帝人（3401） – Notice of Convocation Annual General Meeting 2022

May 31, 2022 Notice of Convocation The 156th Ordinary General Meeting of Shareholders TEIJIN LIMITED Disclaimer: Please note that the following is a translation of the original Japanese documents prepared for the convenience of our non-Japanese shareholders with voting rights. Although this translation is intended to be complete and accurate, the Japanese original shall take precedence in the case of any discrepancies between this translation and the original. Certain information regarding voting procedures that is not applicable for shareholders resident outside Japan has been omitted or modified as applicable. In addition, these materials will not facilitate your status as a registered shareholder authorized to attend the Ordinary General Meeting of Shareholders. Every shareholder attending the Ordinary General Meeting of Shareholders is required to present the Voting Card, which is sent to the registered shareholder together with the original Notice of Convocation in Japanese, to the receptionist at the meeting. Notice of Convocation of the 156th Ordinary General Meeting of Shareholders Contents Reference Documents for the General Meeting of Shareholders Proposals and Reference Proposal 1: Partial Amendments of the Articles of Incorporation Proposal 2: Election of Ten (10) Directors Attached Reports Reports on Operations for the 156th Fiscal Year 1. Matters concerning the current status of the Teijin Group (corporate group) (1) Progress and results of business activities (2) Changes in Assets and Profit and Loss (3) Capital investment (4) Financing (5) Management Policy and Tasks Ahead (6) Primary Businesses (7) Primary Business Places (8) Employees (9) Significant Subsidiaries (10) Primary Lenders and Amount of Borrowings 2. Matters Regarding the Shares of the Company 3. Stock Acquisition Rights 4. Corporate Governance System 5. Directors and Statutory Auditors 6. Accounting Auditor 7. Policy Regarding the Determination of Dividends from Retained Earnings 8. Systems to Ensure Appropriate Business Operations and the Status of its Implementation 9. Financial Statement (1) Consolidated Balance Sheets (2) Consolidated Statements of Income (3) Consolidated Statements of Changes in Net Assets Consolidated Statements of Comprehensive Income (Reference) Consolidated Statements of Cash Flows (Reference) 1 Dear Shareholders (Securities code: 3401) May 31, 2022 Akimoto Uchikawa President and Representative Director Teijin Limited 2-4, Nakanoshima 3-chome, Kita-ku, Osaka 530-8605, Japan Notice of Convocation of the 156th Ordinary General Meeting of Shareholders You are cordially invited to attend the 156th Ordinary General Meeting of Shareholders of Teijin Limited (“the Company”) to be held as set forth below. If you do not expect to attend the meeting, you may vote on the proposal for voting using the following method. Please refer to the following “Reference Documents for the General Meeting of Shareholders,” and exercise your voting rights by 5 p.m., Tuesday, June 21, 2022. (Japan Time) [In case of voting by Mail] Please indicate your approval or disapproval of the proposal on the enclosed Document for the Exercise of Voting Rights, and mail the document so that it arrives by the above deadline. [In case of voting by Internet etc.] Please access to the web-site to exercising voting rights (https://evote.tr.mufg.jp/) through personal Computer or Smartphone with the log-in ID and temporary password indicated in the enclosed Document for the Exercise of Voting Rights, and input your approval or disapproval of the proposals according to the instructions on the window. 2 Details 1. Date and Time of the Meeting: Wednesday, June 22, 2022, at 10 a.m. (Japan Time) (The door opens at 9 a.m.) 2. Place: 3. Purposes Reports: The Westin Osaka, 2nd Floor Ball Room, 1-20, Oyodonaka 1-chome, Kita-ku, Osaka, Japan The Reports on Business Report, Consolidated Financial Statements, Non-Consolidated Financial Statements and the Report by the Accounting Auditor and the Board of Statutory Auditors of the results of audit on the Consolidated Financial Statements, for the 156th Fiscal Year (April 1, 2021 to March 31, 2022) Proposal 1: Partial Amendments of the Articles of Incorporation Proposal 2: Election of Ten (10) Directors 4. Decision on Convocation (1) If you do not indicate either approval or disapproval on the Document for the Exercise of Voting Rights, we shall treat such “no answer” as your “approval” on the proposal. (2) In the event of an overlap in the exercise of voting rights via the Document for the Exercise of Voting Rights and the Internet voting system, the exercise of voting rights via the Internet voting system shall prevail. (3) If you vote more than once using the same method, your last vote shall prevail. 5. Attachments to Notice of Convocation and Reference Documents for the General Meeting of Shareholders If any revision should be required to the Business Report, Consolidated Financial Statements, Non-Consolidated Financial Statements, or Reference Documents for the General Meeting of Shareholders, such revision will be posted on the Company’s website. (https://www.teijin.com) ・If you attend the General Meeting of Shareholders, please submit the attached Document for the Exercise of Voting Rights to the reception of the meeting. ・If you attend the General Meeting of Shareholders by proxy, you may exercise your voting rights by authorizing one (1) other shareholder with voting rights to act as its proxy as stipulated in the Company’s Article of Incorporation. 3 Reference Documents for the General Meeting of Shareholders Proposals and Reference 1. Reasons for Proposal Proposal 1: Partial Amendments of the Articles of Incorporation The revised provisions stipulated in the proviso of Article 1 of the supplementary provisions of the “Act Partially Amending the Companies Act” (Act No. 70 of 2019) will come into effect on September 1, 2022. In order to prepare for introduction of the System for Providing General Shareholder Meeting Materials in Electronic Format, the Company proposes to make amendments of the Articles of Incorporation as described below. (1) The provisions of Internet Disclosure of Reference Document for the General Meeting of Shareholders and Deemed Provision (current Articles of Incorporation, Article 14) are not required under the System for Providing General Shareholder Meeting Materials in Electronic Format, so they will be changed to measures for providing information in electronic format, etc. (2) The proposed amendment to Article 14, First Part stipulates that measures for providing information in electronic format will be taken for the information contained in the reference documents, etc. for the General Meeting of Shareholders and Second Part provides provisions to limit the scope of documents to be delivered to shareholders who have requested the delivery of the documents. (3) With the above changes, supplementary provisions regarding the effective date, etc., will be established. 