Teijin : Flash Report - Results of FY2020 & Outlook for FY2021 -

Flash Report

Results of FY2020 & Outlook for FY2021

Teijin Limited

May 11, 2021

The Impact of COVID-19 on Teijin Group Results (Sales)

The Group achieved a steady recovery, as predicted in the Feb 2021 outlook* * Announced on February 8, 2021

Quarterly	Impact on results (vs previous quarter)		Specific impacts
		•	Although Tier 1 automotive business in North America was largely impacted by a
			significant decrease in production at OEMs initially, it showed signs of recovery in
1Q (Apr.-Jun.)	Sharp decline vs. outlook announced at the		the second half of the quarter
beginning of the term (May 2020)	•	In materials-related businesses closer to the upstream, there was demand to secure
			inventory in the supply chain in the first half of the quarter, so the emergence of
			impact was delayed to the second half
		•	The Tier 1 automotive business in North America rapidly recovered
2Q (Jul.-Sep.)	Rapid recovery	•	Demand for products for aircraft applications further declined
•	Medical protective equipment (gowns, etc.) contributed significantly to business
			performance
	[Compared with the forecasts announced in 2Q]	•	Recovery trends, mainly for automobiles, continued
3Q (Oct.-Dec.)	The recovery trend has become slightly stronger	•	Aircraft demand remained weak
than expected	•	Medical protective equipment (gowns, etc.) made only a limited contribution to
			business performance
		•	Overall recovery trends continued, mainly in products for automotive applications
4Q (Jan.-Mar.)	[Compared with the forecasts announced in 3Q]	•	Aircraft demand remained weak
Steady recovery as predicted	•	Medical protective equipment (including gowns) made only a small contribution to
			business performance

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Trends in main markets in FY2020 and outlook for FY2021

Markets	Main businesses	Areas	FY2020	Outlook for FY2021
			Recovery trends continued, with a rapid
Automotive	Aramid	Europe	recovery in the U.S. SUV and pickup-truck	Although the FY2019 level will not be
Composites	US	market in 2Q, as well as a recovery	reached, the recovery will continue*1
			beginning in Europe in 2Q
		Europe		Despite continuously sluggish aircraft
Aircraft	Carbon fibers	Aircraft demand declined drastically	demand, a recovery trend will
US
			emerge*2
	Pharmaceuticals		Sales of the main pharmaceutical products	Sales will remain firm mainly due to
Healthcare	Home healthcare	Japan	and the home healthcare equipment rental	contribution of diabetes products
	New healthcare		services remained firm	despite drug price revisions*2
Medical			The Group provided a large supply for the
protective	Fibers & Products	Japan	medical field to urgently fulfill unmet needs	Governmental demand converged
equipment	Converting	in the early stage of the pandemic, resulting
(gowns, etc.)			in the needs being almost met in 3Q
				Expansion trends will continue.
IT	IT	Japan	Demand for e-comics expands due to the	Impact from pirated sites became
growth of the stay-at-home economy	apparent in FY20 4Q but will go down
				in FY21 1H*2

*1: IHS Markit forecasts (March 2021), *2: Teijin's estimates

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Key Points for this report

■ Business Performance for FY2020

• • Even amid the COVID-19 pandemic, EBITDA remained at the same level as in FY2019, and operating income was 54.9 billion yen, a decrease of only 2.0% year on year
  • • Fibers & Products Converting Business's supply of medical protective equipment (gowns, etc.) and the strong performance of the IT Business contributed to the Group's business results
    • Healthcare Business Field produced acceptable results despite the impact of drug price revisions
    • Materials Business Field was affected by reduced demand for products mainly for automotive and aircraft applications
  • Profit attributable to owners of parent was −6.7 billion yen mainly due to the recording of impairment losses on fixed assets owned by the carbon fibers business in anticipation of a predicted long-term decline in aircraft demand
  • Despite the loss for FY2020, the annual dividend will be 50 yen, a decrease of only 10 yen year on year
• Outlook for FY2021 and dividend
• • In anticipation of a recovery from the impact of the COVID-19 pandemic and the effects of major investments, it is forecast that EBITDA will drastically increase year on year and that operating income will also increase by 9% year on year to 60.0 billion yen
  • Net sales, operating income, and profit attributable to owners of parent are expected to exceed the pre-COVID-19 FY2019 levels
  • Reflecting the predicted profit growth from the previous fiscal year, the annual dividend target is 55 yen per share, an increase of 5 yen (dividend payout ratio: 30%)

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Contents

1. Results of FY2020

P. 5

2. Outlook for FY2021 and

P.13

Medium-Term Management Plan

3. Supplementary information

Disclaimer Regarding Forward-Looking Statements

P.27

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

This material is based on the consolidated results for FY2020 announced at 11:30 A.M. on May 11, 2021 (local time in Japan).