Consolidated Financial Statements Summary by wuyunyi

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									Consolidated Financial Statements Summary
(For the year ended June 30, 2012)
English translation from the original Japanese-language document
(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)                       http://www.teijin.co.jp/english/index.html
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)
                                                    Net sales             Operating income                              Ordinary income              Net income (loss)
                                               Million yen      %         Million yen      %                            Million yen        %         Million yen       %
For the first quarter ended June 30, 2012       174,335       (8.0)         2,971        (73.0)                           2,207          (82.8)        (1,638)         -
For the first quarter ended June 30, 2011       189,569       (1.6)        11,026         36.6                           12,810           65.2         6,274          55.7
cf. Comprehensive income : (9,570)million yen (FY2011: 10,680million yen)


                                                       E.P.S.※1           Diluted E.P.S.

                                                         Yen                      Yen
For the first quarter ended June 30, 2012               (1.66)                      -
For the first quarter ended June 30, 2011               6.38                      6.37
※1 E.P.S.: Earnings per share

(2) Consolidated financial position
                                                                                                                    Shareholders' equity
                                                         Total assets                     Net assets
                                                                                                                           ratio
                                                  Million yen                             Million yen                           %
          As of June 30, 2012                       739,747                                299,536                             37.8
         As of March 31, 2012                       762,118                                312,217                             38.3
cf. Shareholders' equity :279,777million yen(FY2011: 292,030million yen)

2. Dividends
                                                                    Dividends per share
               Period                        1Q              2Q            3Q                 4Q           Annual
                                             Yen            Yen            Yen               Yen            Yen
             FY2011                           -             3.00            -                3.00           6.00
             FY2012                           -
       FY2012 (Outlook)                                   3.00               -               3.00            6.00
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)
                                            Net sales      Operating income           Ordinary income         Net income             E.P.S.
                                       Million yen    %    Million yen       %       Million yen    %    Million yen      %           Yen
         FY2012 interim                     370,000 (6.0)          7,000 (66.1)             6,000 (72.3)             0 (100.0)         0.00
             FY2012                         800,000 (6.4)        35,000 2.8                33,000 (3.7)        12,000     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:
                                 Net sales                  Operating income                 Ordinary income                      Net income
                            Million yen            %        Million yen      %               Million yen     %                 Million yen         %
FY2012 (Outlook)              800,000          1.1               35,000           (0.9)         33,000          (8.0)            12,000          (13.0)
  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
  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




                                                          -1-
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




                                                      -2-
  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.




                                                           -3-
  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.




                                                              -4-
  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.




                                                          -5-
Qualitative Information on Outlook for Operating Results

  Outlook for Fiscal 2012

  Forecast for Operating Results
                                                                                                        (Billions of yen/%)
                                                                       Operating         Ordinary
                                                     Net sales                                             Net income
                                                                        income           income

    Fiscal 2012 (forecast)                                ¥800.0              ¥35.0             ¥33.0              ¥12.0
    Fiscal 2011*                                            854.4              34.0              34.3               12.0
    Fiscal 2011 (adjusted)†                                 791.0              35.3              35.9               13.8
    Change (FY12/FY11 adjusted figure)                       +9.0              –0.3              –2.9               –1.8
    Percentage change
                                                            +1.1%             –0.9%           –8.0%             –13.0%
     (FY12/FY11 adjusted figure)
   * With the aim of guaranteeing timely disclosure and the efficiency of business performance management, effective
      from fiscal 2011, all consolidated subsidiaries of Teijin now close their books on March 31. As a consequence, for
      fiscal 2011 only, certain consolidated subsidiaries and equity method affiliates reported operating results for a
      15-month period (January 1, 2011–March 31, 2012).
   † Calculated using results for the aforementioned consolidated subsidiaries and equity method affiliates for their former
      accounting periods (January 1, 2011–December 31, 2011).