2. The contents of the change (The underlined parts have been changed.) Current Articles Proposed Amendments Article 14 (Internet Disclosure of Reference Document Article 14. (Measures for Providing Information in for the General Meeting of Shareholders and Deemed Electronic Format, etc.) Provision) In convening a General Meeting of Upon convening a General Meeting of Shareholders, Shareholders, the Company shall be deemed to have the Company shall take measures for providing provided the information that must be mentioned or information that constitutes the content of reference displayed in the reference document of a General documents, etc. for the General Meeting of Meeting of Shareholders, business report, financial Shareholders in electronic format. statements and consolidated financial statements by Among items to be provided information in electronic disclosing such information using the Internet format, the Company may exclude all or part of the pursuant to Ordinance of the Ministry of Justice. items stipulated in the Ordinance of the Ministry of Justice in the document that will be issued to shareholders who requested issuance of the document by the record date for voting rights. 4 Current Articles Proposed Amendments （Supplementary Provisions） Article 1 The change from current Article 14 of the Articles of Incorporation (Internet Disclosure of Reference Document for the General Meeting of Shareholders and Deemed Provision) to the proposed a m e n d m e nt t o A rt ic l e 1 4 o f t h e A r t ic l e s o f Incorporation (Measures for Providing Information in Electronic Format, etc.) shall be effective on September 1, 2022 (the “Date of Enforcement“). 2. Notwithstanding the provisions of the preceding paragraph, current Article 14 of the Articles of Incorporation (Internet Disclosure of Reference Document for the General Meeting of Shareholders and Deemed Provision) shall remain effective with regard to any General Meeting of Shareholders held on a date within six months from the Date of Enforcement. 3. This Supplementary Provision shall be automatically deleted on the date when six months have passed from the Date of Enforcement, or when three months have passed from the date of the General Meeting of Shareholders in the preceding paragraph, whichever comes later. 5 Proposal 2: Election of Ten (10) Directors The terms of office of ten (10) Directors will expire at the conclusion of this General Meeting of Shareholders. Shareholders are therefore requested to elect the following ten (10) Directors (nine (9) of whom are up for reelection). The candidates for Director are as follows. No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions 【Reappointment】 Apr. 1983 Joined Teijin Limited 1 Jun Suzuki (February 19,1958) 12 times out of 12 (100%) Apr. 2011 President, Teijin Holdings Netherlands B.V. Apr. 2012 Corporate Officer, Teijin Limited Apr. 2013 Executive Officer, Teijin Limited Jun. 2013 Director, Executive Officer, Teijin Limited Apr. 2014 President & Representative Director CEO (Chief Executive officer) Apr. 2022 Chairperson of the Board (Incumbent) Number of Company’s Shares Owned 70,763 Shares After assuming the post of President & Representative Director (CEO) in April 2014, Jun Suzuki formulated a revised medium-term plan in November of the same year, and promoted the completion of structural reforms on which his predecessor worked. He formulated the medium-term plan “ALWAYS EVOLVING2017-2019” in February 2017 and “2020-2022ALWAYS EVOLVING “in February 2020. He divided each business into future profit source development (Strategic Focus) and stably profitable existing business expansion (Profitable Growth) and positioned both as a more concrete execution plan. He has promoted growth strategies for the future and business portfolio transformation. From April 2022, as Chairperson of the Board, he will strive to supervise Executive Director and strengthen corporate governance by taking advantage of his extensive experience 8-year as CEO. No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions Number of Company’s Shares Owned 【Reappointment】 Mar. 1990 Joined Teijin Limited Akimoto Uchikawa Apr. 2017 Corporate Officer, Teijin Group (Jan 18,1966) 9 times out of 9 (100%) Responsible for Material Business f Teijin Group Assistant to General Manager, Fibers and Products Converting Business Group (for Technology, Production, Restructuring Initiatives). 2 Products Converting Business Group (for Technology, Jan. 2018 Management Coordinator for the President, Fibers and 12,424 Shares Production, Restructuring Initiatives) Apr. 2020 General Manager, Composites Business Unit Apr. 2021 Executive Officer, Teijin Group President, Material Business of Teijin Group Jun. 2021 Director, Executive Officer Teijin Limited Apr. 2022 President & Representative Director (Incumbent) CEO (Chief Executive officer) (Incumbent) Akimoto Uchikawa was appointed as Corporate Officer of the Teijin Group in April 2017. He became Management 6 No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions Number of Company’s Shares Owned Coordinator for the President, Material Business of Teijin Group and Assistant to General Manager, Fibers & Products Converting Business Group (for Technology, Production, Restructuring Initiatives) in April 2017. He was appointed as General Manager Composites Business Unit in April 2020. He had been working on expanding the Material business field. He assumed the posts of Executive Officer of the Teijin Group and President Material Business of the Teijin Group in April 2021. He has made efforts toward further increasing the profitability of the material business, which constitutes a part of the core strategies of the Company, as well as the growth and expansion of the core field, which are the themes of our Strategic Focus. He has also promoted business portfolio From April 2022, as President & Representative Director and CEO, he will play the role of Chief Executive Officer in formulating and executing management policies to enhance the corporate value of the Teijin Group by taking transformation. advantage of his global experience. No. Candidate’s Name (Date of Birth) (January 17, 1960) 12 times out of 12 (100%) 3 Personal History, Positions and Significant Concurrent Positions Number of Company’s Shares Owned 【Reappointment】 Apr. 1982 Joined Teijin Limited Akihisa Nabeshima Apr. 2015 Corporate Officer, Teijin Group Apr. 2017 Executive Officer, Teijin Group General Manager, Healthcare Business Group President & Representative Director, Teijin Pharma Limited Apr. 2019 President, Healthcare Business of Teijin Group Jun. 2019 Director, Executive Officer, Teijin Limited Apr. 2021 Representative Director, Executive Officer, Teijin Limited Chief Financial Officer Teijin Limited (Incumbent) Apr. 2022 Representative Director, Senior Executive Officer Teijin Limited (Incumbent) 10,575 Shares Akihisa Nabeshima assumed the posts of Corporate Officer in April 2015 and Executive Officer of the Teijin Group in April 2017. He has made efforts to increasing the profitability of the healthcare business as General Manager of the Healthcare Business Group of the Company and as President & Representative Director of Teijin Pharma Limited. He became President, Healthcare Business of the Teijin Group in April 2019 and Director Executive Officer in June 2019. He has worked on further increasing the profitability of the healthcare business, which constitutes a part of the core strategies of the Company, as well as on the growth of the new healthcare business, which are the themes of the Company’s Strategic Focus. Based on having been involved in finance and accounting-related work for more than 20 years before assuming the post of Corporate Officer, he assumed the posts of Representative Director and CFO in April 2021. He is making efforts toward maintaining a sound financial base and increasing corporate value. From April 2022, as Representative Director and Senior Executive Officer, he will continue to be responsible for the accounting and financial affairs of the entire Teijin Group based on his extensive accounting and financial experience. 