strengthening of the management oversight and supervisory functions and similar corporate governancethat are the aim of a “company with nominating committees” are effectively achieved via an “Advisory Board”, a “Boardof Directors and executive officer system that includes independent outside directors,” and a “Board of Statutory Auditors
system that includes independent outside statutory auditors.”(2) Outline of Current System
1) Decision-Making Bodies
Within the Teijin Group, matters for which the Board of Directors retains authority in accordance with the provisions of
the law are decided by the “Board of Directors,” which meets once a month in principle. Important matters related to
execution of business of the Company or the Teijin Group for which authority has been delegated from the Board of
Directors (individual medium- or short-term plans relating to each business group or function operations, and individual
important matters) are decided by the President and CEO through deliberation in the “Group Strategy Committee,” whichmeets once a week in principle, and the “Group Management Committee,” which meets once a month in principle.
The “Group Strategy Committee” members consist of the CEO, chief officers, and people designated by the CEO, whilethe “Group Management Committee” members consist of the CEO, chief officers, business group general managers, andpeople designated by the CEO. The CEO convenes and chairs both committees. In addition to the members, thecommittees are also attended by the full-time statutory auditors.
2) Board of Directors and Corporate Officer System
To expedite decision making and clarify accountability of execution of business, the Company’s Articles of Incorporation
set the maximum members of the Board of Directors to 10 directors, and the Company has introduced a corporate officer
system that delegates broad authority to corporate officers. Four members of the Board of Directors are outside directors
who are independent from the company. In addition, the Articles of Incorporation sets the term of office for directors at
one year. The Board of Directors is chaired by the chairman of the Company (in the case of vacant of the chairman of theBoard, the director of senior advisor or the outside director will take the chairmanship of the Board), as a means ofseparating oversight and supervision from execution of business.
3) Selection of Director Candidates
Director candidates are decided by the Board of Directors as personnel that are suitable to be top management of theCompany, with outstanding personality and insight, in consideration of their personal capabilities, past performancerecord, and so forth. The candidates are recommended at the General Meeting of Shareholders.
4) Advisory Board (Management Consultative Committee)
The Advisory Board, comprising both Japanese and non-Japanese experts, has been established to provide advice tomanagement in general and to evaluate the top managements, and operates as a consultative body to the Board of
Directors. The Advisory Board is made up of five to seven outside advisors consisting of two or three non-Japaneseadvisors as well as the Chairman of the Board (in the case of vacant of the chairman of the Board, the senior advisor),and the President & CEO, and the Chairman of the Board chairs the Advisory Board. The Advisory Board also functions
as a nominations and remuneration committee, making recommendations regarding the alternation of the CEO andnomination 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.
5) Nomination Consultative Committee and Compensation Consultative Committee as consultative bodies
In addition to the above Advisory Board, the Company shall establish and manage the Nomination Consultative
Committee and the Compensation Consultative Committee, as consultative bodies of the Board of Directors to further
enhance the transparency concerning the appointment of directors and officers. Both committees are made up of two
39

outside directors, the Chairman of the Board and the President & CEO. Outside Director chairs both committees. Bothcommittees shall have a function to make proposals and recommendations to the Board of Directors with respect to thenomination, evaluation and amount of compensation of Directors and the Senior Management other than the Chairman
and CEO and the nomination of Statutory Auditors.

