Notice Regarding the Recording of an Impairment Loss and Gain on Sale of Shares in an Affiliate (Consolidated) and Extraordinary Gains and Losses (Non-consolidated)
TEIJIN LIMITED, Teijin Holdings Europe B.V., Teijin Aramid B.V., デュポン帝人アドバンスドペーパー株式会社, and DuPont Teijin Advanced Papers (Asia) Limited
The Japanese marketing rights for a type 2 diabetes treatment and the fixed assets related to that business, and the shares in DTPJ and DTPA
The structural reform policy of focusing the pharmaceutical business on rare diseases and intractable diseases. The deterioration in the financial position of Teijin Holdings Europe B.V. due to the recognition of impairment losses on fixed assets held by Teijin Aramid B.V., among other factors. For DTPJ and DTPA, completion of the transfer of shares to DuPont.
Consolidated impairment loss of ¥25.4 billion (¥2.8 billion in cost of sales and ¥22.6 billion in selling, general and administrative expenses); non-consolidated valuation loss of ¥28.9 billion on shares of an affiliate (no impact on consolidated profit or loss); consolidated gain on sale of shares in affiliates of approximately ¥45.5 billion (other income, scheduled to be recognized); and non-consolidated gain on sale of shares in affiliates of approximately ¥41.9 billion (extraordinary income, scheduled to be recognized)
The impairment loss and valuation loss on shares of an affiliate will be recognized in the fiscal year ending March 2026, and the gains on sale of shares in affiliates in the first quarter of the fiscal year ending March 2027
The impairment loss was already reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2026, with no difference from the forecast. Completion of the transfer of shares in DTPJ and DTPA was also already reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2027, with no difference from the forecast.
Gains on sale of shares in affiliates of approximately ¥45.5 billion on a consolidated basis and approximately ¥41.9 billion on a non-consolidated basis are expected to be recognized in the first-quarter financial results for the fiscal year ending March 2027. Completion of the share transfer and the gains on sale have already been reflected in the full-year consolidated earnings forecast.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recording of an Impairment Loss and Gain on Sale of Shares in an Affiliate (Consolidated) and Extraordinary Gains and Losses (Non-consolidated) |
| Date of occurrence | The fourth-quarter consolidated accounting period of the fiscal year ending March 2026 (1 January 2026 to 31 March 2026), and 1 April 2026 (completion of the transfer of shares in DTPJ and DTPA) |
| Subject Entity | TEIJIN LIMITED, Teijin Holdings Europe B.V., Teijin Aramid B.V., デュポン帝人アドバンスドペーパー株式会社, and DuPont Teijin Advanced Papers (Asia) Limited |
| Target Locations / Products | The Japanese marketing rights for a type 2 diabetes treatment and the fixed assets related to that business, and the shares in DTPJ and DTPA |
| Cause | The structural reform policy of focusing the pharmaceutical business on rare diseases and intractable diseases. The deterioration in the financial position of Teijin Holdings Europe B.V. due to the recognition of impairment losses on fixed assets held by Teijin Aramid B.V., among other factors. For DTPJ and DTPA, completion of the transfer of shares to DuPont. |
| Amount of Impact on Business Performance | Consolidated impairment loss of ¥25.4 billion (¥2.8 billion in cost of sales and ¥22.6 billion in selling, general and administrative expenses); non-consolidated valuation loss of ¥28.9 billion on shares of an affiliate (no impact on consolidated profit or loss); consolidated gain on sale of shares in affiliates of approximately ¥45.5 billion (other income, scheduled to be recognized); and non-consolidated gain on sale of shares in affiliates of approximately ¥41.9 billion (extraordinary income, scheduled to be recognized) |
| Accounting period in which recognized | The impairment loss and valuation loss on shares of an affiliate will be recognized in the fiscal year ending March 2026, and the gains on sale of shares in affiliates in the first quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | The impairment loss was already reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2026, with no difference from the forecast. Completion of the transfer of shares in DTPJ and DTPA was also already reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2027, with no difference from the forecast. |
| Outlook | Gains on sale of shares in affiliates of approximately ¥45.5 billion on a consolidated basis and approximately ¥41.9 billion on a non-consolidated basis are expected to be recognized in the first-quarter financial results for the fiscal year ending March 2027. Completion of the share transfer and the gains on sale have already been reflected in the full-year consolidated earnings forecast. |
Items this document does not state (16)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The impairment loss resulted from impairment testing of the Japanese marketing rights for a type 2 diabetes treatment and the related fixed assets, following the decision to focus the pharmaceutical business on rare diseases and intractable diseases as part of structural reforms. The valuation loss on shares of an affiliate resulted from the deterioration in the financial position of Teijin Holdings Europe B.V. due to the recognition of impairment losses on fixed assets held by Teijin Aramid B.V., among other factors. The gain on sale resulted from completion of the transfer of shares in DTPJ and DTPA to DuPont.