May 31, 2016

Notice of Convocation
The 150th Ordinary General Meeting of Shareholders

Teijin Limited

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

Contents
Notice of Convocation of the 150th Ordinary General Meeting of Shareholders
Reference Documents for the General Meeting of Shareholders
Proposals and Reference
Attached Reports
Reports on Operations for the 150th Fiscal Year
1. Current Status of the Teijin Group(1) Progress and Results of Operations(2) Changes in Assets and Profit and Loss
(3) Capital Investments(4) Financing(5) Tasks Ahead(6) Primary Businesses(7) Primary Business Places(8) Employees(9) Significant Subsidiaries(10) Primary Lenders and Amount of Borrowings
2. Matters Regarding the Shares of the Company
3. Directors and Statutory Auditors
4. Accounting Auditor
5. Corporate Governance System
6. Systems to Ensure Appropriate Business Operations and the Status of its Implementation
7. Basic Policy Regarding the Control of the Company (Excluding Takeover Defense Measures)
8. Policy Regarding the Determination of Dividends from Retained Earnings
Stock Option (Reference)
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, 2016
Dear Shareholder,

Notice of Convocation of
the 150 Ordinary General Meeting of Shareholdersth

You are cordially invited to attend the 150th Ordinary General Meeting of Shareholders of Teijin Limited (“theCompany”) to be held as set forth below.
If you do not expect to attend the meeting, you may vote on the proposals for voting using the following method.
Please refer to the following “Reference Documents for the General Meeting of Shareholders,” and exercise
your voting rights by 5 p.m., Tuesday, June 21, 2016. (Japan Time)[In case of voting by Mail]
Please indicate your approval or disapproval of the proposals on the enclosed Document for the
Exercise of Voting Rights, and mail the document so that it arrives by the above deadline.
[In case of voting by Internet etc.]
Please access to the web-site to exercising voting rights (http:www.evote.jp/) through personal Computer, Smartphoneor cellar phone with the log-in ID and temporary password indicated in the enclosed Document for the Exercise of
Voting Rights, and input your approval or disapproval of the proposals according to the instructions on the window.
In case of personal computer or smartphone, you may access to the web-site to exercise voting rights from theCompany’s web-site.

Sincerely,

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

3

Details

1. Date and Time of the Meeting:
Wednesday, June 22, 2016, 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 150th Fiscal Year (April 1, 2015 to March 31, 2016)
Proposal 1: Consolidation of Shares to Constitute One Unit
Proposal 2: Election of Ten (10) Directors
Proposal 3: Election of Two (2) Statutory Auditors

4. Decision on Convocation(1) If you do not indicate either approval or disapproval on the Document for the Exercise of Voting Rights, weshall 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 posted on
the Company’s website. (http://www.teijin.com/)• If you attend the General Meeting of Shareholders, please submit the attached Document for the Exercise of
Voting Rights to the reception of the meeting.
• If you attend the General Meeting of Shareholders by proxy, you may exercise your voting rights byauthorizing one(1) other shareholder with voting rights to act as its proxy as stipulated in the Company’s
Article of Incorporation.

4

Reference Documents for the General Meeting of Shareholders
Proposal and Reference
Proposal 1: Consolidation of Shares to Constitute One Unit
Purpose of Consolidation of Shares
Japanese stock exchanges have announced the Action Plan for Consolidating Trading Units, aiming to consolidate
one hundred (100) shares of common stock of domestic companies listed on Japanese stock exchanges into one (1)trading unit by October 2018.
As a company listed on the Tokyo Stock Exchange (“TSE”), the Company shall respect this intention and at its
Board of Directors’ meeting held on May 6, 2016, it resolved to change its number of shares that constitutes one
unit from one thousand (1,000) to one hundred (100) shares in accordance with the provisions of the Companies
Act, Article 195, Paragraph -1 on October 1, 2016.
(This change is to subject to the approval at the General Meeting of Shareholders as originally proposed regarding
the consolidation of shares set forth)
Along with the change in the share unit, the Company will also consolidate its shares (five shares into one share) inorder to maintain the level of investment unit considered desirable for the Company’s shares by the stock exchanges(50,000 yen or more, and less than 500,000 yen).
Consolidation ratio
The Company’s Common shares will be consolidated at the ratio of 5 shares to 1 share.
There are 196,951,733 *shares after consolidation.
* Total number of issued shares after consolidation are theoretical values calculated based on the total number of issued shares
before consolidation of shares, and the consolidation ratio.

If any fractional shares arise as a result of the consolidation of shares, pursuant to the provisions of the Companies
Act, the Company will sell all such fractional shares and distribute the proceeds to shareholders having fractional
shares in proportion to their respective fractions.
The effective date of Consolidation of Shares
October 1, 2016
Total number of authorized shares on the effective date
600,000,000 shares (3,000,000,000 shares before consolidation)<Reference> Partial Amendments to the Articles of Incorporation
In the event that this proposal is approved as originally proposed, as of October 1, 2016, the Company’s Articles ofIncorporation will be partially amended as follows.
(The underlined portions will be changed.)
Current Articles

Amended Articles

Article 6. (Total Number of Authorized Shares)
The total number of authorized shares of theCompany shall be 3,000,000,000.

Article 6. (Total Number of Authorized Shares)
The total number of authorized shares of theCompany shall be 600,000,000.

Article 7. (Number of shares to constitute One Unit
and Rights to Shares less than One Unit (“Odd-Lot
Shares”)
1. The number of shares to constitute one unit shallbe 1,000.
(The rest is Omitted)

Article 7. (Number of shares to constitute One Unit
and Rights to Shares less than One Unit (“Odd-Lot
Shares”)
1. The number of shares to constitute one unit shallbe 100.
(The rest is Unchanged)

5Proposal 2: 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, Hajime Sawabe, Yutaka Iimura, Nobuo Seki, and Kenichiro Senoh —will expire at
the conclusion of this General Meeting of Shareholders.
Shareholders are therefore requested to elect the following ten (10) Directors (of whom 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

Number ofCompany’s
Shares Owned

Joined Teijin Limited
Corporate Officer; Manager of Tokyo Branch, Medical &Pharmaceutical Business Division
Executive Officer; Deputy General Manager,
Jun. 2001
Pharmaceuticals Marketing Division
General Manager, Medical & Pharmaceutical Business
Apr. 2002
Division
Senior Executive Officer
Jun. 2002
General Manager, Medical & Pharmaceutical Business
Apr. 2003
Group
President & Representative Director, Teijin Pharma
Oct. 2003【Reappointment】
LimitedShigeo Ohyagi
CIO (Chief Information Officer), Teijin Limited
Apr. 2005
263,000(May 17, 1947)
1
Managing Director
shares<Participation in Board of Jun. 2005
Senior Managing Director
Jun. 2006
directors meetings>
CSO (Chief Strategy Officer)
12 times out of 12 (100%) Apr. 2007
President ,Representative Director ,Jun. 2008
CEO (Chief Executive officer)
President , Teijin Limited
Jun. 2010
Chairman of the Board (Incumbent),
Apr. 2014<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.
Mar. 1971
Jun. 1999

6

No.

Candidate’s Name
(Date of Birth)

Personal History, Positions andSignificant Concurrent Positions

Number ofCompany’s
Shares Owned

Joined Teijin Limited
President, Teijin Holdings Netherlands B.V.
Corporate Officer, Teijin Limited
Chief Marketing Officer
Director, BRICs business
Executive Officer, Teijin Limited
Apr. 2013
General Manager, Advanced Fibers & Composites【Reappointment】
Business GroupJun Suzuki
General Manager ,Carbon Fibers and Composites
119,000(February 19,1958)
Business Unit
2
shares<Participation in Board ofPresident & Representative Director, Toho Tenax Co.,
directors meetings>
Ltd.
Jun. 2013
12 times out of 12 (100%)
Director, Executive Officer
Apr. 2014
President , (Incumbent)
Representative Director , (Incumbent)
CEO (Chief Executive officer) (Incumbent)<Significant Concurrent Positions>
Chairman, Japan Chemical Fibers Association
Officer, Japan Association of Corporate Executives (Keizai Doyukai)<Reason of the nomination of the candidate for director>
Jun Suzuki assumed a post as President, Representative Director (CEO) in April 2014 and formulated revised medium-term plan in November of thesame year, and has been promoting the completion of structural reforms on which his predecessor worked and the growth strategy for the future.
Joined Teijin Limited
Apr. 1977
CENO (Chief Engineering Officer)
Apr. 2009
Deputy CSRO (Chief Social Responsibility Officer), (forAccident/Disaster/Fire Prevention)
President & Representative Director, Teijin Entech Co.,
Ltd.
Jun. 2009
Corporate Officer, Teijin Limited
Apr. 2012【Reappointment】
Chief Engineering Officer
Apr. 2013
Yo Goto54,000Executive Officer, Teijin Limited
Apr. 2014(January 23,1953)
3
sharesGeneral Manager, Technology Center (Incumbent)<Participation in Board ofSupervisor of Iwakuni, Matsuyama and Mihara factory
directors meetings>(Incumbent)
12 times out of 12 (100%) Jun. 2014
Director, Executive Officer
Supervisor of Safety Control
Apr. 2015
Representative Director (Incumbent)
Senior Executive Officer, Teijin Limited (Incumbent)
Apr. 2016
Supervisor of Raw Materials & Polymers Division(Incumbent)<Reason of the nomination of the candidate for director>
Yo Goto assumed the posts of General Manager, Technology Center in April 2014, Director, Executive Officer in June of the same year, andRepresentative Director, Senior Executive Officer in April 2015, and has been making efforts to promote the research and technological development
which is expected to generate revenue in the medium term and long term as a core growth strategy of the Company.
Apr. 1983
Apr. 2011
Apr. 2012

7

No.

