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Consolidated Financial Statements Summary
(All financial information has been prepared in accordance with accounting principles generally accepted in Japan) November 1, 2011
Company name : TEIJIN LIMITED (Stock code 3401)
Contact person : Masahiro Ikeda General Manager of IR Office TEL: +81-(0)3-3506-4395
(Amounts less than one million yen are omitted)
1. Highlight of the Second quarter of FY2011 (April 1, 2011 through September 30, 2011)(1) Consolidated financial results (Percentages are year-on-year changes)
% % % %
(1.6) 0.7 5.7 (20.4)
11.0 636.8 ― ―
cf. Comprehensive income : 9,903million yen (FY2010: 2,225million yen)
※1 E.P.S.: Earnings per share
(2) Consolidated financial position
cf. Shareholders' equity : 290,074million yen(FY2010: 284,236million yen)
2. Dividends
Note: Revision of outlook for dividends in the second quarter: No
3. Forecast for operating results in the year ending March 31, 2012 (Fiscal 2011)
(Percentages are year-on-year changes)
% % % %
9.1 3.0 (0.7) (4.7) 24.38
Note: Revision of outlook for fiscal 2011 consolidated operating results in the second quarter: Yes
Operating income
Million yen Million yen
-
- 2.00
- 3.00
FY2011
Ordinary income Net income
Million yen Million yen
Net sales
50,000 24,000
Dividends per share
1Q 2Q 3Q 4Q Annual
E.P.S.Yen
Period
Yen
890,000 50,000
YenFY2010
FY2011
FY2011 (Outlook)
-
Yen
English translation from the original Japanese-language document
http://www.teijin.co.jp/english/index.html
21,663
20,492
9,184
11,546
393,567
For the second quarter ended September 30, 2011
For the second quarter ended September 30, 2010
As of Setember 30, 2011As of March 31, 2011
(For the year ended September 30, 2011)
E.P.S.※1
Yen
Diluted E.P.S.
Yen
Million yen
For the second quarter ended September 30, 2011
For the second quarter ended September 30, 2010
20,652
784,520
Million yen
761,534 307,698
37.0
9.33
11.74
20,511
Million yen
11.72
Total assets
9.32
399,869
Million yen
Net incomeNet sales Operating income Ordinary income
Million yenMillion yen
Net assetsShareholders' equity
ratio
310,347
%
37.3
3.00 6.00
3.00
Yen Yen
5.00
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
certain 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 6.
1. Qualitative Information and Financial Statements
Qualitative Information on Results of Operations
Analysis of Consolidated Results of Operations
Sales and Income
Despite the significant damage to Japan’s economy in the first half of fiscal 2011—the fiscal year ending March 31,
2012—caused by the Great East Japan Earthquake of March 11, 2011, the positive impact of reconstruction efforts
was felt from the summer forward. However, the domestic environment continued to reflect a compound crisis that
included long-standing economic stagnation and fiscal deterioration, as well as a record-high yen. Global economic
conditions remained harsh, owing to a variety of factors, including concern regarding European sovereign risks;
sluggish consumer spending in the United States, attributable to lagging employment recovery; and slowing
economic growth in the People’s Republic of China (PRC)—until recently the principal driving force behind the
global economy—as a consequence of monetary restraint.
In this environment, Teijin reported first-half consolidated net sales of ¥393.6 billion, down 1.6% from the first half
of fiscal 2010. Operating income edged up 0.7%, to ¥20.7 billion. Ordinary income rose 5.7%, to ¥21.7 billion,
while net income fell 20.4%, to ¥9.2 billion.
Although the impact of the earthquake, together with stagnating demand for use in liquid crystal display (LCD)
televisions, computers and other electronics equipment, pushed down sales and operating income in the Films and
Plastics segment, overall net sales and operating income remained essentially level with the fiscal 2010 first half,
as a firm sales volume supported increased sales and operating income in a number of segments, including
High-Performance Fibers and Polyester Fibers. The increase in ordinary income reflected better results at
unconsolidated affiliates accounted for by the equity method. The drop in net income was attributable to a decline
in extraordinary income and an increase in income taxes resulting from an adjustment of deferred income taxes.
Business Segment Results
High-Performance Fibers
Sales in the High-Performance Fibers segment amounted to ¥54.4 billion. Operating income was ¥4.2 billion.
Aramid Fibers
Results were firm and key products remained in full production.
The market for Twaron® para-aramid fibers was solid, particularly for use in automotive-related materials,
ballistic-protection products and fiber optic cables. Although the Great East Japan Earthquake hindered domestic
demand from some quarters for use in composite materials and civil engineering applications, flourishing demand
overseas for automotive-related applications continued to support robust overall demand for Technora®
para-aramid fibers. While indications of forthcoming production adjustments hampered demand for Teijinconex®
meta-aramid fibers in Japan for use in certain types of filters and in Europe for use in industrial materials, demand
- 1 -
was firm for key applications, notably protective clothing. As a consequence, all three products remained in full
production. In this environment, we continued to push ahead with active efforts to cultivate new applications with
the aim of further growing this business.
