NEWS RELEASE

Teijin Unveils “ALWAYS EVOLVING”
Medium-term Management Plan for 2020–2022— Aiming to be a company that supports the society of the future —Tokyo, Japan, February 5, 2020 --- The Teijin Group announced today its new
medium-term management plan for 2020–2022 “ALWAYS EVOLVING.”
The plan outlines Teijin’s next steps toward becoming a company that supports thesociety of the future by creating new value through ceaseless evolution and ambition
and by offering solutions for sustainability. Under the plan, the Teijin Group expects toestablish a solid growth platform for group collaboration aimed at realizing thecompany’s long-term vision.
1. Basic Aims
To help realize a sustainable society, the plan calls for Teijin to deliver solutions inthree key fields: 1) environmental value, 2) safety, security and disaster mitigation,and 3) demographic change and increased health consciousness.
Environmental value
solutions

Products and services that contribute to global
environmental goals, such as mitigation of and adaptation
to climate change and the realization of a circular economy

Safety, security anddisaster mitigation
solutions

Products and services that protect lives and mitigatevarious risks, such as disasters

Demographic change andincreased healthconsciousness solutions

Products and services that support healthy andcomfortable lives for people of all ages

2. Priority Measures
The plan will establish a platform for more solid growth to realize the Teijin Group’s
long-term vision, including through initiatives based on priority measures explained below.
(1) Create opportunities (investment in Three Solutions Fields and Strategic
Focus areas)■ To establish the growth platform, the Teijin Group will expand its capital investment
and M&A budget to JPY 350 billion for the coming three-year period, up from JPY
240 billion in the existing three-year period.
■ Teijin will invest 85% of the above budget in the Three Solutions fields andaccelerate efforts to address pressing issues in global society, aiming to increase
sales in these three fields to 75% of total sales by FY2030.
■ Teijin’s business portfolio will be broadly divided into Strategic Focus areas to boost
cash-generating abilities in new businesses and Profitable Growth areas to expand
stably profitable existing businesses. The goal is to increase cash-generating abilities
by transforming the overall business portfolio through a strategic allocation ofcorporate resources. Teijin will invest 60% (excluding recurring investments) andtarget EBITDA of at least 1/3 (33%) in Strategic Focus businesses by FY2030.
Business portfolio

Materials

Healthcare

OthersBoost cash-generating abilities
in new businesses(Strategic Focus)- Composites forautomotive applications- Carbon fiber intermediatematerials for aircraft applications- New businesses forcomprehensive community
healthcare- Functional food ingredients- Healthcare new businesses fororthopedics, new medical caredevices, etc.
－Expand stably profitable
existing businesses(Profitable Growth)- Aramids- Resin & plastic processing- Carbon fiber- Separators and membranes- Pharmaceuticals- Home medical care

- Fibers & Products Converting- IT

Breakdown of investments (capital investment and M&A)

Business portfolio transformation(2) Reduce risks (environmental impact)
Teijin Group will prioritize people in its efforts to realize a sustainable society. In
addition, Teijin will deliver innovative solutions for improved quality of life and tominimize the environmental and social impact of its businesses. In line with the new
medium-term management plan, Teijin will set long-term targets for reducing
environmental impact as well as for developing new business.
Long-term goals for reducing environmental impact
Item
Contribution toCO2 reduction
Climate change(CO2 emissions)Target year

Water quality

2030

Hazardous
materials

2030

2030
2030
2050

Goal
Reduce total emissions
20% reduction from FY2018 total emissions
Zero emissions
30% improvement from FY2018 level(per unit of freshwater withdrawal sales)
20% improvement from FY2018 level(hazardous chemical emissions per unit of sales)
Note: Resource circulation goals will be set separately(3) Strengthen business base (innovation creation)
The Teijin Group will strengthen its foundation for innovation creation and accelerate
its creation of business opportunities to deliver sustainable solutions and to open
new markets.

Regarding human resources, the Teijin Group will offer increasingly diverse working
styles, active roles for women and workforce diversity to energize the organization andaccelerate innovation creation. Targets will be set in line with regional characteristics.
Diversity and inclusion will be implemented throughout the group.
3. Main Business Strategies(1) Materials business field
The Teijin Group will accelerate its development of high-added-value applications
incorporating high-performance materials and multi-materialization measures.
Strategic Focus (boost cash-generating abilities in new businesses)
Composites forautomotive applications

Increase top share of U.S. market and further
penetrate European and Chinese markets. Restore
profitability of North American base (CSP) in FY2021(after amortization of goodwill)

Carbon fiberintermediate materials foraircraft applications

Adopt new big programs and launch higher-profitmass production operations around FY2023

Profitable Growth (expand stably profitable existing businesses)
Aramids
Resin & plastic processing

Maintain high growth (CAGR 5-7%) by expanding
manufacturing capacity and adding new applications
Secure stable earnings by adding new
high-added-value products(2) Healthcare business fieldUtilizing strengths cultivated through existing businesses, the Teijin Group willdevelop comprehensive community-based healthcare businesses in sectors
including rehabilitation, nursing care, prevention and health promotion.

Strategic Focus (boost cash-generating abilities in new businesses)Functional food ingredients,
comprehensive community
healthcare businesses,
new medical care devices,etc.

Expansion of businesses and markets both in areas
covered and not covered by Japan’s health insurance
systemProfitable Growth (expand stably profitable existing businesses)
Pharmaceuticals andhome healthcare

Strengthen business platform through organizational
reforms to launch new drugs and minimize effects ofFeburic cliff(3) Fibers & products converting / IT
Profitable Growth (expand stably profitable existing businesses)
Fibers & products convertingIT

Expand businesses in growth areas and raise basicprofitability
Continue to grow electronic comics and healthcare
businesses

4. Numerical Targets
The Teijin Group, placing emphasis on both investment efficiency and earning power,
uses

ROE(company-wide)

andoperating

profit

ROIC(company-wideandbusiness-specific) as profitability indicators, and EBITDA (company-wide andbusiness-specific) as its most important growth indicator.

For more details on Teijin’s new medium- and long-term vision, please visit:https://www.teijin.com/ir/management/vision/pdf/plan_pm_200205.pdf

About the Teijin GroupTeijin (TSE: 3401) is a technology-driven global group offering advanced solutions in theareas of environmental value; safety, security and disaster mitigation; and demographic
change and increased health consciousness. Its main fields of operation are
high-performance fibers such as aramid, carbon fibers & composites, healthcare, films,
resin & plastic processing, polyester fibers, products converting and IT. The group hasover 170 companies and around 20,000 employees spread out over 20 countries
worldwide. It posted consolidated sales of JPY888.6 billion (USD 8.1 billion) and total
assets of JPY 1,020.7 billion (USD 9.3 billion) in the fiscal year ending March 31, 2019.
Please visit www.teijin.com
Press Contact
Corporate Communications
Teijin Limited+81 3 3506 4055
pr@teijin.co.jp