February 10, 2022

Consolidated Financial Report for the Nine Months Ended December 31, 2021
TOYOBO Co., Ltd.

Listed on the First Section of the TSE

Stock Code: 3101 URL https://ir.toyobo.co.jp/en/ir.html
Representative: Ikuo Takeuchi, President & Representative Director
Contact Person: Sonoko Ishimaru, General Manager, Corporate Communication

TEL: +81-6-6348-3044

Quarterly report filing date (Planned): February 14, 2022

(Figures are rounded to the nearest million yen)

1. Consolidated Business Performance(1) Consolidated Operating Results
Nine months ended December 31

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

%

2021

274,541

12.6

22,89325.1

18,19846.0

12,125－

2020

243,878(1.7)

18,305

14.6

12,460(7.3)

25(99.6)(Note) Comprehensive Income:Third quarter ended December 31, 2021: ¥17,326 million －%Third quarter ended December 31, 2020: ¥832 million (80.2)%

Net profit per
Share

Net profit per shareafter dilution

Yen

Yen

2021

136.44

－

2020

0.28

－

(2) Consolidated Financial Position

December 31,
2021
March 31,2021

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

510,525

202,36639.1

2,243.85

491,188

188,63537.8

2,090.47(Reference) Total shareholders’ equity: December 31, 2021: ¥199,471 million, March 31, 2021: ¥185,729 million

2. Dividends
Dividends per share
Record date

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY 3/2021

－

0.00

－

FY 3/2022

－

0.00

－

FY 3/2022(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, 2022
Percentages indicate year-on-year increase/ (decrease)

Net sales
Millions of yen

Fiscal year

Operating profit%

370,000

Millions of yen

9.7

Fiscal year

13,000%29,000

Profit attributable toowners of parent
Millions of yen

Ordinary profit
Millions of yen

8.8%

24,00015.9

Net profit per share
%

Yen

209.4

146.32(Note) Revision of earnings forecast for this period: Yes

4. Other
1. Significant changes in subsidiaries during the subject fiscal year (Transfer of particular subsidiaries
following a change in the scope of consolidation): Yes
1) New company: None2) Excluded company:1(TOYOBO FILM SOLUTIONS LIMITED)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: Yes2) 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):
December 31, 2021: 89,048,792 shares

March 31, 2021: 89,048,792 shares

2) Number of treasury stock:
December 31, 2021: 152,091 shares

March 31, 2021: 203,350 shares

3) Average number of shares outstanding for each period (cumulative term):
Nine months ended December 31, 2021: 88,871,077 shares
2020: 88,830,532 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.
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1. Qualitative Information and Financial Statements(1) Qualitative Information on Consolidated Results
As for the business environment surrounding the Toyobo Group (hereinafter the “Group”) in thenine months ended December 31, 2021, the recovery of the economy remains slow due to supply
restrictions as a result of labor shortages, the stagnation of logistics, etc. and the rise of raw
material and fuel prices amid the temporary calming of COVID-19 and the normalization of
economic activity. Recently, uncertainties concerning the economic outlook have been increasing
due to factors such as raw material and fuel prices remaining high, the recovery of automobile
production being slow due to the continuation of the semiconductor shortage, supply restrictions
being prolonged, and the sudden spread of new COVID-19 variant Omicron.
In this business environment, in “Films and Functional Materials,” although sales grew due tooperation of the new lines against the backdrop of strong market conditions for polarizer protective
films for LCDs “COSMOSHINE SRF,” packaging films were affected by the rise of raw material
prices. In “Mobility,” sales of engineering plastics and airbag fabrics recovered from the same
period of the previous fiscal year despite the impact of the rise of raw material prices and the
production curtailment of automobiles due to the semiconductor shortage and other factors. In“Lifestyle and Environment,” the strength of sales of high-performance fibers returned due to therecovery of demand associated with the recovery of economic activity, but polyester staple fibers
and spunbond were affected by rising raw material prices. In “Life Science,” sales of raw materials
and reagents for PCR testing were strong as demand for PCR testing remained firm despite
COVID-19 temporarily calming down.
As a result, consolidated net sales in the nine months ended December 31, 2021 increased¥30.7 billion (12.6%) over the same period of the previous fiscal year, to ¥274.5 billion. Operating
profit increased ¥4.6 billion (25.1%), to ¥22.9 billion, ordinary profit increased ¥5.7 billion (46.0%) to¥18.2 billion, and profit attributable to owners of parent was ¥12.1 billion. (Compared with profit
attributable to owners of parent of ¥0.0 billion for the same period of the previous fiscal year.)
Results by business segment were as follows:
Films and Functional Materials
In this segment, sales and operating profit increased due to the strong performance of theindustrial films business and the functional materials business.
In the films business, despite the continuation of demand from people staying at home, thepackaging film business faced challenges as a result of the decrease of sales because of the fire
accident in the previous fiscal year as well as the impact of rising raw material prices. In theindustrial film business, against the backdrop of strong market conditions, sales of polarizer
protective films for LCDs “COSMOSHINE SRF” achieved growth due to the operation of the newlines.
In the functional materials business, sales of industrial adhesives “VYLON” for electronics
applications were strong. Furthermore, for the photo functional materials for water-washphotosensitive printing plates, sales of products in China, North America and Europe grew.
As a result, sales in this segment increased ¥14.3 billion (12.6%) from the same period of the3