Carbon Fibers and Composites
Demand remained brisk for use in aircraft.
Demand for Tenax® carbon fibers remained brisk for use in aircraft. Among general industrial applications, demand
was solid for use in the wind power and other natural energy industries, as well in civil engineering and
infrastructure repair, while demand for use in pressure vessels was hampered by the economic downturn in
Europe. In Asia, sales for use in compounds and in sports and leisure equipment were sluggish.
In this environment, we continued to restore sales prices, and at the same time cultivated markets in the PRC and
other emerging economies. Having started production on our new thermoplastic prepreg facilities in Germany,
primarily for use in aircraft, we began sample shipments.
Having succeeded in developing mass-production technologies for carbon fiber–reinforced plastic (CFRP) made
with thermoplastic resin that reduce the time required for the molding of parts to less than one minute, we actively
marketed this new material for a variety of applications, particularly to the automotive industry. In addition to
winning the Global Automotive Carbon Composites Technology Innovation Award from world-renowned market
research firm Frost & Sullivan for 2011, these technologies were honored with the Overall Innovation Award, as
well as winning the Best Product Innovation category, at the 2011 ICIS Innovation Awards, an event run by
International Chemical Information Service (ICIS), a leading United Kingdom–based provider of information for the
chemicals industry.
Polyester Fibers
The Polyester Fibers segment, which also includes the polyester raw materials and polymerization businesses,
generated sales of ¥53.9 billion and operating income of ¥2.0 billion. Demand rallied, particularly for automotive
applications.
Demand, particularly for automotive applications—including seat belts, vehicle seats, fabrics for tires and tire
cords—flagged in the immediate aftermath of the Great East Japan Earthquake, but began to rise in the summer,
shored up by a sharp recovery in automobile production. This contributed to robust sales, as did successful efforts
to capitalize on domestic demand associated with official energy saving initiatives and measures to promote cooler
business attire, as well as on demand for materials for civil engineering and construction applications related to
post-quake reconstruction. The segment’s profit structure continued to improve steadily, thanks in large part to cost
reductions achieved by shifting production of filament yarn overseas.
In the first half of fiscal 2011, proactive steps taken by subsidiary Teijin Fibers Limited to reduce its impact on the
environment were honored with a Good Practice Award in the 13th Green Purchasing Awards, sponsored by
Japan’s Green Purchasing Network. In particular, recognition was given to the company’s extensive record of
achievement, which includes ECO CIRCLE™, a closed-loop recycling system that has facilitated, among others,
partnerships and collaborative product development with companies in other industries.
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Films and Plastics
Sales in the Films and Plastics segment totaled ¥93.0 billion. Operating income was ¥5.7 billion.
Plastics
Demand for polycarbonate resin softened, while prices for raw materials remained high.
Demand for mainstay polycarbonate resin for automotive applications and for use in electrical and electronics
equipment, which had fallen off in the wake of the earthquake, began to recover in the summer. However, the
plastics business as a whole struggled as overall demand deteriorated further, owing to the recessionary shadow
cast by the downgrade of the U.S. sovereign credit rating and the European financial crisis, and raw materials
prices remained high. Among new products, a series of light-diffusion grade polycarbonate resin products
developed for LED lighting applications garnered a significant share of this expanding market, bolstered by the
rising preference for products that help reduce energy consumption and increase energy efficiency. In the area of
processed polycarbonate resin products, sales of polycarbonate sheet for automotive and entertainment-related
applications and of PURE-ACE® polycarbonate retardation film for use in 3D glasses for movie theaters
deteriorated, the former due to a drop in orders after the earthquake and the latter to flagging interest in 3D movies
and a move toward inventory adjustments. In July, demand for processed polycarbonate sheet products began to
revive, particularly for dummy cans for use in vending machines and for automotive instrument panels. Demand for
reverse-dispersion solvent-cast retardation film also picked up, owing to its adoption for use as antireflective film
for new mobile phone models and other factors. Looking ahead, we will strive to expand sales of transparent
electroconductive film developed for capacitive touch screens and of SCINTIREX™, a new radiation-fluorescent
plastic.
Films
Demand for PET film was firm in Asia, but showed signs of softening in the United States and Europe.
We currently have polyester films joint ventures with E.I. du Pont de Nemours and Company (DuPont) of the
United States in six countries. In Japan, demand for PET film remained brisk for use as flat panel display (FPD)
reflective film and in solar cell back sheets, the principal applications for this product, despite showing signs of
softening toward the end of the second quarter. In the wake of the Great East Japan Earthquake, we temporarily
suspended production at our Utsunomiya Factory, in Tochigi Prefecture, and our Ibaraki Factory, in Ibaraki
Prefecture, which hampered our supply capabilities. However, both facilities have resumed production on all lines,
the Ibaraki Factory in late March and the Utsunomiya Factory in mid-June 2011.