7 No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions Number of Company’s Shares Owned 【Reappointment】 Apr. 1986 Joined Teijin Limited Toshiya Koyama (May 19,1960) 12 times out of 12 (100%) 4 Apr. 2013 Corporate Officer (Riji), Teijin Group General Manager, New Materials Business Development Department Chief Representative of Teijin Electronics Korea Co., Ltd. Apr. 2015 Corporate Officer, Teijin Group Apr. 2017 Executive Officer, Teijin Group General Manager, Material Business Group Apr. 2020 President, Material Business of Teijin Group Jun. 2020 Director, Executive Officer, Teijin Limited (Incumbent) Apr. 2021 Representative Director, Senior Executive Officer Teijin Limited (Incumbent) 12,475 Shares Toshiya Koyama has worked to increase the earnings of the Company’s materials business as Corporate Officer (Riji) of the Teijin Group in April 2013, Corporate Officer of the Teijin Group in April 2015, and Executive Officer of the Teijin Group in April 2017. In April 2020, he assumed the role of President Material Business of the Teijin Group. He has worked to further increase profits in the materials business, which is one of our key strategic businesses, and expand the materials business, which is the theme of our Strategic Focus. He assumed the posts of Director Executive Officer in June 2020 and Chief Social Responsibility Officer in April 2021. He is engaged in sustainable management based on his insight and knowledge in the material business, the management and promotion of the Teijin Group CSR, compliance, risk management, ESH, social contribution activities, and auditing system. No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions 【Reappointment】 Apr. 1985 Joined Teijin Limited Eiji Ogawa Apr. 2016 Corporate Officer, Teijin Group 5 (October 26, 1962) 12 times out of 12 (100%) General Manager, Resin and Plastic Processing Business Unit, Teijin Limited. Apr. 2019 Chief Officer, Corporate Strategy Jun. 2020 Director, Corporate Officer Teijin Limited Apr. 2021 Director, Executive Officer Teijin Limited (Incumbent) Apr. 2021 President, Material Business of Teijin Group (Incumbent) Number of Company’s Shares Owned 10,950 Shares Eiji Ogawa was appointed Corporate Officer of the Teijin Group in April 2016 and had been working to increase profits in the resin business as General Manager of the Resin and Plastic Processing Business Unit. He assumed the posts of Chief Officer, Corporate Strategy in April 2019, Director Corporate Officer in June 2020 and Director Executive Officer in April 2021. He has strived for the promotion of business portfolio transformation to establish growth platforms. From April 2022, as President Material Business of the Teijin Group, he has taken responsibility for further profit expansion of the Materials Business of the Teijin Group and development and promotion of priority fields that are the theme of Strategic Focus and will endeavor to provide environmental value solutions and safe, secure and disaster prevention solutions by taking advantage of his corporate strategy experience. 8 No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions Number of Company’s Shares Owned 【Reappointment】 Apr. 1990 Joined Teijin Limited Naohiko Moriyama Apr. 2017 Corporate Officer, Teijin Group ６ (May 20,1965) 9 times out of 9 (100%) Responsible for Healthcare Business of Teijin Group Apr. 2019 General Manager, Healthcare New Business Division Apr. 2021 Teijin Group Executive Officer 6,797 Shares President, Healthcare Business of Teijin Group (Incumbent) Jun. 2021 Director, Executive Officer Teijin Limited (Incumbent) Naohiko Moriyama was appointed as Corporate Officer of the Teijin Group in April 2017 and as Responsible for Healthcare Business and General Manager of the Healthcare New Business Division in April 2019, and he has been working on toward expanding the Healthcare business field. He assumed the posts of Executive Officer of the Teijin Group in April 2021. As President, Healthcare Business of the Teijin Group and General Manager, Healthcare New Business Division, he has worked toward further increasing the profitability of the healthcare business, which is one of the Company’s priority strategic businesses, and expanding the new healthcare business, which is the themes of our Strategic Focus in Medium-Term Management Plan. From April 2022, as President, Healthcare Business of the Teijin Group, he will continue to realize our goal of demographic change and increased health consciousness solutions. No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions Number of Company’s Shares Owned 【Reappointment】 Jul. 1971 Joined IBM Japan, Ltd Apr. 1995 Director, IBM Japan, Ltd Candidate for Outside Director Yukako Uchinaga (July 5, 1946) 12 times out of 12 (100%) Apr. 2000 Director, Executive Officer, IBM Japan, Ltd. Apr. 2004 Director, Senior Executive Officer, IBM Japan, Ltd. Apr. 2007 Board Chair, Japan Women’s Innovate Network (Incumbent) Jun. 2007 Director, Benesse Corporation Apr. 2008 Director, Vice Chairperson, Benesse Corporation Representative Director, Chairperson of the Board, President & CEO, Berlitz Corporation Oct. 2009 Director, Executive Vice President, Benesse Holdings, Inc. Apr. 2013 Honorary Chairperson, Berlitz Corporation 1,200 Shares Sep. 2013 President & CEO, Globalization Research Institute Co., Ltd. (Incumbent) Apr. 2014 Board Chair, Japan Diversity Network Association Apr. 2018 Director, Teijin Limited (Incumbent) Advisory Board member of Teijin Limited (Incumbent) Board Chair, Japan Women’s Innovate Network President & CEO, Globalization Research Institute Co., Ltd. Outside Director, HOYA CORPORATION Outside Director, SINTOKOGIO, LTD. 9 7 No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions Number of Company’s Shares Owned Yukako Uchinaga has extensive business experience, having served in roles such as Director, Senior Executive Officer at IBM Japan, Ltd. and Director, Executive Vice President at Benesse Holdings, with broad knowledge of the information technology field, and deep insight in matters concerning diversity. As the Director, she provides appropriate advice and points out on diversity activities including women’s advancement and IT / healthcare business in addition to contributing to our business strategy and governance. Furthermore, as a member of the Advisory Board, she has fulfilled her duties sufficiently in deliberation of important matters such as appointment and dismissal of the CEO, evaluation of the CEO’s performance, and recommendations for overall management. She has been a member of the Nomination Advisory Committee and the Compensation Advisory Committee since April 2021. Therefore, we continue to select her as a candidate for Outside Director so that she can continue to supervise management from an objective standpoint