May 10, 2021

Consolidated Financial Report for Year ended March 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 Department

TEL: +81-6-6348-3044

Date of the General Meeting of the Shareholders: June 24, 2021
Planned start of dividend payments: June 25, 2021
Planned filing of an annual security report: June 24, 2021

(Figures are rounded to the nearest million yen.)

1. Consolidated Business Performance(1) Consolidated Operating Results
Years ended March 31

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

Net sales

Operating profit

Millions of yen

%

2021

337,406

2020

339,607

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen

%

(0.6)

26,65716.9

20,706

14.8

4,202

(69.5)

0.9

22,794

4.9

18,035

1.4

13,774－(Note) Comprehensive profit: Year ended March 31, 2021: ¥9,471 million 113.5%
Year ended March 31, 2020: ¥4,437 million－%

Net profit per
share

Net profit per shareafter dilution

Yen

Yen

Return on equity

Ordinary
profit-to-total assets
ratio

Operatingprofit-to-net sales
ratio

%

%

%

2021

47.30

－

2.3

4.2

7.9

2020

155.12

－

7.8

3.8

6.7

(Reference) Gain (loss) on investment by equity method: Year ended March 31,2021: ¥(338) million
Year ended March 31,2020: ¥469 million(2) Consolidated Financial Position
At March 31
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

2021

491,188

188,63537.8

2,090.472020

488,874

182,63636.4

2,003.01

Net assets per share
Yen(Reference) Total shareholders’ equity: March 31,2021: ¥185,729 million, March 31, 2020: ¥177,890 million(3) Consolidated Cash Flows
Years ended March 31
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end ofyear

Millions of yen

Millions of yen

Millions of yen

Millions of yen

2021

35,028(31,678)

5,340

34,5262020

44,255(39,216)(1,805)25,0841

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

Total amountof dividends(for the entire
fiscal year)

Payoutratio

Dividendstonet assets
ratioMillions of yen%%

RecorddateJune 30

Sept. 30

Dec. 31

Year-end

Total

Yen

Yen

Yen

Yen

Yen

2020

－

0.00

－

40.00

40.00

3,552

25.8

2.0

2021

－

0.00

－

40.00

40.00

3,554

84.6

2.0

2022
(Forecast)

－

－

－

40.00

40.00

30.9

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

Net sales

Operating profit

Millions of yen

Fiscal year%

360,000

Millions of yen

6.7

Profit attributable toowners of parent
Millions of yen

Fiscal year%

27,000

1.3

Millions of yen

22,000%

6.2

Net profit per share%

11,500Ordinary profit

Yen

173.7

129.45

4. Other(1) Significant changes in subsidiaries during the subject fiscal year (Transfer of particular subsidiaries
following a change in the scope of consolidation): No(2) Changes from accounting methods, procedures and the presentation of the consolidated financial
statements:① Changes based on revision of accounting standards: No② Changes other than 1) above: No③ Changes due to accounting estimation change: No④ Error correction: No(3) Number of shares outstanding (Common stock):① Number of shares outstanding at fiscal year-end:
2021: 89,048,792 shares

2020: 89,048,792 shares② Number of treasury stocks at fiscal year-end:
2021: 203,350 shares

2020: 237,610 shares③ Average number of shares outstanding:2021: 88,834,061 shares

2020: 88,794,609 shares

2

(Reference)
1. Non-Consolidated Business Performance(1) Non-Consolidated Operating Results
Years ended March 31
Net sales

Operating profit

Millions of yen%

Ordinary profit

Millions of yen%

Millions of yen

Net profit%

Millions of yen

%

2021

197,251(0.9)

18,43018.3

14,24912.0(4,750)－2020

199,086(0.1)

15,582

3.6

12,728

7.1

10,489－Net profit per share

Net profit per share after
dilution

Yen

Yen

2021

(53.47)－2020

118.12－(2) Non-Consolidated Financial Position
At March 31
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

2021

421,593

155,11236.8

1,745.86

2020

421,625

162,03438.4

1,824.48

Net assets per share
Yen(Reference) Total shareholders’ equity: March 31,2021: ¥155,112 million, March 31,2020: ¥162,034 million※Financial Results Reports are exempt from review by certified public accountants or accounting auditor.

