Consolidated Financial Statements Summary(For the nine months ended December 31, 2018)
English translation from the original Japanese-language document(All financial information has been prepared in accordance with accounting principles generally accepted in Japan)

February 4, 2019

Company name

: TEIJIN LIMITED (Stock code 3401)

https://www.teijin.com

Contact person: Hiroki Sorate

TEL: +81-(0)3-3506-4395

General Manager, Investor Relations Department

1. Highlight of the Third quarter of FY2018 (April 1, 2018 through December 31, 2018)(1) Consolidated financial results
Net sales
For the nine months ended December 31, 2018
For the nine months ended December 31, 2017

Million yen
659,650
614,678

Operating income
Million yen
48,10256,292

%
7.3
14.9

%
-14.5
29.1

(Amounts rounded to the nearest million yen)
(Percentages are year-on-year changes)
Profit attributable toOrdinary income
owners of parent
Million yen
Million yen%%
51,30740,753-9.7
2.6
56,81339,72724.1
16.6

cf. Comprehensive income for the nine months ended December 31, 2018 : 47,936million yen (For the nine months ended December 31, 2017 : 71,320million yen)

For the nine months ended December 31, 2018
For the nine months ended December 31, 2017

E.P.S. *Diluted E.P.S.

Yen
209.52201.92

Yen
191.71
182.83* E.P.S.: Earnings per share(2) Consolidated financial position
Shareholders'equity ratio
Million yen
Million yen%
As of December 31, 2018
1,015,749
429,708
40.8
As of March 31, 2018
981,967
408,237
40.0
cf. Shareholders' equity as of December 31, 2018 : 413,926million yen (As of March 31, 2018 : 392,925million yen)
Total assets

Net assets

2. Dividends
Dividends per share
Period

1Q
Yen
―
―

2Q
Yen
30.00
30.00

3Q
Yen
―
―

4Q
Yen
30.00

AnnualYen
60.00

FY2017FY2018FY2018 (Outlook)
40.00
70.00
Note: Revision of outlook for dividends in the Third quarter: No*The year-end dividend per share for FY2018 (Outlook) includes an ordinary dividend of 30 yen and a commemorative dividend of 10 yen.
3. Forecast for operating results in the year ending March 31, 2019 (FY2018)(Percentages are year-on-year changes)
Profitattributable to
Net sales
Operating income
Ordinary income
E.P.S.
owners of parent
Million yen
Million yen
Million yen
Million yen
Yen
%
%
%
%
FY2018 annual
890,000 6.6
60,000 -14.1
62,000 -8.6
46,000237.261.0
Note: Revision of outlook for FY2018 consolidated operating results in the Third quarter: Yes

4. Appropriate Use of Forecasts and Other Information and Other Matters(1) Cautionary statement on forward-looking statements
All forecasts in this document are based on management’s assumptions in light of information currently available and involvecertain risks and uncertainties. Actual results to differ materially from these forecasts. For information on these forecasts, refer to"Qualitative Information on Outlook for Operating Results", beginning on page 3.

1. Qualitative Information( 1 ) Qualitative Information on Results of Operations1 ) Analysis of Consolidated Results of Operations
Global economic conditions in the nine months ended December 31, 2018 remained opaque due to an economic
slowdown in Europe and the PRC and trade friction between the U.S. and the PRC, while the U.S. economy saw
continued moderate growth. The Japanese economy continued to stage a modest recovery, mainly reflecting firm capital
investment and employment conditions.
In this environment, for the nine months ended December 31, 2018, the Teijin Group posted lower earnings on higher
sales in the Materials Business Field, mainly reflecting the impact of persistently high price of raw materials andincreased costs for the launch of projects in connection with new order intake in the composites business, despite firmsales. In the Healthcare Business Field, the Teijin Group posted lower earnings on higher sales, reflecting the absenceof the upfront payment from Merck (¥3.0 billion) recorded in the same period of the previous fiscal year, although growthin sales covered the impact of downward revisions to drug prices and medical fees. Consolidated net sales totaled¥659.6 billion, an increase of 7.3% year on year. Operating income decreased 14.5% to ¥48.1 billion. Ordinary income
decreased 9.7% to ¥51.3 billion. Profit attributable to owners of parent rose 2.6% to ¥40.8 billion, helped by the recordingof extraordinary income.