through the Board of Directors, Advisory Board, Nomination Advisory Committee and Compensation Advisory Committee, making use of her extensive business experience, broad knowledge and deep insight in matters concerning diversity. The Company pays membership fees to the Japan Women’s Innovative Network (“J-Win”), for which the candidate serves as Board Chair, however the amount of this transaction accounts for less than 0.1% of the consolidated net sales of the Teijin Group and is less than 1% of the total membership fee revenue that J-Win receives. No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions Number of Company’s Shares Owned 【Reappointment】 Apr. 1975 Joined Ministry of Foreign Affairs, Japan (MOFA) Jun. 1997 Deputy Permanent Representative of Japan to the World Trade Organization (WTO) in Geneva Apr. 2003 Minister’s Secretariat (MOFA) (September 25, 1950) Sep. 2005 Consul-General of Boston Dec. 2008 Director-General for Economic Affairs of MOFA Candidate for Outside Director Yoichi Suzuki 12 times out of 12 (100%) Aug. 2010 Ambassador to Singapore Aug. 2013 Ambassador to France 8 Jun. 2016 Government Representative and Ambassador in charge of 2,400 Shares the Kansai region Mar. 2017 Government Representative and Ambassador Ambassador for International Economic Affairs and Chief Negotiator for the Japan EU EPA Apr. 2018 MOFA retired Apr. 2018 Director, Teijin Limited (Incumbent) Advisory Board member of Teijin Limited (Incumbent) Outside Director, KAJIMA CORPORATION Although Yoichi Suzuki does not have direct experience in corporate management, he has a wealth of knowledge and experience in negotiations on international economics and trade issues as a diplomat. As the Director, he provides appropriate advice and points out business strategies from a global viewpoint in addition to contributing to our business strategy and governance. Furthermore, as a member of the Advisory Board, he has fulfilled his duties sufficiently in deliberation of important matters such as appointment and dismissal of the CEO, evaluation of the 10 No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions Number of Company’s Shares Owned CEO’s performance, and recommendations for overall management. He has been a member of the Nomination Advisory Committee and Compensation Advisory Committee since April 2021. Therefore, we continue to select him as a candidate for Outside Director so that he can continue to supervise management from an objective standpoint through, the Board of Directors, Advisory Board, Nomination Advisory Committee and Compensation Advisory Committee by utilizing his knowledge and experience as a diplomat. No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions Number of Company’s Shares Owned 【Reappointment】 Apr. 1978 Joined Japan Air Lines Co., Ltd. Candidate for Outside Director Masaru Onishi (May 19, 1955) 12 times out of 12 (100%) Apr. 2007 President JAL Aircraft Maintenance Narita Apr. 2009 Executive officer, JAL International Co., Ltd Jun. 2009 President of Japan Air Commuter Feb. 2010 President Japan Air Lines Corporation (JAL group COO) President Japan Air Lines International Co., Ltd. Nov. 2010 Director,President Japan Air Lines International Co., Ltd. Mar. 2011 Representative Director, President Japan Air Lines (Organizational change) International Co., Ltd. Apr. 2011 Representative Director, President Japan Airlines Co., 9 Ltd. (Company name change from Japan Air Lines International Co., Ltd. to Japan Airlines Co., Ltd.) 1,500Shares Representative Director, Chairperson Japan Airlines Co., Ltd. Ltd. Feb. 2012 Representative Director, Chairperson Japan Airlines Co., Apr. 2014 Director, Chairperson Japan Airlines Co., Ltd Jul. 2018 External Affairs Representative, Japan Airlines Co., Ltd. Jun. 2019 Director, Teijin Limited (Incumbent) Advisory Board member of Teijin Limited (Incumbent) Outside Director, Mitsui O.S.K. Lines, Ltd. Outside Director, Kadoya Sesame Mills Incorporate Masaru Onishi had served as president and Chairperson of Japan Airlines Co. Ltd. and he has abundant business experience and a high level of insight. As the Director, he is providing appropriate advice and suggestions regarding the Company’s business strategy and cooperate governance, as well as on officer compensation and appointments. Furthermore, he has fulfilled his role sufficiently in appointment, dismissal, and evaluation of the CEO’s performance as the member of the Advisory Board which is the Company advisory body, and with regard to compensation for Directors and Officers and the introduction of a new stock-based remuneration system as committee chair of the Compensation Advisory Committee. He has fulfilled his duties sufficiently in recommendations for overall management. Therefore, we continue to select him as a candidate for Outside Director, so that he can continue to supervise management from an objective standpoint through the Board of Directors, Advisory Board, Nomination Advisory Committee, and Compensation Advisory Committee by utilizing his 11 No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions abundant business experience and high level of insight. No. Candidate’s Name (Date of Birth) Personal History, Positions and Significant Concurrent Positions 【New Candidate】 Apr. 1976 Joined Bridgestone Corporation Candidate for Outside Director Masaaki Tsuya (Jun 22,1952) 10 Mar. 2006 Vice President and Officer Bridgestone Corporation Mar. 2008 Director, Vice President and Senior Officer Bridgestone Sep. 2011 Representative Director, Senior Vice President Corporation Bridgestone Corporation Mar. 2012 Representative Director, CEO (Chief Executive officer) Bridgestone Corporation Mar. 2013 Representative Director, CEO Chairperson of the Board, Bridgestone Corporation Mar. 2016 Chairperson of the Board, Bridgestone Corporation CEO and Representative Executive Officer Mar. 2020 Chairperson of the Board, Bridgestone Corporation Mar. 2021 External Advisor, Bridgestone Corporation (Incumbent) External Advisor, Bridgestone Corporation Number of Company’s Shares Owned Number of Company’s Shares Owned 1,500 Shares Masaaki Tsuya had served as CEO and Chairperson of the Board of Bridgestone Corporation. In addition, he has accumulated abundant business experience through engagement in fields such as international relations, human resources and public relations, and promotion of internal control. In particular, he has experience in global business, strengthening corporate governance, and enhancing deliberations and enabling appropriate decision making by the Board of Directors. Based on his experience, the Company has determined that he qualifies for the Outside Director of the Company working toward strengthening corporate governance as a global company. The amount of transactions between Bridgestone Corporation and the Company accounts for less than 1% of the consolidated net sales of either company. Note 1: Yukako Uchinaga, Yoichi Suzuki, Masaru Onishi and Masaaki Tsuya are candidates for Outside Directors. The Company requires the candidate for Outside Director to satisfy all the requirements of Independent Director stipulated by the Company. These four (4) candidates satisfy all such requirements. Since they also satisfy the requirements of independence stipulated by Tokyo Stock Exchange Group, Inc., the Company has registered