  Economic conditions in Japan are likely to remain relatively steady, propped up by demand related to post-quake
  reconstruction and official stimulus measures. However, despite projections for a gradual global economic recovery
  toward the end of the second half of fiscal 2012, the impact of the protracted financial crisis in Europe—including
  on key growth drivers, the PRC and India, and other emerging economies—has been more detrimental than
  expected, blunting the pace of improvement worldwide.

  Guided by our new medium- to long-term management vision, CHANGE for 2016, which we announced in
  February 2012, we will continue implementing basic strategies for transforming our four fundamental portfolios and
  for securing profitable sustainable growth. We will also promote initiatives aimed at expanding sales in all of our
  businesses, as well as Groupwide efforts to reduce costs. However, recognizing the risk of factors such as
  stubbornly sluggish demand, particularly in overseas markets, and the appreciation of the yen, negatively affecting
  our operating results, we have revised our forecasts for fiscal 2012. We currently forecast consolidated net sales of
  ¥800.0 billion, operating income of ¥35.0 billion, ordinary income of ¥33.0 billion and net income of ¥12.0 billion for
  fiscal 2012. These are down from our initial forecasts, announced in May 2012, for consolidated net sales of ¥840.0
  billion, operating income of ¥43.0 billion, ordinary income of ¥43.0 billion and net income of ¥22.0 billion. Our
  forecasts for fiscal 2012 assume exchange rates of ¥80 to US$1.00 and ¥97 to €1.00 and a Dubai crude oil price of
  US$105 per barrel.




                                                           -6-
Forecast for Segment Results

                                                                                                  (Billions of yen)
                                                           Net sales                   Operating income
                                                  First half        Full term      First half       Full term
                                                 (Forecast)        (Forecast)     (Forecast)       (Forecast)
    Advanced Fibers and Composites                      ¥ 55.0           ¥120.0           ¥ 0.5            ¥ 3.0
    Electronics Materials and
                                                         90.0           185.0              2.0              8.0
       Performance Polymer Products
    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.




                                                     -7-
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.




                                                        -8-
  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.




                                                        -9-
     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.




                                                        - 10 -
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

                             Total assets                          762,118                 739,747




                                            - 11 -
                                                                                                   (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                  20,000
    Current portion of bonds                                                          501                  16,972
    Income taxes payable                                                            5,604                   1,137
    Other                                                                          55,207                  50,838
                                      Total                                       277,951                 287,337
Non-current liabilities
    Bonds payable                                                                  30,000                  15,000
    Long-term loans payable                                                       102,191                  99,187
    Provision for retirement benefits                                              18,783                  19,031
    Other                                                                          20,974                  19,655
                                      Total                                       171,949                 152,874
                              Total liabilities                                   449,901                 440,211
<Net assets>
Shareholders' equity
    Capital stock                                                                  70,816                  70,816
    Capital surplus                                                               101,389                 101,390
    Retained 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
   Deferred gains (losses) on hedges                                                  306                     (835)
   Foreign currency translation adjustment                                        (31,708)                 (36,830)
                                    Total                                         (21,488)                 (29,150)

Subscription rights to shares                                                         566                     565
Minority interests                                                                 19,619                  19,193
                             Total net assets                                     312,217                 299,536
                     Total liabilities and net assets                             762,118                 739,747




