February 8, 2023
To whom it may concern
Company: Teijin Limited
Representative: Akimoto Uchikawa, President and CEO
Stock code: 3401 (Prime Market, Tokyo Stock Exchange)
Contact: Tomoya Yoshitomi, General Manager,
Investor and Public Relations Department
TEL: +81-3-3506-4395

Notice Regarding the Revision of Financial Forecasts and the Recording ofExtraordinary Losses in Consolidated and Non-consolidated Accounts
Teijin Limited (hereinafter, the “Company”) hereby announces that, based on its recent
performance, it has revised its consolidated financial forecasts for the fiscal year ending
March 2023 (April 1, 2022, to March 31, 2023) downward from the values announced on
November 7, 2022.
The Company also hereby announces that it has recorded extraordinary losses in its
consolidated and non-consolidated financial results for the third quarter of the fiscal year
ending March 2023. The details of both the abovementioned revision and losses are asfollows.
1. Revision of consolidated financial forecasts for the fiscal year ending March 31, 2023
Net sales

Operating

Ordinary

ProfitEarnings

incomeincomeattributableper shareto ownersof parent
Previously announcedmillion yen

million yen

million yen

million yen

yen

forecast (A)1,050,000

25,00029,00016,000

83.23

Revised forecast (B)1,030,000

10,00012,000-18,000-93.63-20,000-15,000-17,000-34,000-

Percent change (%)-1.9%-60.0%-58.6%--(Reference) Results

926,054

44,20849,692

23,158120.58Change (B − A)

for the previous fiscal
year (FY2021)
Reasons for the revision of the financial forecasts
We have decided to revise our forecasts of net sales downward from the previously
announced forecast values as shown above. The main causal factors for the downward
revisions include the sales volume down due to decreased production volume of a European

base caused by a plant fire, and a decline in demand in China due to lockdowns and theconsequent slowing of the economy in the material segment. In addition to the factors for the
net sales revision, we have also decided to revise our forecast of operating income andordinary income downward from the previously announced forecast values as shown aboveby the impact of a delayed operation resumption after recovery from an equipment
breakdown at a U.S. plant. In addition to the decline in operating income, the profit
attributable to owners of parent was also revised downward from the previously announced
value as shown above due to the recording of an impairment loss on the goodwill of Teijin
Automotive Technologies (TAT-US).
There is no change to the year-end dividend forecast for the fiscal year ending March 31,
2023, announced on November 7, 2022: JPY 12.50 per share (an interim dividend of JPY
27.50 per share and a forecast annual dividend of JPY 40.00 per share).
2. Recording of extraordinary losses in the Company’s consolidated and non-consolidated
accounts
For the third quarter of the fiscal year ending March 2023, the Company recorded animpairment loss on the goodwill of the composites business in its consolidated accounts anda loss on valuation of shares of affiliates and subsidiaries in its non-consolidated accounts.
(1) Recording of an impairment loss on the goodwill of the composites business in theCompany’s consolidated accounts
TAT-US, a consolidated subsidiary of the Company, has been predicted to fall behind in
implementing its initial plan to become profitable, primarily due to decreased OEM production
caused mainly by a shortage of raw materials and parts, including semiconductors, rising raw
material prices, reduced productivity and additional costs caused by an equipment
breakdown at a plant, and a continued low level of productivity caused by the labor shortage.
Accordingly, since the Company detected signs of impairment of that subsidiary’s goodwill
as of its acquisition of the subsidiary, it assessed whether to recognize an impairment loss.
As a result of the assessment, the Company decided to treat the total undepreciated balanceof the goodwill as an impairment loss and recorded an impairment loss of 15.4 billion yen as
an extraordinary loss in its consolidated financial results for the third quarter of the fiscal year
ending March 2023.
(2) Recording of a loss on valuation of shares of affiliates and subsidiaries in the Company’s
non-consolidated accounts
It has been predicted that the weak business performance of TAT-US and the impairment of
its goodwill will worsen the financial condition of Teijin Holdings USA, Inc., the Company’s
consolidated subsidiary that holds the shares of TAT-US. Therefore, the Company recordeda loss on valuation of shares of affiliates and subsidiaries of 112.2 billion yen as an
extraordinary loss in its non-consolidated financial results for the third quarter of the fiscal
year ending March 2023.

Since the amount of the loss on valuation of shares of affiliates and subsidiaries will be offset
in the consolidated accounts, the consolidated financial results will not be affected by thisloss.
- End -