Candidate’s Name
(Date of Birth)

Personal History, Positions andSignificant Concurrent Positions

Number ofCompany’s
Shares Owned

Joined Teijin Limited
Corporate Officer, Teijin Limited
Director, Teijin Pharma Limited
Senior Executive Director, Teijin Pharma Limited
Apr. 2011【Reappointment】
Executive Officer, Teijin Limited
Jun. 2011
Hiroshi Uno
50,000Senior Executive Officer, Teijin Limited
Apr. 2013(September 18,1955)
4
sharesGeneral Manager, Healthcare Business Group<Participation in Board of(Incumbent)
directors meetings>
President & Representative Director, Teijin Pharma
9 times out of 9 (100%)
Limited (Incumbent)
Director, Senior Executive Officer, Teijin Limited
Jun. 2015(Incumbent)<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, President & Representative
Director, Teijin Pharma Limited in April 2013, and Director, Senior Executive Officer, Teijin Limited in June 2015, and has been making efforts 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 theme of the Company’s growth strategy.
Joined Teijin Limited
Apr. 1975
Corporate Officer, Infocom Corporation CFO
Apr. 2008
Corporate Officer, Teijin Limited
Jun. 2011
General Manager, IT Business Group
President & Representative Director, CEO, Infocom【Reappointment】
Corporation
Kazuhiro Yamamoto
27,000General Manager, Corporate Strategy Office
Apr. 2012(September 27, 1952)
5
sharesExecutive Officer, Teijin Limited<Participation in Board of Apr. 2014
CFO (Chief Finance Officer) (Incumbent)
directors meetings>
General Manager, Accounting, Finance & Procurement
9 times out of 9 (100%)
Division (Incumbent)
Director, Executive Officer, Teijin Limited
Jun. 2015
Director, Senior Executive Officer, Teijin Limited
Apr. 2016(Incumbent)<Reason of the nomination of the candidate for director>
Kazuhiro Yamamoto served as President & Representative Director, CEO of Infocom Corporation which is a listed subsidiary after assuming the postof Corporate Officer, Teijin Limited in 2011. He assumed the posts of Executive Officer, Teijin limited in April 2014, Director, Executive Officer inJune 2015, and Director, Senior Executive Officer in April 2016. While serving as CFO, General Manager of Accounting, Finance & Procurement
Division, he is putting effort into cost management, IR activities, etc. as the head of the counting-related departments and divisions of the Company.
Apr. 1981
Jun. 20098

No.

Candidate’s Name
(Date of Birth)

Personal History, Positions andSignificant Concurrent Positions

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.
CFO
Apr. 2011
General Manager, Accounting and Finance Division【Reappointment】
Representative Director, Executive Officer Teijin Creative
Yoshihisa Sonobe
Staff Co., Ltd. (General Manager, Accounting and(October 17,1956)
23,000Finance Division)<Participation in Board of
6
sharesMember, Global Policy Board Teijin Dupont Films
directors meetings>
Global Joint Venture
12 times out of 12 (100%)
CFO
Apr. 2012
General Manager, Accounting, Finance & IR DivisionCorporate Strategy Officer (Incumbent)
Apr. 2014
Supervisor of Raw Materials & Polymers Division
Director, Corporate Officer
Jun. 2014
Supervisor of IT, Healthcare Project(Incumbent)
Chairman, Teijin Dupont Films
Apr. 2015
Director, Executive Officer (Incumbent)
Apr. 2016<Reason of the nomination of the candidate for director>
Yoshihisa Sonobe assumed the posts of Corporate Strategy Officer in April 2014, Director in June of the same year, and Director, Executive Officer in
April, 2016, and has been making efforts for the planning of strategies toward the achievement of structural reforms and growth strategy which are themost important issues for the Company.
Joined Ministry of Foreign Affairs, Japan (MFA)
Apr. 1969【Reappointment】
Director, General, Economic Cooperation Bureau, MFA
Aug. 1999
Candidate for Outside
Deputy Vice-Minister, MFA
Feb. 2001
Director
Assistant Vice-Minister, MFA
Sep. 2001
Ambassador of Japan in Indonesia
Jul. 2002
Ambassador of Japan in Indonesia and the Democratic
Nov. 2002
Republic of Timor-Leste (East Timor)
Ambassador of Japan in France andApr. 2006
The Principality of Andorra (Andorra)
Ambassador of Japan in France, Andorra
May. 2007
and the Principality of Monaco
Yutaka Iimura
Retired from MFA
Jul. 2009(October 16,1946)
19,000Special Envoy of the Government of Japan<Participation in Board of Jul. 2009
sharesfor the Middle East and Europe (Incumbent)
directors meetings>
Director, Teijin Limited (Incumbent)
Jun. 2011
11 times out of 12 (92%)
7
Member of the Advisory Board, Teijin Limited(Incumbent)
Councilor, MFA (Southeast Asia cooperation charge
Aug. 2014ambassador ) (Incumbent)<Significant Concurrent Positions >Councilor, MFA(Southeast Asia cooperation charge ambassador)
Vice-Chairman, Japan-Indonesia Association, Inc.
Adviser, Taisei Corporation
Special Participation, Inpex Corporation
Committee, Management Consultation, Tokyo University<Reason of the nomination of the candidate for outside director>
Although Yutaka Iimura does not have direct experience in corporate management, he has served at 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.
Apr. 1980
Jun. 2009
Apr. 2010

9

No.

Candidate’s Name
(Date of Birth)9

Number ofCompany’s
Shares Owned

Joined Chiyoda CorporationVice-President, Chiyoda International Corporation
Director, Chiyoda Corporation
Managing Director, Chiyoda Corporation
Senior Managing Director & Representative Director,
Chiyoda Corporation
President & CEO, Chiyoda Corporation
Apr. 2001
Nobuo Seki
Chairman of the Board, Chiyoda Corporation
Apr. 2007(September 21,1944)
19,000General Corporate Advisor , Chiyoda Corporation<Participation in Board of Apr. 2009
sharesDirector, Teijin Limited (Incumbent)
Jun. 2012
directors meetings>
Member of the Advisory Board, Teijin Limited
12 times out of 12 (100%)(Incumbent)
Adviser Chiyoda Corporation
Jul. 2012<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.
Joined Fuji Photo Film Co., Ltd.(currently FUJIFILM
Apr.1976【Reappointment】
Corporation)
Candidate for Outside
Representative Vice-President Keio Academic Enterprise
Dec.1999
DirectorCo., Ltd.
Professor, Graduate school of Keio University Media andApr.2001
Government
President & Chairperson, The Industry- Academic
Apr.2004
Collaboration Initiative (NPO) (Incumbent)
Kenichiro Senoh
Director, Teijin Limited (Incumbent)
Jun.2012(January 1,1954)
32,000Member of the Advisory Board, Teijin Limited<Participation in Board of
shares(Incumbent)
directors meetings>
12 times out of 12 (100%) <Significant Concurrent Positions>
President & Chairperson, The Industry-Academia Collaboration Initiative(NPO)
Visiting Professor, Hitotsubashi University Graduate School of Commerceand Management (MBA program)Vice Chairman, The Japan Society for 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.
【Reappointment】
Candidate for Outside
Director

8

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

10

No.

Candidate’s Name
(Date of Birth)

Joined Matsushita Electric Works, Ltd., (currently
Panasonic Corporation)
Director, Matsushita Electric Works, Ltd.,
Jun. 1998
Managing Director, Matsushita Electric Works, Ltd.,
Jun. 2000
Representative Senior Managing Director, Matsushita
Jun. 2003
Electric Works, Ltd.,
President, Representative Director, Matsushita Electric
Jun. 2006
Works, Ltd.,
Fumio Ohtsubo
10,000Chairman of the Board, Representative Director,
Jun. 2012(September 5, 1945)
sharesPanasonic Corporation
Special Advisor, Panasonic Corporation (Incumbent)
Jul. 2013<Significant Concurrent Positions>
Trustee, Nippon Life Ins.*
Visiting Professor, 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.
New
CandidateOutside Director

10

Number ofCompany’s
Shares Owned

Personal History, Positions andSignificant Concurrent Positions
forApr.1971* “Nippon Life has a Board of Trustees that serves as a management advisory body to ensure the appropriateness of management. Trustees
are elected at the Meeting of Representatives from among policyholders and academic experts. Trustees give opinions on advisory mattersand important management issues and deliberate on policyholder opinions regarding corporate management. The results of these opinions
and deliberations 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 pages 14-15 for the contents of the requirements of“Independent Director” stipulated by the Company.
2. The Company has entered into liability limitation agreements with Shigeo Ohyagi, Yutaka Iimura, Nobuo Seki and
Kenichiro Senoh, who are currently Directors (excluding Executive Directors), which limit the liabilities of each
Director to ¥20 million or the minimum amount stipulated in Article 425, Paragraph 1, of the Companies Act,
whichever is higher, in accordance with the provisions of Article 427 of the Companies Act and the Company’s
Articles of Incorporation.
In case the election of the Directors is approved, the Company intends to enter into the same liability limitationagreement with them. Furthermore, if Fumio Ohtsubo’s election is approved, the Company will enter into an equivalentliabilities limitation agreement with him 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

5 years

Nobuo Seki

June 22,2012

4 years

Kenichiro Senoh

June 22,2012

4 years11

Proposal 3: Election of Two (2) Statutory Auditors
The terms of office of two (2) Statutory Auditors—Toshiaki Yatabe, Nobuo Tanaka, —will expire at the conclusionof this General Meeting of Shareholders.
Shareholders are therefore requested to elect the following two (2) Statutory Auditors
The Board of Statutory Auditors has already approved this proposal.
The candidates for Statutory Auditor are as follows.
No.

