Consolidated Financial Statements Summary (All financial information has been prepared in accordance with accounting principles generally accepted in Japan) August 2, 2012 Company name : TEIJIN LIMITED (Stock code 3401) Contact person : Masahiro Ikeda General Manager, IR Office TEL: +81-(0)3-3506-4395 (Amounts less than one million yen are omitted) 1. Highlight of the first quarter of FY12 (April 1, 2012 through June 30, 2012) (1) Consolidated financial results （Percentages are year-on-year changes） % % % % (8.0) (73.0) (82.8) - (1.6) 36.6 65.2 55.7 cf. Comprehensive income : (9,570)million yen (FY2011: 10,680million yen) ※1 E.P.S.: Earnings per share (2) Consolidated financial position cf. Shareholders' equity :279,777million yen(FY2011: 292,030million yen) 2. Dividends Note: Revision of outlook for dividends in the first quarter: No 3. Forecast for operating results in the year ending March 31, 2013 (Fiscal 2012) （Percentages are interim-on-interim and year-on-year changes） % % % % (6.0) (66.1) (72.3) (100.0) 0.00 (6.4) 2.8 (3.7) 0.2 12.19 Note: Revision of outlook for fiscal 2012 consolidated operating results in the first quarter: Yes Reference Effective from fiscal 2011, all consolidated subsidiaries of Teijin now close their books on March 31. As a consequence, for this fiscal year only, certain consolidated subsidiaries and equity method affiliates reported operating results for a 15-month period (January 1, 2011–March 31, 2012). Percentage changes comparing fiscal 2012 forecasts with adjusted fiscal 2011 results are as follows: % % % % FY2012 (Outlook) 1.1 (0.9) (8.0) (13.0) Yen 3.00 6.00 - 3.00 6.00 (For the year ended June 30, 2012) E.P.S.※1 Yen Diluted E.P.S. Yen Million yen % 739,747 Million yen 6.37 2,971 189,569 (1.66) 6.38 11,026 For the first quarter ended June 30, 2012 For the first quarter ended June 30, 2011 762,118 312,217 English translation from the original Japanese-language document http://www.teijin.co.jp/english/index.html 2,207 12,810 (1,638) Total assets - Million yen Net income (loss) Net sales Operating income Ordinary income Million yen Million yen Million yen 38.3 37.8 Net assets 6,274 174,335 Shareholders' equity ratio 299,536 For the first quarter ended June 30, 2012 For the first quarter ended June 30, 2011 As of June 30, 2012 As of March 31, 2012 Dividends per share 1Q 2Q 3Q 4Q Annual 800,000 35,000 7,000 Yen FY2011 Period FY2012 FY2012 (Outlook) - 3.00 - Yen Yen Yen E.P.S. Yen FY2012 interim FY2012 Ordinary income Net income Million yen Million yen Operating income Million yen Million yen 3.00 - 370,000 Net sales 33,000 12,000 6,000 0 Net sales Operating income Ordinary income Net income Million yen Million yen Million yen Million yen 800,000 35,000 33,000 12,000
Transcript
Consolidated Financial Statements Summary
(All financial information has been prepared in accordance with accounting principles generally accepted in Japan) August 2, 2012
Company name : TEIJIN LIMITED (Stock code 3401)
Contact person : Masahiro Ikeda General Manager, IR Office TEL: +81-(0)3-3506-4395
(Amounts less than one million yen are omitted)1. Highlight of the first quarter of FY12 (April 1, 2012 through June 30, 2012)(1) Consolidated financial results （Percentages are year-on-year changes）
% % % %
(8.0) (73.0) (82.8) -
(1.6) 36.6 65.2 55.7
cf. Comprehensive income : (9,570)million yen (FY2011: 10,680million yen)
Note: Revision of outlook for fiscal 2012 consolidated operating results in the first quarter: Yes
ReferenceEffective from fiscal 2011, all consolidated subsidiaries of Teijin now close their books on March 31. As a consequence, for thisfiscal year only, certain consolidated subsidiaries and equity method affiliates reported operating results for a 15-month period(January 1, 2011–March 31, 2012). Percentage changes comparing fiscal 2012 forecasts with adjusted fiscal 2011 results are as follows:
% % % %FY2012 (Outlook) 1.1 (0.9) (8.0) (13.0)
Yen
3.00 6.00
- 3.00 6.00
(For the year ended June 30, 2012)
E.P.S.※1
Yen
Diluted E.P.S.