2 ) Business Segment Results for the nine months ended December 31, 2018
I. Materials Business Field
In the Materials Business Field, sales were ¥498.7 billion, up ¥41.7 billion year on year, while operating income was¥17.3 billion, down ¥6.9 billion.
Material Business Group
Sales of aramid fibers were firm, and resin products and carbon fibers were impacted by rising raw material and fuelprices.
In Aramid Fibers, sales of Twaron para-aramid fibers were solid for optical fiber applications. Sales of Teijinconex metaaramid fibers were robust for use in automotive applications such as turbocharger hoses, as well as protective clothing
and industrial applications.
In Carbon Fibers, sales of TENAX carbon fibers grew steadily for use in aircraft, as well as compound applications.
Sales also expanded for pressure vessel applications; however, rising raw material and fuel prices pushed down
earnings.
In Resin and Plastics Processing, our mainstay polycarbonate resin products saw a sharp decline in market prices thatsuppressed earnings, despite efforts to improve the sales mix with a larger ratio of high-value-added products that are
relatively impervious to market impacts.
In Films, Purex, which is used as a release film for manufacturing processes mainly for multilayer ceramic capacitors for
smartphones and automotive electronics, continued to expand. Sales also remained favorable for PEN film for use inautomobiles and electronic components.
Polyester Fibers & Trading and Retail Business Group1

Increased raw material and fuel prices had an impact despite brisk sales of functional apparel fiber material and others.
In Fiber Materials and Apparel, sales of both textiles and products grew due to use of the Company’s unique functional
materials, such as SOLOTEX. However, earnings were suppressed, mainly due to increases in raw material prices,personnel expenses, and other costs.
In Industrial Textiles and Materials, disaster prevention and infrastructure-related sales grew atop an increase in demandfor disaster countermeasures, while healthcare product sales and high-performance staple fiber-related sales were also
brisk. However, results were impacted by delays in some customer verification processes in automotive materials andincreases in raw material prices.
Composites, Others
Sales increased due to favorable sales of automotive components in North America; however, raw materials prices
increased.
In Composites, we recorded firm sales of mass-produced automotive components led by Continental Structural Plastics
Holdings Corporation for pickup trucks and SUVs, which performed well in North America, and for large trucks, for which
the market showed signs of recovery. Meanwhile, earnings were pushed down by rising raw material prices and higher
one-time expenses for launch of projects in connection with new order intake.
In Battery Materials, sales of LIELSORT lithium-ion battery (LIB) separators for consumer applications were affected bya slump in demand for use in smartphones.

II. Healthcare Business Field
In the Healthcare Business Field, sales were ¥120.1 billion, up ¥1.3 billion year on year, while operating income was¥31.3 billion, down ¥0.8 billion.
Sales were firm, despite the impact of recording consideration for the licensing out of an investigational antibody
candidate in Pharmaceuticals in the same period of the previous fiscal year
In Pharmaceuticals, the sales were affected by the downward revisions to drug prices in the domestic market. In thisclimate, sales of hyperuricemia and gout treatment FEBURIC (febuxostat), the transdermal anti-inflammatory analgesic
patch formulation LOQOA tape, and Somatuline®*, a treatment for acromegaly, continued to expand steadily.
* Somatuline® is the registered trademark of Ipsen Pharma, France.
In Home Healthcare, we maintained a high level of rental volume for therapeutic oxygen concentrators for home oxygentherapy (HOT), enhancing the lineup of portable oxygen concentrators (Hi-Sanso Portable ɑ (alpha), Hi-Sanso Portableɑ II). Rental volume for continuous positive airway pressure (CPAP) units for the treatment of sleep apnea syndrome(SAS) increased favorably, mainly due to increasing the appeal of NemLink, a monitoring system for CPAP units thatuses mobile phone networks, and to the use of the SAS-2100 sleeping pattern analysis devices.
In the area of New Healthcare initiatives, particularly in the field of implantable medical products, Teijin Nakashima
Medical Co., Ltd. a Teijin group company developing the artificial joint and orthopedic spine product businesses, posted

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a solid business performance.

III. Others
In Others, sales were ¥40.9 billion, up ¥2.0 billion year on year, while operating income was ¥3.9 billion, down ¥0.3
billion.
In IT, the Digital Entertainment category saw expanded sales of the Meccha Comics e-comics distribution service. Sales
growth was assisted by shifting a magazine published by SHUEISHA Inc. to a bi-monthly publication, and advancing
relationships with publishing companies, such as the launch of a new magazine in collaboration with Futabasha
Publishers Ltd. In the IT services category, we strengthened our sales structure by establishing a new partnership systemwith a view to future links between the web-based ERP software GRANDIT and robotic process automation (RPA).

