August 7, 2023

Consolidated Financial Report for the Three Months Ended June 30, 2023
TOYOBO Co., Ltd.

URL

https://ir.toyobo.co.jp/en/ir.html

Stock Code: 3101 (Prime Market, Tokyo Stock Exchange)
Representative: Ikuo Takeuchi, President & Representative Director
Contact Person: Sonoko Ishimaru, Executive Officer, General Manager, Corporate Communication Department
TEL: +81-6-6348-3044
Planned Filing Date of a Quarterly Report: August 10, 2023
(Figures are rounded to the nearest million yen.)

1. Consolidated Business Performance(1) Consolidated Operating Results
Three months ended June 30

Percentages indicate year-on-year increase/ (decrease)

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

2023

97,058

(3.9)

(85)

―

(317)

―

(508)

―

2022

101,048

6.8

4,621

(50.0)

4,331(42.0)

7,797

26.4

(Note) Comprehensive Income:Three months ended June 30, 2023: ¥2,344 million (78.7%)
Three months ended June 30, 2022: ¥11,021 million 28.4%

Net profit per
share

Net profit per shareafter dilution

Yen

Yen

2023

(5.77)

―

2022

87.71

―

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

June 30, 2023

569,465

219,91533.1

2,144.03

March 31, 2023

588,906

221,42232.2

2,146.46(Reference) Total shareholders’ equity: June 30, 2023: ¥188,698 million, March 31, 2023: ¥189,588 million

2. Dividends
Years ended/ending March 31
Dividends per share
Record date

1st Quarter

2nd Quarter

3rd Quarter

Yearend

Total

Yen

Yen

Yen

Yen

Yen

2023

―

2024

―

2024
(Forecast)

0.00

―

40.00

40.00

0.00

―

40.00

40.00

(Note) Revision of dividends forecast for this period: None1

3. Forecasts for Fiscal Year Ending March 31, 2024
Percentages indicate year-on-year increase/ (decrease)

Net sales
Millions of yen

Fiscal year

Operating profit%

430,000

Millions of yen

7.5

Fiscal year

Millions of yen

49.1

%

11,00066.9

Net profit per share
%

4,000

%

15,000

Profit attributable toowners of parent
Millions of yen

Ordinary profit

Yen

―

45.00

(Note) Revision of earnings forecast for this period: None

4. Other
1. Significant changes in subsidiaries during the subject fiscal year (Transfer of particular subsidiaries
following a change in the scope of consolidation): None
1) New company: None2) Excluded company : None
2. Adoption of simplified and special accounting methods: None
3. Changes from accounting methods, procedures and the presentation of the consolidated financial
statements:
1) Changes based on revision of accounting standards: None2) Changes other than 1) above: None3) Changes due to accounting estimation change: None4) Error correction: None4. Number of shares issued and outstanding (common stock):1) Number of shares outstanding (including treasury stock):
June 30, 2023: 89,048,792 shares

March 31, 2023: 89,048,792 shares

2) Number of treasury stock:June 30, 2023: 1,037,894 shares

March 31, 2023: 723,040 shares

3) Average number of shares outstanding for each period (cumulative term):
Three months ended June 30, 2023: 88,089,714 shares
2022: 88,896,148 shares* Quarterly Financial Results reports are exempt from Quarterly review.
* Explanation regarding the appropriate use of forecasts of business results
The forward-looking statements made in this document, including the aforementioned forecasts, arebased on all information available to the management at the time of this document's release. Actual
results may differ from the results anticipated in the statements.
(How to obtain supplementary document on earnings)
The supplementary document on earnings is disclosed on the same day as the Quarterly Financial
Results report, and it is made available on the Company’s website.

