Flash Report

Results of FY2021 2Q & Outlook for FY2021

Teijin Limited

November 8, 2021

Points of Financial Results of FY2021 2Q & Outlook for FY2021

Due to increased sales accompanying the economic recovery and the effect of succession of sales of diabetes treatment drugs, growth of sales and profit was secured compared to the first half of the previous year, with actual sales of 453.4 billion yen and operating income of 31.5 billion yen in the first half, despite of convergence of special demand for medical gowns. EBITDA also grew by 15% to 65.1 billion yen.

There is no change to the previously announced the consolidated annual forecasts*1 despite uncertainty about the second half of FY2021 due to the semiconductor shortage and the rise in material and fuel prices

  • First half results for FY2021
    • Strong sales in the Healthcare Business Field offset the impact of the convergence of governmental demand for medical protective equipment (gowns, etc.)
    • Compared to the full-year forecast, EBITDA achieved a progress rate of 50% (65.1 billion yen) and operating income 52% (31.5 billion yen), both going well

Changes in half-year EBITDA by segment

(Billions of Yen) Materials Healthcare Fibers&Products/IT/Others

80

Impact of medical protective

65.1

equipment (gowns, etc.)

Outlook for FY2021

60

56.7

9.5

The previous outlook* 1 remains unchanged, while the first half was generally

as expected and the outlook for the second half is highly uncertain. Sales and

profits are expected to increase compared to the previous year.

40

* 2

19.5

50.0

.0Strong in

37.5 healthcare

There is no change to the previously announced annual dividend forecast* 1

as well (55 yen / share, 5 yen increase from the previous year, interim dividend: 27.5

20

22.421.3

yen)

14.8

16.7

18.0

Outlook for FY2021

0

FY20 1st half

FY20 2nd half

FY21 1st half

Net sales 900.0 billion yen, EBITDA 130.0 billion yen, Operating income 60.0 billion yen,

Profit attributable to owners of parent 35.0 billion yen

* 1 Announced on August 6, 2021

* 2 Medical protective equipment (gowns, etc.) contributed significantly

1

Key Assumptions regarding the Company's Main Target Markets in FY2021

Main businesses

Markets

Main

FY2021 1H

Outlook for FY2021 2H

Areas

Automotive

Europe

Demand for tires, brakes, and hoses increased

The situation will remain the same as in the first

US

half of this fiscal year

Aramid

Europe

Sales of products for optical-fiber and other

Demand will remain firm

Industrial materials

applications recovered to the FY2019 level;

US

demand remained high

Asia

Customers' operations decreased due to

Customers' operations will remain at a decreased

Office machine

lockdown impact of COVID-19 and impact of

level due to the semiconductor shortage

semiconductor shortage

Resin

Materials

Japan

The semiconductor shortage caused a decline in

Customers' operations will remain at a decreased

power restrictions in China

Automotive

China

customers' operations

Close attention should be paid to the impact of

Asia

In regions with a high vaccination rate, demand

Demand for both domestic and international

Europe

for air travel, mainly on domestic routes,

Carbon fibers

Aircraft

recovered. There are also signs of a recovery in

flights will recover

US

demand for international flights

Demand for freight transportation will remain

Supply chains also moved to secure the necessary

strong

inventory

US

In the latter half of period, OEM production

The impact of the semiconductor shortage will

Composites

Automotive

Europe

output markedly decreased due to the

remain at the same level as in 2Q, but it will

China

semiconductor shortage

gradually diminish late in the period

Assumption about costs

During 2Q, the impact of an increase in raw material, fuel and logistics costs became obvious. Since there is a concern that costs

will continue to increase in the second half of this fiscal year as well, the situation must be closely watched.

2

Key Assumptions regarding the Company's Main Target Markets in FY2021

Main

Markets

Main

FY2021 1H

Outlook for FY2021 2H

businesses

Areas

The market for gout and hyperuricemia treatments grew

continuously

Pharmaceuticals

Since medical institutions continued to impose restrictions

on in-person visits to them amid the COVID-19 pandemic,

e-promotion was continuously enhanced

The situation will remain the same as in the first

Healthcare

Japan

In the home oxygen therapy (HOT) market, restrictions on

half of this fiscal year

hospitalization caused a continued shift to home

Home healthcare

healthcare

The market for continuous positive airway pressure (CPAP)

continued to grow, and the number of examinations

gradually recovered

Europe

Consumption recovered in Europe, North America and

The impact of the COVID-19 pandemic will lessen

Fiber materials and

US

China

due to the prevalence of vaccinations

apparel

China

The Japanese market remained sluggish due to the COVID-

Close attention should be paid to the impact of

Fibers &

Japan

19 pandemic

power restrictions in China

Sales of automotive applications are on a recovery trend,

Products

Japan

but were affected by semiconductor shortages

Converting

Industrial materials

The impact of semiconductor shortage continues

China

The market for water treatment filters and related

products firm

Medical protective

Japan

Governmental demand for supplies once fell

Equipment (gowns, etc.)

IT

IT

Japan

Piracy websites continued to affect e-comic services from

The impact of piracy websites will last

4Q of the previous fiscal year

3

Contents

1. Results of FY2021 2Q

P. 5

2. Outlook for FY2021

P.13

3. Main topics

P.20

4. Supplementary information

P.22

Disclaimer Regarding Forward-Looking Statements

Any statements in this document, other than those of historical facts, are forward-looking statements about the future performance of Teijin and its Group companies, which are based on management's assumptions and beliefs in light of information currently available and involve risks and uncertainties. Actual results may differ materially from these forecasts.

Note

Information about pharmaceuticals, medical devices, and regenerative medical products (including pipeline products) included in this material is not provided for the purposes of advertising or medical advice.

This material is based on the consolidated results for FY2021 2Q announced at 11:30 A.M. on November 8, 2021 (local time in Japan).

This is an excerpt of the original content. To continue reading it, access the original document here.

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Teijin Limited published this content on 08 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 November 2021 02:47:12 UTC.