6) Status of Initiatives to Enhance the Function of Statutory Auditors (Corporate Audits)
The Company’s Board of Statutory Auditors consists of five members, of who, three—a majority—are independent
outside directors who are independent from the company, and one of those three is female. In addition, Gen Ikegami
possesses certified public accountant’s qualification and possesses considerable knowledge of finance and accounting.
Moreover, as a system provided for group consolidated management, the Committee of Teijin Group Statutory Auditors,
comprising statutory auditors of Group companies, serves to enhance the effectiveness of group-wide oversight and audit
and ensure impartial auditing.
7) Internal Audit System
The Corporate Audit Department, reporting directly to CEO, has been established as an internal audit organization, andcarries out Group-wide and global audits to evaluate efficiency and validity of internal control functions. Furthermore, atcertain listed subsidiaries and so forth, individual internal audit organizations have been established. As of March 31,
2017, the number of internal auditors in the Teijin Group is 19 (excluding internal auditors at listed subsidiaries and soforth).
8) Status of Accounting Audits
The status of certified public accountants who executed business is as follows (items in brackets are the affiliatedauditing firm and number of consecutive years performing audits).
Iwao Hirano (KPMG AZSA LLC, 4 years), Kiyoshi Hirai (KPMG AZSA LLC, 3 year), Takeharu Kirikae (KPMG AZSA
LLC, 2 years).
The status of assistants who executed auditing is as follows.
Certified public accountants 17, others 31, total 48.
9) Total Risk Management
In April 2003, the Company established the “Total Risk Management (TRM) Committee” beneath the Board of Directors,
as a preventive measure to handle any risks the Company may face. The TRM Committee categorizes the risks into
management strategy or business operating risks and conducts comprehensive management against the risks. The Boardof Directors deliberates and determines basic policies and annual plans related to TRM that are proposed by the TRM
Committee. The CEO is in charge of management strategy risk assessment, and provides important judgment materials
for the Board of Directors and so forth. The statutory auditors conduct audits to check whether the Board of Directors is
conducting appropriate policy determination, oversight and supervision regarding TRM.
* The details of Teijin Group “Corporate Governance Guide” (the Company’s Corporate Governance System) can be viewed
at the Company’s Web site: (https://www.teijin.com/ir/governance/guide/).

40

7. Systems to Ensure Appropriate Business Operations and the Status of its Implementation(1) Resolutions on Basic Policies for Establishment of Internal Control Systems
The Company passed a resolution regarding the “Basic Policy for Establishment of Internal Control Systems” at a Boardof Directors meeting held on March 31, 2017.
Below is a summary of this resolution, the details of which can be viewed at the Company’s Web site:(https://www.teijin.com/ir/governance/resolution/).

1) System for Ensuring Compliance with Laws, Regulations and the Articles of Incorporation in the
Performance of Duties by Directors and Employees of the Company and Its Subsidiaries
The Company has declared the basic principles of compliance in its Teijin Group “Corporate Governance Guide” .
To practice these basic principles, the Company shall establish systems and organizational structures that ensure practicaloperation and thorough observation of the Company’s Corporate Philosophy, Corporate Code of Conduct, Corporate
Standards of Conduct, Group Ethics Regulations and other related internal regulations.
The Company’s representative directors and other executives shall take the initiative and set good examples in observing
laws, regulations and the Articles of Incorporation, social rules and ethics, and shall promote compliance education andawareness among directors, officers and employees of the Company and its subsidiaries. In order to establish acompliance system across the entire Teijin Group, the Company appoints Chief Social Responsibility Officer as theofficer in charge of compliance.
All directors, officers and employees of the Company and its subsidiaries are required to report to the Teijin entity towhich they belong or to Teijin Limited which is the holding company of the Teijin Group, whether they detect any
violations of laws and regulations or other serious information concerning compliance, in accordance with Group Ethics
Regulations and other internal regulations. Chief Social Responsibility Officer shall direct and supervise investigations toconfirm such reported facts and, upon consultation with CEO (President), determine appropriate measures.
The Company shall provide necessary means for directors, officers, employees and business partners to directly reportany violation or doubtful activities of non-compliance in the Company or its subsidiaries. Such measures shall ensure thatanonymity of the caller is protected and that the caller does not get any disadvantageous treatment. Important reports aswell as measures taken by the relevant Teijin entity and their results shall be announced as appropriate to, and shall berecognized by, all directors, officers and employees of the Company and its subsidiaries.
The directors of the Company and its subsidiaries shall have their performance of duties audited by the statutory auditors,
and will respect any advice or recommendations received from the statutory auditors.
The Company places Corporate Audit Department directly supervised by CEO, which performs internal auditing of the
Teijin Group’s execution of business and conducts the evaluation of the internal control system and proposes its
improvement.
The Company shall maintain a resolute attitude toward pressure from antisocial forces, including demands for payoffs
from specific shareholders or interference by crime syndicates, and shall not allow such interference. Chief Social
Responsibility Officer shall be appointed as the person in charge of actions against antisocial forces. Chief Social
Responsibility Officer shall establish action policies and other rules in consort with general manager, Human Resources
Division and shall ensure observance of such policies and rules by directors, officers and employees within the Company
and its subsidiaries.
To intensify the validity of the decision to be made by the Board of Directors, more than one of the directors shall beoutside directors satisfying the requirements for independence stipulated by the company.