                                                           - 12 -
(2) Consolidated Statements of Income
                                                                                                        (Millions of yen)
                                                                  For the first quarter ended For the first quarter ended
                                                                        June 30, 2011               June 30, 2012
Net sales                                                                            189,569                     174,335
  Cost of sales                                                                      133,854                     127,489
Gross profit                                                                           55,714                     46,846
  Selling, general and administrative expenses                                         44,688                      43,874
Operating income                                                                       11,026                       2,971
  Non-operating income
     Interest income                                                                    138                         108
     Dividend income                                                                    436                         446
     Equity in earnings of affiliates                                                 2,588                         371
     Other income                                                                       269                         421
                                      Total                                           3,431                       1,347
  Non-operating expenses
     Interest expenses                                                                1,011                         872
     Foreign exchange losses                                                            227                         758
     Other expenses                                                                     408                         480
                                      Total                                           1,647                       2,111
Ordinary income                                                                      12,810                       2,207
  Extraordinary income
     Gain on sales of noncurrent assets                                                  14                           59
     Gain on sales of investment securities                                             702                            ―
     Other                                                                              156                            9
                                      Total                                             873                           68
  Extraordinary loss
     Loss on sales and retirement of noncurrent assets                                   27                          162
     Loss on valuation of investment securities                                           ―                          762
     Impairment loss                                                                     26                          667
     Provision for allowance for doubtful accounts                                      392                            ―
     Earthquake-related expenses                                                        434                            ―
     Flood-related expenses                                                               ―                          944
     Other                                                                               91                           19
                                      Total                                             973                        2,555
Income (loss) before income taxes                                                    12,710                         (278)
     Income taxes                                                                     5,904                        1,561
Income (loss) before minority interests                                               6,806                       (1,840)
     Minority interests in income (loss)                                                531                         (201)
Net income (loss)                                                                     6,274                       (1,638)




                                                         - 13 -
(Consolidated Statements of Comprehensive Income)
                                                                                                                (Millions of yen)
                                                                         For the first quarter ended For the first quarter ended
                                                                               June 30, 2011               June 30, 2012
Income (Loss) before minority interests                                                        6,806                      (1,840)
Other comprehensive income
  Valuation difference on available-for-sale securities                                       (813)                      (1,397)
  Deferred gains (losses) on hedges                                                          1,280                       (1,141)
  Foreign currency translation adjustment                                                    3,648                       (5,123)
  Share of other omprehensive income of associates accounted for using
                                                                                              (240)                          (68)
  the equity method
                                    Total                                                    3,874                       (7,730)
Comprehensive income                                                                        10,680                       (9,570)
  Breakdown of comprehensive income:
    Comprehensive income attributable to owners of the parent                               10,126                       (9,300)
    Comprehensive income attributable to minority interests                                    553                         (270)




                                                          - 14 -
(3) Notes Pertaining to Going Concern Assumption
    No

(4) Notes on Significant Changes in Shareholders' Equity
    No

(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 available
       and evaluated regularly by its chief decision-making authority in determining the allocation of management resources and in
       assessing performance. The Company currently divides its operations into business groups, based on type of product, nature
       of business and services provided. The business groups formulate product and service strategies in a comprehensive manner in
       Japan and overseas.
           Accordingly, the Company divides its operations into four reportable operating segments on the same basis as it uses internally:
       Advanced Fibers and Composites (comprising Aramid Fibers, Carbon Fibers and Composites, and Polyester Fibers for Industrial Applications);
       Electronics Materials and Performance Polymer Products (comprising Polycarbonate Resin and Plastics Processing, and Films); Healthcare
       (comprising Pharmaceuticals, and Home Healthcare); and Trading and Retail (comprising Products Converting, and Polyester Fibers for Apparel).
           Within the Advanced Fibers and Composites segment, the Aramid Fibers business encompasses the production and sale of advanced aramid
       fibers, the Carbon Fibers and Composites business includes the production and sales of carbon fibers and composites, and the Polyester Fibers
       for Industrial Applications business covers the production and sales of high-performance polyester fibers and composites for industrial applications.
       Within the Electronics Materials and Performance Polymer Products segment, the Polycarbonate Resin and Plastics
       Processing business involves the production and sale of polycarbonate resin, other resins and resin products, while the Films business
       includes the production and sales of polyester films. Healthcare encompasses the production and sales of pharmaceuticals, the production
       and rental of home healthcare devices and the provision of home healthcare services. Trading and Retail focuses on the planning,
       OEM production and trading and retail of polyester filaments, other fibers and polymer products.
           For more information on changes to reportable operating segments, see subsection 3 (Changes to reportable operating segments) of
       Note III: FY12 1Q results (April 2012–June 2012).