※Explanation regarding the appropriate use of forecasts of business results
The forward-looking statements made in this document, including the aforementioned forecasts, are basedon 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. For details, please refer to “1. Operating Results (4)Forecast for Fiscal 2022 (Ending March 31, 2022)” on page 7 of the Financial Results report(How to obtain supplementary document on earnings)
The supplementary document on earnings is disclosed on the same day as the Financial Results Report,
and it is made available on the Company’s website.

31. Operating Results(1) Analysis of Operating Results
As for the business environment surrounding the Toyobo Group (hereinafter the “Group”) in the fiscal year
ended March 31, 2021 (hereinafter, “the fiscal year”), the economic activities recovered due to the rapid
suppression of the novel coronavirus disease (COVID-19) in China, while the global economy was deeply
impacted by this pandemic. In the United States, economic activities were gradually recovering due tohuman mobility restrictions and fiscal and monetary policies. However, it is expected that it will take time forthe global economy, including Japan, to normalize due to the shortage of semiconductors and price increaseof raw materials and fuel, which became extra factors in the fourth quarter of the fiscal year, on top of theresurgence of the COVID-19 infection cases.
In this business environment, automotive-related products and textiles in the Group were affected by the
spread of the COVID-19 infection cases, mainly in the first half of the fiscal year. In the acrylic fiber business,
an impairment loss of ¥7.8 billion was recorded on business assets.
On the other hand, while the COVID-19 infection spread, Toyobo has established a system to double theproduction volume of raw materials and reagents for PCR testing in order to meet the global demand for
PCR testing. In addition, sales of mold releasing film for MLCC “COSMOPEEL” improved due to the recovery
of automobile production, and sales of polarizer protective films for LCDs “COSMOSHINE SRF” grew due tothe commencement of mass production in the new line (Unit 3.)
As a result, consolidated net sales in the fiscal year ended March 31, 2021, decreased ¥2.2 billion (0.6%)
over the previous fiscal year, to ¥337.4 billion. Operating profit increased ¥3.9 billion (16.9%) to ¥26.7 billion,
ordinary profit increased ¥2.7 billion (14.8%) to ¥20.7 billion, and profit attributable to owners of parent
decreased ¥9.6 billion (69.5%) to ¥4.2 billion as a result of recording extraordinary loss for impairment loss
on business assets in the acrylic fiber business and loss due to the fire at Inuyama Plant.

Results by business segment were as follows:
Please note that the Group changed its reporting segment classification from of the fiscal year. With regard
to the following year-on-year comparison, the prior year’s figures have been restated in accordance with theaforesaid change in the segment classification.

Films and Functional Materials
In this segment, sales and operating profit increased due to the strong performance of the films business.
In the films business, the packaging film business experienced a decline in films for professional use, etc.,
caused by the spread of infection of COVID-19, but on the other hand, demand from people staying at homeincreased. Furthermore, despite a decrease in sales of some products due to the fire accident,
environmentally friendly films achieved growth in sales due to the rising eco-consciousness of consumers. In
the industrial film business, polarizer protective films for LCDs “COSMOSHINE SRF” showed strong sales
growth, and mold releasing film for MLCC “COSMOPEEL” improved in the second half of the fiscal year due
to the recovery of automobile production.
In the functional materials business, sales of industrial adhesives “Vylon” and adhesion promoter forpolyolefin “HARDLEN” improved in the second half of the fiscal year, but this was unable to compensate forthe impact of the spread of COVID-19 through the first half of the fiscal year. On the other hand, in the photofunctional materials business, which handles water-wash photo-sensitive printing plates, sales of products for4China, Europe and the United States trended strong.
As a result, sales in this segment increased ¥25.7 billion (20.2%) from the previous fiscal year to ¥152.8
billion, and operating profit increased ¥5.4 billion (37.3%) to ¥20.0 billion.