Despite persistently strong demand in the PRC, a rush by local manufacturers to expand production capacity upset
the supply–demand balance, a situation that negatively affected our local joint venture’s sales prices. In the United
States, we completed crucial structural reforms at the end of February 2011 with the conclusion of the phased
closure of our plant in Florence, South Carolina. However, with demand for use in solar cell back sheets—brisk
until fiscal 2010—weak in both the United States and Europe from the second quarter, we were forced to
temporarily suspend production of certain product lines to make necessary inventory adjustments.
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Pharmaceuticals and Home Health Care
Sales in the Pharmaceuticals and Home Health Care segment amounted to ¥68.0 billion, while operating income
was ¥11.9 billion.
Pharmaceuticals
We began marketing a promising new drug, FEBURIC®, in Japan.
In Japan, sales continued to expand favorably for Synvisc Dispo™, an intra-articular injection-form drug for treating
pain associated with osteoarthritis of the knee launched in December 2010, and FEBURIC®, a novel treatment for
hyperuricemia and gout developed in-house, which was launched in May 2011. We also saw steady sales of
osteoporosis treatment Bonalon®.*
Overseas, sales of our innovative hyperuricemia treatment were favorable in North America, where it is sold under
the name ULORIC®, and in Europe, where it is known as ADENURIC®. In July 2011, we commenced sales of the
drug in the Republic of Korea (ROK) under the name FEBURIC®. We also signed exclusive distributorship
agreements in April 2011 with licensees Takeda Pharmaceuticals North America, Inc., for marketing in Mexico and
the Caribbean, and Algorithm SAL of Lebanon, for marketing in the Middle East and North Africa, and in August
2011 with Astellas Pharma Inc. for marketing in Southeast Asia and India.
In R&D, in July 2011 we commenced clinical testing of GGS-MPA (human immunoglobulin preparation Venilon®)
for the treatment of microscopic polyangiitis, a new indication. In August and September, we filed for approval to
manufacture and market, respectively, GTH-42J, a new oral jelly form of osteoporosis treatment Bonalon®, and
ITM-014, a cutting-edge treatment for acromegaly licensed in from Ipsen Pharma SAS of France. Also in
September, we commenced phase I clinical trials for NA872ET, a small, sustained-release tablet-form version of
expectorant Mucosolvan®.
Home Health Care
Rental volume remained favorable.
In Japan, rental volume for mainstay home oxygen therapy (HOT) equipment remained firm. Rentals of continuous
positive airway pressure (CPAP) ventilators, used to treat sleep apnea syndrome, also increased, as we sought to
capitalize on new product SLEEPMATE® S9, a silent, easy-to-use positive pressure ventilator launched in April
2011, to strengthen our share of the domestic market. Rentals of other equipment, including noninvasive positive
pressure ventilators (the NIP NASAL® series and AutoSet™ CS) and SAFHS® (Sonic Accelerated Fracture Healing
System) were healthy.
Overseas, we currently provide home health care services in the United States, Spain and the ROK. In all three
markets, we took steps to ensure the steady expansion of rental volume and sought to reinforce our earnings base
by improving the efficiency of operations.
* Bonalon® is the registered trademark of Merck Sharp & Dohme Corp., Whitehouse Station, NJ, U.S.A.
- 4 -
Trading and Retail
The Trading and Retail segment yielded sales of ¥105.4 billion, while operating income was ¥2.4 billion. Results for
textiles and apparel were firm, thanks to increased efficiency in both production and sales, as were results for
industrial textiles and materials, owing to an improvement in overall market conditions.
Textiles and Apparel
Sales of sportswear, everyday apparel and men’s suits rose, reflecting efforts in our mainstay OEM apparel
business to bolster our market share, notably by enhancing marketing collaboration with blue-chip customers, and
to expand production in the Association of Southeast Asian Nations (ASEAN) region. The operating margin
improved, augmented by steps taken to reduce costs through greater production efficiency and the integration of
production facilities.
Industrial Textiles and Materials
Although sales of products for automotive-related applications flagged early in the first half, owing to the Great
East Japan Earthquake, demand rallied toward the end of the period. In the area of general-purpose products,
market conditions recovered across the board, pushing up sales of mainstay industrial fabrics, nonwoven materials,
filters and materials for civil engineering and fisheries-related applications. In film- and resin-related products, film
and sheet sales for use in LCDs sagged, while sales of heat-insulating films rose, bolstered by demand related to
efforts to reduce energy consumption.
Qualitative Information on Financial Position and Cash Flows
Analysis of Assets, Liabilities, Net Assets and Cash Flows
Assets, Liabilities and Net Assets
Total assets as of September 30, 2011, amounted to ¥784.5 billion, an increase of ¥23.0 billion from the end of
fiscal 2010. This result was primarily a consequence of higher inventories, attributable to a backlog—caused by
regularly scheduled maintenance—and seasonal factors, as well as to contracting demand.
