Teijin : Notice regarding Recording of Impairment Loss, Gain on Sale of Shares of Affiliates (Consolidated) and Extraordinary Income and Loss (Non-consolidated)

To Whom It May Concern

May 11, 2026

Company: Teijin Limited Representative: Akimoto Uchikawa, President and CEO Stock code: 3401 (Prime Market, Tokyo Stock Exchange) Contact: Tetsuji Mikami, General Manager,

Corporate Communication Department

TEL: +81-3-3506-4395

Notice regarding Recording of Impairment Loss, Gain on Sale of Shares of Affiliates (Consolidated) and Extraordinary Income and Loss (Non-consolidated)

Teijin Limited hereby announces that it recorded impairment loss for the fourth quarter of the consolidated fiscal year ended March 2026 (January 1, 2026 to March 31, 2026), and loss on valuation of shares of affiliates for the same period of the non-consolidated fiscal year, as follows. Furthermore, for the first quarter of the consolidated fiscal year ending March 2027 (April 1, 2026 to June 30, 2026), the Company will recognize a gain on the sale of shares of affiliates on both consolidated and non-consolidated bases, as stated below.

Details

1. Content

   1. Impairment loss in non-financial assets (consolidated)

      Teijin Limited conducted an impairment test of sales rights in Japan for a therapeutic agent for type 2 diabetes and non-current assets relating to the relevant business, in accordance with the narrowing to the rare diseases / intractable disease areas in the pharmaceutical business as part of the structural reforms set forth in "Teijin Group Medium-Term Management Plan 2026 - 2028," which was announced today. As a result, impairment loss of 25.4 billion yen was recorded as cost of sales of 2.8 billion yen and selling, general and administrative expenses of 22.6 billion yen for the consolidated fiscal year ended March 2026.

   2. Loss on valuation of shares of affiliates (non-consolidated)

      The financial position of Teijin Holdings Europe B. V. (hereinafter, "THEU"), a consolidated subsidiary holding equity interests in Teijin Aramid B. V. (hereinafter, "TABV"), deteriorated, reflecting the recognition of impairment loss in non-current assets of TABV and other factors. As a result, a loss of 28.9 billion yen on valuation of shares of affiliates was recorded for the non-consolidated fiscal year ended March 2026, relating to the shares of THEU held by the Company. It should be noted, however, that there is no impact on the consolidated profit and loss due to the elimination of loss on valuation of shares of this affiliate in the consolidated financial statements.

   3. Gain on sale of shares of affiliates (consolidated and non-consolidated)

   As announced on August 29, 2025, the Company entered into an agreement, under which the

   shares of DuPont Teijin Advanced Papers (Japan) Limited (hereinafter, "DTPJ") and DuPont Teijin Advanced Papers (Asia) Limited (hereinafter, "DTPA") shall be transferred to DuPont de Nemours, Inc. (hereinafter, "DuPont"), a joint investor. Following the completion of the transfer of all shares held by the Company of DTPJ and DTPA effective April 1, 2026, gain on sale of shares of affiliates of around 45.5 billion yen will be recorded as other income for the first quarter of the consolidated fiscal year ending March 2027, and gain on sale of shares of affiliates of around 41.9 billion yen will be recorded as extraordinary income for the same period on a non-consolidated basis.

2. Impact on business performance

Since the above-mentioned impairment loss had been anticipated for the full-year forecast for the consolidated fiscal year ended March 2026, which was announced on March 31, 2026, there is no difference from the forecast.

The completion of the transfer of shares of DTPJ and DTPA has also been taken into consideration in the full-year forecast for the consolidated fiscal year ending March 2027, which has been announced today, and there is no difference from the forecast.

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