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

413) Systems for Ensuring that Duties by Directors and Employees of the Company and Its
Subsidiaries Are Performed Efficiently
The Company shall establish Group regulations to provide the necessary rules and guidelines for the Group to ensure
efficient business operations throughout the Teijin Group.
The Board of Directors of the Company shall have the representative directors and other executives conduct the operationof the Company and decisions for the items on which the representative directors and other executives have beendelegated 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 andregulations and/or to increase the efficiency of the representative directors and other executives in executing their duties.
The Board of Directors of the Company shall organize the basic structure of Teijin Group, and shall establish efficientmanagement, oversight and supervision system.
The Company shall formulate the Group medium-term management plan, and each fiscal year it shall formulate
short-term plans, key management targets, and budgets, as well as carrying out progress checks, in order to realize themedium-term management plan.

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

5) Systems for the Preservation and Management of Information in Relation with the Directors’
Performance of 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 be accessible when necessary.
* The case of vacant of the Chairman of the Board, CEO will perform the office of the Chairman.

6) Provisions Concerning Employees Assigned to Assist the Statutory Auditors in Performing Their Duties,
the Independence from Directors of Such Employees, and the Validity of Instructions Given to Such
Employees
The Company shall establish Teijin Group Auditors Office under the direct control of full-time statutory auditors andappoint two or more employees, in principle, to assist Statutory Auditors in performing their duties. The members of
Teijin Group Auditors Office may concurrently become statutory auditors of Teijin Group companies; however it shallnot concurrently become corporate officers connected with performance of duties at Teijin Group companies.
To secure the independence of members of Teijin Group Auditors Office above, all decisions concerning personnel
measures regarding the members of Teijin Group Auditors require the prior consent of the full-time Statutory Auditors.
The full-time Statutory Auditors shall assess the performance of the members of Teijin Group Auditors Office.

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

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

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

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

(2) Summary of the “Internal Control System Operating Status”
In accordance with the “Basic Policy for the Establishment of Internal Control Systems,” the operating status of theCompany’s internal control system for the relevant year is as follows.

1) Operating Status Regarding Compliance with Laws and Regulations
The Company has published the Teijin Group “Corporate Governance Guide” and the related regulations necessary to
carry out its basic policy on the Company intranet, and has designated each October as Corporate Ethics Month in whichinternal training is held, promoting compliance education and awareness. Furthermore, for important decision making,the related divisions and departments perform verifications, working to prevent any violations of laws and regulations.
The Company has established a framework to promote compliance under the direction of the Chief Social Responsibility
Officer, which works to identify and respond to problems across the Teijin Group. The Chief Social Responsibility
Officer also responds appropriately to important compliance issues reported by the directors, officers and employees of
the Company and its subsidiaries based on the Group Ethics Regulations, which establish rules for reporting illegal
conduct and other responses, and make regular reports to the TRM Committee.
The Company has established an internal reporting system including an anonymous compliance hotline, responding
appropriately to hotline inquiries from group companies in Japan and overseas, protecting the reporter, and publishing thestatus of the response biannually on the intranet, promoting education and awareness.
The Company respects and responds appropriately to points made by Statutory Auditors in audits and in evaluations of
the condition and operational status of internal control systems.
The Company’s Corporate Audit Department performs internal auditing across the Teijin Group based on the annual plan,and reports the audit results to the Directors and Statutory Auditors as necessary.
43

The Company maintains an action policy against anti-social forces in its Corporate Code of Conduct, and promotes
education and awareness at its Corporate Ethics Month.