Candidate’s Name
(Date of Birth)

Personal History, Positions andSignificant Concurrent Positions

Number ofCompany’s
Shares
Owned

Joined Teijin Limited
Corporate Officer, Teijin Limited
Manager, Global Pharmaceutical Business
Department Teijin Pharma Limited
21,000
Director, Teijin Pharma Limited
Apr.2012
Noriaki Endo
1
sharesGeneral Manager, Compliance Division(June 23, 1954)
CSRO (Chief Social Responsibility Officer)
Apr.2015
Supervisor of Corporate Audit Department
Director, Effective Utilization of Factories Project
Advisor (Incumbent)
Apr.2016<Reason of the nomination of the candidate for Statutory Auditor>
Noriaki Endo assumed the posts of CSRO and Supervisor of Corporate Audit Department in April 2015 and has been conducting internal
audits covering the reliability of financial reporting, legal compliance, etc. and contributing to the internal control of theCompany and the Teijin Group.
Joined Ministry of International Trade and Industry
Apr.1973【Reappointment】(MITI, Current Ministry of Economic, Trade andCandidate for Outside
Industry METI)
Statutory Auditor
Director, Organization of Economic Co-operation andOct. 1991
Development (OECD) Science, Technology andIndustry
Manager, Industrial Policy Bureau Industrial FinanceJun.1995
Division MITI
Ministry of Foreign Affairs, Japan (MFA)
Jun.1998
Minister, Japan Embassy in the USA
Vice-Director, The Research Institute of Economy,
Jun. 2000
Trade and Industry
16,0002
General Manager, International Trade Policy BureauJan. 2002
Nobuo Tanaka
sharesTrade and Industry Organization Division METI
(March 3, 1950)
Deputy Director , for Science, Technology andJul. 2004
Industry of OECD
Executive Director, International Energy Agency
Sep. 2007(IEA)
Statutory Auditor, Teijin Limited (Incumbent)
Jun. 2012
President, The Sasakawa Peace Foundation
Apr. 2015(Incumbent)<Significant Concurrent Positions>
President, The Sasakawa Peace Foundation
Outside Director, Chiyoda Corporation
Outside Statutory Auditor, Innotech Corporation<Reason of the nomination of the candidate for Outside Statutory Auditor>
Although Nobuo Tanaka does not have direct experience in corporate management, he is appropriate to fulfill the duties of
Outside Statutory Auditor is that , with his ample wisdom and expertise at the Ministry of Economic, Trade and Industry andinternational agency such as OECD, his advice is expected the contributions to maintain and improve the Company’s corporate
governance.
<Participation in Board of directors meetings> 11 times out of 12 (92%)<Participation in Board of statutory auditors meetings> 10 times out of 12 (83%)
New Candidate for
Statutory Auditor

Apr.1983
Jun.2009

Notes: 1. Nobuo Tanaka 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 the Company. This
candidate satisfies all such requirements. Since he also satisfies the requirements of independence as stipulated by
Tokyo Stock Exchange Group Inc., he was registered by the Company as “Independent Director / Auditor”. Refer to12

pages 14-15 for the contents of the requirements of “Independent Statutory Auditor” stipulated by the Company.
2. The Company has entered into liability limitation agreements with Nobuo Tanaka, who is currently an incumbent
Outside Statutory Auditor, which limits his liabilities to ¥20 million or the minimum amount stipulated in Article
425, Paragraph 1, of the Companies Act, whichever is higher, in accordance with the provisions of Article 427 of theCompanies Act and the Company’s Articles of Incorporation. In the event that his election is approved, theCompany intends to enter into the same liability limitation agreement with him. Furthermore, if Noriaki Endo’s
election is approved, the Company will enter into an equivalent liabilities limitation agreement with him in accordance withthe provisions of Article 427 of the Companies Act and the Company’s Articles of Incorporation.
3. As of the close of this General Meeting of Shareholders, it has been four years since Nobuo Tanaka assumed his
office (on June 22, 2012).
4. There are no special interests between the candidates and the Company.

13

＜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 the past
five years(2) In the event that the person or the person´s "family" provides, or has provided within the past three years, services other thanaccounting services that involved compensation of more than 7 million yen (or US$60,000) and fall into the following
categories:(i) Lawyers, (ii) certified public tax accountants, (iii) chartered patent agents, (iv) judicial scriveners, (v) management, financial, technicalor marketing consultants(c) Persons having customer or business partner relations with the Teijin GroupIn the event that the person currently holds the position of Director or any of "Executives and top managers" (Note 4) in acompany or other for-profit organization in Japan or overseas that is presently a "major customer or business partner" (Note 3)of the Teijin Group(d) Persons having "inter-directorship" relations with the Teijin Group(1) In the event that the relationship exists wherein the outside director currently holds the position of director in a company inJapan or overseas or holds a position in a for-profit organization that is equivalent to the director position, and a director of
the Teijin Group currently holds a director or equivalent executive position in that same organization(2) In the event that the relationship exists wherein the outside statutory auditor holds a director position in a company in Japanor overseas or an equivalent executive position in a for-profit organization, and a director or statutory auditor of the TeijinGroup 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

14

The terminology used above is defined below.
Note 1: "Management executives" are employees who hold positions of importance, including operating officers, senior officers or positions
higher than general manager.
Note 2: "Family" includes spouses, children, people sharing the same household and other persons related by blood or marriage within two
degrees of consanguinity
Note 3: "Major customer or business partner" describes a person or an entity whose total annual transaction relationship, either as a seller or apurchaser, has exceeded 2% of consolidated net sales at any time within the past three years. (If the Teijin Group is the seller, thisamount refers to the percentage of consolidated net sales of Teijin Limited. If the Teijin Group is the buyer, this amount refers to thepercentage 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 record of these regulations, Company Law or any
other legislation.

15

Attached Reports
Reports on Operations for the 150th Fiscal Year (April 1, 2015 to March 31, 2016)
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 fiscal 2015, ended March 31, 2016, saw stronger stagnation amid a continuing
deceleration of growth in the People’s Republic of China (PRC) and other emerging countries and resource-rich nations,although they were underpinned on the whole by firm business conditions in advanced countries, primarily the UnitedStates. The Japanese economy followed a modest growth track, against the backdrop of slowing growth in exports,
personal consumption and other factors.
In this environment, for fiscal 2015, consolidated net sales totaled ¥790.7 billion, an increase of 0.6% year on year,
owing primarily to increases in the Trading and Retail and Healthcare segments, despite the impact of decreased sales
from the halt of production at our resin plant in Singapore. Operating income rose 71.7%, or ¥28.0 billion, to ¥67.1
billion, underpinned by substantial increases in our materials businesses, which reflected falling prices for raw materials
and fuel, and the positive impact of restructuring initiatives, and by steady gains in our Healthcare segment, thanks torobust results for core products and services.
Additionally, ordinary income increased 42.3%, or ¥17.9 billion, to ¥60.3 billion, despite the recording of equity in loss
on affiliates (loss on valuation of investment in affiliates, etc.). Profit attributable to owners of parent increased ¥39.2
billion to ¥31.1 billion, owing in part to a decrease in extraordinary losses. Net earnings per share rose ¥39.86 to ¥31.63.
②Analysis of Assets, Liabilities and Net Assets
Total assets as of March 31, 2016 amounted to ¥823.4 billion, down ¥0.3 billion from the end of fiscal 2014. The
decrease in total assets was primarily the result of a decline in fixed assets due to impairment accounting and valuationdifferences on investment securities. This decrease was despite an increase in cash and cash deposits due to a positive
net cash balance.
Total liabilities amounted to ¥509.0 billion, down ¥11.0 billion from the end of fiscal 2014. Interest-bearing debt, which
includes borrowings and bonds payable, accounted for ¥303.3 billion of the total, down ¥4.9 billion, mainly due to theimpact of foreign exchange movements (a stronger yen) on foreign-currency denominated interest-bearing debt, as well
as redemption of bonds.
Total net assets rose ¥10.8 billion, to ¥314.4 billion. Total shareholders’ equity and total accumulated othercomprehensive income together represented ¥300.1 billion of the total, an increase of ¥13.0 billion. This was mainly
due to an increase in line with profit attributable to owners of parent, which was partially offset by a decrease invaluation difference on available-for-sale securities and a decrease in foreign currency translation adjustment.

16

Segment operating results (sales and operating income) of the Teijin Group are as follows.
(Billions of yen / %)Fiscal 2014

Fiscal 2015

ChangePercentage

Net sales
Operating income

Advanced Fibers and Composites¥135.5¥133.0

-¥2.5

-1.9%

Electric Materials & Performance
Polymer Products

184.8

163.7

-21.1

-11.4

Health Care

141.7

147.5

5.8

4.1

Trading & Retail

259.4

270.9

11.6

4.5

Sub-Total¥721.4¥715.2

-¥6.2

-0.9

Others

64.8

75.6

10.8

16.7

Total

¥786.2¥790.74.6

0.6

Advanced Fibers and Composites

¥14.4

¥18.5

¥4.1

28.9

Electric Materials & Performance
Polymer Products

3.4

22.3

18.9

555.4

Health Care

24.8

28.8

4.0

16.0

Trading & Retail

4.2

5.3

1.1

25.4

Sub-Total

¥46.8

¥74.9

¥28.1

60.0

Others

4.0

6.5

2.5

62.9

Elimination and corporate(11.7)( 14.3)

-2.6

-

Total

¥ 39.1

¥67.1

¥28.0

71.7

17

Business Segment Results for fiscal 2015 were as follows:■Advanced Fibers and Composites
Sales in the Advanced Fibers and Composites segment totaled ¥133.0 billion, while operating income was ¥18.5 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. Sales for use in ballistic protection products showed a recovery. In contrast, sales for use in uniforms and in
optical fiber applications were weak. Sales were favorable for Technora para-aramid fibers for automotive applications inJapan and infrastructure-related applications overseas, leading to strong improvement in earnings. Technora is being usedin an expanding range of applications under more extreme conditions given the positive assessment of its outstanding
fatigue resistance, chemical barrier and other properties, and production has continued at full capacity. Therefore, inMarch 2016, we decided to boost production capacity of Technora by around 10%, mainly by increasing fiber production
facilities. Sales of Teijinconex meta-aramid fibers were robust for use in automotive applications such as turbocharger
hoses, as well as protective clothing and industrial applications, despite persistently fierce competition in the growing
market for filter applications.
In this environment, we commenced production and sales of Teijinconex neo, a new meta-aramid fiber offering superior
heat resistance and dyeability, at a new production facility in Thailand in August 2015. Motivated by increasingly
stringent regulations pertaining to flame-retardant materials and environmental safety, we have continued to focus on
expanding this particular business in promising Asian markets and emerging markets.
In polyester fibers, sales growth was sluggish for automotive applications at our subsidiary in Thailand, but earnings held
firm thanks to solid sales of personal hygiene products, wadding, and other materials, as well as contributions from lower
prices for raw materials and other cost reductions. In Japan, amid lackluster growth in sales for automobile applications,income was bolstered by higher sales for use in reverse osmosis membrane support layers for water treatment
applications, as well as by efforts to cut costs. Moreover, we are striving to further strengthen our competitiveness byrealigning our domestic production configuration and transferring production of certain items to subsidiaries in Thailand..