Total liabilities, at ¥474.2 billion, were up ¥20.3 billion from the fiscal 2010 year-end. Interest-bearing debt, which
includes commercial paper, short-term loans payable and long-term loans payable, rose ¥20.6 billion, to ¥288.0
billion, mainly attributable to the procurement of funds to increase working capital.
Total net assets were ¥310.3 billion, an increase of ¥2.6 billion. Shareholders’ equity and total valuation and
translation adjustments together represented ¥290.1 billion of the total, up ¥5.8 billion. This increase was due to,
among others, quarterly net income of ¥9.2 billion and occurred despite a decrease in the value of investment
securities, the result of a sharp decline in share prices, which pushed down the valuation difference on
available-for-sale securities.
- 5 -
Cash Flows
As a consequence of operating activities, which provided ¥1.6 billion, plus investing activities, which used ¥18.3
billion, plus financing activities, which provided ¥14.4 billion, cash and cash equivalents as of September 30, 2011,
amounted to ¥26.3 billion, down ¥2.1 billion from the end of fiscal 2010.
Net cash and cash equivalents provided by operating activities in the first half of fiscal 2011, at ¥1.6 billion, was
¥19.5 billion less than in the first half of fiscal 2010. Factors contributing to this result included income before
income taxes of ¥19.7 billion and depreciation and amortization of ¥23.2 billion, which countered the impact of an
increase in working capital of ¥32.1 billion and combined interest paid and income taxes paid of ¥5.3 billion.
Net cash and cash equivalents used in investing activities amounted to ¥18.3 billion, ¥5.5 billion greater than in the
corresponding period of the previous fiscal year. This was attributable primarily to outlays for purchase of property,
plant and equipment.
Net cash and cash equivalents provided by financing activities amounted to ¥14.4 billion, compared with ¥5.3
billion used in such activities in the fiscal 2010 first half. This result was despite outlays for cash dividends paid and
the redemption of debentures, and reflected an increase in short-term bank loans, net.
Qualitative Information on Outlook for Operating Results
Outlook for Fiscal 2011
Forecast for Operating Results
(Billions of yen/%)
Net sales Operating income Ordinary income Net income
Fisca1 2011 (forecast) ¥890.0 ¥50.0 ¥50.0 ¥24.0
Fiscal 2010 815.7 48.6 50.3 25.2
Change 74.3 1.4 –0.3 –1.2
Percentage change 9.1% 3.0% –0.7% –4.7%
With the successful conclusion of key structural reforms, we made a decisive return to profitability at the net
income level in fiscal 2010 after two consecutive full-term net losses. Having designated fiscal 2011 as the year for
repositioning Teijin on a growth trajectory, our focus for the current period was on further enhancing profitability.
However, owing to a global economic slowdown triggered by the European sovereign debt and financial crises,
results in several segments—notably Films and Plastics—are expected to continue struggling in the third and
fourth quarters. In addition, in October 2011 the severe flooding in Thailand resulted in damage to production
facilities belonging to certain local subsidiaries, all of which were forced to suspend operations.
For fiscal 2011, we currently forecast consolidated net sales of ¥890.0 billion, operating income of ¥50.0 billion,
- 6 -
ordinary income of ¥50.0 billion and net income of ¥24.0 billion, all of which are down from our previous forecasts,
published August 1, 2011. These forecasts take into account an estimate of the impact of flooding in Thailand on
our business, based on information currently available to us. However, because it is difficult at this time to calculate
losses resulting from damage to production facilities and inventory, these forecasts do not reflect the impact of
those factors. Once the full extent of damage and the resulting disruption to our supply chain has become clearer,
should it seem likely results will diverge from these figures, we will promptly release revised forecasts.
With the aim of guaranteeing timely disclosure and the efficiency of business performance management, effective
from fiscal 2011 all consolidated subsidiaries will close their books on March 31. As a consequence, for this fiscal
year only, certain consolidated subsidiaries will report operating results for a 15-month period (January 1,
2011–March 31, 2012).
Our current consolidated results forecasts assume exchange rates of ¥79 to US$1.00 and ¥111 to €1.00 and a
Dubai crude oil price of US$109 per barrel.
Outlook for Segment Results
(Billions of yen)
Net sales Operating income
First halfFull term
(Forecast)First half
Full term(Forecast)
High-Performance Fibers ¥ 54.4 ¥130.0 ¥ 4.2 ¥11.5
Polyester Fibers 53.9 120.0 2.0 3.5
Films and Plastics 93.0 225.0 5.7 12.5
Pharmaceuticals and Home Health Care 68.0 150.0 11.9 28.0
Trading and Retail 105.4 225.0 2.4 5.0
Total 374.7 850.0 26.2 60.5
Others 18.9 40.0 1.1 3.0
Elimination and corporate — — (6.7) (13.5)
Consolidated total ¥393.6 ¥890.0 ¥20.7 ¥50.0
- 7 -
2. Other Information
Changes in significant subsidiaries during the period under review:None
Adoption of special quarterly accounting methods:Calculation of tax expense
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 and second quarters, 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:Change in the method for determining depreciation of tangible fixed assets
To date, the Company and its domestic consolidated subsidiaries have determined depreciation of tangible fixed
assets principally using the declining-balance method, while overseas consolidated subsidiaries have used the
straight-line method. However, effective from the first quarter of fiscal 2011, the Company and all its consolidated
subsidiaries adopted the straight-line method.