2

1. Qualitative Information and Financial Statements(1) Qualitative Information on Consolidated Results
The business environment surrounding the Toyobo Group (hereinafter “the Group”) in the threemonths ended June 30, 2023 saw a moderate recovery in economic activity in the United States,
supported by robust consumption. In China, the lifting of the zero-COVID policy has led to an
economic recovery, but this current trend is slowing. On the other hand, in Japan, economic
activity has begun to normalize after the COVID-19 pandemic, and the economy has recovered
moderately. Although there has been a pickup in automobile production due to the resolution of
the semiconductor shortage, there are concerns about downside effects from overseas
economies, such as reduced demand due to monetary tightening policies in the United States andEurope and the slowdown of the Chinese economy.
Under this business environment, sales of polarizer protective films for LCDs “COSMOSHINE
SRF” increased significantly as demand recovered. On the other hand, sales of reagents for PCR
testing dropped sharply due to winding down of COVID-19 infections, and sales of packaging film
and mold releasing film for multilayer ceramic capacitors (MLCC) were sluggish due to a slow
recovery in demand.
As a result, net sales in the three months ended June 30, 2023 decreased ¥4.0 billion (3.9%) fromthe same period of the previous fiscal year to ¥97.1 billion, operating loss was ¥0.1 billion(compared with operating profit of ¥4.6 billion for the same period of the previous fiscal year),ordinary loss was ¥0.3 billion (compared with ordinary profit of ¥4.3 billion for the same period of
the previous fiscal year), loss attributable to owners of parent was ¥0.5 billion (compared withprofit of attributable to owners parent of ¥7.8 billion for the previous fiscal year).
Results by business segment were as follows:
The Group changed its reporting segment classification from the three months ended June 30,
2023. Accordingly, in the following segment information, the figures for the three months ended
June 30, 2022, have been restated in accordance with the classification existing after the
aforesaid change for the purpose of comparing them with those of the three months ended June30, 2023.
Films
In this segment, sales and operating profit decreased due to a weak recovery in demand, in
addition to the continued impact of high raw material and fuel prices.
In the packaging film business, product prices were revised in response to soaring raw material
and fuel prices, while freight movements were sluggish due to prolonged adjustments of
distributors' inventories.
In the industrial film business, sales of polarizer protective films for LCDs “COSMOSHINE SRF”
increased significantly. However, sales of mold releasing film for MLCC struggled due tocontinued inventory adjustments throughout the supply chain. Product prices were revised in
response to soaring raw material and fuel prices, but which has not led to improved profitability.
As a result, sales in this segment decreased ¥0.2 billion (0.4%) from the same period of theprevious fiscal year to ¥39.0 billion, and operating profit decreased ¥1.2 billion (49.7%) to ¥1.2
billion.
3

Life Science
In this segment, sales and operating profit decreased due to a significant drop in sales of reagentsfor COVID-19 PCR testing.
In the biotechnology business, sales of enzymes for diagnostic reagents remained steady.
However, sales of reagents for PCR testing declined significantly due to the reclassification of
COVID-19 to a Class 5 Infectious Diseases.
In the contract manufacturing business of pharmaceuticals, expenses in response to suggestions
from the FDA continued to be incurred, but the Warning Letter was lifted by the FDA in July 2023.
In the medical materials business, sales of artificial kidney hollow fiber trended strong.
As a result, sales in this segment decreased ¥0.5 billion (6.3%) from the same period of theprevious fiscal year to ¥8.1 billion, and operating profit decreased ¥0.8 billion (36.6%) to ¥1.4
billion.
Environmental and Functional Materials
In this segment, sales decreased and an operating loss was recorded, compared with anoperating profit in the previous fiscal year, due to the impact of lower demand for electronicmaterials and civil engineering and building materials.
In the resins and chemicals business, engineering plastics saw product price revisions in Japan in
response to soaring raw material and fuel prices. Sales of industrial adhesives “Vylon” declined in
China and other Asian markets. Sales of photo functional materials for water-wash photosensitive
printing plates were weak in North America and China.
In the environment and fiber business, environmental solutions sales declined due to a lag inshipments affecting sales of VOC recovery equipment used in the manufacturing process forlithium-ion battery separators. In the high performance fibers business, sales of “Tsunooga” usedin cut resistant gloves and “ZYLON” for applications in building structural reinforcement decreased.
Nonwoven materials were sluggish in response to declining demand in civil engineering andbuilding materials.
As a result, sales in this segment decreased ¥2.9 billion (10.5%) from the same period of theprevious fiscal year to ¥25.0 billion, with an operating loss of ¥0.7 billion (compared with operating
profit of ¥0.9 billion for the same period of the previous fiscal year).
Functional Textiles and Trading
In this segment, sales decreased and operating loss increased because the airbag fabricbusiness failed to improve profitability.
In the textile business, earnings improved as a result of the withdrawal of unprofitable products
and progress in price pass-through.
In the airbag fabric business, sales volume increased with the recovery of automobile production
volume, but product sales price revisions have not kept pace with rising raw material prices, andthe business struggled.