( 2 ) Qualitative Information on Financial Position
Assets, Liabilities and Net Assets
Total assets as of December 31, 2018 amounted to ¥1,015.7 billion, up ¥33.8 billion from the end of FY2017. The main
reason for the increase in total assets was an increase in working capital.
Total liabilities amounted to ¥586.0 billion, up ¥12.3 billion from the end of FY2017. One main component of this change
was an increase in short-term loans payable.
Total net assets amounted to ¥429.7 billion, up ¥21.5 billion from the end of FY2017. This was mainly due to profit
attributable to owners of parent of ¥40.8 billion, which was partly offset by a decrease due to the acquisition of own
shares, among other factors.

( 3 ) Qualitative Information on Outlook for Operating Results
In light of our business performance for the nine-months ended December 31, 2018 and the recent business environment,
we have revised the consolidated full-term operating results forecasts for FY2018 announced on November 5, 2018 as
follows. We have assumed that the exchange rates from January 2019 onwards are ¥110 to US$1.00 and ¥125 to €1.00,
and that the average Dubai crude oil price is US$60 per barrel.

Full-term operating results forecasts for FY2018
Net sales(Billions of yen)

Operating income

Ordinary income

Profit attributableto owners ofparentPrevious forecast (A)

900.0

65.0

67.0

48.0

Revised forecast (B)

890.0

60.0

62.0

46.0

Change (B–A)

-10.0

-5.0

-5.0

-2.0

Percentage change

-1.1%

-7.7%

-7.5%

-4.2%

(For reference)
Results for FY2017

835.0

69.8

67.8

45.6

3

(For reference) Forecast for Segment Results(Billions of yen)

Net sales
For the nine
Full termmonths ended(Outlook)
December 31,2018

Operating income
For the nine
Full termmonths ended(Outlook)
December 31,2018

Materials

498.7

680.0

17.3

23.5

Healthcare

120.1

155.0

31.3

36.5

Others

40.9

55.0

3.9

6.5

-

-

(4.3)

(6.5)

659.6

890.0

48.1

60.0

Elimination and corporate
Consolidated total

Italicized product and service names in this report are trademarks or registered trademarks of the Teijin Group in Japan
and/or other countries, or, where noted, are protected as the trademarks and/or trade names of other companies.

42. Financial Statements( 1 ) Consolidated Balance Sheets
As of March 31, 2018
< Assets >Current assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total(Millions of yen)
As of December 31, 2018

96,418
177,777
14,00091,258
10,82834,17953,978(578)
477,859

102,603180,369
36,000105,146
13,48036,462
49,328(675)
522,713

Total

60,107
94,87085,313
240,289

62,677
100,658
93,962257,297

Total

27,19233,14960,341

37,55632,04969,605

127,72177,859(2,102)
203,479
504,108

97,967
69,610(1,444)
166,134
493,036

981,967

1,015,749

Noncurrent assets
Tangible assets
Buildings and structures, net
Machinery and equipment, net
Other, net
Intangible assets
Goodwill
Other
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total
Total noncurrent assets
Total assets5< Liabilities >Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Provision for business structure improvement
Other
Total
Noncurrent liabilities
Bonds payable
Long-term loans payable
Net defined benefit liability
Asset retirement obligations
Other
Total
Total liabilities<Net assets>
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of March 31, 2018

(Millions of yen)
As of December 31, 2018

92,383
66,291
16,175
17,986
5,111
9,572
68,668276,186

94,955
107,999
2,442
15,0006,241
82
61,017287,736

35,053
207,163
35,6501,426
18,252
297,544573,730

20,042
226,859
36,502
1,469
13,434
298,306
586,041

71,833
104,685
202,413(167)
378,765

71,833103,893
231,478(13,469)
393,734

28,377903(14,815)(305)
14,16032,029166(11,291)(713)
20,192860
14,453
408,237
981,967821
14,961
429,708
1,015,749

( 2 ) Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Gain on valuation of derivatives
Miscellaneous income
Total
Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous loss
Total
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Reversal of provision for business structure improvement
Settlement received
Other
Total
Extraordinary loss
Loss on sales and retirement of noncurrent assets
Loss on valuation of investment securities
Impairment loss
Business structure improvement expenses
Other
Total
Income before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

For the nine months
ended December 31,
2017

For the nine months
ended December 31,
2018614,678
413,858
200,819
144,527
56,292659,650
459,687
199,963
151,861
48,102

768
1,895
895
887
1,168
5,613

701
2,125
1,610
2,785
1,057
8,278

1,981
1,487
1,624
5,092
56,813

2,629
723
1,721
5,073
51,307

5,515
432
310
－
52
6,310

292
3,586
34
4,500
198
8,610

1,516
43
385
512
502
2,959
60,16419,19040,974
1,247
39,727

1,178
255
3,953
25
219
5,631
54,286
12,50941,7771,024
40,753

(Consolidated Statements of Comprehensive Income)(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates accounted
for using equity method
Total
Comprehensive income
Comprehensive income attributable to :Owners of parent
Non-controlling interests