2) Operating Status Regarding Management of Risk of Loss
The Board of Directors of the Company receives reports from the TRM Committee on proposals for basic policies andannual plans related to TRM, as well as the status of the occurrence and response to risks, putting in place a system tomanage important risks and ensure the continuation of the business.
The Chief Social Responsibility Officer implements regular evaluation and monitoring of operational risks, continually
identifying risks and evaluating the validity of countermeasures.
At meetings of the Board of Directors and other important meetings of the company, deliberation items are evaluatedbased on the results of strategic risk assessment implemented based on the Regulations for Group Profit Management.
To ensure the continuation of business, the Company will prepare the required manuals and hold regular drills to beprepared in the event of an emergency.
While preparing individual policies on personal information protection and information security, the Company has
implemented various internal education programs and security enhancement policies, as well as enhancing
countermeasures against the risk of information leaks.
3) Operating Status Regarding Securing Efficiency
The Company publishes the Group regulations on the Company intranet, promoting education and awareness.
The Company assigns management systems and job duties as well as clarifying responsibilities and authorities based onGroup organizational regulations and Group responsibility and authority regulations, working to ensure efficientmanagement execution and effective management.
4) Operating Status Regarding the Internal Control System within the Corporate GroupThe Company performs regular self-evaluations of the creation and operating status of its internal control system,
continually guiding the creation of the internal control system including both the regulations and meetings of the various
Teijin Group companies and a reporting system.
The Company’s Statutory Auditors, to promote fair and efficient auditing activities within the Teijin Group, by holding
regular meetings of the Group Board of Statutory Auditors and attending meetings in which accounting audit reports are
given, maintains close cooperation among the Accounting Auditors and Internal Audit Departments.
5) Operating Status Regarding the Preservation and Management of Information
The Company’s Board of Directors appropriately preserves documents and important information concerning theperformance of their duties in accordance with regulations regarding information related to the duties of the Group’s
directors.
6) Operating Status Regarding Ensuring the Effectiveness of the Auditing of the Statutory Auditors
The Company has established the Teijin Group Auditor Office, with the Teijin Group Auditor Office members under the
direct control of the Statutory Auditors to assist the Statutory Auditors in performing their duties.
The Company’s full-time Statutory Auditors attend important meeting bodies of the Company and of the main
subsidiaries, receiving reports at the meeting bodies from the representative directors, other directors, and corporate
officers on the status of the performance of duties.
The Chief Social Responsibility Officer reports on important stipulated items, including internal reporting by the hotline,
promptly following their discovery, both individually and in detail, to the members of the meeting bodies including the
Statutory Auditors, through the important meeting bodies.
Officers and employees of the Company properly respond to items requested by the Statutory Auditors, working toensure the effectiveness of the auditing of the Statutory Auditors.

8. Basic Policy Regarding the Control of the Company (Excluding Takeover Defense Measures)(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 control.
However, it is envisioned that some large-scale acquisition of the Company’s shares or such proposals might entail,among others, the followings:① The likelihood of causing obvious harm to the corporate value of the Company and the common interests of theshareholders.

44② The threat of compelling the shareholders to sell their shares.
③ In case the compensation of the Acquisition is insufficient in view of the corporate value of the Company.