Since fiscal 2009, the Company has been implementing structural reforms aimed at, among others, establishing
optimal global production configurations. These efforts have enabled the Company to achieve stable operating
rates for its various production facilities. Having designated fiscal 2011 as the year for repositioning the Teijin
Group on a growth trajectory, the Company has lifted the moratorium it has placed on major capital investment to
promote promising new businesses.
The Company recognizes the essential completion of structural reforms and its new policy regarding capital
investment as an important opportunity. The decision to adopt the straight-line method for the Company and all its
consolidated subsidiaries, in Japan and overseas, came as a result of this recognition, as well the outcome of an
examination of the need to employ a method that both facilitates a fair and impartial assessment of Group
companies’ operating results and appropriately reflects Group facilities’ potential for stable operation at present
and in the future. The impact of this change on consolidated results for the first two quarters has increased
consolidated operating income by ¥2,559 million, ordinary income by ¥2,622 million and income before income
taxes by ¥2,675 million. The impact of this change on segment results is outlined in the section titled “Segment
Information, etc.”
Additional Information:Application of Accounting Standard for Accounting Changes and Error Corrections
Effective from the first quarter of fiscal 2011, the Company applied the Accounting Standard for Accounting
Changes and Error Corrections (Accounting Standards Board of Japan (ASBJ) Statement No. 24, issued on
December 4, 2009) and the Guidance on Accounting Standard for Accounting Changes and Error Corrections
(ASBJ Guidance No. 24, issued on December 4, 2009) to accounting changes implemented and corrections to
past errors made from the beginning of the first quarter onward.
- 8 -
Change in provision of retirement benefits for directors and corporate auditors
At the ordinary general meeting of shareholders held on June 22, 2011, shareholders approved a proposal to
abolish the retirement benefits payment system for retiring directors and corporate auditors and to pay accrued
retirement benefits associated with the abolishment of the system, with the timing of payment to be upon
retirement. As a consequence, an amount equivalent to accrued retirement benefits due to directors and corporate
auditors up to the close of the aforementioned ordinary general meeting of shareholders (¥1,102 million) is
included in other noncurrent liabilities.
Italicized product names and service names in this report denoted with ™ or ® are trademarks or registered trademarks of the
Teijin Group in Japan and/or other countries. Other product names and service names used in this document may be protected
as the trademarks and/or trade names of other companies.
- 9 -
3. Financial Statements
(1) Consolidated Balance Sheets
(Million yen)
As of March 31, 2011 As of September 30, 2011
< Assets >
Current assets
Cash and time deposits 28,612 26,502
Trade notes and accounts receivable 156,132 160,394
Finished goods 71,448 97,681
Work in process 9,163 11,351
Raw materials and supplies 24,895 31,538
Other current assets 48,756 44,225
Allowance for doubtful receivables (2,113) (2,268)
Total 336,894 369,424
Noncurrent assets
Property, plant and equipment
Buildings and structures, net 72,046 71,347
Machinery and equipment, net 121,340 114,343
Other, net 66,272 70,849
Total 259,659 256,540
Intangible assets
Goodwill 51,773 50,678
Other 15,842 15,840
Total 67,615 66,519
Investments and other assets
Investment securities 57,020 53,176
Other 42,314 41,137
Allowance for doubtful receivables (1,969) (2,277)
Total 97,365 92,036
Total noncurrent assets 424,640 415,096
761,534 784,520Total assets
- 10 -
(Million yen)
As of March 31, 2011 As of September 30, 2011
< Liabilities >
Current liabilities
Trade notes and accounts payable 87,283 93,500
Short-term loans payable 44,568 60,661
Current portion of long-term loans payable 12,983 56,208
Commercial paper 33,000 27,000
Current portion of bonds 5,958 2,010
Income taxes payable 7,459 3,679
Other current liabilities 53,516 50,517
Total 244,770 293,578
Noncurrent liabilities
Bonds payable 30,000 30,000
Long-term loans payable 138,870 110,042
Provision for retirement benefits 18,153 18,375
Other 22,041 22,177Total 209,065 180,595
453,836 474,173
<Net assets>
Shareholders' equity
Capital stock 70,816 70,816
Capital surplus 101,373 101,378
Retained earnings 135,385 141,617
Treasury stock (151) (140)
Total 307,423 313,672
Valuation and translation adjustments
Valuation difference on available-for-sale securities 10,823 7,929
Deferred gains (losses) on hedges (198) 662
Foreign currency translation adjustment (33,812) (32,189)
