November 9, 2020

Consolidated Financial Report for the First Half ended September 30, 2020
Toyobo Co., Ltd.
Stock Code: 3101

Listed on the First Section of the TSE

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

Representative: Seiji Narahara, President & Representative Director
Contact Person: Sonoko Ishimaru, General Manager, Investor Relations

TEL: +81-6-6348-3044

Quarterly report filing date (Planned): November 13, 2020

(Figures are rounded to the nearest million yen)

1. Consolidated Business Performance(1) Consolidated Operating Results
Six months ended September 30

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

Net sales
Millions of yen

Operating profit%

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen

%

2020

157,507(4.5)

10,420

(6.2)

5,862

(34.6)

2,642

(0.8)

2019

164,9090.1

11,114

4.8

8,961

2.5

2,662

(32.0)(Note) Comprehensive profit:

First half ended September 30, 2020: ¥4,329 million (--%)
First half ended September 30, 2019: (¥858) million (--%)

Net profit per
share

Net profit per shareafter dilution

Yen

Yen

2020

29.75

－

2019

29.99

－

(2) Consolidated Financial Position

September 30,
2020
March 31,2020

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

486,982

183,49936.8

2,015.44

488,874

182,63636.4

2,003.01(Reference) Total shareholders’ equity: September 30, 2020: ¥179,072 million, March 31, 2020: ¥177,890 million

2. Dividends
Dividends per share
Record date

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY 3/2020－

0.00

FY 3/2021－

0.00

FY 3/2021(Forecast)(Note) Revision of dividends forecast for this period: None
1

－

40.00

40.00

－

40.00

40.00

3. Forecasts for Fiscal Year ending March 31, 2021
Percentages indicate year-on-year increase/ (decrease)

Net sales
Millions of yen

Fiscal year

Operating profit%

330,000

Millions of yen(2.8)

Fiscal year

7,000

%

20,000

Profit attributable toowners of parent
Millions of yen

Ordinary profit
Millions of yen(12.3)

14,000%(22.4)Net profit per share%Yen(49.2)

78.82(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
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 share)
1) Number of shares outstanding (including treasury stock):
September 30, 2020: 89,048,792 shares

March 31, 2020: 89,048,792 shares

2) Number of treasury stock
September 30, 2020: 198,608 shares

March 31, 2020: 237,610 shares

3) Average number of shares outstanding for each period (cumulative term):
Six months ended September 30

2020: 88,822,279 shares
2019: 88,780,080 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, are based on all
information available to the management at the time of this document's release. Actual results may differ from theresults 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Regarding the fire accident at the Inuyama Plant

We pray that the souls of our two employees who lost their lives due to the fire accident that occurredat the Company’s Inuyama Plant around 9 p.m. on September 27, 2020 rest in peace, and extend our
deepest sympathies to their families.
Moreover, we sincerely apologize to nearby residents and concerned parties for the enormousinconvenience and concern caused by this accident.
The cause of the accident is currently being investigated by the relevant authorities. After theaccident, the Company promptly established the “Accident Investigation Committee,” and is also
doing its best to investigate the cause of the accident. The Company will take the appropriate measures
under the direction of the relevant authorities upon confirming the cause of the accident.
The Company moved forward with disaster prevention measures with the diagnosis and guidancefrom outside experts, determined to ensure that a fire accident never happens again after the fire atTsuruga Research and Production Center in the year before last. However, this time a large accident
occurred that took the lives of our treasured employees. With “safety” and “disaster prevention” as the
top priorities, the TOYOBO Group (hereinafter the “Group”) will thoroughly investigate what waslacking, insufficient, etc., for present security and disaster prevention activities, and this time ensurethat it will be a safe company where this kind of accident will not occur again.
We will make company-wide efforts on through safety management and prevention of recurrence torecover the trust lost because of this fire accident. The Group appreciates your guidance andencouragement.

Seiji Narahara, President & Representative Director31. Qualitative Information and Financial Statements(1)Qualitative Information on Consolidated Results
As for the business environment surrounding the Group in the six months ended September 30, 2020,
despite the economy recovering in China due to the novel coronavirus disease (COVID-19) coming undercontrol, the outlook for the economy continues to be uncertain since the speed of recovery of the Japanese
economy is slow despite suppressing the spread of infection, and because there are signs of infection
spreading again in the United States and Europe.
In this business environment, in “Films and Functional Materials,” sales of polarizer protective films for
LCDs “COSMOSHINE SRF” grew, driven by strong demand. In “Mobility,” engineering plastics and theairbag fabrics business faced challenges as they were affected by reduced automobile production globally. In“Lifestyle and Environmental,” textiles and high-performance fibers were sluggish due to the drop off ofconsumption and decline in demand. In “Life Science,” reagents for PCR testing for COVID-19 and testing
kits achieved growth in sales, but the contract manufacturing business of pharmaceuticals faced challenges.