candidates for Outside Director up for reappointment, Yukako Uchinaga Yoichi Suzuki and Masaru Onishi, at the Tokyo Stock Exchange as Independent Directors, and it plans to register the new candidate for Outside Director, Masaaki Tsuya, at the same stock exchange as Independent Director. The contents of the requirements of “Independent Director” stipulated by the Company can be viewed at the Company’s Web site: (https://www.teijin.com/ir/management/governance/requirements/). Note 2: The Company has entered into liabilities limitation agreements with Yukako Uchinaga, Yoichi Suzuki and Masaru Onishi who are currently Outside Directors, which limit the liabilities of each Director to ¥20 million or the minimum amount stipulated in Article 425, Paragraph 1, of the Companies Act, whichever is higher, in accordance with the provisions of Article 427 of the Companies Act and the Company’s Articles of Incorporation. If the reappointment is approved, the Company will continue the liabilities limitation agreements with them. If Jun Suzuki and Masaaki Tsuya election are approved, the Company will enter into a liabilities limitation agreements with them which limit their liabilities to ¥20 million or the minimum amount stipulated in Article 425, Paragraph 1, of the Companies Act, whichever is higher, in accordance with the provisions of Article 427 of the Companies Act and the Company’s Articles of Incorporation. Note 3: There are no special interests between the candidates and the Company. Note 4: The chart below indicates the dates of the first appointment of the Outside Director for each candidate and the tenures in position as Outside Director before the closing of this General Meeting of Shareholders. 12 Name Yukako Uchinaga Yoichi Suzuki Masaru Onishi Date of First Appointment June 20, 2018 June 20, 2018 June 20, 2019 Tenure in Position 4 years 4 years 3 years Note 5: About directors and officers liability insurance (D&O insurance) The Company has concluded a directors and officers liability insurance contract with an insurance company as stipulated in Article 430-3, Paragraph 1 of the Companies Act, in which each Director whose term of office expires at the conclusion of this General Meeting of Shareholders is included as an insured. Under said insurance contract, legally mandated amount of indemnification and litigation expenses arising from the insured’s assumption of liability during the insurance period, or receipt of claims pertaining to the pursuit of such liability, caused by the performance or omission of his or her duties, will be covered. However, claims for damages caused by intention or gross negligence will not be covered. If the election of each candidate is approved, all candidates (and reelected candidates will continue to be) will be included in said insurance contract as insureds. The full amount of the insurance premiums is borne by the Company. Next time, we plan to renew the insurance contract in July 2022. 13 Management Structure After Approval of Proposals 2 (Planned) Name Area of expertise and experience ManagemeFinance and Legal/BusinGlobal EnvironmHealth and IT/DX/InnDiversity＆nt accounting ess/Risk managemenent/ Safety ovation Inclusion experience management Solution Solution t yrogetaCJun Suzuki Akimoto Uchikawa Akihisa Nabeshima Toshiya Koyama Eiji Ogawa rotceriDNaohiko Moriyama Uchinaga Yoichi Suzuki Onishi Masaaki Tsuya Masanori Shimai Akio Nakaishi Ikegami rotiduA yrotutatS 〇 〇 〇 eruneT9 1 3 2 2 1 3 2 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 14 Yukako Outside 4 〇 〇 〇 Outside 4 Masaru Outside 3 〇 〇 Outside – 〇 〇 〇 〇 〇 〇 〇 Gen Outside 7 〇 Hitomi Outside 5 Nakayama Jun Arima Outside 2 〇 〇 〇 〇 The table is not indicative of all the expertise and experience possessed by each individual. 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 Attached Reports Reports on Operations for the 156th Fiscal Year (April 1, 2021 to March 31, 2022) 1.Matters concerning the current status of the Teijin Group (corporate group) (1) Progress and results of business activities 1) Business results for the current period In FY2021, the spread of infections from the global COVID-19 pandemic and the resulting governmental restrictions on people’s social and economic activities worldwide continued, as in the previous year. Although demand was recovering mainly in the automotive and aircraft industries, supply chain operations remained sluggish in various industries, while factors such as the semiconductor shortage and the rise in raw material and fuel prices and logistics costs had massive adverse impacts on corporate performance. Moreover, the Russian invasion of Ukraine has caused concern about the supply of energy, minerals, etc., and the resulting rise in their prices, adding to economic uncertainties. The Teijin Group has been implementing various measures envisioned in its its three-year Medium-Term Management Plan for three-year from FY2020, whose period the Group positions as a period for creating growth platforms toward sustainable growth, under its long-term vision of becoming “a company that supports the society of the future” by contributing to realizing a sustainable world. In FY2021, the second fiscal year of the Plan, as investments for enhancing profitability in the Materials Business Field toward the future even amid the COVID-19 pandemic, the Group made capital investment in increasing its para-aramid fiber production capacity in the Netherlands, and implemented two plant projects in North America: one to build a new automotive composites plant in Texas and the other to put into operation a new carbon fibers plant. In the Healthcare Business Field, the Group strove to strengthen its foundation for profitability and establish a new profit base for future business expansion by taking over the rights for the Japan sales of diabetes treatments from Takeda Pharmaceutical Company Limited and making steady progress in the sales transfer. Furthermore, in the regenerative medicine business, which the Group had entered as a field for inter-business collaboration, it worked with Japan Tissue Engineering Co., Ltd. (hereinafter, “J-TEC”), the Group’s new subsidiary, to formulate a business plan and launch new joint initiatives. For FY2021, the Teijin Group’s net sales amounted to 926.1 billion yen, an increase of 10.7% year on year, and operating income was 44.2 billion yen, a decrease of 19.5% year on year. Ordinary income was 49.7 billion yen, a decrease of 7.4% year on year, mainly due to the reduced equity in earnings of affiliates, and profit attributable to owners of parent was 23.2 billion yen (ref.: loss of 6.7 billion yen for the previous fiscal year) mainly due to the recording of impairment losses. Operating income in the Healthcare Business Field significantly increased due to strong sales of FEBURIC and the favorable impact of the takeover of the sales rights for the diabetes treatments, while the IT Business also remained solid operating income. Meanwhile, despite a recovery in demand mainly for products for automotive and aircraft applications from the impact of the COVID-19 pandemic and the resulting increase in the sales volume of those products, the Materials Business Field experienced a decrease in operating income due to the semiconductor shortage, which became obvious in the second quarter, the sharp rise in raw material and fuel prices and logistics costs, and production suspension caused by periodic maintenance and power outages in a subsegment. The Fibers & Products Converting Business also suffered a decrease in operating income due to the end of governmental demand for medical protective equipment (gowns). 