Total (23,186) (23,597)
Subscription rights to shares 439 414
Minority interests 23,023 19,858
Total net assets 307,698 310,347
Total liabilities and net assets 761,534 784,520
Total liabilities
- 11 -
(2) Consolidated Statements of Income
(Million yen)
For the second quarter ended
September 30, 2010
For the second quarter ended
September 30, 2011
Net sales 399,869 393,567
Cost of sales 290,025 281,743
Gross profit 109,844 111,823
Selling, general and administrative expenses 89,332 91,170
Operating income 20,511 20,652
Non-operating income
Interest income 242 274
Dividend income 516 450
Equity in earnings of affiliates 2,597 3,871
Other income 358 499
3,715 5,096
Non-operating expenses
Interest expenses 2,279 2,093
Foreign exchange losses 275 759
Other expenses 1,178 1,232
3,734 4,086
Ordinary income 20,492 21,663
Extraordinary income
Gain on sales of investment securities 1,184 ―
Gain on sales of subsidiaries and affiliates' stocks ― 705
Other 322 249
1,506 954
Extraordinary loss
Loss on sales and retirement of non-current assets 194 191
Write-down of investment securities 189 653
Loss on impairment 84 980
Restructuring costs 954 ―
Provision for allowance for doubtful accounts ― 392
Earthquake-related expenses ― 426
Loss on adjustment for changes of accounting standard for asset
retirement obligations529 ―
Other 860 260
2,812 2,904
Income before income taxes 19,186 19,712
Income taxes 6,881 9,356
Income before minority interests 12,305 10,356
Minority interests in income 758 1,171
Net income 11,546 9,184
Total
Total
Total
Total
- 12 -
(Consolidated Statements of Comprehensive Income)
(Million yen)
Income before minority interests 12,305 10,356
Other comprehensive income
Valuation difference on available-for-sale securities (3,887) (2,881)
Deferred gains (losses) on hedges (3,069) 862
Foreign currency translation adjustment (3,937) 1,970
814 (404)
(10,079) (452)
Comprehensive income 2,225 9,903
Breakdown of comprehensive income:
Comprehensive income attributable to owners of the parent 1,507 8,774
Comprehensive income attributable to minority interests 718 1,129
Total
Share of other omprehensive income of associates accounted for using
the equity method
For the second quarter ended
September 30, 2010
For the second quarter ended
September 30, 2011
- 13 -
(3) Consolidated Statements of Cash Flows
(Million yen)
Cash flows from operating activities
Income before income taxes 19,186 19,712
Depreciation and amortization of others 28,009 23,195
Interest and dividend income (759) (725)
Interest expense 2,279 2,093
Equity in losses (earnings) of affiliates (2,597) (3,871)
Decrease (increase) in receivables (5,736) (3,651)
Decrease (increase) in inventories (10,620) (34,413)
Increase (decrease) in payables 4,872 6,002
Other, net (11,333) (2,373)
Subtotal 23,300 5,968
Interest and dividends received 1,205 1,000
Interest paid (2,350) (2,222)
Income taxes paid (1,018) (3,099)
Net cash and cash equivalents provided by operating activities 21,136 1,647
Cash flows from investing activities
Purchase of property, plant and equipment (11,590) (13,122)
Purchase of investment securities (3,631) (36)
Purchase of investments in subsidiaries ― (4,950)
Other, net 2,396 (174)
Net cash and cash equivalents used in investing activities (12,824) (18,283)
Cash flows from financing activities
Increase (decrease) in short-term bank loans, net (3,528) 16,950
Increase (decrease) in commercial paper 14,000 (6,000)
Proceeds from long-term debt 3,626 20,000
Repayment of long-term debt (9,751) (8,128)
Issue of debentures 13,572 2,013
Redemption of debentures (18,697) (5,610)
Cash dividends paid (1,964) (2,952)
Cash dividends paid to minority shareholders (2,472) (1,676)
Other, net (46) (146)
Net cash and cash equivalents provided by financing activities (5,261) 14,449
Effect of exchange rate changes on cash and cash equivalents (480) 76
Net increase in cash and cash equivalents 2,569 (2,109)
Cash and cash equivalents at beginning of period 22,964 28,454
112 ―
Cash and cash equivalents at end of period 25,646 26,344
Increase of cash and cash equivalents due to change in scope
of consolidation
For the second quarter ended
September 30, 2010
For the second quarter ended
September 30, 2011
- 14 -
(4) Notes Pertaining to Going Concern AssumptionNo
(5) Segment Information, etc.I. Outline of segments
The Company's reportable operating segments are components of an entity for which separate financial information is availableand evaluated regularly by the chief decision-making authority in determining the allocation of management resources and inassessing performance. The Company currently divides its operations into business groups, based on type of product/natureof business/services provided. The business groups formulate product and service strategies in a comprehensive manner inJapan and overseas.