4

As a result, sales in this segment decreased ¥0.0 billion (0.1%) from the same period of theprevious fiscal year to ¥22.2 billion, and operating loss of ¥0.7 billion (compared with operating
loss of ¥0.4 billion for the same period of the previous fiscal year).
Real Estate and Other Businesses
This segment includes infrastructure-related businesses such as real estate, engineering,
information processing services, and logistics services. Results in these businesses weregenerally in line with plans.
As a result, sales in this segment decreased ¥0.3 billion (9.7%) from the same period of theprevious fiscal year to ¥2.8 billion, and operating profit increased ¥0.1 billion (15.4%) to ¥0.4
billion.
(2) Analysis of Financial Position
Total assets decreased ¥19.4 billion (3.3%) from the end of the previous fiscal year, to ¥569.5
billion. This was mainly due to a decrease in cash and deposits, notes and accounts receivable trade.
Total liabilities decreased ¥17.9 billion (4.9%) from the end of the previous fiscal year, to ¥349.5
billion. This was mainly due to a decrease in notes and accounts payable - trade and borrowings.
Net assets decreased ¥1.5 billion (0.7%) from the end of the previous fiscal year, to ¥219.9 billion
mainly due to a decrease in retained earnings and other items.
(3) Forecast for Fiscal 2023 (Ending March 31, 2024)
The performance of the Group in the three months ended June 30, 2023 was generally as
forecast. Regarding the consolidated earnings forecast for fiscal year ending March 31, 2024, nochanges have been made in the outlook announced on May 11, 2023.

5

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Previous Fiscal Year(As of March 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Contract assets
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

Current First Quarter(As of June 30, 2023)

60,70388,427407

30,65285,963465

12,295

13,88075,343
16,55630,002
15,672(271)
299,133

76,271
18,57530,312
16,027(341)
271,804

54,51546,90790,81639,8298,166
240,234
4,633

58,18846,96390,88943,174
8,395
247,609
4,304

46,037(1,131)44,906
289,773
588,906

47,032(1,284)45,748297,661
569,465

(Millions of yen)Previous Fiscal Year(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Provisions
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors(and other officers)
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

7

Current First Quarter(As of June 30, 2023)

53,436
5,156
71,595
10,00029,472
4,956
27,885202,500

46,081
5,992
60,58525,00026,5282,815
26,585
193,585

65,00049,09919,64150,00055,06919,641

239

251

12
22,427
8,566
164,984
367,484

11
22,274
8,719
155,965
349,550

51,73032,40270,490(781)
153,840

51,73033,191
66,448(1,099)150,271

3,434

3,592

67
41,435(4,556)(4,632)

176
41,435(2,278)(4,498)35,74838,42831,834
221,422588,906

31,217219,915
569,465

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Millions of yen)(Consolidated Statements of Income)Previous First Quarter(From April 1, 2022
To June 30, 2022)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on change in equity
Total extraordinary losses
Profit (loss) before income taxes
Income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

8

Current First Quarter(From April 1, 2023
To June 30, 2023)

101,048
77,892
23,156
18,536
4,621

97,05877,991
19,06619,151
(85)