   II. FY11 1Q results (April 2011 - June 2011)
   1. Segment sales and operating income
                                                                                                                                        (Millions of yen)
                                                                     Reportable operating segments
                                                                  Electronics
                                                    Advanced     Materials and                                                                Grand
                                                                                                 Trading and                  Others*
                                                   Fibers and    Performance        Healthcare                   Total                         total
                                                                                                    Retail
                                                   Composites      Polymer
                                                                   Products
   Sales
     1) External customers                           35,469        46,869         34,912       56,026        173,277         16,291       189,569
     2) Intersegment transactions or transfers         6,371        1,486              0           808         8,667         11,634         20,301
   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 reportable
     operating segment.

   2. Difference between operating income and sum of operating income in reportable operating segments
      (Adjustment)                                                        (Millions of yen)
                         Operating income                                Amount
   Total reportable operating segments                                              13,820
   Others segment                                                                      269
   Elimination of intersegment transactions                                            218
   Corporate expenses*                                                              (3,282)
   Operating income                                                                 11,026
   * Corporate expenses are expenses that cannot be allocated to individual reportable operating segments and are
     primarily related to basic research and head office administration.

                                                                           - 15 -
3. Loss on impairment and goodwill by reportable segments
  No

III. FY12 1Q results (April 2012 - June 2012)
1. Segment sales and operating income (loss)
                                                                                                                                (Millions of yen)
                                                                 Reportable operating segments
                                                              Electronics
                                                 Advanced    Materials and                                                            Grand
                                                                                            Trading and               Others*
                                                Fibers and   Performance       Healthcare                 Total                        total
                                                                                               Retail
                                                Composites     Polymer
                                                               Products
Sales
  1) External customers                           26,145        43,730         31,185       54,897        155,958         18,376       174,335
  2) Intersegment transactions or transfers         4,922        1,531              0           781         7,234         11,099         18,334
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 segm

2. Difference between operating income and sum of operating income (loss) in reportable operating segments
  (Adjustment)                                                       (Millions of yen)
                     Operating income                               Amount
Total reportable operating segments                                             5,830
Others segment                                                                    366
Elimination of intersegment transactions                                           71
Corporate expenses*                                                            (3,296)
Operating income                                                                2,971
* 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
 for in the Polyester Fibers segment. The Films and Plastics segment has been renamed Electronics Materials and Performance Polymer Products,
      「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。
 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




                                                                      - 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 deploy
  with the aim of creating new healthcare businesses that integrate the Company's materials and healthcare technologies, a key objective of its n
  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
                                 Name                                           Major business
                                                     R&D, production and sales of prescription and non-prescription drugs
     Split company       Teijin Pharma Limited
                                                     and production, sales and rental of home healthcare devices
  Successor company Teijin Limited                   Holding company

  Outline of accounting treatment
  The transaction is implemented as a business combination under common control, in accordance with accounting principles for business
  combinations.




                                                          - 17 -
                                                            Supplementary Information
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
      Electronics Materials and
                                                         46.9               46.1               46.3             76.1                   43.7
        Performance Polymer Products
      Healthcare                                        34.9                33.1               36.1             38.9                  31.2
      Trading and Retail                                56.0                67.2               67.3             72.3                  54.9
      Total                                            173.3               182.8              183.3           235.0                  156.0
      Others                                            16.3                21.2               18.6             23.9                  18.4
  Consolidated total                                   189.6               204.0              201.9           258.9                  174.3
  Operating income
      Advanced Fibers and Composites                      2.4                 3.1               1.1              0.6                   (0.3)
      Electronics Materials and
                                                          3.2                 2.6               1.7             (3.7)                   1.6
        Performance Polymer Products
      Healthcare                                          7.2                 4.7               7.6              6.4                    3.8
      Trading and Retail                                  1.1                 1.7               2.2              1.6                    0.7
      Total                                             13.8                12.1               12.6              4.9                    5.8
      Others                                              0.3                 1.0               0.3              2.2                    0.4
      Elimination & corporate                            (3.1)               (3.5)             (3.1)            (3.3)                  (3.2)
  Consolidated total                                    11.0                  9.6               9.7              3.7                    3.0
  Note: Figures for FY2011, the fiscal year ended March 31, 2012, have been restated to conform with the Company's revised
       segmentation. Revised figures for the second, third and fourth quarters are unaudited.