As a result, consolidated net sales in the six months ended September 30, 2020 decreased ¥7.4 billion(4.5%) over the same period of the previous fiscal year, to ¥157.5 billion. Operating profit decreased ¥0.7
billion (6.2%), to ¥10.4 billion, ordinary profit decreased ¥3.1 billion (34.6%) to ¥5.9 billion, and profit
attributable to owners of parent decreased ¥0.0 billion (0.8%), to ¥2.6 billion.

Results by business segment were as follows:
The Group changed its reporting segment classification from the three months ended June 30, 2020.
Accordingly, in the following segment information, the figures for the six months ended September 30, 2019,
have been restated in accordance with the method of classification existing after the aforesaid change for the
purpose of comparing them with those of the six months ended September 30, 2020.

Films and Functional Materials
In this segment, sales and operating profit increased from the same period of the previous fiscal year due tothe growth in the films business.
In the films business, in the packaging film business, environmentally friendly films achieved growth in sales
due to rising eco-consciousness of the world. Also, a special demand from people staying at home covered
the decline of films for professional use, etc., caused by the spread of infection of COVID-19. In the industrial
film business, mold releasing film for MLCC “COSMOPEEL” for automotive applications was affected byproduction adjustments. However, driven by strong demand, sales of polarizer protective films for LCDs
“COSMOSHINE SRF” grew steadily.
In the functional materials business, industrial adhesives “Vylon” and adhesion promoter for polyolefin“HARDLEN” experienced sluggish sales for automotive applications and electronic materials applications
due to the impact of the spread of infection of COVID-19.
As a result, sales in this segment increased ¥13.9 billion (23.1%) from the same period of the previous
fiscal year to ¥73.8 billion, and operating profit increased ¥1.4 billion (19.5%) to ¥8.7 billion.

4

Mobility
In this segment, sales and operating profit decreased from the same period of the previous fiscal year
owing to the effect of global reducing production of vehicles caused by the spread of infection of COVID-19.
Despite signs of recovery primarily in China and the United States, sales of engineering plastics decreased
from the same period of the previous fiscal year. The airbag fabrics business faced a decline in sales,
primarily in Thailand and the United States.
As a result, sales in this segment decreased ¥7.2 billion (32.3%) from the same period of the previous fiscal
year to ¥15.0 billion, and operating loss of ¥1.3 billion (Compared with operating loss of ¥0.4 billion for thesame period of the previous fiscal year.)Lifestyle and Environmental
In this segment, despite achieving growth in sales due to special demand for general commodities, such as
hygiene products, due to the spread of COVID-19, sales and operating profit decreased from the same
period of the previous fiscal year as a result of decreased sales in textiles and high-performance fibers.
In the environmental solutions business, sales of volatile organic compound (VOC) emissions treatment
equipment for recovering solvents were steady due to orders such as received prior to the spread of
COVID-19. On the other hand, sales of Reverse Osmosis (RO) membrane for seawater desalination
decreased because the timing of orders of replacement elements shifted to the latter half of the fiscal year
ending March 31, 2021.
In the nonwoven fabrics business, spunbond struggled, mainly for automotive applications, and sales offunctional filters were strong for air purifiers and masks, but were sluggish for office machinery.
In the functional fiber materials business, with regard to high-performance fibers, sales of cut resistant
gloves decreased as plant operation for “Tsunooga” slowed down throughout the world, and “IZANAS” wasaffected by the decline in demand for use in ropes in Japan. On the other hand, in the functional fiber
materials business, polyester staple fibers for use in hygiene products achieved growth in sales, and sales offunctional cushion material “BREATHAIR” for bedding applications were strong.
In the textile business, store sales, etc. for sports, underwear and suits were sluggish because of asignificant decline in orders.
As a result, sales in this segment decreased ¥13.6 billion (21.4%) from the same period of the previous
fiscal year to ¥50.2 billion, and operating profit decreased ¥0.6 billion (26.8%) to ¥1.8 billion.

Life Science
In this segment, sales and operating profit decreased from the same period of the previous fiscal year as
the pharmaceutical business faced challenges, despite demand for reagents for PCR testing increasing in
the biotechnology business due to the spread of COVID-19, and strong sales in the medical materials
business.
In the biotechnology business, demand for raw materials for diagnostic reagents and general testing
decreased, but sales of raw materials for PCR-related testing and reagents for research increased
significantly due to the spread of COVID-19.
The pharmaceutical business faced challenges due to the impact of a portion of operations being
suspended.