Yen
Million yen %
739,747
Million yen
6.37
2,971
189,569
(1.66)6.38
11,026
For the first quarter ended June 30, 2012
For the first quarter ended June 30, 2011
762,118 312,217
English translation from the original Japanese-language document
http://www.teijin.co.jp/english/index.html
2,207
12,810
(1,638)
Total assets
-
Million yen
Net income (loss)Net sales Operating income Ordinary income
Million yenMillion yen Million yen
38.337.8
Net assets
6,274
174,335
Shareholders' equityratio
299,536
For the first quarter ended June 30, 2012For the first quarter ended June 30, 2011
As of June 30, 2012As of March 31, 2012
Dividends per share
1Q 2Q 3Q 4Q Annual
800,000 35,0007,000
YenFY2011
Period
FY2012
FY2012 (Outlook)
- 3.00
-
Yen Yen Yen
E.P.S.Yen
FY2012 interimFY2012
Ordinary income Net incomeMillion yen Million yen
Operating incomeMillion yen Million yen
3.00 -
370,000
Net sales
33,000 12,0006,000 0
Net sales Operating income Ordinary income Net incomeMillion yen Million yen Million yen Million yen
800,000 35,000 33,000 12,000
Appropriate Use of Forecasts and Other Information and Other Matters
All forecasts in this document are based on management’s assumptions in light of information currently available and involve certainrisks and uncertainties. Actual results to differ materially from these forecasts. For information on these forecasts, refer to "QualitativeInformation on Outlook for Operating Results", beginning on page 6.
1. Qualitative Information and Financial Statements
Qualitative Information on Results of Operations
Analysis of Consolidated Results of Operations
Sales and Income Global economic conditions were generally soft in the three months ended June 30, 2012, as the European
financial crisis dragged on. In Europe, economic conditions deteriorated noticeably, reflecting such factors as fiscal
austerity measures introduced by European Union member countries, while in the United States the pace of
economic growth waned, a consequence of efforts to tighten fiscal discipline, among others. Although domestic
demand continued to drive economic growth in the People’s Republic of China (PRC), the tempo of expansion was
undermined by falling exports to Europe and listless consumer spending and capital investment. Japan
experienced moderate economic growth overall, shored up by full-scale demand related to public spending on
reconstruction in areas devastated by the Great East Japan Earthquake and by the positive impact of subsidies for
the purchase of environment-friendly vehicles, although the outlook remains uncertain, owing to fears of a further
slowdown in the global economy, as well as to the risk of a backslide brought about by the further appreciation of
the yen and by electric power shortages.
In this environment, we reported consolidated net sales of ¥174.3 billion, down 8.0% from the first quarter of fiscal
2011, owing to slowing economic growth in Europe and the United States, which hampered sales in our aramid
fibers and other materials businesses, and to the impact of the revision of drug reimbursement prices on results in
our Healthcare segment. Operating income thus fell 73.0%, to ¥3.0 billion. Ordinary income plunged 82.8%, to ¥2.2
billion, precipitated by a decline in equity in earnings of affiliates. Owing largely to extraordinary losses, notably
flood-related expenses—incurred as a result of damage to production facilities in Thailand—and loss on valuation
of investment securities, we reported a net loss of ¥1.6 billion, compared with net income of ¥6.3 billion in the first
quarter of fiscal 2011. Net loss per share was ¥1.66, compared with net income per share of ¥6.38 in the
corresponding period of the previous fiscal year.
Business Segment Results
Advanced Fibers and Composites
Sales in the Advanced Fibers and Composites segment totaled ¥26.1 billion. The segment posted an operating loss
of ¥0.3 billion.
Aramid Fibers Demand for use in ballistic protection products entered an adjustment phase.