2. Capital expenditure, depreciation & amortization expenses and research & development expenses (consolidated)
                                                                                                                            (Billions of yen)
                                                 FY2009                FY2010             FY2011            FY2012 1Q         FY2012
                                                 (Actual)              (Actual)           (Actual)           (Actual)        (Outlook)
    Capital expenditure:
         CAPEX for tangible assets                        30.8                    25.3               28.3             7.4              44.0
                    Total                                 36.3                    29.2               32.3             8.0              50.0
        Depreciation & amortization*                      61.9                    56.4               52.3            11.4              50.0
          Research & development                          33.4                    31.5               31.8             7.6              34.0
  * Depreciation and amortization includes amortization of goodwill.




                                                                   - 18 -
3. Foreign Exchange Rate
    (1) BS exchange rate for overseas subsidiaries (End of fiscal year)
                                FY2010                 FY2011                 FY2012 1Q               FY2012
                                 (Actual)              (Actual)                (Actual)              (Outlook)
          JPY/US$                           81                       82                     79                     80
         US$/EURO                         1.32                     1.34                   1.24                   1.19

   (2) PL exchange rate for overseas subsidiaries (Average of fiscal year)
                                FY2010                FY2011               FY2012 1Q                  FY2012
                                (Actual)              (Actual)              (Actual)                 (Outlook)
         JPY/US$                           88                      80                  80                          80
        US$/EURO                         1.33                    1.38                1.28                        1.21




4. Sales of principal pharmaceuticals
                                                                                                                  (Billions of yen)
                                                                   FY2010                 FY2011                 FY2012 1Q
          Products                    Indication
                                                                   (Actual)               (Actual)                 (Actual)
   Bonalon ®              Osteoporosis                                        21.0                   20.5                       3.3
   Venilon ®              Severe infectious diseases                           9.1                    9.4                       2.4
   Mucosolvan ®           Expectorant                                         10.0                    9.9                       2.1
   Onealfa ®              Osteoporosis                                        11.4                   11.1                       1.8
   Laxoberon ®            Laxative                                             4.4                    4.2                       1.0
   Synvisc Dispo ™        Osteoarthritis pain in the knee                      0.7                    1.7                       0.4
   Tricor ®               Hyperlipidemia                                       1.8                    1.5                       0.4
   Bonalfa ®              Psoriasis                                            1.6                    1.4                       0.4
   Alvesco ®              Asthma                                               1.2                    1.3                       0.3
   Spiropent ®            Bronchodilator                                       1.0                    1.0                      0.2
             ®
   Feburic                Hyperuricemia and gout                                ―                     0.9                      0.7



5. Development status of new pharmaceuticals
                                                                                                                       (As of June 30, 2012)
        Products                          Indication                                               Stage
   GTH-42V                Osteoporosis                      Commenced sales in Japan in May, 2012
   ITM-014                Acromegaly, Pituitary Gigantism   Received approval to manuacture and market in June, 2012
   TV-02H                 Psoriasis                         Additional filing for low-concentration preparation in September 2010 (PRC)
   GTH-42J                Osteoporosis                      Filed in Japan in August 2011
   ITM-077                TypeII Diabetes                   Ph II
   NTC-801                Atrial fibrillation and flutter   Ph II
   GGS(Venilon ®)         Microscopic PolyAngitis (MPA)     Ph II
   ITM-058                Osteoporosis                      Ph II
   NA872ET                Expectorant                       Ph I




                                                                 - 19 -

								
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