The Company believes such a large-scale acquirer of the Company’s shares or a person or company who proposes suchan 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 long term.
The Company believes such measures will contribute to the realization of the basic policy described in (1) above.
1) Medium-Term Efforts
In February 2017, the Teijin Group formulated and announced its new medium-term management plan for 2017-2019,“ALWAYS EVOLVING,” as a three-year action plan to realize its long-term vision. Guided by the medium-term
management plan, the Teijin Group will improve core earnings through growth strategies, establish new core businesses
through transformation strategies and strengthen its basic management systems to support those strategies. Refer to pages
22 - 24 for the contents of Tasks Ahead and Medium & Long-Term strategies.
2) Measures to Improve Corporate Value through Strengthening Corporate Governance
As an essential system to achieve steady growth of the corporate value of the Company and the common interests of theshareholders, the Company has strived to strengthen corporate governance. Refer to pages 39-40 for the contents of the
Corporate Governance System.
* A Summary of the Company’s Takeover Defense Measures can be viewed at the Company’s Web site:(https://www.teijin.com/ir/governance/defense/)

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.

Note: Italicized product names and service names in this report are trademarks or registered trademarks of the Teijin Group in
Japan and/or other countries. Where noted, other italicized product names and service names used in this document are protected
as the trademarks and/or trade names of other companies.

45

Consolidated Balance Sheets
FY2015(As of Mar. 31, 2016)(Millions of yen)
FY2016(As of Mar. 31, 2017)< Assets >Current assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total

72,122
164,536
29,00085,965
7,738
26,73815,811
8,256
21,351(1,015)
430,504

97,750166,803
20,00084,272
8,980
29,05913,677
15,06332,058(909)
466,754

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

58,63170,751
43,0808,475
22,327203,267

61,17898,32244,493
15,471
21,823
241,289

Total

7,296
9,356
16,65332,73736,302
69,040Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total
Total fixed assets

109,053
2,271
32,552
4,278
27,013(2,166)173,004
392,924

115,104
1,846
37,988
10,965
23,155(2,092)
186,967
497,298

Total assets

823,429

964,053

Intangible assets
Goodwill
Other

46

Consolidated Balance Sheets
FY2015(As of Mar. 31, 2016)(Millions of yen)
FY2016(As of Mar. 31, 2017)

71,39455,52727,493
6,238
3,038
52
24,99639,454228,196

79,11757,58551,326
5,021
15,112
54
26,26145,094
279,572

55,148
163,645
12,55530,4402,405
5,640
10,984
280,820
509,01755,109210,431
10,94435,4271,322
8,370
11,044
332,650
612,223

70,816
101,473
127,377(354)
299,31270,816103,664
168,661(274)
342,867

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total

17,754(1,303)(15,073)(578)
799

21,842(276)(24,889)(1,159)(4,483)

Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

837
13,462
314,412823,429861
12,583351,829
964,053< Liabilities >Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for business structure improvement
Deferred tax liabilities
Accrued expenses
Other
Total
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for business structure improvement
Net defined benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total
Total liabilities<Net assets>
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total

47

Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating revenues
Interest income
Dividends income
Equity in earnings of affiliates
Gain on investments in partnership
Miscellaneous income
Total
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Foreign exchange losses
Contribution
Loss on valuation of derivatives
Miscellaneous loss
Total
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Reversal of provision for business structure improvement
Gain on revision of retirement benefit plan
Reversal of impairment losses
Insurance income
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 before income taxes
Income taxes - current
Income taxes - deferred
Total
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

48

FY2015(Apr. 2015-Mar. 2016)
790,748536,309
254,439
187,309
67,130(Millions of yen)
FY2016(Apr. 2016-Mar. 2017)
741,291
492,862
248,429
191,91756,512

654
1,656
－
324
1,118
3,753

648
1,862
2,078
1,099
769
6,458

2,419
2,943
889
851
1,276
2,185
10,56760,316

2,223
－
1,726
704
541
1,840
7,036
55,933

305
70
－
－
3,265
－
879
4,521

318
119
788
193
52
392
358
2,223

2,865
567
7,565
5,506
2,752
19,25745,58013,0693,289
16,35829,222(1,867)31,090

4,772
27
1,378
16,314
1,736
24,22933,92812,026(29,487)(17,460)
51,3881,255
50,133