Although the market for Twaron para-aramid fibers was solid for use in friction materials, tire reinforcement
materials and fiber optic cables, demand for certain general industrial applications and for use in ballistic protection
products and protective clothing entered an adjustment phase. Demand for Technora para-aramid fibers remained
firm for automotive-related applications overseas, although worsening economic conditions in Europe and the
depreciation of the euro continued to squeeze profits. Despite positive expectations arising from tighter
environmental regulations in the PRC, demand for Teijinconex meta-aramid fibers in fact continued to flag, mainly
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attributable to the strong yen and economic deterioration in Europe. In this environment, we pushed ahead with
active efforts to enhance profitability by reducing costs and cultivating new applications for all products.
Carbon Fibers and Composites We proceeded with assertive efforts to expand our carbon fiber–reinforced composite materials business.
In addition to remaining favorable for use in aircraft, demand for Tenax carbon fibers was firm for use in compounds
for electronics components. Demand for general industrial applications rose in North America, supported by an
increase in demand for pressure vessels for natural gas–related applications, thanks to the expansion of shale gas
development. In contrast, overall demand softened in Asia, including for use in sports and leisure equipment, owing
to production adjustments by customers.
During the period, we continued to promote decisive measures aimed at expanding our carbon fibers and
composites business. To capitalize on demand for carbon fibers for high-performance applications, we resolved to
expand our production facilities for nickel-coated carbon fibers. With the aim of developing carbon fibers and
carbon fiber fabrics for customers in India and to cultivate local markets, we announced a comprehensive tie-up
with a local firm.
Polyester Fibers for Industrial Applications Demand for automotive applications was solid.
The restart of subsidies for the purchase of environment-friendly vehicles in Japan boosted demand for automotive
applications. Efforts to resume operations at flood-damaged facilities belonging to subsidiaries in Thailand
proceeded apace. During the quarter, we took decisive steps to promote sales of summer cooling products for
consumer use made with high-performance materials such as BELL OASIS highly moisture wicking polyester fibers,
with quick water-absorption properties, and Nanofront ultrafine polyester nanofibers, which boasts outstanding
wicking abilities, as well as heat- and ultraviolet (UV) light–blocking properties.
Electronics Materials and Performance Polymer Products
Sales in the Electronics Materials and Performance Polymer Products segment totaled ¥43.7 billion. Operating
income was ¥1.6 billion.
Resin and Plastics Processing
We promoted efforts to expand sales of processed plastics products.
Sales of mainstay Panlite and Multilon polycarbonate resins were firm for use in copiers and other electrical and
electronics equipment, camera bodies and automotive components. To enhance profitability, we are shifting our
focus toward compounds. With prices for key raw materials persistently high, we continued to implement sales
price revisions, having first secured the understanding of customers. In the area of plastics processing, sales of
Panlite Sheet were favorable for automotive and other transport-related applications, as were sales of PURE-ACE
polycarbonate retardation film for use as antireflective film for car navigation systems. During the period, we
pressed forward with efforts to market PURE-ACE RM, a newly developed reverse-dispersion solvent-cast
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retardation film, to manufacturers in the growing organic electroluminescent display (OELD) market. Sales of
ELECLEAR transparent electroconductive film, which rallied strongly in the first quarter for use in resistive touch
screens, also expanded for use in capacitive touch screens for smartphones and tablet computers.
Films Films struggled, reflecting a delay in the recovery of demand in Japan and increasingly harsh pricing competition
worldwide.
We have a number of polyester films joint ventures with E.I. du Pont de Nemours and Company (DuPont) of the
United States around the world. In Japan, demand for polyethylene terephthalate (PET) film from
electronics-related markets, which had begun to flag in the second half of fiscal 2011, showed signs of a gradual
recovery, returning our domestic films business to profitability in the three months under review, although the gentle
pace of improvement meant sales and operating income in Japan remained lethargic. In this environment, we
sought to expand sales of processed films by capitalizing on healthy demand for use in smartphone and tablet
computers. We expect sales of such films to pick up from July 2012. Since the beginning of fiscal 2012, we have
taken steps to maintain the efficiency of production and to reduce expenses related to inventories. Sales of Teonex
polyethylene naphthalate (PEN) film look to remain steady.