previous fiscal year to ¥127.3 billion, and operating profit increased ¥2.2 billion (15.6%) to ¥16.6
billion.
MobilityIn this segment, sales increased and operating loss decreased as a result of sales recoveringfrom the same period of the previous fiscal year despite the impact of the rise of raw material prices
and the production curtailment of automobiles due to the semiconductor shortage and other factors.
Sales of engineering plastics recovered from the same period of the previous fiscal year in Japanand overseas despite the impact of the rise of raw material prices and the production curtailment of
automobiles due to the semiconductor shortage and other factors.
Although sales of airbag fabrics recovered from the same period of the previous fiscal year, they
faced challenges due to the impact of the rise of raw material prices and the production curtailmentof automobiles.
As a result, sales in this segment increased ¥6.6 billion (26.0%) from the same period of theprevious fiscal year to ¥32.2 billion, with an operating loss of ¥1.4 billion. (Compared with operating
loss of ¥1.7 billion for the same period of the previous fiscal year.)Lifestyle and Environment
In this segment, although the strength of sales of high-performance fibers returned due to therecovery of demand associated with the recovery of economic activity, sales increased but
operating profit decreased as a result of polyester staple fibers and spunbond being affected byrising raw material prices.
In the environmental solutions business, although the LIBS (Lithium-Ion Battery Separator)
market was on a recovery trend, volatile organic compound (VOC) emissions treatment equipment
for recovering solvents faced challenges due to a decrease in orders as a result of the stagnation ofoperating activities in the previous fiscal year.
In the nonwoven fabrics business, sales of spunbond were affected by rising raw material prices
despite performing strongly for building material applications. Sales of functional filters for masks
decreased.
In the functional fiber materials business, with regard to high-performance fibers, “IZANAS” wasstrong for use in fishing line and ropes, and sales of “ZYLON” grew due to the recovery of demand
for use in bicycle tires and firefighter uniforms. Sales of polyester staple fibers were affected byrising raw material prices, and store sales of functional cushion material “BREATHAIR” weresluggish.
In the textile business, although export costs for traditional Arabic fabric improved due to thedepreciation of the yen, and market conditions recovered for underwear, sales for sports anduniforms were unable to recover due to the continuing decline in market conditions.
As a result, sales in this segment increased ¥5.1 billion (6.6%) from the same period of theprevious fiscal year to ¥82.4 billion, and operating profit decreased ¥0.3 billion (11.5%) to ¥2.7
billion.