5

In the medical materials business, sales of nerve regeneration inducing devices “Nerbridge” were on parwith the previous fiscal year, but sales of membranes for hemodialysis and hemodiafiltration were strong.
As a result, sales in this segment decreased ¥0.1 billion (1.1%) from the same period of the previous fiscal
year to ¥12.4 billion, and operating profit decreased ¥0.4 billion (20.4%) to ¥1.6 billion.

Real Estate and Other BusinessThis segment includes infrastructure-related businesses, such as real estate, engineering, information
processing services, and logistics services. Results in these businesses were generally in line with plans.
As a result, total sales in these businesses decreased ¥0.3 billion (5.0%) over the same period of theprevious fiscal year to ¥6.2 billion, and operating profit decreased ¥0.2 billion (18.4%) to ¥1.0 billion.

(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets decreased ¥1.9 billion (0.4%) from the end of the previous fiscal year, to ¥487.0 billion. Thiswas due mainly to a decrease in notes and accounts receivable - trade.
Total liabilities decreased ¥2.8 billion (0.9%) to ¥303.5 billion. This was mainly because of a decrease innotes and accounts payable - trade.
Total net assets increased ¥0.9 billion (0.5%) to ¥183.5 billion. This was due mainly because of an increasein valuation difference on available-for-sale securities.

Cash FlowsNet cash provided by operating activities amounted to ¥13.4 billion in the subject first half period. This wasdue mainly to a cash increase from a decrease in trade receivables of ¥11.6 billion.
Net cash used in investing activities amounted to ¥18.0 billion. This was due mainly to purchase of property,
plant and equipment and intangible assets of ¥15.5 billion.
Net cash provided by financing activities amounted to ¥9.3 billion. This was due mainly to proceeds fromlong-term loans payable of ¥11.9 billion.
As a result, the balance of cash and cash equivalents at the end of the subject first half (September 30,2020) stood at ¥29.9 billion, an increase of ¥4.8 billion from the end of the previous fiscal year (March 31,2020).

(3) Qualitative Information on Consolidated Forecasts
At the Inuyama Plant, buildings for the production of packaging films and a portion of production equipment
were affected by the fire that occurred on September 27, 2020. The cause of the accident is currently being
investigated by the relevant authorities and the “Accident Investigation Committee” which the Company
established. Regarding resumption status, shipments resumed from September 30 excluding some products,
and production facilities that have received approval for operations from relevant authorities were restarted
successively after confirming safety.
Regarding the forecast for the fiscal year ending March 31, 2021, we will promptly notify you of if any
significant impact of the accident is expected on the consolidated forecasts.

63. Consolidated Financial Statements(1) Consolidate Balance Sheets
Previous Fiscal Year(As of March 31, 2020)(Condensed)(Millions of yen)
Current First Half
(As of September 30,
2020)

25,247
85,34530,032
74,671

8,208

7,524

49,15012,75018,7287,141(154)
206,416

50,083
12,37018,065
6,743(141)
199,348

52,74655,47043,34354,561

97,05538,334
231,478
4,641

96,95826,769233,758
4,600

47,096(757)
46,339282,458
488,874

50,083(808)
49,275
287,634
486,982

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetaryclaims - 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
Land
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

7

Previous Fiscal Year(As of March 31, 2020)(Condensed)(Millions of yen)
Current First Half
(As of September 30,
2020)

41,65935,186

8,357

4,814

32,027
－
8,510
4,664
27,106
122,32140,781
5,000
8,769
4,372
20,125
119,047

55,00075,85150,00080,800

247

215

331
21,61330,875
183,916
306,238

158
21,79331,470184,436
303,483

51,73032,20061,929(350)
145,509

51,73032,202
61,048(293)
144,687

4,013

5,895

(8)
44,457(11,954)(14)
44,453(12,216)(4,128)(3,732)32,381

34,386

4,746
182,636
488,874

4,427
183,499
486,982

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
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
incomeValuation difference on
available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets8(2) Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Dividend income
Share of profit of entities accounted forusing equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on suspension of production
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss due to fire
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent(Millions of yen)Previous First Half
(From April 1, 2019 To
September 30, 2019)
164,909124,262
40,64729,534
11,114Current First Half
(From April 1, 2020 To
September 30, 2020)
157,507
116,189
41,31830,898
10,420

404

317

359

－

679
1,441

602
919

675
466
2,453
3,594
8,961

683
1,289
3,505
5,476
5,862

19
13
32

－
95
95

2,110
2,636
37
4,783
4,210
1,682
2,528
(135)
2,662

1,715
－
291
2,006
3,952
1,599
2,353
(289)
2,642

9

(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

Previous First Half
(From April 1, 2019 To
September 30, 2019)
2,528

Current First Half
(From April 1, 2020 To
September 30, 2020)
2,353(2,350)