In Europe, North America and the PRC, demand for PET film began to show signs of recovering early in the new
fiscal year, but disruptions to the supply–demand balance fueled pricing competition, a situation that squeezed
profitability.
Healthcare
Sales in the Healthcare segment amounted to ¥31.2 billion, while operating income was ¥3.8 billion.
Pharmaceuticals We worked to expand sales of our novel treatment for hyperuricemia and gout worldwide.
The operating environment in Japan worsened, owing to the revision of drug reimbursement prices under the
country’s National Health Insurance (NHI) scheme in April 2012, combined with increasingly intense competition
and rising sales of newly released generic drugs in the market for osteoporosis treatments. Also in April 2012, we
obtained approval in Japan for long-term prescription of Feburic (febuxostat), our novel tablet-form treatment for
hyperuricemia and gout, a development that has contributed to a favorable increase in sales in the months since.
The following month, we began marketing Bonalon®* Bag for I.V. Infusion 900 µg, Japan’s first intravenous
drip–form treatment for osteoporosis, which is administered once every four weeks. Looking ahead, we will
capitalize on this drug and on GTH-42J, a new oral jelly form of Bonalon® filed in August 2011—both of which will
enhance our lineup of osteoporosis treatments—to secure a larger share of this market. Overseas, sales of
febuxostat continued to strengthen. In May 2012, we launched the drug—which is already available in North
America, Europe and the Republic of Korea—in Taiwan, under the name Feburic. Febuxostat is currently sold in 25
countries and territories worldwide. Having secured exclusive distributorship agreements covering 117 countries
* Bonalon® is the registered trademark of Merck Sharp & Dohme Corp., Whitehouse Station, NJ, U.S.A.
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and territories, where we are in the process of obtaining regulatory approval, we plan to steadily expand availability
of this innovative drug.
In R&D, we obtained approval in Japan in June 2012 to manufacture and market Somatuline®* subcutaneous
injection (lanreotide acetate), a treatment for acromegaly and pituitary gigantism, and plan to release the drug in
late 2012 or early 2013. With the aim of expanding global sales of key drugs and of developing promising new drug
candidates, we resolved to expand the Pharmaceutical Products Research Laboratories, part of our Iwakuni
Pharmaceutical Factory, a clinical testing and production facility in Iwakuni, Yamaguchi Prefecture.
Home Healthcare Highlights included the launch of new models.
Fiscal 2012 started on a positive note with increased rental volume for mainstay equipment, namely therapeutic
oxygen concentrators for home oxygen therapy (HOT) and continuous positive airway pressure (CPAP) ventilators
for the treatment of sleep apnea syndrome (SAS). In April 2012, we launched Hi-Sanso 3S, a new therapeutic
oxygen concentrator. We also introduced NemLink, a monitoring system for CPAP ventilators that uses mobile
phone networks and which also provides pertinent data to medical care facilities to enhance the effectiveness of
treatment, a development aimed at further bolstering rentals. Rental volume for noninvasive positive pressure
ventilators (NPPVs) (the NIP NASAL series and AutoSet CS) rose, while we expect NIP NASAL V, a new addition
to our NPPV lineup that was launched in March 2012, to have a positive impact on results in the coming months. In
addition, the market for SAFHS (Sonic Accelerated Fracture Healing System) expanded.
Overseas, we currently provide home healthcare services in the United States, Spain and the ROK. In all three of
these markets, we are taking steps to ensure the expansion of rental volume and seeking to reinforce our earnings
base by improving the efficiency of operations.
Trading and Retail
The Trading and Retail segment yielded sales of ¥54.9 billion, while operating income was ¥0.7 billion.
Products Converting In our Products Converting business, results were firm for materials for automotive applications, as well as for
general-purpose products.