Carbon Fibers and Composites
Favorable sales for use in aircraft and general industrial applications, while progress was made on new productdevelopment and downstream business expansion.
Sales of TENAX carbon fibers for use in aircraft were favorable, as orders from aircraft manufacturers remained firm.
Among other applications, sales for use in general industrial applications were robust. However, the supply-demandbalance softened for sports and leisure equipment applications in Asia from midway through last year. Sales of Pyromex
Oxidized PAN fiber were strong, reflecting brisk demand for use in aircraft brake pads. Declining prices for raw material
and fuel prices, which have persisted since autumn 2014, helped boost profitability.
Against this backdrop, we have been accelerating new product development, including TENAX XMS32, a new grade ofcarbon fiber with high-tenacity and high-tensile modulus properties for aircraft and automotive applications, and a woven
fabric prepreg with high-tenacity, high-rigidity and fire-retardant properties that uses thermoplastic. In the field of railcars,
we jointly developed a carbon fiber reinforced plastic (CFRP) leaf spring for the efWING new-generation railcar truck
developed by Kawasaki Heavy Industries, Ltd. and began supplying this product to this company.
We are working to expand operations in profitable, high-growth markets by promoting the expansion of downstream
business. As part of these efforts, we strove to develop an integrated production system for CFRP in Europe using a highpressure resin transfer molding (HP-RTM) process in combination with Part via Preform (PvP), a one-step carbon fiber topart technology. We are carrying out procedures to acquire land in the United States, with a view to constructing a newplant.
In addition, in the area of structural components for mass-produced vehicles made with our innovative thermoplastic
CFRP Sereebo, we are continuing to implement activities with General Motors Company and other automobile
manufacturers to achieve future commercialization.

18

■Electronics Materials & Performance Polymer Products
The Electronics Materials & Performance Polymer Products segment reported sales of ¥163.7 billion and operating
income of ¥22.3 billion.

Resin and Plastics Processing
Focus on shifting to high-value-added fields with production halted at our subsidiary in Singapore.
Profits from our mainstay Panlite and Multilon polycarbonate resin products improved markedly from the previous year,
bolstered by lower prices for key raw materials and the positive impact of restructuring initiatives implemented to date. In
December 2015, we halted production at our polycarbonate resin production subsidiary in Singapore as planned. Throughthe optimization of production capacity, we have worked to enhance capacity utilization rates and the sales mix, alongwith reducing fixed costs. As a result, we have established a production configuration that is able to generate steadyprofits. Going forward, we will upgrade and expand our product lineup centered on compound products by harnessing
materials such as the Teijin Group’s high-performance fibers (aramid fibers, carbon fibers) and copolymers, as well as the“super engineering plastic” polyphenylene sulfide (PPS) resin, which will enter mass production at INITZ Co., Ltd., ajoint venture with SK Chemicals Ltd. of the Republic of Korea (ROK).
These efforts will target growth fields such as automobiles, infrastructure, and housing equipment, as well as the medical
field, in addition to the office equipment and electronic fields in which we have traditionally been strong. In parallel, inorder to expand our earnings power, we will further strengthen development and marketing activities that will enable us
to provide solutions through high-value-added materials, components, and services in growth fields.
In polyethylene naphthalate (PEN) high-performance resin, sales remained firm, and we are stepping up our focus ondeveloping more applications that take advantage of features such as its chemical and gas barrier resistance properties. In
flame retardants, we are bolstering activities to obtain product specification approval primarily through the developmentof new phosphorous products featuring strengths such as the ability to impart flame resistance and colorability topolyester fabrics and other materials, alongside our existing lineups, which are steadily generating earnings.
In processed plastics, we posted solid sales of polycarbonate retardation film for liquid crystal displays (LCDs) and 3D
glasses, as well as reverse-dispersion solvent-cast retardation film for use as an organic electroluminescent display(OLED) antireflective film in smartphones and tablets. In addition, sales of ELECLEAR transparent electroconductive
polycarbonate film for use in touch screens for vehicle navigation systems, printers and game hardware, among others,
were favorable, although sales for use in smartphones and tablets for the PRC market were sluggish.

Films
Strengthened cost competitiveness by integrating our domestic production facilities through restructuring initiatives.
We faced an uphill struggle as the emergence of manufacturers from the PRC intensified volume and pricing competitionin the area of reflective films for use in liquid crystal display (LCD) televisions, and demand for use in special packaging
for beverage cans and other items remained weak. However, we posted firm sales of PUREX release films for
manufacturing processes mainly for use in multilayer ceramic capacitors for smartphones and other devices. In addition,
we saw lower raw material and fuel costs as a result of the fall in crude oil prices, and benefited from cost reductions as aresult of restructuring. Consequently, profits improved from the previous year. Currently, we are working to consolidate
production items and narrow our focus on high-value-added applications as a part of preparations for the integration of
our domestic production facilities at the Utsunomiya Factory, scheduled for fiscal 2016. At the same time, we are striving
to expand sales of fire-retardant films and other newly developed products. Going forward, we will step up our focus ondeveloping new types of high-performance films by advancing marketing and development in tune with market needs.
Overseas, sluggish market conditions intensified competition in the PRC, particularly as regards both sales volume andprices. However, demand for films for packaging applications and for use in solar cells, among others, was comparatively
firm in the Americas and Europe.
Considering that the operating environment surrounding this business is becoming increasingly severe, we applied
impairment accounting to fixed assets in connection with our domestic operations for the nine months ended December
31, 2015.

19

■Healthcare
Sales in the Healthcare segment came to ¥147.5 billion, while operating income was ¥28.8 billion.

Pharmaceuticals
Sales of our novel treatment for hyperuricemia and gout expanded favorably.
In our domestic pharmaceuticals business, sales of recently developed drugs, including hyperuricemia and gout treatment
Feburic (febuxostat) and Somatuline®*, a treatment for acromegaly, continued to expand steadily. Meanwhile, theoperating environment for long-listed originator drugs remained harsh, owing to rising sales of generic drugs. In thisenvironment, the osteoporosis treatment Bonalon®† saw firm sales of new formulations including an oral jelly and an
intravenous drip. A new addition to our portfolio is Mucosolvan L Tablet 45 mg, a novel reduced-sized tablet-form
version of our well-known expectorant Mucosolvan launched in July 2015, that offers a once-daily tablet that is easier toswallow and yet equally effective as regular-sized tablets. These additional formulations provide patients with a wider
range of choices. In January 2016, Teijin Pharma Limited began jointly marketing the transdermal anti-inflammatory
analgesic patch formulation LOQOA Tape with Taisho Toyama Pharmaceutical Co., Ltd.
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 57 of these countries andterritories (including Japan), and we are in the process of obtaining regulatory approval to make it available in the others.
In R&D, we commenced Stage I clinical trials in Japan for TMX-049, a new treatment for hyperuricemia and gout, in
April 2015. In July 2015, we filed an application with the Ministry of Health, Labour and Welfare for the approval of
TMX-67TLS, which is under development as a project to expand indications for Feburic tablets to hyperuricemia
associated with cancer chemotherapy. In September 2015, subsidiary Teijin Pharma Limited signed a joint research anddevelopment agreement with PeptiDream Inc. We aim to discover innovative pharmaceuticals for patients with unmet
medical needs by seeking to turn macrocyclic and constrained peptides into pharmaceuticals for various drug targets1that had been excluded from drug development efforts to date. In other initiatives, in November 2015 we filed an
application with the China Food and Drug Administration of the PRC for approval of TMX-67 (generic name: febuxostat),a treatment for hyperuricemia and gout, which is being jointly developed with Astellas Pharma China, Inc. in the PRC. In
addition, in January 2016 we began clinical development of EZN-2279 (domestic development code: STM-279), a
therapeutic agent for adenosine deaminase (ADA) deficiency discovered by Sigma Tau Rare Disease Ltd. of the U.K. In
March 2016, we obtained designation of EZN-2279 as an orphan drug by Japan’s Ministry of Health, Labour and Welfare.
Since 2015, the Ministry of Health, Labour and Welfare had ordered manufacturer and distributor Kaketsuken (The
Chemo-Sero-Therapeutic Research Institute) to suspend shipments of Kenketsu Venilon-1 (an intravenous-use humanimmunoglobulin therapy). In March 2016, Kaketsuken obtained approval for partial amendment following progress madeon resolving inconsistencies between the approval form and the actual manufacturing methods.
In response, we will make every effort to fulfill our responsibility to ensure a stable supply of pharmaceuticals to the
medical frontline.

Home Healthcare
Rental volumes either remained high or increased for all offerings
In the home healthcare business, we currently provide services to more than 400,000 individuals in Japan and overseas.
In Japan, rental volume for mainstay therapeutic oxygen concentrators for home oxygen therapy (HOT) remained firm,
thanks to the release of new models Hi-Sanso 5S and Hi-Sanso Portable α (alpha). Looking ahead, we will strive tofurther boost rental volume, by expanding the use of Hi-Sanso Portable α II, a portable oxygen concentrator launched in
March 2016. Rental volume for continuous positive airway pressure (CPAP) ventilators for the treatment of sleep apnea
syndrome (SAS) continued to increase favorably, due to the launch of NemLink, a monitoring system for CPAP
ventilators that uses mobile phone networks, and an influx of SAS patients owing to the use of the SAS2100 sleep
disorder diagnostic system. Going forward, we will seek to further boost rental volume, by proactively expanding the useof SLEEPMATE10, a new model launched in January 2016 featuring NemLink functions and a built-in heater-humidifier.
To fortify support services for individuals, we sought to improve our ability to respond to patient needs by capitalizing on
our home healthcare call centers in Fukuoka and Osaka.
Somatuline® is a registered trademark of Ipsen Pharma S.A.S., Paris, France.
Bonalon® is the registered trademark of Merck Sharp & Dohme Corp., Whitehouse Station, NJ, U.S.A.
1
A drug target is a molecule closely related to the cause of a disease. Controlling this molecule paves the way forsuccessful treatment of the disease.
20*†

Meanwhile, as part of our transformation and growth strategies, in September 2015 we commenced sales of VitalLink, apatient information sharing system. We have been working to expand this business by conducting marketing activities
focused on facilities that play a crucial role in comprehensive community healthcare and on other sites. Moreover,investigator-initiated clinical trials of intractable neuropathic pain using a trial model of a repetitive transcranial magnetic
stimulation device developed through an industry-academia partnership with Osaka University and other partners
commenced at Osaka University Hospital in December 2015, followed by the start of these clinical trials at several otherhospitals. We also continued to expand our marketing efforts for the WalkAide System, a neuromuscular electricalstimulation device for the treatment of gait impairment resulting from a stroke or other causes launched in fiscal 2013,
which initially focused on the Tokyo metropolitan area, to medical institutions in other areas of the country.
Overseas, we currently provide home healthcare services in the United States, Spain and the ROK. In the period underreview, operating conditions in the United States remained harsh, a consequence of healthcare system reform and sizeable
ensuing declines in medical treatment fees, as well as other factors. We responded by taking steps to restore profitability,
including integrating sales bases and reducing headcount.