15 As a result, ROE, an indicator of profitability, was 5.5%, far short of the target (10% or higher) for the final fiscal year (FY2022) of the Medium-Term Management Plan, and ROIC based on operating income was 5.5%, also lower than the target (8% or higher) for the final fiscal year of the same Plan. However, EBITDA, an indicator of the ability to generate cash, was 113.0 billion yen, higher than 106.8 billion yen for the previous fiscal year. 2) Financial status Total assets at the end of the current fiscal year increased by 166.5 billion yen from the end of the previous fiscal year 4 to 1,207.6 billion yen. Current assets increased by 37.4 billion yen from the end of the previous fiscal year due to changes in cash, deposits, accounts receivable, and other current assets. As for fixed assets, increased by 129.0 billion yen from the end of the previous fiscal year. Tangible fixed assets increased by 32.7 billion yen due to capital investment exceeding depreciation, and sales rights increased by 118.2 billion yen due to acquisition of sales rights for type 2 diabetes treatments from Takeda Pharmaceutical Company Limited, and due to the partial return of assets contributed to the retirement benefit trust, assets related to retirement benefits decreased by 22.8 billion yen. of sales rights. Liabilities increased by 132.0 billion yen from the end of the previous fiscal year to 742.8 billion yen. Interest-bearing debt increased by 105.1 billion yen, mainly due to the issuance of corporate bonds to fund the acquisition Net assets increased by 34.4 billion yen from the end of the previous fiscal year to 464.8 billion yen. This was mainly due to the recording of profit of 23.2 billion yen attributable to owners of the parent and the increase in foreign currency translation adjustment accounts due to the depreciation of the yen against major currencies. As a result, the debt-to-equity ratio was 1.1 times and the equity ratio was 36.4%. (At the end of the previous fiscal year, the debt-to-equity ratio was 0.9 times and the equity ratio was 39.0%) The conversion rates of balance sheets at the end of the current fiscal year are 122 yen / US dollar, 137 yen / euro, and1.12 US dollars / euro (111 yen / US dollar, 130 yen / euro, 1.17 US dollars / euro at the end of the previous fiscal year). Segment operating results (sales and operating income) of the Teijin Group are as follows. Fiscal 2020 Fiscal 2021 Change Percentage (Billions of yen / %) Materials High-performance materials Composites Materials Sub Total Healthcare Fibers & Products Converting IT Others Total Materials Healthcare Fibers & Products Converting IT Others Elimination and corporate Total Net sales Operating Income 210.4 86.6 297.0 148.7 314.9 58.1 17.8 836.5 1.0 31.5 17.5 10.4 △0.2 △5.2 54.9 16 273.5 111.6 385.1 183.6 282.5 53.8 21.2 926.1 △5.7 43.2 5.6 9.7 △2.1 △6.4 44.2 +63.1 +25.0 +88.1 +34.9 △32.5 △4.3 +3.3 +89.5 △6.7 +11.6 △11.9 △0.7 △1.9 △1.2 △10.7 +30.0 +28.9 +29.7 +23.5 △10.3 △7.5 +18.6 +10.7 – +37.0 △67.8 △6.7 – – △19.5 EBITDA ratio by segment Segment Material Healthcare Fibers & Products Converting IT Others Total (erasure excludes company-wide) Component ratio 21.1% 59.4% 10.2% 9.1% 0.1% 100.0% Business Segment Results for fiscal 2021 were as follows: Although sales volume increased mainly in products for automotive and aircraft applications due to demand recovery from the impact of the COVID-19 pandemic, the semiconductor shortage, the sharp rise in material and fuel prices and logistics costs, and periodical maintenance and production suspension in a subsegment had a massive impact on income. Mainly in response to the rise in material and fuel prices, selling prices were revised in each subsegment. Net sales were 385.1 billion yen, an increase of 88.1 billion yen (29.7%) year on year, while the operating loss was 5.7 billion yen (ref.: operating income of 1.0 billion yen for the previous fiscal year). EBITDA was 25.0 billion yen, a decrease of 6.5 billion yen year on year, while ROIC based on operating income was −2%. In the aramid business, demand for Twaron para-aramid fibers, the major product in the business, recovered in each market, mainly for automotive applications, resulting in an increase in sales volume of the product. Meanwhile, production suspension was caused by major periodical maintenance in the first quarter, and its extension, and power outages at the raw material plant in the third quarter, resulting in tight inventories and an adverse impact on sales volume. Selling prices were revised upward in response to an increase in fuel costs due to the rise in natural gas prices in Europe. As a result, the aramid business experienced a net-sales increase and an operating-income decrease year on year. The resin and plastic processing business suffered a slight decrease in sales volume due to the semiconductor shortage and the decreased level of customers’ operations amid the COVID-19 pandemic. The business also revised selling prices upward in response to the rising prices of raw materials and fuels, such as BPA, which is a main raw material for the business. Consequently, the resin and plastic processing business achieved an increase year on year in both net sales and operating income. The carbon fibers business achieved an increase in the sales volume of TENAX carbon fibers for all applications, including aircraft, wind power, and recreation applications. In addition, the business revised selling prices upward in response to the rise in AN price that is the main material due to the tight supply-demand balance. As a result, the carbon fibers business achieved an increase year on year in both net sales and operating income. In FY2021, the new plant in North America began operation and has since been developing intermediate materials for aircraft applications toward the future. In the battery materials business, the sales volume of LIELSORT, a separator for lithium-ion batteries (LIBs), increased for smartphone applications. Moreover, the business has been earning licensing income from ongoing sales of separators for electric-vehicle LIBs, for which Teijin has licensed a coating technology. Consequently, the 17 battery materials business achieved an increase year on year in both net sales and operating income. In the composites business, the continued production suspension of OEMs, major customers of the business, due to the semiconductor and parts supply shortage influenced the production of SUV and pickup truck parts, on which Teijin Automotive Technologies* focuses in the U.S. In addition, material prices remained high due to the tight supply-demand balance, having a major impact on production costs. To address this situation, the composites business negotiated with customers over selling prices and succeeded in reaching agreements with some customers on the revision of selling prices for the fourth quarter and later. With the U.S. labor force participation rate, which had remained low even after the end of the payment of additional unemployment