In textiles and apparel, brisk shipments of knits, men’s suits and formal wear for spring and summer supported firm
results in the Tokyo metropolitan area in the first three months of fiscal 2012, although overall sales declined, owing
to dwindling sales of apparel in the Nagoya–Gifu area and of filaments and textiles. In industrial textiles and
materials, sales remained robust for rubber reinforcement materials and filaments and textiles for use in airbags, as
well as for automotive seat fabrics, while sales of general-purpose products, such as industrial materials,
nonwoven materials and materials for civil engineering and fisheries-related applications, were solid in Japan. As a
result, overall sales rose, despite flagging sales of curtains, the principal product in our interior decorating and
household products business.
* Somatuline® is a registered trademark of Ipsen Pharma S.A.S., Paris, France.
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Polyester Fibers for Apparel Markets remained soft throughout the quarter.
Owing to the persistently soft markets for polyester filaments and textiles, we were forced to engage in intense
pricing competition to maintain shipment levels. As a consequence, operating conditions overall remained harsh.
As part of a project called “Tiopro” (an acronym based on the Japanese project name), a gym uniform recycling
initiative being promoted by subsidiary Teijin Fibers Limited together with Asahi Kasei Fibers Corporation, we
began recycling gym uniforms for primary schools in Kyoto in cooperation with the city of Kyoto. Efforts are being
made to expand this project, which utilizes our ECO CIRCLE closed-loop system for recycling polyester fibers, by
proposing its adoption to other local authorities across Japan.
Qualitative Information on Financial Position
Analysis of Assets, Liabilities and Net Assets Total assets as of June 30, 2012, amounted to ¥739.7 billion, down ¥22.4 billion from the end of fiscal 2011. This
was primarily attributable to decreases in trade notes and accounts receivable, a consequence of the decline in net
sales, and to the progress of depreciation and amortization, which reduced fixed assets.
Total liabilities, at ¥440.2 billion, were down ¥9.7 billion from the fiscal 2011 year-end. Interest-bearing debt, which
includes commercial paper, bank loans, bonds and long-term loans, declined ¥6.3 billion, to ¥254.7 billion, mainly a
result of a decrease in the yen value of liabilities denominated in other currencies, owing to the strength of the yen.
Total net assets were ¥299.5 billion, a decrease of ¥12.7 billion. Shareholders’ equity and total valuation and
translation adjustments together represented ¥279.8 billion of the total, down ¥12.3 billion. This result was
attributable to a net loss of ¥1.6 billion for the period under review and to the payment of cash dividends, as well as
to an increase in the deduction for foreign currency translation adjustments, owing to the strength of the yen.
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Qualitative Information on Outlook for Operating Results
Electronics Materials and Performance Polymer Products
90.0 185.0 2.0 8.0
Healthcare 65.0 150.0 9.0 28.0
Trading and Retail 120.0 255.0 2.0 7.0
Total 330.0 710.0 13.5 46.0
Others 40.0 90.0 1.5 4.5
Elimination and corporate — — (8.0) (15.5)
Consolidated total ¥370.0 ¥800.0 ¥ 7.0 ¥ 35.0
In line with organizational reforms implemented on April 1, 2012, the Company reorganized its reportable operating
segments, effective from the three months ended June 30, 2012.
Previously, the Company had divided its operations into five reportable operating segments: High-Performance
Fibers; Polyester Fibers; Films and Plastics; Pharmaceuticals and Home Health Care; and Trading and Retail.
Effective from the three months ended June 30, 2012, these segments were reorganized into four reportable
operating segments. The High-Performance Fibers segment has been renamed the Advanced Fibers and
Composites segment, and now also includes polyester fibers for industrial applications, which was previously
accounted for in the Polyester Fibers segment. The Films and Plastics segment has been renamed Electronics
Materials and Performance Polymer Products, while the Pharmaceuticals and Home Health Care segment is now
Healthcare. The apparel component of the Polyester Fibers segment has been incorporated into the Trading and
Retail segment. Others (other businesses), which does not qualify as a reportable operating segment, retained the
same name, but now also includes the polyester raw materials and polymerization businesses, previously part of
the Polyester Fibers segment.
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2. Other Information
Changes in significant subsidiaries during the period under review: None
Adoption of special quarterly accounting methods: Certain of the Company’s consolidated subsidiaries have adopted a method for estimating in practical terms the
effective tax rate for the fiscal year, including for the first quarter, following the application of tax effect
accounting to income before income taxes, and multiplying this by quarterly income before income taxes to
estimate quarterly tax expense.