■Trading & Retail
The Trading & Retail segment yielded sales of ¥270.9 billion and operating income of ¥5.3 billion.
Fiber Materials and Apparel
Expanded joint initiatives with overseas global brands by leveraging strengths of proprietary materials.
In the sports apparel field, we expanded joint initiatives with overseas global brands by leveraging high-performancematerials centered on the core product DELTA series. Sales in Japan were healthy, supported mainly by theaccomplishments of integrated materials sewing initiatives using OEM in the ASEAN region. Meanwhile, in the uniform
field, we faced an uphill struggle owing to sluggish sales and the impact of inventory adjustments due to unseasonable
weather. Sales of yarn benefitted from favorable sales of differentiated products. In textiles, sales of products for newmarkets in the Middle East grew.
In functional textiles and apparel, we faced an uphill struggle in our mainstay apparel OEM business due to declining
consumption of apparel and sluggish sales of autumn and winter products due to unseasonable weather. In addition,
profitability was squeezed by the yen’s depreciation and rising overseas production costs. In this environment, we worked
to enhance our ability to receive orders by pushing ahead with efforts to upgrade and expand our manufacturing platform,
including a review of our manufacturing management structure centered on Vietnam and Myanmar. Moreover, in aneffort to expand business, we proactively presented plans and proposals for apparel products based on proprietary
materials including our strategic material SOLOTEX, through a comprehensive exhibition of textiles and apparel staged
by TEIJIN FRONTIER CO., LTD. in Tokyo and by opening a booth at the Première Vision exhibition held in Paris.
Industrial Textiles and Materials
Firm sales of automotive materials and healthy exports of functional materials.
In the industrial textiles and automotive materials field, we saw firm sales of our mainstay tire cords for highperformance tires, and generally stable sales of rubber materials used in automobiles, such as hoses and belts. Airbags
reached full capacity utilization and full sales in the second half of the fiscal year, with further production increases
planned ahead. Although sales of automotive accessories such as seat covers remained lackluster, sales of automotive
interior materials held steady overall, underpinned by the adoption of these materials in major vehicle models and otherfactors.
In textiles and related materials, in the Japanese market, sales were firm in the civil engineering, agriculture, fisheries andpackaging fields, as well as in products related to nonwoven fabrics, despite weak sales of membrane materials such as
decorative tent fabrics and products in the filter field. In overseas markets, sales increased favorably owing to surging
demand for functional materials such as short-cut fibers and carbon fibers.
In household materials, we posted growth in sales of products for wiping-related applications, and face masks developed
as a new initiative with a major convenience store, among other products. In interior materials, sales of floor-covering
materials and wall-covering materials were firm, but sales of curtain materials struggled.
In the films and plastics field, we faced an uphill struggle in sales of film, due to the impact of production adjustments forelectronic components in the PRC from the second half of the fiscal year. In plastics, weak sales reflected a higher
recycling rate for electronic component packaging applications. Meanwhile, sales were firm for equipment and machinery.

21

■Others
Others, which does not qualify as a reportable operating segment, generated sales of ¥75.6 billion and operating incomeof ¥6.5 billion.
The IT business reported solid results due to steady growth in sales of e-books in the net services category and otherfactors. Looking at the IT services category, we developed and started sales of the Cancer Patient Guidance andAdministration Support System to hospitals, and in the field of comprehensive community healthcare, we entered into abusiness and capital alliance with Solasto Corporation. In addition, we made product enhancements to GRANDIT, a webbased ERP software package, such as enabling My Number support, in conjunction with advancing greater collaboration
with our development and sales partners. Furthermore, in the IoT‡ field, we pushed ahead with expanding our businessdomains by entering into a business alliance with Afero, Inc., which provides cloud services. Meanwhile, we decided tostop providing services through our own data centers as a part of our restructuring initiative.
In new business development, sales of LIELSORT lithium-ion battery (LiB) separators continued to expand favorably. We
also developed a new high-performance membrane that contains polyethylene using our proprietary microporous
membrane production technology, and we are working to launch a new business based on this technology, with products
to be offered under the brand name miraim.
In the healthcare field, we are advancing R&D with the aim of creating new business fields, such as embedded medical
devices and medical composite materials for pharmaceuticals. In the orthopedics domain, in April 2015, we established
Teijin Nakashima Medical Co., Ltd. as a joint venture with Nakashima Holdings Co., Ltd. to develop a global artificial
joint business. The new venture plans to put together a strategic marketing team and develop products that combine thetechnologies of the two parent companies. In the cardiovascular domain, we continue to pursue our project to develop a
patch for cardiac care. This project was selected for support under a program launched by Japan’s Ministry of Economy,
Trade and Industry to promote collaboration between medical institutions and industry.
We promoted the use of Recopick—a radio frequency identification (RFID) information management system thatincorporates our RFID-enabled two-dimensional communication sheet CELL FORM, in electronic management solutions
for library books, classified information and medical devices, among others, capitalizing on the system’s ability toefficiently and accurately track the entry and removal, inventory levels and precise location of items.

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 one designated issue, “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 the total amount of waste produced and by promoting various recycling programs, achieving alarge overall reduction in the amount of non-recyclable waste emissions. Furthermore, we have identified solutions ofenvironmental value as an important CSR issue, and based on the Teijin Group Design for Environment Guidelines
which evaluates the environmental impact throughout a product’s lifestyle, we work to design products, manufacturing
processes, and IT/services which reduce environmental impact, create light-weight materials which contribute to the
reduction of CO2, and promote the recycling of resources.
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 co-sponsor the All Japan
High School Soccer Tournament to proactively support sports activities of the youth. In 2015, with the goal ofdeveloping global human resources through soccer, with the Japan Football Association, Teijin established a joint
human-resources development center, TEIJIN ACADEMY FUJI, in Susono, Shizuoka.
In terms of academic research, through the Teijin Kumura Scholarship system provided by the Teijin Scholarship‡

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.
22

Foundation, we have supported around 1,600 science and engineering students over more than 60 years, and in 2010,
launched a scholarship system in China. Furthermore, aiming to foster human resources for science and technology byintegrating industry-government-academia research groups, the Teijin Group co-sponsors Science Koshien, supporting
middle school and high school students in the science field and making broad contributions to supporting nextgeneration education.
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.
Furthermore, in the field of international exchange, we support sports among children in Southeast Asia, donate picture
books to libraries, and work to resolve hunger in developing countries, proactively participating in social contribution
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 academic, educational, cultural, and sports activities, as well as
environmental preservation and disaster prevention activities.

(2) Changes in Assets and Profit and Loss
Fiscal Period
Items
Net sales(Millions of yen)
Operating income(Millions of yen)
Ordinary income(Millions of yen)
Profit attributable to owners ofparent(Millions of yen)
Net earnings per share(Yen)
Total assets(Millions of yen)
Net assets(Millions of yen)

147th Fiscal Period 148th Fiscal Period 149th Fiscal Period 150th Fiscal Period
FY2012FY2013
FY2014FY2015(Current period)
745,712784,424

786,171790,748

12,357

18,07839,086

67,1309,786

19,88742,37860,316△29,130

8,356△8,08631,090△29.61

8.50

△8.23

31.63

762,399

768,411

823,694

823,429292,127

300,112303,635

314,412(3) Capital Investments
Capital investments by the Group in fiscal 2015 totaled ¥ 38.3 billion, mainly for maintenance and renewal.

(4) Financing
The Company raised long term debts to secure finance. The Company redeemed a debenture and due to the impact offoreign exchange movements (a stronger yen) on foreign-currency denominated, interest-bearing debt in long-and shortterm loans amounted to ¥300.3 billion reduced by ¥4.9 billion from the end of the previous year.

(5) Tasks Ahead
Short-Term Efforts
In our advanced fibers and composites business, which we have positioned as a core strategic business, we will focus on
bolstering sales in promising markets, notably for use in aircraft, automotive and infrastructure-related applications. In
healthcare, also viewed as a core strategic business, we will press ahead with efforts to increase sales of key strategic
products, namely, hyperurecemia and gout treatment febuxostat and CPAP ventilators for treating SAS.
23

In addition to taking steps to expand profits in our trading and retail and IT businesses, which we see as stable-profit
businesses, we will leverage synergies with core strategic businesses. In businesses to be restructured, namely ourelectronics materials and performance polymer products and our raw materials and polymerization businesses, we will
step up efforts to reshape our business structure, in addition to steadily executing restructuring initiatives.
Medium-Term Efforts
In November 2014, we introduced a revised medium-term management plan, which centers on restructuring initiatives
and transformation and growth strategies, to guide our efforts through fiscal 2016.
Restructuring initiatives
The goals of our restructuring initiatives are to ensure full awareness of and further reinforce the basic strengths wehave amassed to date and to build a new structure capable of supporting transformation and growth strategies. To thisend, we have narrowed our focus by analyzing each of our businesses from the perspectives of market growthpotential, competitive advantages and profitability, and will seek to promote the targeted allocation of corporate
resources in promising growth businesses. Based on the results of this process, we are pushing ahead with the
integration of production and development bases.
These measures have already produced a positive impact from restructuring initiatives of ¥4.5 billion on operating
income through fiscal 2015. Combined with an additional positive impact of ¥8.0 billion next fiscal year, we aretargeting a cumulative positive impact of ¥12.5 billion through fiscal 2016, compared with fiscal 2014.
Transformation and growth strategies
The Teijin Group is a unique corporate entity with capabilities in three core business domains, namely, highperformance materials, healthcare and IT. While to date we have sought to grow businesses in each domain
independently, our emphasis going forward will be on integrating capabilities and competitive advantages from these
domains to foster groundbreaking, distinctively Teijin businesses in key categories: environment and energy
conservation; safety, security and disaster mitigation; and demographic change and increased health consciousness.
We will continue to actively invest our resources to achieve this goal.
Medium-term management targets
Under the revised medium-term management plan, through the positive impact of restructuring initiatives and by thegrowth of our core strategic businesses, we targeted operating income of ¥50.0 billion and ROE of 8% or higher for
fiscal 2016. However, in fiscal 2015, we attained these targets ahead of schedule. In fiscal 2016, we will manage ourbusinesses with the aim of achieving operating income of ¥58.0 billion and ROE of 11.3%, both of which exceed our
initial targets.
Next medium-term management planIn fiscal 2016, the final fiscal year of the revised medium-term management plan, a major priority is to formulate thenext medium-term management plan to drive further growth over the medium and long terms. In the process of
formulating this plan, we will articulate our growth scenarios and set a clearer course for our transformation to asolutions-oriented business model.