1,879

(14)
(1,071)

(6)
(146)

157

396

(108)

(146)

(3,386)
(858)

1,976
4,329

(674)

4,647

(184)

(318)

10

(Millions of yen)Previous First Half
(From April 1, 2019 To
September 30, 2019)

Current First Half
(From April 1, 2020 To
September 30, 2020)

4,210
8,080
675
2,636
2,525
(2,774)(46)
2,300
17,607(2,530)
(567)

3,952
9,128
683
－
11,562
49(10,021)
2,178
17,530－(4,136)

14,51013,394(13,681)(15,545)(1,477)(2,410)(15,158)(17,955)

1,183

8,749

9,932
(9,517)
15,000(3,546)
(662)
(443)

11,900(6,624)－(3,546)
(667)
(471)

11,947

9,341

(388)

(10)

10,911

4,770

22,16725,084303

18

33,382

29,873

Cash flows from operating activities
Profit before income taxes
Depreciation
Interest expenses
Loss due to fire
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
Subtotal
Payments for Loss due to fire
Income taxes (paid) refund
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment
and intangible assets
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Dividends paid
Interest paid
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodIncrease (decrease) in cash and cash
equivalents resulting from change in scope of
consolidation
Cash and cash equivalents at end of period11(4) Note to Going Concern:
Not applicable(5) Notes on Significant Changes in Shareholders' Equity
Not applicable(6) Additional Information
With regard to the effects of COVID-19, while there are signs of infection spreading again in the United States andEurope, the outbreak has ended in China and the economy is recovering.
Although it is difficult to foresee the end of COVID-19, the Group is assessing the need to recognize and measure
impairment loss on non-current assets and the recoverability of deferred tax assets for the end of the current fiscal
year, assuming performance will gradually recover from areas where economic activity has resumed.
We make accounting estimates and judgments based on currently available information. However, due to the highdegree of uncertainty, any change in the above assumptions could affect the Group’s future financial position andoperating results.

(7) Segment Informationa. Segment information by business type(Ⅰ) Six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)
Segment to be reported(Millions of yen)

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statements ofIncome(Note 3)

Films andFunctional
Materials

Mobility

LifestyleandEnvironmental

59,91922,19563,823

12,4902,137

160,562

4,347

164,909－

164,909

51

7

205

8

187

457

9,955

10,412(10,412)－

Total

59,97022,20164,027

12,4982,324

161,020

14,302

175,322(10,412)

164,909

Operating Profit(loss)

7,291

(394)

2,420

2,009

752

12,078517

12,595(1,481)

11,114

Life
ScienceReal
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 andother items.
2. Segment profit adjustment of (¥1,481) million includes eliminations of intersegment transactions of (¥11) million
and companywide expenses that are not allocated across reporting segments of (¥1,471) million. The principal
components of companywide expenses are those related to basic research and development.
3. Segment profit has been adjusted with operating profit on the consolidated financial statements.

12(Ⅱ) Six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)
Segment to be reported(Millions of yen)

Other
Businesses(Note 4)

Adjustment(Note 5)

Consolidated
Statementsof Income(Note 6)

Films andFunctional
Materials

Mobility

LifestyleandEnvironmental

73,77915,02250,19012,3581,920

153,268

4,239

157,507－

157,507

59

13

154

10

224

460

6,706

7,166

(7,166)－

Total

73,83815,03550,344

12,3682,144

153,728

10,945

164,673(7,166)

157,507

Operating Profit(loss)

8,715(1,291)

1,771

1,598

737

11,530298

11,827(1,407)

10,420Life
ScienceReal
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 andother items.
5. Segment profit or loss adjustment of (¥1,407) million includes eliminations of intersegment transactions of ¥80
million and companywide expenses that are not allocated across reporting segments of (¥1,488) million.
The principal components of company wide expenses are those related to basic research and development.
6. Segment profit or loss has been adjusted with operating profit on the consolidated financial statements.

(Ⅲ) Matters concerning changes to reporting segments
From the first quarter of this fiscal year, the Group is reviewing the method of classification of reportable segments inconformity with the changes of the Group’s internal organizational structure carried out in order to realize the “ability toprovide solutions” (contribution to society through business), which is the Group’s materiality. Accordingly, businesssegments were changed from “Films and Functional Polymers,” “Industrial Materials,” “Health care” and “Textiles andTrading” to “Films and Functional Materials,” “Mobility,” “Lifestyle and Environmental” and “Life science”.
Segment Information for the first half of the previous fiscal year was restated in accordance with the method ofclassification after the aforesaid change.

13