Changes in accounting principles, procedures and presentation methods:
None
Additional Information: Company Split and Mergers Involving Subsidiaries
At the Board of Directors’ meeting held on May 9, 2012, the directors resolved to implement an absorption-type
company split between the Company and its consolidated subsidiary Teijin Fibers Limited, whereby the
Company will absorb all businesses of Teijin Fibers, except for its polyester fibers for apparel business. On the
same date, the directors also resolved to implement mergers involving the Company and five consolidated
subsidiaries (Teijin Techno Products Limited, Teijin Films Limited, Teijin Intellectual Property Center Limited,
Teijin Creative Staff Co., Ltd., and Teijin Chemicals Limited.) Contracts pertaining to the company split and the
mergers were signed on May 25, 2012. Approval to implement the split was granted at the general shareholders’
meeting on June 22, 2012.
Purpose of Group realignment
The purpose of these measures is to enhance market responsiveness and integrate fundamental technologies in
a bid to evolve toward an organization that is capable of continuously creating value for customers, a key
objective of the Company’s new medium- to long-term management vision.
Company split
Agenda
Approval of the Board of Directors May 9, 2012 Date of contract May 25, 2012 Approval granted at the general shareholders’ meeting June 22, 2012 Effective date of the company split October 1, 2012 (scheduled)
Legal form of the split
A simple absorption-type split in which the Company, as the successor company, will absorb all businesses of
Teijin Fibers Limited, except for its polyester fibers for apparel business.
Allocation of shares
Because the two parties involved are parent company and wholly owned subsidiary, there will be no issue or
allocation of new shares or other form of compensation as a result of this company split.
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Names and major businesses of the parties
Name Major business
Split company Teijin Fibers Limited Manufacture and sales of polyester fibers
Successor company Teijin Limited Holding company
Split business
All businesses of Teijin Fibers Limited, except for its polyester fibers for apparel business.
Outline of accounting treatment
The transaction is implemented as a business combination under common control, in accordance with
accounting principles for business combinations.
Mergers
Agenda
Mergers with Teijin Techno Products Limited, Teijin Films Limited, Teijin Intellectual Property Center Limited and
Teijin Creative Staff Co., Ltd.
Approval of the Board of Directors May 9, 2012 Date of contracts May 25, 2012 Effective date of the company split October 1, 2012 (scheduled)
For the Company, the mergers with Teijin Techno Products Limited, Teijin Films Limited, Teijin Intellectual
Property Center Limited and Teijin Creative Staff Co., Ltd., are simplified mergers as provided for in Article
796, Paragraph 3, of the Companies Act of Japan, with the Company as the surviving company. For Teijin
Techno Products Limited, Teijin Films Limited, Teijin Intellectual Property Center Limited and Teijin Creative
Staff Co., Ltd., the merger with the Company is a short-form merger as provided for in Article 784, Paragraph
1, of the Companies Act of Japan, whereby these four consolidated subsidiaries are the absorbed companies.
Accordingly, there was no requirement to submit these contracts for approval at the general meeting of
shareholders.
Merger with Teijin Chemicals Limited
Approval of the Board of Directors May 9, 2012 Date of contract May 25, 2012 Effective date of the company split April 1, 2013 (scheduled)
For the Company, the merger with Teijin Chemicals Limited is a simplified merger as provided for in Article
796, Paragraph 3, of the Companies Act of Japan, with the Company as the surviving company. For Teijin
Chemicals Limited, the merger with the Company is a short-form merger as provided for in Article 784,
Paragraph 1, of the Companies Act of Japan, whereby Teijin Chemicals Limited is the absorbed company.
Accordingly, there was no requirement to submit these contracts for approval at the general meeting of
shareholders.
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Legal form of the mergers
Simple absorption-type mergers in which the Company will be the surviving company and Teijin Techno
Products Limited, Teijin Films Limited, Teijin Intellectual Property Center Limited, Teijin Creative Staff Co.,
Ltd., and Teijin Chemicals Limited will be absorbed.
