Teijin (3401) Investor Day 2025 summary

Portfolio and strategic direction

• 2024–25 divestitures included underperforming e-commerce and North America commerce businesses, aramid paper, logistics and bromine; resources shifted toward fiber, healthcare and resin.

• Next-term focus is higher profit, with fiber expansion through collaboration with Asahi Kasei Advance and acquisitions of Unitika spunbond and Toyobo China’s airbag business; home healthcare will also be accelerated.

• A customer-centric model built on trust and tailored solutions supports stable profits; resin and plastic processing growth centers on co-creation, technology combinations and customer relationships.

Resin business position

• PC resins account for 80% of sales, within a lineup that includes functional resins, compounds and flame retardants; sales are Asia-centric, with China over 50% and its exposure split ~50/50 between domestic demand and export processing.

• PC and PPS spreads are at their lowest level ever, while profit remains stable and current ROIC is over 10%; cost reductions and a shift to high-value products helped stabilize profits post-2015.

• More than 60 years of PC experience, proprietary manufacturing processes, technical centers and customer-specific formulations support quality stability, rapid prototyping and differentiation.

• Natural PC demand and general-purpose product sales have declined, while sales volume of high-value-added products has remained stable as the mix shifts toward compounds and premium applications.

• PC resin has historically supplied most resin profit; high-value products and circular initiatives aim to protect profitability amid intensifying competition over the next 3–5 years.

Growth plan and focus areas

• Protect PC earnings while growing non-PC resin contribution over the next 3 years and developing new profit pillars over 5–10 years; targets include 3–5% CAGR and ROIC above 10%.

• Four priorities: grow high-value products, especially in autos and semiconductors; strengthen regional sales and development; develop circular and PFAS-free materials; and reduce costs through sourcing, operating-cost alignment, automation and DX.

• Growth fields include automotive, semiconductors, communications and medical, with development targeting vehicle comfort, charging infrastructure, China chipmakers and aging-related healthcare needs.

• BCO flame retardants target autos, electronic connectors, data servers and EVs; stable supply and a limited competitor base support revenue and profit stability.