February 26, 2021
To whom it may concern
Company: Teijin Limited
Stock code: 3401 (First Section, Tokyo Stock Exchange)
Representative: Jun Suzuki, President and CEO
Contact: Tomoko Torii, General Manager,
Investor Relations Department
Tel: +81­3­3506­4395

Notice Regarding the Issuance of Stock Acquisition Rights as Stock Options
Teijin Limited (“the Company”) has announced that at a meeting held today, its Board of Directors passed a resolution
to issue stock acquisition rights as stock options to the Directors and Corporate Officers, as detailed below.

1. Reason for the issuance of stock acquisition rights as stock options
The purpose of the issuance of stock acquisition rights is to provide stock options that will incentivize the Directorsand Corporate Officers of the Company to help further increase Teijin’s corporate value by reinforcing their levelof engagement in the management of the Company and the Teijin Group as a whole and by providing additional
motivation and morale to enhance business performance. For this purpose, the Company will issue stockacquisition rights to the Directors and Corporate Officers of the Company, the eligible recipients, with the amountof 1 yen to be paid­in upon the exercise of each stock acquisition right.

2. Terms and conditions of the issuance of stock acquisition rights(1) Name of stock acquisition rights
Teijin Limited 19th Series of Stock Acquisition Rights(2) Number of stock acquisition rights to be issued
394(3) Issue price (the amount to be paid­in in exchange for one stock acquisition right)
The issue price shall be the amount obtained by multiplying the option price per share by the number of shares
to be granted, where the option price per share is calculated in accordance with the Black­Scholes model using
the basic parameters below.

and(i)

Option price per share (C)(ii)

Stock price (S): the closing price of shares of common stock of the Company in regular trading at the Tokyo
Stock Exchange on March 15, 2021 (the allotment date) (If there is no closing price on that date, then thebase price on the following trading day.)(iii)

Exercise price (X): 1 yen(iv)

Projected remaining time period (T): 5.0 years(v)

Volatility (σ): Stock price fluctuation rate calculated based on the closing prices of shares of common stockof the Company in regular trading on the Tokyo Stock Exchange every week for 5.0 years (from March 1,2016 to February 28, 2021)(vi)

Risk­free interest rate (r): The interest rate for Japanese government bonds with remaining terms
corresponding to the projected remaining period.

(vii) Dividend yield (q): Dividend per share of ¥55 (actual dividends paid out as of March and September 2020)
÷ stock price in (ii) above.
(viii) Cumulative distribution function of standard normal distribution (N(・))Note: The Company shall pay monetary compensation equivalent to the total amount of the issue price of the stockacquisition rights to the eligible persons indicated in item (4) below. The right to claim this compensation will beoffset against the obligation to pay the amount to be paid for the stock acquisition rights. Through this process, theeligible persons shall acquire the stock acquisition rights.
(4) Eligible recipients for the allotment of stock acquisition rights and the number of such recipients, and thenumber of stock acquisition rights to be allotted
Eligible recipients

Number of recipients

Number of stock acquisition rights
to be allotted

Directors of the Company

5115

Corporate Officers of the Company

20279

Total

25394(5) Class and number of shares subject to the stock acquisition rights
The class of shares subject to the stock acquisition rights shall be shares of the Company’s common stock andthe number of shares subject to each stock acquisition right (hereinafter, the “Number of Shares to beGranted”) shall be 200 shares. In the event that the Company conducts a stock split or stock consolidation of2

the Company’s common shares, the Number of Shares to be Granted shall be adjusted according to thefollowing formula. Any fractions of less than one share arising from the adjustment shall be discarded.
Post­adjustment Number of Shares to be Granted = Pre­adjustment Number of Shares to be Granted x Stocksplit or stock consolidation ratio
In addition to the above, if circumstances arise in which the Number of Shares to be Granted must be adjusted
for unavoidable reasons after the date of resolution, the Number of Shares to be Granted shall be adjusted
within a reasonable range.
(6) Amount to be paid­in upon exercise of stock acquisition rights
The amount to be paid­in upon exercise of stock acquisition rights shall be the amount obtained by multiplying
1 yen per every share to be granted by exercising stock acquisition rights, by the Number of Shares to beGranted.
(7) Period for the exercise of stock acquisition rights
From March 15, 2021 to March 14, 2041
(8) Conditions for the exercise of stock acquisition rights
1) In the event that stock acquisition right holders cease to hold any positions as a Director of the Company,
the Company’s subsidiaries, or the Company’s affiliates, and Corporate Officers during the period specified
in item (7) above, they may exercise their stock acquisition rights during a limited period of five years fromthe time when they cease to hold the aforementioned positions (hereinafter, the “Rights Exercise
Commencement Date”).
2) Notwithstanding item 1) above, stock acquisition rights holders in the situations described in (a) or (b)below (Regarding (b), however, this excludes cases in which stock acquisition rights in restructured
companies are granted to stock acquisition rights holders in accordance with item (14) below) may exercise
stock acquisition rights during the limited periods specified by each of these items.
(a) The Rights Exercise Commencement Date of the stock acquisition rights holders has not arrived byMarch 14, 2040
During the period from March 15, 2040 to March 14, 2041(b) The General Meeting of Shareholders of the Company approves a resolution regarding a merger contract
providing for the Company to become a dissolved company or a share swap contract or a share transfer
plan providing for the Company to become a wholly owned subsidiary (or if the approval of the General
Meeting of Shareholders of the Company is not required, then when the Board of Directors of theCompany passes a resolution).
15 days from the day following the approval or resolution3) Other conditions for exercising stock acquisition rights shall be stipulated separately in the “FY2020 StockAcquisition Right Allotment Agreement” to be concluded between the Company and the stock acquisition