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Life Science
In this segment, sales and operating profit increased as a result of sales of raw materials andreagents for PCR testing being strong as demand for PCR testing remained firm despite COVID-19
temporarily calming down.
In the biotechnology business, sales of raw materials and reagents for PCR testing, and genetic
testing equipment and diagnostic reagents grew.
The contract manufacturing business of pharmaceuticals was sluggish due to the impact of the
reduction of operation in response to suggestions from the FDA.
In the medical materials business, sales of artificial kidney hollow fiber and virus removing filters
trended strong.
As a result, sales in this segment increased ¥5.3 billion (27.8%) from the same period of theprevious fiscal year to ¥24.6 billion, and operating profit increased ¥3.2 billion (102.2%) to ¥6.4
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, sales in this segment decreased ¥0.7 billion (8.2%) from the same period of theprevious fiscal year to ¥8.1 billion, and operating profit decreased ¥0.0 billion (2.7%) to ¥1.6 billion.
(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets increased ¥19.3 billion (3.9%) from the end of the previous fiscal year, to ¥510.5
billion. This was mainly due to an increase in inventories, an increase in property, plant andequipment due to capital investment, and an increase in investments and other assets due to themark-to-market valuation of investment securities, despite a decrease in cash and deposits.
Total liabilities increased ¥5.6 billion (1.9%) to ¥308.2 billion. This was mainly due to an increasein borrowings.
Net assets increased ¥13.7 billion (7.3%) from the end of the previous fiscal year, to ¥202.4
billion due to an increase in retained earnings and an increase in valuation difference on
available-for-sale securities.
(3) Qualitative Information on Consolidated Forecasts
With regard to the consolidated earnings forecast for the fiscal year ending March 31, 2022,
sales are expected to be ¥370.0 billion, which exceeds the previously announced figures(announced on August 5, 2021) by ¥5.0 billion, due to the revision of sales prices for someproducts because of rising raw material prices in addition to the current situation.
Although sales are expected to increase, profit remains unchanged from previously announced
figures in light of the impact of rising raw material prices.

52. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Previous Fiscal Year(As of March 31, 2021)

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
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

6

Current Third Quarter(As of December 31, 2021)

34,69585,182－

20,93180,591
298

8,709

10,37745,785
11,48019,0458,203(136)
212,963

55,45015,55023,99012,424(256)
219,356

54,22756,053
93,16921,191
224,640
4,674

55,72554,504
93,17728,488
231,894
4,408

49,760(849)
48,911
278,225
491,188

55,777(910)
54,867291,169
510,525

(Millions of yen)Previous Fiscal Year(As of March 31, 2021)
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 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 Third Quarter(As of December 31, 2021)

40,8794,881
40,767
10,00010,107
4,743
20,067
131,444

41,971
6,412
43,139－22,501
2,307
22,659138,990

45,00077,04655,00064,636

241

210

31
18,28830,503
171,109302,55319
18,046
31,258169,169
308,159

51,73032,20264,351(294)
147,989

51,73032,19372,827(220)
156,530

7,038

11,1801142,708(11,052)(965)

1742,697(9,930)(1,023)37,74042,941

2,906
188,635
491,1882,895
202,366
510,525

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)Previous Third Quarter(From April 1, 2020
To December 31, 2020)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Dividend income
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 sale of investment securities
Gain on extinguishment of tie-in shares
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on sale of investment securities
Impairment losses
Loss due to fire
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit attributable to owners of parent

8

Current Third Quarter(From April 1, 2021
To December 31, 2021)

243,878
178,795
65,083
46,77818,305274,541
202,540
72,00049,10722,893

484
918
1,402

463
790
1,253

1,005
1,567
4,674
7,247
12,460

922
782
4,244
5,948
18,198

－
387
73
460

232
－
－
232

2,207
－
7,817
1,749
1,377
13,150(230)
1,539(1,769)(1,795)
25

2,473
848
－
－
77
3,399
15,031
2,957
12,074(51)
12,125

(Millions of yen)(Consolidated Statements ofComprehensive Income)Previous Third Quarter(From April 1, 2020
To December 31, 2020)

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 Third Quarter(From April 1, 2021
To December 31, 2021)(1,769)12,074

2,048

4,144

(11)
112

6
984

582

(57)

(130)

176

2,601
832

5,252
17,326

2,656

17,338(1,825)(11)

