Teijin (3401) Investor Update summary

Midterm Management Plan and Strategic Vision

• Focus on improving profitability and transforming the business portfolio by 2024–2025, targeting a 10%+ ROE by 2028 and emphasizing growth in healthcare, mobility, and infrastructure sectors.

• Healthcare vision centers on supporting society through products and services for rare and intractable diseases, prioritizing home healthcare and environmental sustainability.

• Strategic options implemented for INFOCOM and North American composites, with further management base strengthening underway.

Healthcare Business Foundation and Strategy

• Built a leading home healthcare platform in Japan, leveraging a nationwide network, call centers, and nurse visits, with strong positions in therapeutic oxygen concentrators and SAS treatment.

• Core products include HOT devices, CPAP ventilators, and drugs for diabetes and osteoporosis, with top domestic market share.

• Business model relies on device installation, maintenance, multidisciplinary support, and a nationwide service network.

• Responding to drug price reductions and generic competition by focusing on stable, long-term profit models in home healthcare.

• Integration of pharmaceuticals and medical devices aims to create a unique, resilient business entity.

Product and Service Innovation

• Expansion in niche pharmaceuticals, such as FEBURIC for gout, diabetes drugs acquired from Takeda, and OSTABALO for osteoporosis.

• Differentiation through comprehensive patient services, inspection, and support, with a business model based on equipment rental and nationwide service.

• In-licensing adaptable pharmaceuticals and targeting new medical devices and services for long-term growth.