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 thetrademarks 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, 2016)
Business Segments
Business Fields
Principal Products and Businesses
Advanced Fibers andAramid Fibers
Para-aramid fibers, Meta-aramid fibers,Composites
High-performance polyethylene, Artificial leather
Carbon Fibers
Carbon fibers, Oxidized PAN fibers
Polyester Fibers
PET・PEN fibers
Electric Materials &Plastics
Polycarbonate resin・sheet・film, molding product
Performance Polymer
Transparent conductive film,
Products
PET・PEN ･PBN resin, Frame-retardant agents
Films
PET・PEN film
Health Care
Pharmaceuticals
Agent for Osteoporosis, Agent for Infection, Expectorant,
Inhaled Corticosteroid Agent for Adult Asthma,
Agent for Hyperlipidemia, Treatment for Hyperuricemia and gout
Agent for treating pain associated with osteoarthritis of the knee,
Anodyne resolutive
Home Health Care
Oxygen Concentrator for Home oxygen Therapy (HOT),
Continuous Positive Airway Pressure Unit (CPAP), UltrasoundBone Fracture Treatment Devices
Trading & Retail
Textiles and Apparel Fiber materials, Textiles, Apparel products, General merchandise

OthersIndustrial Textiles
and Materials
IT Services

Net Business
New Businessdevelopment
Raw Materials,
Polymers

Industrial and vehicle materials, Living and interior goods,
Resin・films, Packing and construction materials,
General Corporation information system, Information system for
hospital, Medicine manufacturing information system, 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, 2016)
Business
The Company
Advanced Fibers andComposites

Electric Materials &Performance Polymer
Products

Health Care

Trading & Retail

Function
Location
Headquarters
Osaka, Tokyo
Manufacturing Ehime, Yamaguchi, Shizuoka, Gifu
bases
U.S.A., Germany, the Netherlands, China ,Thailand
Operation bases Tokyo, Osaka
U.S.A., Germany, the Netherlands, China ,Thailand
Research bases Shizuoka, Ehime
U.S.A., Germany , the Netherlands ,Thailand, China
Manufacturing Gifu, Tochigi, Ehime, Hiroshima
bases
China, Indonesia
Operation bases Tokyo, Osaka, Aichi
U.S.A., the Netherlands, China, Korea, Taiwan, Malaysia, Indonesia,
ThailandResearch bases Gifu, Ehime, Chiba, Hiroshima
China
Manufacturing Yamaguchi
bases
Operation bases 12 branches throughout Japan
U.S.A
Research bases Tokyo, Yamaguchi
U.S.A., U.K.
Manufacturing Ishikawa, Fukui, Shiga, Fukuoka
bases
China, Thailand, Vietnam
Operation bases Tokyo, Osaka, Aichi, Niigata, Gifu
U.S.A., Germany, China, Vietnam, Indonesia, Myanmar, Mexico
Manufacturing Tokyo, Ehime, Okayama, South Korea
bases
Operation bases Tokyo, Osaka, Kanagawa, Fukuoka, Ehime, Yamaguchi, Okayama
Research bases Tokyo, Osaka, Yamaguchi, U.S.A

OthersNote: The function of headquarters is indicated in The Company, and the manufacturing, operation and research bases are indicated in eachbusiness segments.

(8) Employees(As of March 31, 2016)
Business segments
Advanced Fibers and Composites
Electric Materials & Performance
Polymer Products
Health Care
Trading & Retail
OthersTotal

150th Fiscal Period
149th Fiscal Period
FY2014FY2015(As of March 31, 2015) (As of March 31, 2016)(Current period)
4,307
4,301

Change in thenumber of
employees
△6

2,152

2,141

△ 11

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

3,633
2,966
2,715
15,756

△68
△ 44
+105
△24

Notes:
1. The number of employees stated above represents the numbers of employees in each segment.
2. The number of employees stated above does not include temporary employees(2,367 employees for the 149th fiscal period and 2,535 employees for the 150th fiscal period)

26

(9) Significant Subsidiaries(As of March 31, 2016)
Subsidiary (Location of
Investment
Business segments
CapitalPrincipal business
The Head Office)ratio (%)
Advanced fibers Toho Tenax Co., Ltd. (Tokyo)¥500
99.75 Production and sales of carbon
and Composites
millionfibers and Oxidized PAN fibers
Toho Tenax Europe
0.025 million ※100.00 Production and sales of carbon
GmbH (Germany)
eurofibersToho Tenax America, Inc.
US$12.5 ※100.00 Production and sales of carbon(U.S.A.)millionfibers and Oxidized PAN fibers
Teijin Aramid B.V.
0.02 million ※100.00 Production and sales of paraaramid fibers(the Netherlands)
euro
Teijin (Thailand) Limited
800 million ※100.00 Production and sales ofpolyester fibers(Thailand)bath
Teijin Polyester (Thailand)
548 million
66.87 Production and sales ofLimited (Thailand)bathpolyester fibers¥10,01060.00 Production and sales ofElectric Materials Teijin DuPont Films Japan
Limited (Tokyo)
millionpolyester films& Performance
Polymer Products
Teijin Polycarbonate Singapore
US$75 100.00 Sales of polycarbonate resins
Pte Ltd. (Singapore)
millionHealth Care

Trading & Retail

OthersTeijin Polycarbonate China
Ltd.(China)
Teijin Chemicals Plastic
Compounds Shanghai Ltd.
( China)Teijin Pharma Limited(Tokyo)

720 million
RMB
143 million
RMB

100.00¥10,000
million100.00100.00

Production and sales ofpolycarbonate resin
Coloration, processing and salesof polycarbonate resins
Production and sales of
medicinal drugs and medical
equipment

Teijin Home Health Care Ltd(Tokyo)¥100 ※100.00
millionHome health care services
providerBraden Partners L.P. (U.S.A.)

US$134 ※100.00
million¥2,000 100.00
million¥4,000 100.00
million¥1,59058.08
million Notes3¥475 100.00
million¥80 100.00
millionHome health care services
providerSales of textiles and others

Teijin Frontier Co., Ltd(Osaka)Nantong Teijin Co., Ltd.
(China)
Infocom Corporation(Tokyo)Teijin Engineering Ltd.
(Osaka)Teijin Logistics Co., Ltd.
(Osaka)Production and sales ofpolyester textile goods
Development and sales ofcomputer software, etc.
Engineering services, design andsales of plants and equipment
Transportation and custody of
goods

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

27

(10) Primary Lenders and Amount of Borrowings(As of March 31,2016)
Balance of borrowings
Millions of yen
43,20735,00021,881
7,554
5,200

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

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¥115,544 million under syndicated loans.

2. Matters Regarding the Shares of the Company (as of March 31, 2016)(1) Issuable shares
3,000,000,000 shares(2) Issued shares
984,758,665 shares(3) Number of shareholders
94,703(4) Top 10 shareholders of the Company
Shareholders
1
2
3
4
5
6
7
8
9
10

Japan Trustee Service Bank, Ltd.(Trust account )The Master Trust Bank of Japan, Ltd. (Trust account)
Nippon Life Insurance Company
The Employee Stock Ownership Association of Teijin
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Japan Trustee Service Bank, Ltd.(Trust account 9 )STATE STREET BANK WEST CLIENT - TREATY

505234

CBNY-GOVERNMENT OF NORWAY

Investment in the Company
Number of shares held
Shareholding ratio (%)
72,532,000
7.37
72,125,000
7.33
35,227,509
3.58
23,429,813
2.38
20,694,935
2.10
16,516,000
1.67
12,173,859
1.23
12,148,903
1.23
11,720,991
1.19
11,253,526
1.14

STATE STREET BANK AND TRUST COMPANY 505001
STATE STREET BANK AND TRUST COMPANY 505225
Note: The shareholding ratio has been calculated after excluding Treasury stocks (1,530,571 shares) from the Issued shares.

28

3. Directors and Statutory Auditors(1) Directors and Statutory Auditors
Post

Name

(As of March 31, 2016)
Duty, state of significant positions concurrently
held at other companies
Permanent Officer, Keidanren(Japan Business Federation)
Officer, Japan Association of Corporate Executives (Keizai Doyukai)
Outside Director, Sharp Corporation
Outside Director, Recruit Holdings Co., Ltd
Outside Statutory Auditor, JFE Holdings, Inc.

Chairman of the
Board

Shigeo Ohyagi

President,
Representative
Director

Jun Suzuki

CEO (Chief Executive Officer)
Chairman, Japan Chemical Fibers Association

Senior Executive
Officer,
Representative
Director

Yo GotoGeneral Manager, Technology Center
Supervisor of Iwakuni, Matsuyama and Mihara factory*Senior Executive
Officer, Director*Executive Officer,
Director
Officer, Director

Hiroshi Uno

Director

Hajime Sawabe

Director

Yutaka Iimura

Director

Nobuo Seki

Director

Kenichiro Senoh

General Manager, Healthcare Business Group
President & Representative Director, Teijin Pharma Limited
CFO
General Manager, Accounting, Finance & Procurement DivisionCorporate Strategy Officer
Supervisor of Raw Materials & Polymers Division
Supervisor of IT, Healthcare ProjectCounselor, TDK Corporation
Outside Statutory Auditor, Nikkei Inc.
Outside Director, Japan Display Inc.
Outside Director, Ebara Corporation
Vice Chairman of Council, Waseda University
Councilor, Ministry of Foreign Affairs, Japan(Southeast Asia cooperationambassador)
Vice-Chairman, Japan-Indonesia Association, Inc.
Adviser, Taisei Corporation
Special Participation, INPEX Corporation
Outside Director, KAMEDA SEIKA Co., Ltd.
Outside Director, Weathernews Inc.
Outside Director, Yokogawa Electric Corporation
President & Chairperson, The Industry-Academia Collaboration Initiative(NPO)
Visiting Professor, Hitotsubashi University Graduate School of Commerceand Management (MBA program)Vice Chairman, The Japan Society for Science Policy and Research
Management
Director, Intellectual Property Association of Japan

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

Toshiaki Yatabe

Noriko Hayashi

Statutory Auditor

Nobuo Tanaka*Statutory Auditor

Gen Ikegami

Kazuhiro
Yamamoto
Yoshihisa Sonobe

Atsushi Mugitani
Representative, Hayashi Legal Office Lawyer
The Chairperson of Committee on Labor Law Legislation, Japan
Federation of Bar Associations Certified
President, The Sasakawa Peaceful Fund
Outside Director, Chiyoda Corporation
Outside Statutory Auditor, Innotech Corporation
Representative, Gen Ikegami Certified Public Accountant Office, Certified
Public Accountant
29Notes:1.