Accordingly, the Company divides its operations into five reportable operating segments on the same basis as it uses internally:High-Performance Fibers (Aramid Fibers and Carbon Fibers and Composites); Polyester Fibers; Films and Plastics (Plasticsand Films); Pharmaceuticals and Home Health Care; and Trading and Retail.
Within the High-Performance Fibers segment, Aramid Fibers encompasses production and sale of thread, staple fibers andtextiles, and of synthetic leather, while Carbon Fibers and Composites encompasses the production and sale of carbon fibersproducts. Polyester Fibers includes the production and sale of filament yarn, staple fibers, spun yarn, processed fibers, nonwoven
fabrics and textiles, as well as of polyester raw materials. Within the Films and Plastics segment, Plastics involves the productionand sale of polycarbonate resin, other resins and resin products, while Films includes the production and sales of polyester films.Pharmaceuticals and Home Health Care encompasses the production and sales of pharmaceuticals, the production and rentalof home health care equipment and the provision of home health care services. Trading & Retail focuses on the planning and
sales of textile products.
II. FY10 2Q results (Apr. 2010 - Sep. 2010)Notes: 1. Corporate expenses are expenses that cannot be allocated to individual reportable operating segments and are primarily
related to basic research and head office administration. (Million yen)
High-
Performance
Fibers
Polyester
Fibers
Films &
Plastics
Pharma. &
H. H. Care
Trading &
RetailTotal
1) External customers 52,113 50,864 110,815 66,480 102,193 382,468 17,400 399,8692) Intersegment transactions or
transfers 5,344 20,240 3,850 0 2,301 31,736 15,003 46,739Net sales 57,458 71,105 114,666 66,480 104,494 414,204 32,404 446,608Segment income (loss) 1,158 (10) 10,937 11,809 1,919 25,813 897 26,711Note: "Others," which includes the Company's 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) (Million yen)
Total reportable operating segmentsOthers segmentElimination of intersegment transactionsCorporate expenses*Operating incomeNote: 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. Loss on impairment and goodwill by reportable segmentsNo
20,511
140(6,340)
25,813897
Operating income
Sales
Grand
total
Reportable operating segments
Others*
Amount
- 15 -
III. FY11 2Q results (Apr. 2011 - Sep. 2011)1. Segment sales and operating income (loss)
(Million yen)
High-
Performance
Fibers
Polyester
Fibers
Films &
Plastics
Pharma. &
H. H. Care
Trading &
RetailTotal
1) External customers 54,381 53,923 92,951 68,043 105,364 374,665 18,901 393,5672) Intersegment net
sales or transfer 5,177 17,155 3,081 0 2,039 27,453 16,933 44,386Net sales 59,559 71,079 96,033 68,043 107,404 402,119 35,834 437,954Segment income 4,230 1,994 5,724 11,914 2,358 26,223 1,086 27,310Note: "Others," which includes the Company's 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) (Million yen)
Total reportable operating segmentsOthers segmentElimination of intersegment transactionsCorporate expenses*Operating incomeNotes: 1. Corporate expenses are expenses that cannot be allocated to individual reportable operating segments and are primarily
related to basic research and head office administration.2. As explained in Changes in accounting principles, procedures and presentation methods, in the section titled 2. Other
Information, the Company and its domestic consolidated subsidiaries, which have to date determined depreciation—principally of equipment— using the declining balance method, have, effective from the first quarter of FY11,adopted the straight-line method. The impact of this change in the first quarter of FY11 was to increase operating incomeby \120 million in the High-Performance Fibers segment, \113million in the Polyester Fibers segment, \230 million in theFilms and Plastics segment, \497 million in the Pharmaceuticals and Home Health Caresegment and \55 million in the Otherssegment, and to reduce corporate expenses by \169 million, compared to what would have been the case had the formermethod had been used.
3. Loss on impairment and goodwill by reportable segmentsNo
(6) Notes on Significant Changes in Shareholders' EquityNo
(7) Subsequent EventFlooding in Thailand
Owing to the severe flooding in Thailand this year, in October 2011 production facilities belonging to certain Teijin Group subsidiaries inthe country have been inundated or otherwise damaged. As entry into these facilities is not currently possible, we are unable at thistime to accurately calculate the financial impact of this event, net of the amount of insurance settlements, nor to estimate when thesefacilities will be able to resume normal operations.