Allocation of shares Because Teijin Techno Products Limited, Teijin Films Limited, Teijin Intellectual Property Center Limited,
Teijin Creative Staff Co., Ltd., and Teijin Chemicals Limited are wholly owned subsidiaries, there will be no
issue or allocation of new shares and no increase in capital as a result of these mergers.
Names and major businesses of the absorbed companies
Name Major business
Teijin Techno Products Limited Manufacture and sales of high-performance fibers
Teijin Films Limited Coordination of joint ventures between Teijin and E.I. du Pont de Nemours and Company
Teijin Intellectual Property Center Limited Intellectual property–related services for the Teijin Group
Teijin Creative Staff Co., Ltd. Contracting out of support service personnel for the Teijin Group
Teijin Chemicals Limited Manufacture and sales of films and plastics
Outline of accounting treatment
These transactions are implemented as business combinations under common control, in accordance with
accounting principles for business combinations.
Italicized product names and service names in this report are trademarks or registered trademarks of the Teijin Group
in Japan and/or other countries. Where noted, other italicized product names and service names used in this
document are protected as the trademarks and/or trade names of other companies.
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3. Financial Statements
(1) Consolidated Balance Sheets
(Millions of yen)
As of March 31, 2012 As of June 30, 2012
< Assets >
Current assets
Cash and time deposits 33,440 34,694
Trade notes and accounts receivable 172,087 151,952
Finished goods 69,315 81,410
Work in process 10,141 11,282
Raw materials and supplies 29,540 29,608
Other current assets 50,203 46,090
Allowance for doubtful receivables (2,940) (2,985)
Total 361,789 352,051
Noncurrent assets
Property, plant and equipment
Buildings and structures, net 70,377 67,814
Machinery and equipment, net 106,074 97,778
Other, net 67,849 70,057
Total 244,301 235,650
Intangible assets
Goodwill 46,319 43,856
Other 16,371 15,738
Total 62,690 59,594
Investments and other assets
Investment securities 55,621 53,924
Other 40,036 40,777
Allowance for doubtful receivables (2,321) (2,252)
Total 93,336 92,450
Total non-current assets 400,328 387,695
762,118 739,747Total assets
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(Millions of yen)
As of March 31, 2012 As of June 30, 2012
< Liabilities >Current liabilities
Trade notes and accounts payable 90,225 96,570
Short-term loans payable 61,554 55,086
Current portion of long-term loans payable 46,858 46,731
Commercial paper 18,000 20,000Current portion of bonds 501 16,972
Income taxes payable 5,604 1,137
Other 55,207 50,838
Total 277,951 287,337Non-current liabilities
Bonds payable 30,000 15,000
Long-term loans payable 102,191 99,187
Provision for retirement benefits 18,783 19,031Other 20,974 19,655
Total 171,949 152,874449,901 440,211
<Net assets>Shareholders' equity
Capital stock 70,816 70,816Capital surplus 101,389 101,390Retained earnings 141,441 136,849
Treasury stock (127) (127)
Total 313,519 308,927
Valuation and translation adjustments
Valuation difference on available-for-sale securities 9,913 8,515
Net sales 41,841 48,356 34,912 56,835 181,945 27,925 209,870
Segment income 2,354 3,150 7,239 1,076 13,820 269 14,089
* "Others," which includes the polyester raw materials and polymerization businesses and the IT business, does not qualify as a reportableoperating segment.
2. Difference between operating income and sum of operating income in reportable operating segments
(Adjustment) (Millions of yen)
Total reportable operating segments
Others segment
Elimination of intersegment transactions
Corporate expenses*
Operating income
* Corporate expenses are expenses that cannot be allocated to individual reportable operating segments and areprimarily related to basic research and head office administration.
13,820
269
11,026
218
(3,282)
Grand
total
Reportable operating segments
Others*
Amount
OEM production and trading and retail of polyester filaments, other fibers and polymer products.
Operating income
Sales
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3. Loss on impairment and goodwill by reportable segments
Net sales 31,068 45,261 31,185 55,678 163,193 29,475 192,669
Segment income (loss) (322) 1,603 3,804 744 5,830 366 6,197
* "Others," which includes the polyester raw materials and polymerization businesses and the IT business, does not qualify as a reportable operating segment.