The directors and statutory auditors marked with * were newly elected at the 149th Ordinary General Meeting of Shareholders heldon June 24, 2015, and assumed such post on such date except for Gen Ikegami who assumed such post as of July 1, 2015.
2. Four (4) Directors— Hajime Sawabe , Yutaka Iimura, Nobuo Seki and Kenichiro Senoh—are outside directors. The Company
requires the candidate for outside director to satisfy the requirements of “Independent Director” stipulated by the Company. Thesefour (4) Directors satisfied all such requirements and maintained their independence throughout the relevant fiscal year. Because theyalso satisfy the requirements of independence as stipulated by Tokyo Stock Exchange Group, Inc., they were registered by theCompany as “Independent Director/Auditor” at the stock exchanges. Refer to pages 14-15 for the requirements of “Independent
Director” which Company defines.
3. There are no important interests between the Company and any of the entities at which the abovementioned outside directors holdpositions as director/statutory auditor etc.
4. 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 theCompany. These three (3) Statutory Auditors satisfied the all said requirements and maintained their independence throughout therelevant 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 14-15 for therequirements of “Independent Statutory Auditor” which Company defines.
5. 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.
6. Statutory Auditor Gen Ikegami is a Certified Public Accountant and has ample knowledge of finance and accounting.
7. The following Directors and Statutory Auditors retired as of June 24, 2015.
Director
Osamu Nishikawa
Director
Yoshio Fukuda
Statutory Auditor
Atuso Amano
Statutory Auditor
Toshiharu Moriya
8. Changes in posts and duties of Directors during the subject fiscal year are as follows.
Name
New Post
Former Post
Date of Change
Yo GotoSenior Executive Officer,
Senior Executive Officer,
September 1, 2015
Representative Director
Representative Director
General Manager, Technology Center
General Manager, Technology Center
Supervisor of Iwakuni, Matsuyama andSupervisor of Iwakuni, Matsuyama and
Mihara factory
Mihara factory
Supervisor of Safety Control
Hiroshi Uno
Senior Executive Officer, Director
Senior Executive Officer
June 24, 2015
General Manager, Healthcare Business
General Manager, Healthcare Business
Group
Group
President & Representative Director, Teijin President & Representative Director, Teijin
Pharma Limited
Pharma Limited
Kazuhiro Yamamoto
Executive Officer, Director
Executive Officer
June 24, 2015
CFO
CFO
General Manager, Accounting, Finance &General Manager, Accounting, Finance &Procurement Division
Procurement Division
Yoshihisa Sonobe
Officer, Director
Officer, Director
October 1, 2015
Corporate Strategy Officer
Corporate Strategy Officer
Supervisor of Raw Materials & Polymers
Supervisor of Raw Materials & Polymers
Division
Division
Supervisor of IT, Healthcare ProjectSupervisor of IT, Healthcare Project
Chairman, Teijin DuPont films
9.

Changes in posts and duties of Directors following 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 & Polymers
Supervisor of Iwakuni, Matsuyama andDivision
Mihara factory
Supervisor of Iwakuni, Matsuyama and
Mihara factory
Kazuhiro Yamamoto
Senior Executive Officer, Director
Executive Officer, Director
CFO
CFO
General Manager, Accounting, Finance &General Manager, Accounting, Finance &Procurement Division
Procurement Division
Yoshihisa Sonobe
Executive Officer, Director
Officer, Director
Corporate Strategy Officer
Corporate Strategy Officer
Supervisor of IT, Healthcare ProjectSupervisor of Raw Materials & Polymers
Division
Supervisor of IT, Healthcare Project

30

Date of Change
April 1, 2016

April 1, 2016

April 1, 2016

(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, Hajime Sawabe, Yutaka Iimura, Nobuo Seki, and Kenichiro Senohwhich 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,
Toshiaki Yatabe, Atsushi Mugitani, 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.

(3) Remuneration for Directors and Statutory Auditors
1) Remuneration for Directors during the subject fiscal year
Inside Directors
Number ofAmount of
Directors
Remuneration
8373
Notes:
1.
2.
3.

4.

Outside Directors
Number ofAmount of
Directors
Remuneration
4
56(millions of yen)
Total
Number ofAmount of
Directors
Remuneration
12
429

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 ¥125 million, an expected amount of performance-based remuneration to be paid to thesix (6) inside directors appointed at the 149th Ordinary General Meeting of Shareholders held on June 24, 2015. Performance-based
remuneration was not paid to outside directors. The amounts of above remuneration include ¥27 million as compensation-type stock
options granted to inside directors for their duties performed during the subject fiscal year. Stock options were not granted to outside
directors.
The Company abolished the retirement benefits payment system for retiring inside directors at the conclusion of the 145th Ordinary
General Meeting of Shareholders held on June 22, 2011. For the directors who remained in office after the conclusion of the said
Ordinary General Meeting of Shareholders, it was decided that payments of retirement benefits corresponding to their respective
periods in office up to the abolishment of the retirement benefits payment system are to be made when each director retires. In
accordance with this, apart from the above-mentioned amounts of remuneration, retirement benefits of ¥10 million were paid to two(2) inside directors who retired during the subject fiscal year. Retirement benefits are not paid to outside directors.

31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 profit attributable to owners of parent toequity), the degree of improvement in its operating income, and the degree to which budget targets are achieved, in
addition to evaluations of the duties of individual directors. Reference is also made to the average remuneration level ofinside directors at other companies in the same industry in Japan.
<Outside directors>
The amount is a fixed amount that is not linked with the performance of the Company, and is determined with reference
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
Inside Statutory Auditors
Number ofAmount of
Statutory
Remuneration
Auditors
3
59

Outside Statutory Auditors
Number ofAmount of
Statutory
Remuneration
Auditors
4
31(millions of yen)
Total
Number ofAmount of
Statutory
Remuneration
Auditors
790Notes:
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).

(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
Hajime Sawabe

Yutaka Iimura
Outside Directors
Nobuo Seki

Kenichiro Senoh

Main Activities
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 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.
32

Category

Name

Noriko Hayashi

Outside Statutory
Auditors

Nobuo Tanaka

Gen Ikegami

Main Activities
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 11 of 12 meetings of the Board of Directors and 10 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.
After his appointment on July 1, 2015, he attended 8 of 8 meetingsof the Board of Directors and 7 of 7 meetings of the Board of
Statutory Auditors held during the relevant fiscal year and offeredvaluable comments from his professional knowledge as a Certified
Public Accountant.

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

(2) Amount of Remuneration(Millions of yen)

Details1) The amount of remuneration, etc., to be paid by the Company tothe accounting auditor
2) The total amount of cash or other proprietary interest to be paidby the Company and its subsidiaries to the accounting auditor
Notes:
1.
2.
3.

Amount156
309

The amount described in Item1) of the above table is the total sum of the remunerations for audits under the Companies
Act and the remuneration for the audits under Financial Products & Exchange Act in Japan because these are not clearly
distinguished from each other in the contract between the Company and the accounting auditor.
Of the major subsidiaries of the Company, 10 companies, including Teijin Aramid B.V. , undergo auditing by accounting firm otherthan the accounting auditor.
Based on the Company’s scale and characteristics, the Board of Statutory Auditors has given consent to the remuneration, etc., tobe 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 is judged toapply. Furthermore, the Company has a policy of submitting a proposal regarding dismissal of the accounting auditor to ashareholder’s meeting in the event that it is deemed that a grave obstacle to the Company’s audit operation involving theaccounting 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.

33

5. 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 andsuch 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 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 governance thatare the aim of a “company with nominating committees” are effectively achieved via an “Advisory Board”, a “Board of
Directors and executive officer system that includes independent outside directors,” and a “Board of 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 willtake the chairmanship of the Board), 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 and nomination of a successor, deliberating the selection of Chairman, deliberating the system
and levels of compensation for Teijin Group directors, and evaluating the performance of the CEO and representative
directors.

345) Nomination Consultative Committee and Compensation Consultative Committee as consultative
bodiesIn 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
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,
2016, the number of internal auditors in the Teijin Group is 20 (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, 3 years), Kiyoshi Hirai (KPMG AZSA LLC, 2year), Takeharu Kirikae (KPMG AZSA
LLC, 1 years).
The status of assistants who executed auditing is as follows.
Certified public accountants 17, others 38, total 55.

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 beviewed at the Company’s Web site: (http://www.teijin.com/ir/governance/guide/).

35

6. 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, 2016.
Below is a summary of this resolution, the details of which can be viewed at the Company’s Web site:(http://www.teijin.com/ir/governance/resolution/).

1) System for Ensuring Compliance with Laws, Regulations and the Articles of Incorporation in the
Performance of Duties by Directors and Employees of the Company and Its Subsidiaries
The Company has declared the basic principles of compliance in its Teijin Group “Corporate Governance Guide” .
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.

36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 shortterm plans, key management targets, and budgets, as well as carrying out progress checks, in order to realize the mediumterm 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 Teijin Group.
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 whenever necessary.
* The case of vacant of the Chairman of the Board, CEO will perform the office of the Chairman.

6) Provisions Concerning Employees Assigned to Assist the 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 have statutory auditors of Teijin Group companies performing concurrent duties;
however it shall not have corporate officers connected with performance of duties at Teijin Group companies performing
concurrent duties.
To secure the independence of members of Teijin Group Auditors Office above, all decisions concerning personnel
measures regarding the members of Teijin Group Auditors require the prior consent of the full-time Statutory Auditors.
The full-time Statutory Auditors shall assess the performance of the members of Teijin Group Auditors Office.