57(6,715)20,652
Grand
total
26,2231,086
Sales
Reportable operating segments
Others*
Operating income Amount
- 16 -
1. Movement of consolidated results
(1) Movement of results(Billion yen)
FY2010 1Q FY2010 2Q FY2010 3Q FY2010 4Q FY2011 1Q FY2011 2Q
Net sales 192.6 207.3 206.3 209.5 189.6 204.0
Operating income 8.1 12.4 15.9 12.2 11.0 9.6
Ordinary income 7.8 12.7 16.9 12.9 12.8 8.9
Net income 4.0 7.5 8.5 5.2 6.3 2.9
(2) Movement of industrial segment information(Billion yen)
FY2010 1Q FY2010 2Q FY2010 3Q FY2010 4Q FY2011 1Q FY2011 2Q
Net sales
High-Performance Fibers 25.6 26.5 24.7 26.6 26.9 27.5
Polyester Fibers 24.7 26.2 24.9 27.7 23.8 30.2
Films & Plastics 51.8 59.1 54.8 51.5 46.9 46.1
Pharma. & H. H. Care 33.7 32.8 35.7 34.2 34.9 33.1
Trading & Retail 48.7 53.5 58.1 56.7 48.2 57.2
Total 184.5 198.0 198.2 196.6 180.6 194.1
Others 8.1 9.3 8.0 12.9 9.0 9.9
Consolidated total 192.6 207.3 206.3 209.5 189.6 204.0
Operating income
High-Performance Fibers 0.0 1.1 1.2 2.1 2.0 2.2
Polyester Fibers 0.0 (0.0) 1.4 1.6 0.5 1.5
Films & Plastics 3.6 7.3 8.1 4.4 3.2 2.6
Pharma. & H. H. Care 6.9 4.9 6.8 4.3 7.2 4.7
Trading & Retail 0.7 1.2 1.6 1.2 1.0 1.3
Total 11.3 14.6 19.2 13.6 13.9 12.3
Others (0.1) 1.0 0.2 2.0 0.3 0.8
Elimination & corporate (3.1) (3.1) (3.5) (3.4) (3.2) (3.5)
Consolidated total 8.1 12.4 15.9 12.2 11.0 9.6
2. Capital expenditure, depreciation & amortization expenses and research & development expenses (consolidated)(Billion yen)
FY2008 FY2009 FY2010 FY2011 2Q FY2011
(Actual) (Actual) (Actual) (Actual) (Outlook)
69.6 30.8 25.3 11.4 40.0
75.8 36.3 29.2 12.9 45.0
67.4 61.9 56.4 23.2 55.0
37.6 33.4 31.5 15.2 33.0
*Depreciation and amortization includes amortization of goodwill.
3. Number of employees (Consolidated)
End of FY08 End of FY09 End of FY10End of
FY11 2Q
19,453 18,778 17,542 17,680
Research & development
Supplementary Information
Depreciation & amortization*
Consolidated
Capital expenditure:
CAPEX for tangible assets
Total
- 17 -
4. Foreign Exchange Rate(1) BS exchange rate for overseas subsidiaries (End of fiscal year)
92 81 81 77
1.43 1.32 1.45 1.41
(2) PL exchange rate for overseas subsidiaries (Average of fiscal year)
94 88 82 79
1.39 1.33 1.40 1.41
5. Sales of principal pharmaceuticals(Billion yen)
Bonalon® Osteoporosis
Onealfa® Osteoporosis
Mucosolvan® Expectorant
Venilon® Severe infectious diseases
Laxoberon® Laxative
Tricor® Hyperlipidemia
Bonalfa® Psoriasis
Alvesco® Asthma
Spiropent® Bronchodilator
Synvisc Dispo™
Feburic® Hyperuricemia and gout
6. Development status of new pharmaceuticals
(As of September 30, 2011)
ProductsTMX-67BTR-15K
TV-02H
GTH-42V Filed in Japan in February 2011GTH-42J Filed in Japan in August 2011ITM-014 Filed in Japan in September 2011
GGS(Venilon®)ITM-077NTC-801
GGS(Venilon®)ITM-058NA872ET
FY2009 FY2010 FY2011 2Q FY2011
(Actual)
FY2009 FY2010 FY2011 2Q
(Actual)
JPY/US$
US$/EURO
(Actual) (Actual)
Ph Ⅰ
Commenced sales in Japan in May, 2011Stage
(Actual) (Outlook)
FY2011
(Actual) (Outlook)
Ph Ⅲ
Commenced sales in Japan in April, 2011
21.0 10.3
11.9 11.4 5.4
21.3
10.3 10.0 4.5
8.0 9.1 4.5
4.7 4.4 2.1
1.6 1.8 0.7
1.6 0.7
1.1 1.2 0.6
1.0 0.5
― 0.7 0.9
Ph ⅡTypeII Diabetes
Ph Ⅰ
Ph ⅡAtrial fibrillation and flutter
OsteoporosisMicroscopic PolyAngitis (MPA) Ph Ⅱ
Expectorant
― 0.5
Additional filing for low-concentration preparation in
September 2010(PRC)
―
Asthma in childrenGout and hyperuricemia
FY2010 FY2011 2Q
(Actual) (Actual) (Actual)
Multiple Sclerosis (MS)
Acromegaly
Target disease
Osteoporosis
Osteoarthritis pain in the knee
Osteoporosis
Psoriasis
JPY/US$
US$/EURO
Products IndicationFY2009
1.1
1.7
- 18 -