benefits, starting to increase in the second half of FY2021, the labor 2 shortage at Teijin Automotive Technologies US was gradually alleviated. As a result, the composites business experienced a net-sales increase and an operating-income decrease year on year. * Global business brand of the automotive composites business Sales of FEBURIC, the main product of the segment, and home healthcare equipment rental services remained strong, while sales of diabetes treatments, for which the segment had taken over the sales rights, also remained robust. All these factors contributed to an increase in both net sales and operating income. Moreover, the segment received milestone payment (one-off payment) for the Alzheimer’s treatment candidate that Teijin had licensed to Merck & Co., Inc., United States, in 2017. Net sales were 183.6 billion yen, an increase of 34.9 billion yen (23.5%) year on year, while operating income was 43.2 billion yen, an increase of 11.6 billion yen (37.0%) year on year. EBITDA was 70.5 billion yen, an increase of 26.8 billion yen year on year, while ROIC based on operating income was 20%. In the pharmaceutical business, sales of the four type-2 diabetes treatments, for which Teijin had taken over the sales rights from Takeda Pharmaceutical Company Limited as of April 1, 2021, remained robust. In addition, sales of FEBURIC, the main product of the segment, and Somatuline,* a treatment for acromegaly, pituitary gigantism, and neuroendocrine tumors, increased promisingly. Moreover, the sales volume of XEOMIN, for which lower limb spasticity was approved as an additional indication in June 2021, continued to increase steadily. Also, in December 2021, the segment received milestone payment (one-off payment) for the start of clinical trials of the Alzheimer’s treatment candidate that Teijin had licensed to Merck & Co., Inc., United States, in 2017. * Somatuline® is the registered trademark of Ipsen Pharma, France. In the home healthcare business, restrictions on hospitalization to secure beds for COVID-19 patients resulted in a continued shift to home healthcare and an increase (of about 3% from the end of the previous fiscal year) in the number of rented oxygen concentrators in the home oxygen therapy (HOT) market. In the market for continuous positive airway pressure (CPAP) therapy, the number of examinations recovered gradually, and the number of rented CPAP devices continued to grow (by about 8% from the end of the previous fiscal year). Consequently, the pharmaceutical business and the home healthcare business achieved an increase in both net sales and operating income year on year. The new healthcare business saw a recovery in the number of surgical operations with orthopedic implantable devices, including artificial joints and absorbable osteosynthesis materials, and sales of new products of these kinds 18 grew steadily. However, mainly due to the preliminary costs of new businesses, including the comprehensive community-based healthcare business, the new healthcare business experienced a net-sales increase and an operating-income decrease year on year. Net sales were 282.5 billion yen, a decrease of 32.5 billion yen (10.3%) year on year, while operating income was 5.6 billion yen, a decrease of 11.9 billion yen (67.8%) year on year. EBITDA was 12.1 billion yen, a decrease of 11.8 billion yen year on year, while ROIC based on operating income was 4%. The field of textiles and apparel generally faced difficulties due to the sluggish Japanese market and overseas plant shutdowns, both of which were caused by the COVID-19 pandemic, as well as the sharp rise in material and fuel prices and logistics costs, despite a recovery in sales of materials and products for the European, North American, and Chinese markets and sales of heavy clothing in the Japanese market. In the field of industrial materials, sales of films and plastics for automotive parts and electronic parts remained strong, while sales of short polyester fibers for water treatment filters also remained good. However, from the second quarter, the semiconductor shortage had an impact on this field by causing a decline in automotive production volume. Despite the impact of the end of government demand for medical protective equipment (gowns), various efforts contributed to the business results, including increasing basic profitability through the concentration on certain selected businesses and reducing SG&A expenses by utilizing digital tools suitably for the pandemic situation. Furthermore, the segment revised selling prices in response to the cost increase. Net sales were 53.8 billion yen, a decrease of 4.3 billion yen (7.5%) year on year, while operating income was 9.7 billion yen, a decrease of 0.7 billion yen (6.7%) year on year. EBITDA was 10.8 billion yen, a decrease of 0.5 billion yen year on year, while ROIC based on operating income was 61%. In the Internet business field, profit was secured by optimizing advertising costs despite a decrease in net sales in e-comics services due to the end of specially high demand amid the stay-at-home trend in the previous fiscal year and the continuous impact of piracy websites. In the IT service field, sales remained strong despite the lasting impact of the COVID-19 pandemic. The decrease in operating income for the entire IT Business was caused mainly by an increase in SG&A expenses due to office relocation. Net sales were 21.2 billion yen, an increase of 3.3 billion yen (18.6%) year on year, while the operating loss was 2.1 billion yen (ref.: operating loss of 0.2 billion yen for the previous fiscal year). EBITDA was 0.1 billion yen, a decrease of 0.6 billion yen year on year. J-TEC obtained approval for the manufacturing and marketing of Ocural (the world’s first regenerative medical product that cures limbal stem cell deficiency using oral mucosal epithelial cells) in June 2021. After the product was listed in health insurance coverage in Japan in December 2021, the company started selling it. In addition, J-TEC began clinical trials of allogeneic cultured epidermis in November 2021. Although sales in J-TEC’s Regenerative Medicine Business and R&D Support Business grew, sales in its Custom Development & Manufacturing Business declined due to the end of its custom-development deal with Fujifilm Corporation, its 19 former parent company and major customer. As a result, J-TEC experienced a decrease in net sales year on year. (2) Changes in Assets and Profit and Loss Fiscal Period 153rdFiscal Period FY2018 154thFiscal Period FY2019 155thFiscal Period FY2020 (Millions of yen) 156thFiscal Period FY2021 (Current period) Items Net sales Operating income Ordinary income Total assets Net assets Profit attributable to owners of parent Net earnings per share 888,589 853,746 836,512 926,054 60,000 60,264 45,057 232.39 56,205 54,337 25,252 131.63 54,931 53,658 △6,662 △34.70 44,208 49,692 23,158 120.58 1,020,654 1,004,223 1,041,131 1,207,583 427,212 411,409 430,364 464,811 Note: In this consolidated fiscal year, the Company confirmed the provisional accounting treatment it had applied concerning business combination during the previous consolidated fiscal year. Therefore, the figures for the previous consolidated fiscal year reflect the confirmed accounting treatment. (3) Capital investment Capital investments by the Group in