Consolidated Statement of Changes in Net Assets

FY2016 (Apr. 2016 - Mar. 2017)(Millions of yen : amounts less than one million yen are omitted)
Shareholders' equity
Capital stock

Balance as of March 31, 2016
Changes of items during the period
Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Change in treasury shares of parent arising from transactions
with non-controlling shareholders
Net changes of items other than shareholders' equity
Total
Balance at March 31, 201770,816

CapitalsurplusRetainedearnings

101,473

127,377

Treasury
stock

(354)

299,312(23)
103(8,849)50,133(23)
115(8,849)50,13312
2,178－
70,816

2,190
103,664

Total
shareholders'equity2,17841,284
168,66179(274)

43,554
342,867

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Balance as of March 31, 2016
Changes of items during the period
Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Change in treasury shares of parent arising from transactions
with non-controlling shareholders
Net changes of items other than shareholders' equity
Total
Balance at March 31, 2017

17,754

Deferred
gains orlosses onhedges(1,303)Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans(15,073)

-578

Total

799

Subscription
rights toshares

Noncontrollinginterests

837

13,462

Total net
assets314,412(8,849)50,133
(23)
115
2,178

4,087
4,087
21,842

1,027
1,027
(276)

49

(9,816)(9,816)(24,889)

(581)
(581)
(1,159)(5,283)(5,283)(4,483)

24
24
861

(878)
(878)
12,583(6,136)37,417
351,829

Consolidated Statements of Comprehensive Income (Reference)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates
accounted for using equity method
Total
Comprehensive income
Comprehensive income attributable to :Owners of the parent
Non-controlling interests

50

FY2015(Apr. 2015-Mar. 2016)
29,222(Millions of yen)
FY2016(Apr. 2016-Mar. 2017)
51,388(6,483)
1,266(6,056)(2,074)

4,180
1,026
(7,701)
(305)

(74)

(2,305)(13,422)
15,799(5,105)46,282

17,855(2,055)44,8501,432

Consolidated Statements of Cash Flows (Reference)

Cash flows from operating activities
Income (loss) before income taxes
Depreciation and amortization of others
Impairment loss
Reversal of impairment losses
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in provision for business structure improvement
Interest and dividend income
Interest expense
Equity in losses (earnings) of affiliates
Loss (gain) on valuation of derivatives
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued payments due to change in retirement benefit plan
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash and cash equivalents provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope of consolidation
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
Redemption of bonds
Proceeds from long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Cash dividends paid to non-controlling interests
Proceeds from share issuance to non-controlling shareholders
Payments from changes in ownership interests in subsidiaries that do not result inchange in scope of consolidation
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
Increase in cash and cash equivalents resulting from change of scope of consolidation
Cash and cash equivalents at end of period

51

FY2015(Apr. 2015-Mar. 2016)(Millions of yen)
FY2016(Apr. 2016-Mar. 2017)

45,58038,8937,565(3,265)603(1,776)(753)
974(2,310)
2,419
2,943
1,276
2,559
9
567
2,998
(6,933)(550)(2,015)
1,366
90,153
6,588(2,481)(13,619)
80,64033,92839,331
1,378
(52)
3,236
(5,586)(224)
10,462(2,510)2,223(2,078)
541
4,454
(119)
27
5,253
989
2,191
－
(4,009)89,437
6,021(2,166)(14,251)
79,040(31,895)
668(2,801)(2,406)848(37,662)2,414(2,940)(2,641)
2,026(82,890)(2,379)(21)
90(3,644)(127,650)(2,643)(59)
188(2,223)(40,322)
3,146(20,770)
36,707(21,820)(4,914)
(284)

1,604
－
98,761(27,309)(8,849)(372)
1,817(1,584)(380)(8,316)(1,970)30,03070,561
363
100,955(301)
63,765822
15,978100,955
615
117,549