(3) Note to Consolidated Financial Statement(Note to Going Concern)
Not applicable(Notes on Significant Changes in Shareholders' Equity)
Not applicable(Additional Information)
1. Application of Accounting Standard for Revenue Recognition and Relevant Revised ASBJ
Regulations
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and “Implementation Guidance on Accounting Standard for
Revenue Recognition” (ASBJ Guidance No. 30, March 26, 2021) effective from the beginning of
the first quarter of the fiscal year ending March 31, 2022, and it has recognized revenue at thetime the control of promised goods or services is transferred to the customer at the amount
expected to be received upon exchange of said goods or services. In accounting of buy-selltransactions where the Company bears an obligation to repurchase supplied materials, thetransaction is treated as a financial transaction and supplied materials remaining at the
supplyee are continued to be recognized as inventories while the amount of ending inventories
corresponding to the supplied materials remaining at the supplyee is recognized as financial
liabilities.
The application of the Accounting Standard for Revenue Recognition and relevant revised
ASBJ regulations is subject to the transitional treatment provided for in the proviso to paragraph
84 of the Accounting Standard for Revenue Recognition. The cumulative effect of theretrospective application, assuming the new accounting policy had been applied to periods prior
to the beginning of the first quarter of the fiscal year ending March 31, 2022 was added to or
deducted from the opening balance of retained earnings of the first quarter of the fiscal year
ending March 31, 2022, and thus the new accounting policy was applied from such opening
balance. The impact of the application of the accounting standard on consolidated financial
statements is immaterial.
2. Application of Accounting Standard for Fair Value Measurement and Relevant ASBJ
Regulations
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, July 4, 2019) and relevant ASBJ regulations effective from the beginning of
the first quarter of the fiscal year ending March 31, 2022, and in accordance with the transitional
treatment prescribed in paragraph 19 of the Accounting Standard for Fair Value Measurement
and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No.
10, July 4, 2019), the new accounting policies set forth in the Accounting Standard for Fair
Value Measurement and relevant ASBJ regulations have been applied prospectively. There is
no impact on the consolidated financial statements for the third quarter ended December 31,
2021.
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3. Effects of COVID-19
There are no significant changes to the presumption related to the impact of COVID-19 statedin Additional Information of the securities report for the fiscal year ended March 31, 2021.
(Segment Information)(ⅰ) Nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)(Millions of yen)Segment to Be Reported

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statementsof Income(Note 3)

Films andFunctional
Materials

Mobility

LifestyleandEnvironment

113,020

25,51877,273

19,2373,000

238,047

5,831

243,878－

243,878

91

21

252

32

337

732

9,226

9,958

(9,958)－

Total

113,11125,53977,524

19,2693,337

238,780

15,057

253,837(9,958)

243,878

Segment profit(loss)

14,337(1,658)

3,009

3,163

1,221

20,072419

20,491(2,187)18,305

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 or loss adjustment of (¥2,187) million includes eliminations of intersegment transactions of ¥140
million and companywide expenses that are not allocated across reporting segments of (¥2,326) million.
The principal components of companywide expenses are those related to basic research and development.
3. Segment profit or loss has been adjusted with operating profit on the consolidated financial statements.
4. Information regarding impairment loss on non-current assets or goodwill by segment to be reported(Significant impairment loss on non-current assets)
Impairment loss on non-current assets was recorded in the Lifestyle and Environmental Solutions segment.
Impairment loss amounted to ¥7,817 million in the nine months ended December 31, 2020.

(ⅱ) Nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)(Millions of yen)Segment to Be Reported

Adjustment(Note 6)

Consolidated
Statementsof Income(Note 7)274,541－

274,541

10,862

11,621(11,621)－

270,135

16,027286,161(11,621)274,541

25,294491

25,785(2,892)

22,893

Other
Businesses(Note 5)

Mobility

LifestyleandEnvironment

Life
ScienceReal
EstateTotal

127,293

32,151

82,40524,585

2,941

269,376

5,165

114

15

300

24

306

759

Total

127,407

32,16782,70524,6093,247

Segment profit(loss)

16,574(1,445)

2,663

6,397

1,105

Films andFunctional
Materials

Total

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

Note:5. Other includes design and construction of buildings, equipment, etc., information services, logistics services andother items.
6. Segment profit or loss adjustment of (¥2,892) million includes eliminations of intersegment transactions of (¥199)
million and companywide expenses that are not allocated across reporting segments of (¥2,693) million.
11

The principal components of companywide expenses are those related to basic research and development.
7. Segment profit or loss has been adjusted with operating profit on the consolidated financial statements.

12