December 15, 2020
To whom it may concern
Company: Teijin Limited
Representative: Jun Suzuki, President and CEO
Stock code: 3401 (First Section, Tokyo Stock Exchange)
Contact: Tomoko Torii, General Manager,Investor Relations Department
TEL: +81-3-3506-4395

Announcement regarding Change of Status of an Equity Method Affiliate toConsolidated Subsidiary
Teijin Limited (the “Company”) hereby announces that it has decided to change the statusof CSP Victall (Tangshan) Structural Composites Co., Ltd. (hereinafter, “CSP-Victall”),
currently an equity method affiliate of Continental Structural Plastics Holding Corporation(hereinafter, “CSP”), to consolidated subsidiary. CSP is a subsidiary of the Company andhas a 49% stake in CSP-Victall. To make this change, another subsidiary of the Company,Teijin (China) Investment Co., Ltd., will acquire the stake in CSP-Victall held by Qingdao
Victall Railway Co., Ltd. (hereinafter, “Victall”), for which Teijin (China) Investment Co., Ltd.
concluded an agreement with Victall on December 14, 2020.

1. Purpose of acquisition of additional stake
Recently, reducing the environmental impact of vehicles has increasingly required theirelectrification, and the “CASE” concept is proposed as the model for mobility in the near
future. Under these circumstances, the automobile industry is required to make quick
responses to a range of changes that are expected to occur in the future as well as toprovide lighter and more functional vehicles as next-generation automobiles. Accordingly,
the industry needs to reform its business model as an urgent challenge.
In order to help the automobile industry to meet this challenge, the Teijin Group positions
the automotive composites business as “Strategic Focus” and aims to become a multimaterial component supplier to automakers and support them as their partner. To thisend, the Company acquired CSP in 2017 to enhance the light and robust composites
business for automotive applications as a global Tier 1 supplier based in three regions:North America, Europe, and Asia.

In China, CSP-Victall has been conducting business as a joint venture between CSP
and Victall, which is a manufacturer of components and modules for railroad equipment
in China. The Company has decided to manage CSP-Victall efficiently as a Teijin Groupcompany to expand its business and improve its productivity by the proactive introductionof the Group’s technologies, thereby further enhancing the resilience of the Group’s
global business foundation. To this end, the Company will make CSP-Victall a wholly
owned subsidiary. The Teijin Group has been fostering the expansion of the automotive
composites business, and CSP-Victall will work to expand the supply of materials for EV
battery boxes for further business enhancement, as demand is expected to increase forthis usage.

2. Outline of CSP-Victall(1) Name

CSP Victall (Tangshan) Structural Composites Co., Ltd.

(2) Head office locationTangshan, Hebei, People’s Republic of China(3) Title and name ofDirector Sun Han Ben

representative(4) Line of business

R&D, manufacture and sale of glass fiber reinforced composite
materials and finished products(5) Capital

595 million yuan (9,425 million yen)(6) Establishment

January 2015(7) Investors andVictall 50.6% CSP 49.4%

ownership percentage(8) Relationship between

CapitalThe Company has a 49.4% stake in CSP-

the Company andrelationshipVictall through a subsidiary.

CSP-Victall

Personnel

Nonerelationship
BusinessNone

relationship(9) Operating results and financial status of CSP-Victall for the last three years
Fiscal year
Net assets
Total assets
Net sales

Ended December

Ended December

Ended December

201720182019

209 million yuan

306 million yuan

401 million yuan

(3,311 million yen)

(4,847 million yen)

(6,352 million yen)

254 million yuan

335 million yuan

450 million yuan

(4,023 million yen)

(5,306 million yen)

(7,128 million yen)

6 million yuan

21 million yuan

59 million yuan

(95 million yen)(333 million yen)(935 million yen)

Operating income-39 million yuan

-37 million yuan

-30 million yuan(-618 million yen)(-586 million yen)(-475 million yen)

-41 million yuan

-37 million yuan

-29 million yuan(-649 million yen)(-586 million yen)(-459 million yen)

-41 million yuan

-37 million yuan

-29 million yuan(-649 million yen)(-586 million yen)(-459 million yen)

Ordinary income
Net income

3. Outline of Victall(1) Name

Qingdao Victall Railway Co., Ltd.

(2) Location

Qingdao, Shandong, People’s Republic of China(3) Title and name of

Chairman Sun Han Ben

representative(4) Line of business(5) Capital (as of the end of

Mainly R&D, manufacture, sale, and service of railway
vehicle accessories
302 million yuan (4,787 million yen)

September 2020)(6) Establishment

October 2007

(7) Net assets (as of the end of

2,729 million yuan (43,228 million yen)

September 2020)(8) Total assets (as of the end

3,930 million yuan (62,256 million yen)of September 2020)(9) Major shareholders andownership percentage (as ofSu Qing Yan: 24.91%, Rui Ze Investment: 17.34%,
Sun Han Ben: 9.73%,

the end of September 2020)(10) Relationship with theCompany

There

are

nocapital,personnelrelationships.

4. Acquired stake, acquisition price, and stake before and after acquisition(1) Stake before acquisition

49.4%(2) Acquired stake

50.6%(3) Acquisition price308.7 million yuan (4,890 million yen)

(4) Stake after acquisition

100.0%

5. Schedule(1) Resolution at theDecember 11, 2020

management meeting(2) Conclusion of the agreement

December 14, 2020

(3) Transfer of the shares

December 31, 2020 (planned)

orbusiness6. Impact on operating results
The acquisition of the shares will have a minor impact on the consolidated operating
results for the fiscal year ending March 31, 2021.

(Note) The value in yen was calculated by using the exchange rate of 1 yuan = 15.84 yen(as of November 30, 2020).

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