April 28, 2021
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

Notice Regarding the Revision of Financial Forecasts and the Recordingof Extraordinary Losses in Consolidated and Non-consolidated Accounts

Teijin Limited (hereinafter, the “Company”) hereby announces that, based on the latest statusof its business, it has revised its consolidated financial forecasts for the fiscal year ended
March 2021 (April 1, 2020 to March 31, 2021) issued on February 8, 2021, as follows. The
Company also announces that extraordinary losses will be recorded in its consolidated andnon-consolidated financial results.

1. Revision of consolidated financial forecasts for the fiscal year ended March 31, 2021
Net sales
Operating
Ordinary
ProfitEarnings
incomeincomeattributable
per share
to owners ofparent
Previously announced
forecast (A)Revised forecast (B)Change (B − A)
Percent change (%)(Reference) Results
for the previous fiscalyear (FY2019)

million yen

million yenmillion yen

million yen

Yen

810,000

55,00053,000-10,000-52.10837,000

54,90053,700-6,700-34.9027,000

-100

700

3,300

-

3.3%

-0.2%

1.3%

--

853,746

56,20554,33725,252131.63

2. Reason for the revision
The unexpectedly rapid recovery of automotive and other markets is predicted to result in
our net sales exceeding the previously announced forecast. As for our profit attributable toowners of parent, we carefully assessed and reflected the recoverability of our deferred tax
assets, while we decided to record impairment losses on our carbon fibers business’s fixed
assets in our accounts, which have already been reflected into the previous forecasts. As aresult, it is expected that the loss will decrease from the previously announced forecast.
3. Recording of extraordinary losses in consolidated and non -consolidated financial results
We plan to record impairment losses on the carbon fibers business’s fixed assets in theCompany’s consolidated and non-consolidated financial results for the fourth quarter of the1fiscal year ended March 2021, and to record a provision for loss on guarantees in its nonconsolidated financial results for the same quarter.
(Billions of Yen)
Consolidated(1) Impairment loss
(2) Provision for loss on guarantees

Non-consolidated

39.2

12.2

-13.7

(1) Recording of impairment losses on the carbon fibers business’s fixed assets inconsolidated and non-consolidated financial results
Since the aircraft market under the severe impact of the COVID-19 pandemic is expected toremain sluggish for a long time, we checked for signs of impairment of our carbon fiber sbusiness’s fixed assets. Consequently, we detected signs of impairment of some asset
groups and estimated that the recoverable values and fair value prices of those asset groups
would fall short of their book values. Therefore, we determined that the Company and its
relevant subsidiaries would revalue those asset groups downward and record total
impairment losses of 39.2 billion yen in its consolidated financial results and 12.2 billion yen
in its non-consolidated financial results, respectively.
Details of impairment loss by company are as follows.
(Billions of Yen)
Company expected to record
Amount ofan impairment loss in its accounts
impairment loss
Teijin Carbon Fibers, Inc. (U.S.)

25.9

Teijin Limited (Japan)

12.2

Others

1.0

Total

39.2

(2) Recording of a provision for loss on guarantees in the Company’s non -consolidated
accounts
Because Teijin Carbon Fibers, Inc., a U.S.-based consolidated subsidiary of the Company, isexpected to record an impairment loss in its accounts, we decided to record a provision forloss on guarantees of 13.7 billion yen in the Company’s non-consolidated accounts mainly
to prepare against loss on guarantees for the Company. Since the amount of the provision
for loss on guarantees will be offset in the consolidated accounts, the consolidated financial
results will not be affected by the provision.

- End -2