2. Difference between operating income and sum of operating income (loss) in reportable operating segments
(Adjustment) (Millions of yen)
Total reportable operating segments
Others segment
Elimination of intersegment transactions
Corporate expenses*
Operating income
* Corporate expenses are expenses that cannot be allocated to individual reportable operating segments and are primarily
related to basic research and head office administration.
3．Changes to reportable operating segments
In line with organizational reforms implemented on April 1, 2012, the Company reorganized its reportable operating segments,
effective from the three months ended June 30, 2012.
Previously, the Company had divided its operations into five reportable operating segments: High-Performance Fibers; Polyester Fibers;
Films and Plastics; Pharmaceuticals and Home Health Care; and Trading and Retail. Effective from the three months ended June 30, 2012,
these segments were reorganized into four reportable operating segments. The High-Performance Fibers segment has been renamed the
Advanced Fibers and Composites segment, and now also includes polyester fibers for industrial applications, which was previously accounted
「ポリエステル繊維事業」と「流通・リテイル事業」を統合した「製品事業」の４つを報告セグメントとしています。for in the Polyester Fibers segment. The Films and Plastics segment has been renamed Electronics Materials and Performance Polymer Products,
while the Pharmaceuticals and Home Health Care segment is now Healthcare. The apparel component of the Polyester Fibers segment has been
incorporated into the Trading and Retail segment. Others (other businesses), which does not qualify as a reportable operating segment, retained
the same name, but now also includes the polyester raw materials and polymerization businesses, previously part of the Polyester Fibers segment.
Segment information for the three months ended June 30, 2011, has been restated to conform with the new segmentation.
4. Loss on impairment and goodwill by reportable segments
No
(3,296)
2,971
Grand
total
5,830
366
71
Sales
Reportable operating segments
Others*
Operating income Amount
- 16 -
(6) Subsequent Event
Company split
At the Board of Directors' meeting held on July 31, 2012, the directors resolved to implement an absorption-type company split between the
the Company and its consolidated subsidiary Teijin Pharma Limited, whereby the Company will absorb the intellectual property, as well as
the agreements for licensing in technologies and pharmaceuticals and related rights and obligations, of all businesses of Teijin Pharma Limited.
A contract pertaining to the company split was signed on August 1, 2012.
Purpose of split
The purpose of the company split is to maximize the benefits of intellectual property by facilitating its unified management and seamless deployment,
with the aim of creating new healthcare businesses that integrate the Company's materials and healthcare technologies, a key objective of its new
medium- to long-term management vision.
Outline of company split
Agenda
Approval of the Board of Directors July 31, 2012
Date of contract August 1, 2012
Effective date of the company split October 1, 2012 (scheduled)
Legal form of the split
An absorption-type split in which the Company, as the successor company, will absorb the intellectual property, as well as the agreements for
licensing in technologies and pharmaceuticals and related rights and obligations, of all business of Teijin Pharma Limited, the split company.
Allocation of shares
Because the two parties involved are parent company and wholly owned subsidiary, there will be no issue or allocation of new shares or
other form of compensation as a result of this company split.
Names and major businesses of the parties
Split company
Successor company
Outline of accounting treatment
The transaction is implemented as a business combination under common control, in accordance with accounting principles for business
combinations.
Name Major business
Teijin Pharma LimitedR&D, production and sales of prescription and non-prescription drugs
and production, sales and rental of home healthcare devices
Teijin Limited Holding company
- 17 -
1. Movement of consolidated results
(1) Movement of results
(Billions of yen)
FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q
Net sales 189.6 204.0 201.9 258.9 174.3
Operating income 11.0 9.6 9.7 3.7 3.0
Ordinary income 12.8 8.9 9.9 2.7 2.2
Net income 6.3 2.9 5.9 (3.1) (1.6)
(2) Movement of industrial segment information
(Billions of yen)
FY2011 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2012 1Q
Net sales
Advanced Fibers and Composites 35.5 36.4 33.6 47.7 26.1