MobilityIn this segment, despite sales recovery in the second half of the fiscal year due to the improvement of
global automobile production, sales and operating profit decreased as this recovery was unable tocompensate for the effect of reducing the production of vehicles caused by the spread of infection of
COVID-19 through the six months ended September 30, 2020.
Engineering plastics saw a recovery in demand in Japan and overseas in the second half of the fiscal year,
and the sales grew in the 4th quarter with a year-on-year increase, but this recovery was unable tocompensate for sales decreases through the first half of the fiscal year caused by reduced production ofvehicles. The airbag fabrics business continued to face challenges due to material shortages, etc., despite arecovery in sales in the second half of the fiscal year.
As a result, sales in this segment decreased ¥7.3 billion (16.7%) from the same period of the previous fiscal
year to ¥36.6 billion, with an operating loss of ¥1.6 billion. (Compared with operating loss of ¥0.7 billion forthe same period of the previous fiscal year.)Lifestyle and Environmental
In this segment, sales and operating profit decreased as a result of high-performance fibers and textiles
being sluggish, caused by a decline in demand due to the spread of the COVID-19 infections.
In the environmental solutions business, despite the challenges to acquiring new projects due to the spreadof the COVID-19 infections, sales of volatile organic compound (VOC) emissions treatment equipment forrecovering solvents were steady for the full-year period owing to the backlog sales orders. Sales of Reverse
Osmosis (RO) membrane for seawater desalination grew for the full-year period because the timing of ordersof replacement elements shifted to the second half of the fiscal year.
In the nonwoven fabrics business, sales of spunbond for construction and civil engineering applications
were sluggish. Sales of functional filters were strong for air purifiers and masks, but struggled for officemachinery.
On the other hand, with regard to high-performance fibers, demand for “Tsunooga” used in cut resistant
gloves contracted as the plant operation rate fell throughout the world, and “IZANAS” was affected by the
decline in demand for use in ropes in Japan.
In the textile business, store sales, etc. for sports, underwear and suits were sluggish because of asignificant decline in orders. Traditional Arabic fabric remained weak due to sluggish store sales caused by
the outing restriction in Middle Eastern countries.
The acrylic fiber business struggled due to the further deterioration in the market environment due to the
spread of the COVID-19 infections amid the fall in demand in the Chinese markets and tough business
operations enforced by the anti-dumping policy.
As a result, sales in this segment decreased ¥19.3 billion (15.0%) from the previous fiscal year to ¥109.1
billion, and operating profit decreased ¥1.6 billion (26.3%) to ¥4.4 billion.

5Life Science
In this segment, sales and operating profit increased due to the rapid growth in demand for reagents for
PCR testing while the contract manufacturing business of pharmaceuticals faced challenges.
In the biotechnology business, demand for raw materials for diagnostic reagents decreased, but sales ofreagents for PCR testing and genetic testing equipment grew significantly due to the high demand with the
spread of COVID-19.
The contract manufacturing business of pharmaceuticals struggled due to the temporary operational
suspension and increased costs for compliance with Good Manufacturing Practice (GMP.)
In the medical materials business, sales of membranes for artificial kidney in the medical membranebusiness trended strong.
As a result, sales in this segment increased ¥1.5 billion (6.1%) from the previous fiscal year to ¥27.1 billion,
and operating profit increased ¥0.7 billion (18.9%) to ¥4.5 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 ¥2.9 billion (19.6%) from the previous fiscal year to¥11.8 billion, and operating profit decreased ¥0.3 billion (12.1%) to ¥2.3 billion.