3rights holders. The stock acquisition rights holders must have entered into the “FY2020 Stock Acquisition
Right Allotment Agreement” with the Company by the time they exercise their stock acquisition rights.
(9) Matters concerning increases in capital stock and capital surplus when stock is issued upon the exercise ofstock acquisition rights
1) The increase in capital stock when stock is issued upon the exercise of stock acquisition rights shall be one
half of the maximum value of the increase in capital, etc. calculated in accordance with Article 17, Paragraph
1 of the Corporate Accounting Regulation, and when the results of calculations include fractions of yen,these fractional values shall be rounded up to the nearest yen.
2) The increase in capital surplus when stock is issued upon the exercise of stock acquisition rights shall equal
the maximum value of the increase in capital, etc. shown in item 1) above, less the value of the increase incapital stock prescribed in item 1) above.
(10) Matters concerning the transfer of stock acquisition rights
Any acquisition of stock acquisition rights through a transfer shall require approval by resolution of the Boardof Directors of the Company.
(11) Date of allotment of stock acquisition rights
March 15, 2021
(12) Date of monetary payment in exchange for stock acquisition rights
March 15, 2021
(13) Provisions for the acquisition of stock acquisition rights
In the case that the General Meeting of Shareholders of the Company approves one of the following resolutions1), 2), 3), 4), 5), 6), or 7) (or if the approval of the General Meeting of Shareholders of the Company is not
required, then in the case that the Board of Directors passes a resolution), on a date separately determined by
the Board of Directors, the Company may acquire the stock acquisition rights at no charge.
1) A resolution to approve a merger contract providing for the Company to become a dissolved company
2) A resolution to approve a company split contract providing for the Company to become a splitting company
or a resolution to approve a company split plan3) A resolution to approve a stock swap contract providing for the Company to become a wholly owned
subsidiary or a resolution to approve such a stock transfer plan4) A resolution to approve a change to the Articles of Incorporation to require the Company’s approval for theacquisition of shares through a share transfer with respect to all of the shares issued by the Company
5) A resolution to approve a change to the Articles of Incorporation to require the Company’s approval for theacquisition of such classes of shares subject to the stock acquisition rights through a share transfer or toprovide for the Company to acquire all such shares based on a resolution of the general meeting of4shareholders
6) A resolution to approve a stock consolidation with respect to such classes of shares subject to the stockacquisition rights (limited to cases where fractional trading units of shares less than 1.0 are obtained when
multiplying the number of units of shares related to these shares by the stock consolidation ratio)7) A resolution to approve a request for the sale of shares from special controlling shareholders.
(14) Policies for decisions regarding the annulment of stock acquisition rights due to organizational restructuring
and the issuance of stock acquisition rights of a restructured company
In cases where the Company conducts a merger (only mergers that dissolve the Company), an absorption­typecompany split or incorporation­type company split, or a stock swap or stock transfer (all these situations are
hereinafter referred to as “Organizational Restructuring”), the Company may arrange for the issuance of stockacquisition rights of the company corresponding to the joint stock company described in Article 236,
Paragraph 1, Item 8 (a) through (e) of the Companies Act (hereinafter “the Restructured Company”) to stockacquisition right holders who hold remaining stock acquisition rights (hereinafter, the “Remaining Stock
Acquisition Rights”) immediately before the effective date of the Organizational Restructuring in each case.
In this case, the Remaining Stock Acquisition Rights will be annulled and the Restructured Company will
issue new stock acquisition rights. However, the rights may be issued only if provisions for issuing stockacquisition rights of the Restructured Company in accordance with the following conditions are included in
the relevant absorption­type merger agreement, incorporation­type merger agreement, absorption­typecompany split agreement, incorporation­type company split plan, stock swap agreement, or stock transfer plan.
1) Number of stock acquisition rights of the Restructured Company to be issued
The numbers of stock acquisition rights to be issued shall be the same as the numbers of Remaining StockAcquisition Rights held by the respective stock acquisition right holders.
2) Class of the Restructured Company’s shares subject to the stock acquisition rights
Shares of the common stock of the Restructured Company
3) Number of the Restructured Company’s shares subject to stock acquisition rights
To be determined in accordance with item (5) above, after considering the conditions of the OrganizationalRestructuring and other factors.
4) Amount of assets to be invested upon exercise of stock acquisition rights
The amount of assets to be invested upon exercise of the issued stock acquisition rights shall be the amountobtained by multiplying the exercise price after restructuring, determined as follows, by the number of theRestructured Company’s shares subject to the stock acquisition rights, as determined in 3) above. The
exercise price after the restructuring shall be 1 yen for each share of the Restructured Company that can beissued through exercise of each issued stock acquisition right.
5) Period for the exercise of stock acquisition rights

5

The period for the exercise of stock acquisition rights shall begin on the starting date of the exercise period
for stock acquisition rights stipulated in item (7) above or the effective date of the Organizational
Restructuring, whichever is later, and shall continue until the final day of the period for the exercise of thestock acquisition rights stipulated in item (7) above.
6) Matters concerning increases in capital stock and capital surplus when stock is issued upon the exercise ofstock acquisition rights
To be determined in accordance with item (9) above.
7) Restrictions on the acquisition of stock acquisition rights through transfers
Any acquisition of stock acquisition rights through a transfer shall require the approval by resolution of theBoard of Directors of the Restructured Company.
8) Provisions for the acquisition of stock acquisition rights
To be determined in accordance with item (13) above.
9) Other conditions for the exercise of stock acquisition rights
To be determined in accordance with item (8) above.
(15) Treatment of fractions of less than one share arising upon the exercise of stock acquisition rightsFractions of less than one share within the shares to be issued to stock acquisition right holders upon exerciseof the stock acquisition rights are to be discarded.
­ End6­