844
437
1,280

1,102
339
1,441

327
1,244
1,571
4,331

302
1,370
1,673
(317)

1,195
5,607
6,802

－
－
－

257
－
257
10,875
3,065
7,810
13
7,797

314
212
526
(843)
271
(1,114)
(606)
(508)

(Millions of yen)(Consolidated Statements ofComprehensive Income)Previous First Quarter(From April 1, 2022
To June 30, 2022)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

9

Current First Quarter(From April 1, 2023
To June 30, 2023)

7,810(1,114)

11

243

22
2,946

109
2,891

2

134

230

80

3,211
11,021

3,458
2,344

10,811

2,627

210

(283)

(3) Notes to Consolidated Financial Statements(Note to Going Concern)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicable(Segment Information)(ⅰ) Three months ended June 30,2022(Millions of yen)Segment to Be Reported
Adjustment(Note 2)

Consolidated
Statements ofIncome(Note 3)101,048―

101,048

3,142

4,449

(4,449)―100,291

5,206

105,497(4,449)101,048

5,547

(42)

5,505

(884)

4,621

Other
Businesses(Note 1)

Life
Science

Environmental
andFunctional
Materials

Functional
TextilesandTrading

39,155

8,694

27,91322,186

1,036

98,984

2,064

40

6

1,014

163

84

1,307

Total

39,1958,700

28,92722,3491,120

Segment profit(loss)

2,469

2,135

933

(379)

389

Films

Real
Estate

Total

Total

Net sales(1) Outside
customers(2) Inter-segment
sales andtransfers

Note:
1. Other includes design and construction of buildings, equipment, etc., information services, logistics
services and other items.
2. Segment profit or loss adjustment of ¥ (884) million includes eliminations of intersegment transactions of¥43 million and companywide expenses that are not allocated across reporting segments of ¥ (927)
million. The principal components of companywide expenses are those related to basic research anddevelopment.
3. Segment profit or loss has been adjusted with operating income on the consolidated financial
statements.

10(ⅱ) Three months ended June 30, 2023
(Millions of yen)Segment to Be Reported
Adjustment(Note 5)

Consolidated
Statements ofIncome(Note 6)

97,058―97,058

4,538

7,872

(7,872)―

98,627

6,303

104,930(7,872)

97,058

1,640

(37)

1,603

(1,688)

(85)

Other
Businesses(Note 4)

Life
Science

Environmental
andFunctional
Materials

Functional
TextilesandTrading

38,983

8,145

24,97722,154

1,034

95,293

1,765

551

2

2,287

229

266

3,334

Total

39,534

8,147

27,264

22,383

1,299

Segment profit(loss)

1,241

1,353

(662)

(728)

437

Films

Real
Estate

Total

Total

Net sales(1) Outside
customers(2) Inter-segment
sales andtransfers

Note:
4. Other includes design and construction of buildings, equipment, etc., information services, logistics
services and other items.
5. Segment profit or loss adjustment of ¥ (1,668) million includes eliminations of intersegment transactionsof ¥ (632) million and companywide expenses that are not allocated across reporting segments of¥ (1,056) million. The principal components of companywide expenses are those related to basic
research and development.
6. Segment profit or loss has been adjusted with operating loss on the consolidated financial statements.

(ⅲ) Matters concerning changes to reporting segments
From the first quarter of the fiscal year ending March 31, 2024, the Group changed its
organization structure in order to position films, life science and the environment as businessfields on which to particularly focus and carry out business operations in accordance with eachpositioning while evaluating and categorizing each business in accordance with their“profitability” and “growth potential.” Accordingly, the Group reviewed the reportable segmentclassification, and changed them from the previous “Films and Functional Materials,” “Mobility”
and “Lifestyle and Environment” to “Films,” “Environmental and Functional Materials” and“Functional Textiles and Trading.”
Segment information for the three months ended June 30, 2022 was prepared in accordancewith the classifications after the change.
(Significant Subsequent Events)
Not applicable11