August 7, 2023
To whom it may concern
Company: Teijin Limited
Representative: Akimoto Uchikawa, President and CEO
Stock code: 3401 (Prime Market, Tokyo Stock Exchange)
Contact: Naoki Hamashima, General Manager,
Investor and Public Relations Department
TEL: +81-3-3506-4395

Notice on Change in a Consolidated Subsidiary (Share Transfer)
Teijin Limited (hereinafter, the “Company”) hereby announces that it has resolved today totransfer the shares of its consolidated subsidiary Teijin Automotive Technologies (Tangshan)Co., Ltd. (hereinafter, “TAT Tangshan”) to Qingdao Keda Times Intelligent Equipment Co.,
Ltd. (hereinafter, “Keda Times”) as detailed below.

1. Reason for the share transfer
Since acquiring its North American business in 2017, the Company has been expanding theautomotive composites business by acquiring various new technologies and programs anddeveloping the business globally. However, the business has significantly fallen short of its
expected profit levels due to factors such as a deterioration in the business environment on
the back of the COVID-19 pandemic and the Company’s production system. In response, wehave been concentrating our resources on our base in North America, our key region, toimplement measures to improve profitability. We have also been considering selecting andconcentrating facilities in our other bases (Europe, China, and Japan). Under suchcircumstances, we have decided to transfer the shares of TAT Tangshan, the Chinese baseof the business, to Keda Times, as we believe this is desirable for both the Teijin Group andTAT Tangshan. As a result, the Company will withdraw from the automotive composites
business in China.
2. Outline of the consolidated subsidiary(1)
NameTeijin Automotive Technologies (Tangshan) Co., Ltd(2)LocationTangshan, Hebei Province, People’s Republic of China(3)
Name and title ofChris Twining, Chairperson
representative(4)(5)

Line of business
CapitalManufacture and sale of composite material products
624 million yuan

(6)
(7)

Establishment
Major shareholder(s) andownership percentage

January 2015
Teijin (China) Investment Co., Ltd.; 53.00%
Teijin Automotive Technologies, Inc.; 47.00%
1

(8)Relationship between theCompany and TAT
TangshanCapitalrelationship

The Company indirectly owns 100% of theoutstanding shares of TAT Tangshan

Personnel
NonerelationshipBusinessNone
relationship(9)
Operating results and financial status of TAT Tangshan for the last three years
Fiscal year
Ended March 2021
Ended March 2022
Ended March 2023
313 million yuan
210 million yuan
125 million yuan
Net assets(5,286 million yen)
(4,036 million yen)
(2,410 million yen)
433 million yuan
402 million yuan
602 million yuan
Total assets(7,310 million yen)
(7,721 million yen) (11,626 million yen)
60 million yuan
149 million yuan
186 million yuan
Net sales(940 million yen)
(2,609 million yen)
(3,680 million yen)
Operating income(20) million yuan((308) million yen)(89) million yuan((1,556) million yen)

Ordinary income(20) million yuan((317) million yen)(91) million yuan((1,591) million yen)(20) million yuan((317) million yen)(101) million yuan((1,987) million yen)(108) million yuan((2,131) million yen)(113) million yuan((2,234) million yen)(103) million yuan
Net income((1,798) million yen)(10) Asset and liability items and amounts (as of March 31, 2023)
AssetsLiabilities
Item
Book value
Item
Book value
Current
185 million yuan Current
363 million yuanassets(3,569 million yen) liabilities(7,015 million yen)
Non-current
417 million yuan Non-current
114 million yuanassets(8,057 million yen) liabilities(2,200 million yen)
Note: The exchange rates used for conversion were as follows:<Net assets, total assets, assets, and liabilities>
FY ended March 2021: 1 yuan = 16.89 yen; FY ended March 2022: 1 yuan = 19.19 yen
FY ended March 2023: 1 yuan = 19.33 yen<Net sales, operating income, ordinary income, net income>FY ended March 2021: 1 yuan = 15.65 yen; FY ended March 2022: 1 yuan = 17.51 yen
FY ended March 2023: 1 yuan = 19.76 yen
3.

Outline of the share transfer(1) Transfer price and payment method
Transfer price:
1 Chinese yuan to Teijin (China) Investment Co., Ltd.
1 US dollar to Teijin Automotive Technologies, Inc.
Payment method: Cash2

(2) Stake to be transferred and stake before and after transfer(1) Stake before transfer
100%(2) Stake to be transferred(3) Stake after transfer

100%0%

4. Outline of the transferee
(1)
Name
(2)
Address

Qingdao Keda Times Intelligent Equipment Co., Ltd.
100 Meters West of Songshan Road, Airport Industry
Cluster, Liuting Street, Chengyang District, Qingdao City,
Shandong Province(4)

Name and title ofrepresentative
Line of business

(5)
(6)

CapitalEstablishment

50 million yuan
March 29, 2017

(7)
(8)
(9)

Net assets
Total assets
Major shareholder(s) andownership percentage
Relationship between theCompany and Keda Times6 million yuan (as of December 31, 2022)
61 million yuan (as of December 31, 2022)

(3)

(10)

5.

Ye Baiju, President
Research & development, production, and sales of highperformance composites

Qingdao Keda Intelligent Electrical Co., Ltd.; 100%
Capitalrelationship
Personnel
relationship
Businessrelationship
Status as arelated party

None
None
None
None

Timeline(1) Resolution by the Company(2) Signing of share transfer agreement(3) Share transfer execution

August 7, 2023
August 2023 (planned)
March 2024 (planned) (To be executed assoon as approvals from the relevantauthorities are obtained)

6. Accounting overview
Due to the share transfer, we expect to record a loss on sale of shares of subsidiaries andassociates of approx. 6.4 billion yen as an extraordinary loss in its consolidated financial
results for the fiscal year ending March 2024 and a provision for loss on business ofsubsidiaries and associates of approx. 7.3 billion yen as an extraordinary loss in the nonconsolidated financial results for the fiscal year ending March 2024. We will disclose any
significant changes that may occur before the share transfer as quickly as possible.
37. Financial outlook
For the full-year consolidated earnings forecast for the fiscal year ending March 2024,
including the impact of the share transfer, please see the Consolidated Financial Statements
Summary (For the three months ended June 30, 2023) announced separately today.

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