fiscal 2021 totaled ¥200.8billion, mainly for the purpose of the acquisition of intangible assets by the transfer of Japan sales of type 2 diabetes treatments from Takeda Pharmaceutical Company Limited and increasing the production capacity of aramid business and composites business. (4) Financing The Company procured finance borrowings from financial institutions, and the public issuance of Hybrid Bonds (Subordinated Bonds) and Straight Bond. Mainly due to the implementation of financing related to the transfer of Japan sales of type 2 diabetes treatments from Takeda Pharmaceutical Company Limited, interest-bearing debt amounted to \485.2 billion, an increase of \105.1 billion from the end of the previous year. As part of the financing for the transfer of sales, The Company issued Hybrid Bonds (Subordinated Bonds) and received capital certification on 50% of the capital of \60 billion on July 21, 2021. The Company has improved its temporarily deteriorating financial position and secure financial soundness supporting proactive investments in Strategic Focus fields, which are expected to be future revenue sources. (5) Management Policy and Tasks Ahead 1) Corporate Vision Based on its corporate philosophy and toward the creation of a sustainable society, the Teijin Group aims to achieve its long-term vision, which is to become “a company that supports the society of the future.” In consideration of global social issues and to achieve the SDGs, the Group has identified the five issues of materiality that it should address as priorities. By dealing with the issues and offering value to society mainly through the following three solutions, we will contribute to the creation of a sustainable society while also enhancing our corporate value. 20 Three Solutions Environmental Value Solutions Safety, Security, and Disaster Mitigation Solutions Demographic Change and Increased Health Consciousness Solutions 2) Issues to be addressed Provide products and services contributing to global environmental goals such as prevention and adaptation of climate change and achievement of a circular economy Provide products and services protecting lives and livelihoods from various risks such as disasters and accidents Provide products and services supporting healthy and comfortable living for people of all ages a) Medium-term management plan and Quantitative targets In its medium-term management plan for 2020-2022, “ALWAYS EVOLVING,” (hereinafter, “the medium-term management plan”), we regard the period for the plan as a time to create growth platforms. We will categorize the businesses that need further development to ensure future profitability as the “Strategic Focus” businesses, while the businesses that are already profitable and will achieve further growth will be categorized as “Profitable Growth” businesses, in which we will invest in a proactive manner. For our most important indicators, we use ROE (group-wide) and operating income ROIC (group-wide and business-specific) as profitability indicators and use EBITDA (group-wide and business-specific) as a growth indicator. For the quantitative targets in FY2022, we have set an ROE of 10% or higher, an operating income ROIC of 8% or higher, and EBITDA of 150 billion yen. To achieve these targets, we are investing to establish a business portfolio that will help us increase our corporate value, while paying attention to our financial soundness and the capital costs. b) Issues to be addressed The COVID-19 pandemic has brought about drastic changes to the economy, people’s lives, and values at the global level. Moreover, we are facing the shortage of semiconductors and also surges in materials prices, natural gas prices in Europe, logistics cost and others, which are negatively affecting our revenues. In addition, due to the materialization of political and geopolitical risks across the world, we are facing more uncertainties. Accordingly, the actual business results for FY2022 (to be publicly announced in May 2022) will be lower than the quantitative targets set in the medium-term management plan. In order to enhance the profitability of each business, we will 21 implement necessary measures while evaluating each of the Teijin Group’s businesses for their positioning in the Group and formulate the next medium-term management plan to establish a business portfolio that will help us increase our corporate value. ■Materials Business Field In the materials business, we are working to meet a range of social needs—including those for weight reduction in the mobility field and for environmental measures in materials and components—in our pursuit of more business opportunities. We are strategically promoting the high value-added application of our materials by enhancing their functions and promoting the combined use of multiple materials. We are now facing a substantial reduction in our profitability due to surges in materials/gas prices and logistic costs as well as in labor expenses in North America, and need to meet the challenge of recovering and improving our profitability in the materials business. 【Strategic Focus area (for the development of future sources of earnings)】 Automotive composites Carbon fiber Intermediate materials for aircraft 【Profitable Growth area】 Aramid Resin and Plastic Processing Carbon fiber ■Healthcare Business Field ･Implement measures (for pricing, productivity and area strategy) to promptly recover profitability ･Develop platform building, combined use of multiple materials and lifecycle assessment for automotive components ･Promote development to participate in new large projects for future aircraft ･Maintain and enhance the leader position in the industry by developing more applications ･Generate the effect of expanding the line as early as possible ･Maintain and increase profitability by expanding the lineup of high value-added products ･Generate the effect of newly establishing the manufacturing line in North America as early as possible ･Improve profitability by finding more profitable non-aircraft applications and promoting sales for such applications The Teijin Group aims to become a comprehensive healthcare service provider that offers localized products and services throughout the cycle of preventive care/health promotion, treatment and rehabilitation/nursing care. 22 However, we are now facing delays in the expansion of new businesses as we set forth in the current medium-term management plan, including the implementation of M&A. Moreover, generic medicine of FEBURIC, one of our core pharmaceutical drugs, will be put into market in FY2022, and we need to meet the challenge of minimizing its influence over our profitability in the healthcare business. 【Strategic Focus area (for the development of future sources of earnings)】 New business related to community-based integrated care Functional foods 【Profitable Growth area】 Pharmaceuticals and Home Healthcare ･Launch new services in the community-based integrated care-related market and enhance and expand the foundation of the community-based integrated care system ･Promote sales of existing products and steadily release new products to the market ･Develop business in an optimal manner for the core pharmaceutical product (Type 2 diabetes treatments), oxygen concentrators for home oxygen therapy (HOT), and equipment for the cont