TEIJIN LIMITED

Business Details

Manufactures and sells Aramid Fiber (Twaron and others), Polycarbonate Resin, Carbon Fiber, Composite Molding Materials, and other products. Supplies high-performance materials to a broad range of customers in automotive, aircraft, ballistic protection, optical fiber, and industrial applications. Operates a global production network centered on Teijin Aramid B.V. (Netherlands) in Europe, together with Composite Molding Materials sites in North America and Asia. In FY2026 (ending March 2026), the segment accounted for approximately 40% of the Group's total revenue. Following the organizational restructuring effective April 1, 2026, this segment will be reorganized into "Specialty Materials," "Electronics & Energy," and other segments from the following fiscal year.

Recent Overview

Large-scale impairment losses and ongoing structural reforms caused business profit to plunge 98% year on year to ¥118 million

In the Materials segment for FY2026 (ending March 2026), revenue fell sharply to ¥349,186 million (down 26.3% year on year) and business profit dropped to ¥118 million (down 98.0% year on year). Impairment losses of ¥50,354 million were recorded in the Aramid Fiber (Twaron) business and ¥8,156 million in the Carbon Fiber business (totaling ¥62,295 million). The North American TAT business was deconsolidated following the completion of the share transfer on July 1, 2025. In the Carbon Fiber business, fundamental cost structure reforms, including a temporary suspension of the U.S. plant, are underway. Following the organizational restructuring effective April 1, 2026, this segment will be reorganized into the "Specialty Materials" segment from the following fiscal year.

Key Products

Growth Drivers

• Early recovery of underlying earnings power through the effects of fundamental cost structure reforms in the Aramid Fiber (Twaron) business
• Fixed cost reduction and earnings stabilization through a review of the production system in the Carbon Fiber business, including the temporary suspension of the U.S. plant
• Recovery in sales volume in the Composite Molding Materials business (Europe) in line with recovery of the automotive market
• Recovery in Polycarbonate Resin demand supported by an economic recovery in China in the resin business
• Continued materialization of the effect of reduced amortization expenses following completion of impairment processing, from the second half onward
• Optimization of the business portfolio through divestiture of the unprofitable TAT North American business following completion of the sale

Risks

• Risk of delayed earnings recovery in the Twaron business due to intensifying competition and continued euro appreciation (an impairment loss of ¥50,354 million has already been recorded)
• Continued softening of the supply-demand balance and market price declines centered on general-purpose applications in the Carbon Fiber business
• Sluggish demand and price declines for Polycarbonate Resin due to intensifying competition amid China's economic slowdown
• Sluggish demand across Materials overall due to weak European manufacturing activity and a global economic slowdown
• Impact of uncertainty in U.S. trade policy (tariffs) on exports to North America and local production costs
• Risk of increased administrative costs during the transition period associated with the organizational restructuring in April 2026 (reorganization into Specialty Materials and other segments)