8

For the nine months
ended
December 31, 2017

For the nine months
ended
December 31, 2018

40,974

41,777

10,702
1,507
17,588(1,018)

3,798
(737)
3,757
(454)

1,566

(204)

30,346
71,3206,159
47,93669,742
1,577

46,785
1,152

3. Segment and Other Information
Notes Pertaining to Going Concern Assumption:
None
Notes on Significant Changes in Shareholders' Equity:
At a meeting of the Board of Directors held on August 1, 2018, the Company passed a resolution on mattersrelating to the acquisition of its own shares in accordance with the provisions of Article 459, Paragraph 1 of Japan’sCompanies Act and Article 41 of the Company’s Articles of Incorporation. As a result, the Company acquired
9,107,400 shares of its common stock for 20,000 million yen. Furthermore, the Company disposed of 6,624 million
yen in treasury shares upon the conversion of convertible bond-type bonds with share acquisition rights.
Due mainly to the foregoing factors, treasury stock increased by 13,302 million yen in the nine months ended
December 31, 2018. Treasury stock stood at 13,469 million yen as of December 31, 2018.
Adoption of special quarterly accounting methods:
Certain of the consolidated subsidiaries of the Company have adopted a method for estimating in practical terms theeffective tax rate for the fiscal year, including for the nine months ended December 31, 2018, following the applicationof tax effect accounting to income before income taxes, and multiplying this by quarterly income before income taxes
to estimate quarterly tax expense.
Additional Information:
Adoption of “Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.”:
The Company has adopted “Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.” (AccountingStandards Board of Japan (ASBJ) Statement No. 28, February 16, 2018) from the beginning of the three months
ended June 30, 2018. Accordingly, deferred tax assets have been presented under investments and other assets
and deferred tax liabilities have been presented under noncurrent liabilities.

9

Segment information( 1 ) Results of the Third quarter of FY2017 (April 1, 2017 through December 31, 2017)1 ) Segment sales and operating income(Millions of yen)
Reportable operating segments
Materials Healthcare

Subtotal

Others*

Total

Sales
456,965
118,842575,807
38,871
829
2
831
6,010
Net sales
457,794
118,844576,638
44,881
Segment income
24,184
32,10256,287
4,170* "Others," which includes the IT business, does not qualify as a reportable operating segment.
1) External customers
2) Intersegment transactions or transfers

614,678
6,842
621,51960,4572 ) Difference between operating income and sum of operating income (loss) in reportable operating segments(Adjustment)(Millions of yen)AmountOperating income
Total reportable operating segments
56,287
Others segment
4,170
Elimination of intersegment transactions
161
Corporate expenses*(4,325)
Operating income
56,292* Corporate expenses are expenses that cannot be allocated to individual reportable operating segments and are primarily
related to head office administration.
3 ) Loss on impairment and goodwill by reportable segments
This item has been omitted because it is of low significance.

10( 2 ) Results of the Third quarter of FY2018 (April 1, 2018 through December 31, 2018)
1 ) Segment sales and operating income(Millions of yen)
Reportable operating segments
Materials Healthcare

Subtotal

Others*

Total

Sales
498,661
120,128
618,789
40,861
1,728
2
1,729
5,184
Net sales
500,389
120,130
620,518
46,045
Segment income
17,25931,26348,522
3,858* "Others," which includes the IT business, does not qualify as a reportable operating segment.
1) External customers
2) Intersegment transactions or transfers

659,650
6,913
666,563
52,3802 ) Difference between operating income and sum of operating income (loss) in reportable operating segments(Adjustment)(Millions of yen)AmountOperating income
Total reportable operating segments
48,522Others segment
3,858
Elimination of intersegment transactions
166
Corporate expenses*(4,444)
Operating income
48,102* Corporate expenses are expenses that cannot be allocated to individual reportable operating segments and are primarily
related to head office administration.
3 ) Loss on impairment and goodwill by reportable segments
Significant impairment of noncurrent assets
In the Materials Business Field, the Company recorded an impairment loss of 3,752 million yen in the nine months
ended December 31, 2018.
Significant changes in goodwill
In the Materials Business Field, the Company recorded goodwill of 11,527 million yen in the nine months ended
December 31, 2018 due to the acquisition of all shares of Brick Holding GmbH (holding company), whose major
operating company is J.H. Ziegler GmbH. The amount of goodwill has been determined provisionally as the
allocation of the acquisition cost had not been completed as of December 31, 2018.

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