We are expanding the number of products that use less water during the production process and are using water efficiently in our business activities. In these ways, we aim to achieve our target for reducing the amount of freshwater intake with a focus on curtailing water use at manufacturing sites and other locations that use high volumes of water. In FY2025, the freshwater intake volume were 58.7 million tons, and volume per sales unit was 7.10 thousand tons/¥100 million.

Trends in freshwater intake volume and volume per sales unit

• *Teijin Automotive Technologies NA Holdings Corp. (TAT-NA), which had been a consolidated subsidiary of the Materials Segment, was divested in July 2025 following the share transfer agreement concluded in March 2025. TAT-NA is included from FY2021 to FY2023 and excluded from both the base year and FY2024 onward.
• *The amount of freshwater intake is the total of industrial water, groundwater, and tap water.
• *Per sales units are calculated using consolidated net sales as the denominator. Note that from FY2024, the denominator in the calculation is the amount obtained after deducting the net sales of companies outside the boundary from the consolidated net sales.

Environmental Load due to Wastewater

In FY2025, discharged water volume were 53.7 million tons. Chemical oxygen demand (COD) were 205 tons. Biochemical oxygen demand (BOD) were 49 tons.

Trends in freshwater intake volume and discharged water volume

• *The amount of freshwater intake is the total of industrial water, groundwater, and tap water.

Trends in COD and BOD

• *For wastewater discharged into sea areas or lakes, COD values are reported, while for wastewater discharged into rivers, BOD values are reported. However, for certain wastewater discharged into rivers, COD values are reported in accordance with regulatory reporting requirements.

At the Teijin Group's major manufacturing sites with a high level of dependence and impact on water (24 sites), we assess "water risks present in the river basins" and "operational risks arising from business activities" using the Water Risk Filter developed by the World Wide Fund for Nature (WWF). The assessment of "water risks present in the river basins" revealed that multiple sites face high risks related to water scarcity, flooding, and water quality, and we designated three sites in Thailand that were judged to be at particularly high risk as "water-stressed areas." Meanwhile, the assessment of "operational risks arising from business activities" confirmed that risks related to water scarcity, flooding, and water quality are being mitigated at all sites through appropriate measures. Specifically, to address the risk of water scarcity, we are working to reduce the risk by implementing measures such as establishing projects to reduce water use in product cleaning processes. To address the risk of flooding, we have formulated business continuity plans (BCPs) and are working to ensure that business operations can continue even in the event of a large-scale disaster or other unforeseen circumstances. To address the risk of water quality, we are working to reduce COD and BOD, thereby advancing our response to water risks.