377) System for Reporting to Statutory Auditors by Directors, Corporate Officers and Employees of
the Company 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 meetings and other important meetingbodies of the Company, as well as those of the important meeting bodies of the main subsidiaries.
Representative directors and other executives shall report at the meetings of the Board of Directors and 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’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.
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.
38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.

39

7. 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 thedecision 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.
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 November 2014, we introduced a revised medium-term management plan, which centers on restructuring initiatives
and transformation and growth strategies, to guide our efforts through fiscal 2016.
The goals of our restructuring initiatives are to ensure full awareness of and further reinforce the basic strengths that wehave amassed to date and to build a new structure capable of supporting transformation and growth strategies. As a resultof narrowing our business focuses, we are pushing ahead with the integration of production and development bases andthese measures have already produced a positive impact from restructuring initiatives of ¥4.5 billion on operating income
through fiscal 2015. We are targeting a cumulative positive impact of ¥12.5 billion through fiscal 2016, compared withfiscal 2014.
As part of our transformation and growth strategies, with the goal of creating new and unique business that only we arecapable of, we will continue to actively invest our resources in these key categories: environment and energy
conservation; safety, security and disaster mitigation; and demographic change and increased health consciousness.
Under the revised medium-term management plan, we targeted operating income of ¥50.0 billion and ROE of 8% or higher for
fiscal 2016. However, in fiscal 2015, we attained these targets ahead of schedule. In fiscal 2016, we will manage our businesses
with the aim of achieving operating income of ¥58.0 billion and ROE of 11.3%, both of which exceed our initial targets.
In fiscal 2016, the final fiscal year of the revised medium-term management plan, we will produce the next medium-term
management plan and articulate our growth scenarios and set a clearer course for our transformation to a solutions-oriented
business model.

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 34-35 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:(http://www.teijin.com/ir/governance/defense/)

8. 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.
40

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

6th
(July 5,2007)

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)

Number of Issued Stock
Option (unit)

146

207

328

420

349

737

698

618

379

274

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

146,000

207,000

328,000

420,000

349,000

737,000

698,000

618,000

379,000

274,000

Issue Price of Stock
Option (per share)

¥663

¥610

¥307

¥253

¥261

¥245

¥196

¥228

¥385

¥360

Exercise Price of Stock
Option (per share)

¥1

¥1

¥1

¥1

¥1

¥1

¥1

¥1

¥1

¥1

Period during which theStock Option may be
exercised

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

Time of Issue(Issue date)

7th(July 7,2008)

Of the above, total number of unexercised Stock Option held by Directors and Statutory Auditors of the Company(breakdown by each issue of the Stock Option)(As of March 31, 2016)
Directors
Statutory Auditors
Issue
The 5 th Issue of the Stock Option

Number of Units

Number of Directors
Holding Rights

Number of Units

Number of
Statutory Auditors
Holding Rights

4

1

2

1

th

6

1

4

1

th

The 7 Issue of the Stock Option

16

1

6

1

The 8 th Issue of the Stock Option

36

4

8

1

The 9 Issue of the Stock Option

34

4

7

1

The 10th Issue of the Stock Option

91

5

17

1

The 11 Issue of the Stock Option

123

6

-

-

The 12th Issue of the Stock Option

The 6 Issue of the Stock Option

th

th

116

6

-

-

th

103

6

-

-

th

86

6

-

-

The 13 Issue of the Stock Option
The 14 Issue of the Stock Option

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 14th Issue of the Stock Option noted in (1) above.
Status of Stock Option distributed to employees of the Company in the 14th Issue of Stock Option.
No. of Unites
No. of Recipients
188
23

41

(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 themeeting of 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¥413.8 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¥406.8 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 the Extraordinary
Dividend (as defined in such Condition 5.2.4) resulting from payment of a dividend of ¥7 per Share. The payment of such dividend
was approved at the board of directors of the Company on 6 May 2016.
(Effective date: As of April 1, 2016)42

Consolidated Balance Sheets
FY2014(As of Mar. 31, 2015)(Millions of yen)
FY2015(As of Mar. 31, 2016)

Total

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

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

Total

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

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

Total

9,408
11,218
20,627

7,296
9,356
16,653

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

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

823,694

823,429< 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

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

Intangible assets
Goodwill
Other

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

43Consolidated Balance Sheets
FY2014(As of Mar. 31, 2015)(Millions of yen)
FY2015(As of Mar. 31, 2016)

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

71,39455,52727,493－6,238
52
24,99642,493
228,196< Liabilities >Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Deferred tax liabilities
Accrued expenses
Other
Total
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for business structure improvement
Net defined benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total
Total liabilities<Net assets>
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stockTotal

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

55,148
163,645
12,55530,4402,405
5,640
10,984
280,820
509,01770,816
101,447
101,201(426)
273,039

70,816
101,473
127,377(354)
299,312

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

24,226(2,569)(8,102)479
14,03417,754(1,303)(15,073)
(578)
799

844
15,716
303,635
823,694837
13,462
314,412823,429

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

44

Consolidated Statements of Income(Millions of yen)
FY2014FY2015(Apr. 2014-Mar. 2015) (Apr. 2015-Mar. 2016)
786,171790,748
569,499
536,309
216,672
254,439
177,586
187,309
39,086
67,130Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Nonoperating revenues
Interest income
Dividends income
Equity in earnings of affiliates
Foreign exchange gains
Gain on valuation of derivatives
Miscellaneous income
Total
Nonoperating expenses
Interest expenses
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 impairment losses
Other
Total
Extraordinary loss
Loss on sales and retirement of noncurrent assets
Loss on valuation of investment securities
Impairment loss
Business structure improvement expenses
Other
Total
Income (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

45

622
1,308
2,435
1,031
2,663
1,109
9,170

654
1,656
－
－
－
1,442
3,753

3,067
－
－
903
－
1,907
5,877
42,378

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

748
94
95
19
958

305
70
3,265
879
4,521

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

2,865
567
7,565
5,506
2,752
19,25745,58013,0693,289
16,35829,222(1,867)31,090Consolidated Statement of Changes in Net Assets
FY2014 (Apr. 2014 - Mar. 2015)(Millions of yen : amounts less than one million yen are omitted)
Shareholders' equity
Capital stock Capital surplus

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

70,816

101,429

Restated balance
Changes of items during the period
Dividends from surplus

70,816

101,429

Profit (loss) attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Total
Balance at March 31, 2015

Total
Treasury stock shareholders'equity111,754(435)
283,564
1,465
1,465

Retainedearnings

113,219(435)

285,029(3,930)(3,930)(8,086)(23)(8,086)
(23)

32

50

18
―

18

(12,017)9(11,989)

70,816

101,447

101,201(426)

273,039

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities

Foreigncurrencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total

Subscription
rights toshares

Noncontrollinginterests

Total net
assetsBalance as of March 31, 2014
Cumulative effects of changes in accounting policies

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

737

17,694300,112
1,465

Restated balance
Changes of items during the period
Dividends from surplus

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

737

17,694

301,577(3,930)

Profit (loss) attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Total
Balance at March 31, 2015

(8,086)(23)
50
13,467
13,467
24,226(3,586)(3,586)(2,569)

46

4,923
4,923
(8,102)

1,113
1,113
479

15,91815,91814,034

106
106
844

(1,977)(1,977)
15,716

14,047
2,057
303,635

Consolidated Statement of Changes in Net Assets
FY2015 (Apr. 2015 - Mar. 2016)(Millions of yen : amounts less than one million yen are omitted)
Shareholders' equity

Balance as of March 31, 2015
Cumulative effects of changes in accounting policies

70,816

101,447

Total
Treasury stock shareholders'equity101,201(426)
273,039

Restated balance
Changes of items during the period
Dividends from surplus

70,816

101,447

101,201

Capital stock Capital surplus

Profit (loss) attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Total
Balance at March 31, 2016

Retainedearnings(426)

273,039(4,914)(4,914)31,090(41)
112

31,090
(41)
138

71
(354)

26,273299,31226－
70,816

26
101,473

26,175
127,377

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities

Foreigncurrencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Subscription
rights toshares

Total

Noncontrollinginterests

Total net
assetsBalance as of March 31, 2015

24,226(2,569)(8,102)479

14,034844

15,716

303,635

Cumulative effects of changes in accounting policies
Restated balance
Changes of items during the period

24,226(2,569)(8,102)479

14,034844

15,716－
303,635

Dividends from surplus
Profit (loss) attributable to owners of parent
Purchase of treasury stock(4,914)31,090(41)

Disposal of treasury stock
Net changes of items other than shareholders' equity
Total(6,471)(6,471)

1,265
1,265

(6,971)(6,971)(1,057)(1,057)(13,234)(13,234)(7)(7)(2,254)(2,254)138(15,496)
10,776

Balance at March 31, 2016

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

(578)

799

837

13,462

314,41247

Consolidated Statements of Comprehensive Income (Reference)

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

48(Millions of yen)
FY2014FY2015(Apr. 2014-Mar. 2015) (Apr. 2015-Mar. 2016)(10,002)
29,222
13,467(3,586)
3,995
1,737

(6,483)
1,266(6,056)(2,074)421(74)

16,035
6,033(13,422)
15,7997,832(1,798)17,855(2,055)

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
Decrease (increase) in short-term loans receivable
Payments of long-term loans receivableCollections of long-term loans receivable
Other, net
Net cash and cash equivalents used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Cash dividends paid to non-controlling interests
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

49

FY2014(Apr. 2014-Mar. 2015)(Millions of yen)
FY2015(Apr. 2015-Mar. 2016)(6,927)43,03030,375(95)
5,420(2,781)(1,917)
14,683(1,931)
3,067(2,435)(2,663)
535
39
4
1,050
6,766
(9,626)(2,082)
2,897
77,4107,067(3,189)(5,258)76,03045,58038,8937,565(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)
80,640(26,527)751(2,364)(22,052)
1,575
2,434
(1,908)329(1,861)(49,624)(31,895)
668(2,801)(2,406)848(2,643)(59)
188(2,223)(40,322)(36,295)
59,210(19,809)37,534(25,805)(3,930)(200)(309)
10,393786
37,58632,975－70,561

3,146－(20,770)
36,707(21,820)(4,914)(284)(380)(8,316)(1,970)30,03070,561
363
100,955