(2) Analysis of Financial Position
Total assets at the end of the subject fiscal year (March 31, 2021) increased ¥2.3 billion (0.5%) from theend of the previous fiscal year (March 31, 2020) to ¥491.2 billion. This was due mainly to an increase in cash
and deposits as a result of financing through borrowings from financial institutions in order to increaseliquidity on hand, taking into account the impact of the spread of COVID-19, despite a decrease in property,
plant and equipment resulting from impairment losses.
Liabilities at the end of the subject fiscal year (March 31, 2021) decreased ¥3.7 billion (1.2%) from the endof the previous fiscal year (March 31, 2020) to ¥302.6 billion. This was mainly because of decreases in othercurrent liabilities and electronically recorded obligations - operating.
Total net assets at the end of the fiscal year under review increased ¥6.0 billion (3.3%) compared to theprevious fiscal year to ¥188.6 billion. This was due mainly to an increase in accumulated othercomprehensive income, such as remeasurements of defined benefit plans.

(3) Cash FlowsNet cash proceeded by operating activities amounted to ¥35.0 billion at the end of the subject fiscal year.
This was due mainly to a cash increase of depreciation of ¥19.1 billion and impairment losses of ¥8.9 billion.
Net cash used in investing activities amounted to ¥31.7 billion. This was due mainly to purchase of property,
plant and equipment and intangible assets of ¥27.5 billion.
Net cash used in financing activities amounted to ¥5.3 billion. This was due mainly to net increase in
short-term borrowings of ¥8.5 billion, proceeds from long-term borrowings of ¥12.0 billion, repayments oflong-term borrowings of ¥9.5 billion and dividends paid of ¥3.6 billion.
As a result, the balance of cash and cash equivalents at the end of the subject fiscal year (March 31, 2021)
stood at ¥34.5 billion, an increase of ¥9.4 billion from the end of the previous fiscal year (March 31, 2020).
6

(Reference) Cash Flow Indicators
Years ended March 31
2017

2018

2019

2020

2021

Equity ratio (%)

37.2

40.5

38.3

36.4

37.8

Equity ratio, based on market
value (%)

38.0

41.8

27.2

20.8

25.8

Return on equity (%)

5.8

7.5

(0.3)

7.8

2.3

Interest-bearing debt to cash
flow ratio (Years)

6.3

6.5

21.0

4.0

5.3

Interest(Times)

19.3

16.9

6.0

32.2

28.0

1.01

0.81

0.93

0.98

1.01

coverage

D/E ratio (Times)

ratio

Notes:
Equity ratio: shareholders’ equity / total assets
Market-based rate of equity ratio: total market capitalization / total assets
Return on equity: profit attributable to owners of parent / an average of the balances at the beginningand end of period for the total net assets excluding non-controlling interests.
Interest-bearing debt to cash flow ratio: interest-bearing debt / operating cash flows
Interest coverage ratio: operating cash flows / interest expense
D/E ratio: interest-bearing debt / net assets excluding non-controlling interests(4) Forecast for Fiscal 2022 (Ending March 31, 2022)
Regarding the business environment for the fiscal year ending March 31, 2022, as mentioned earlier, it isexpected that it will take time for the global economy, including Japan, to normalize due to the effect ofshortage of semiconductors and price increase of raw materials and fuel, which became extra factors in thesecond half of the fiscal year, on top of the resurgence of the COVID-19 infection cases. The speed of
economic recovery is likely to be affected by the progress of the COVID-19 vaccine roll-out, the timing of thelifting of restrictions on human mobility, and the recovery status in semiconductor production.
There are concerns that the Group’s businesses will be affected by a delay in the recovery of personal
consumption due to restriction on human mobility, a decrease in automobile production due to the shortageof semiconductors, and a rise of raw materials and fuel prices.
Meanwhile, Toyobo will make every effort to offer reagents for PCR testing and provide genetic testing
equipment, etc., in order to respond to the public demand for PCR testing. In addition, in order to respond to
the strong demand for information equipment, Toyobo plans to increase the production of mold releasing film
for MLCC “COSMOPEEL” and polarizer protective films for LCDs “COSMOSHINE SRF.”
Under this environment, for the fiscal year ending March 31, 2022, the Group is forecasting net sales of¥360.0 billion (an increase of ¥22.6 billion year on year), operating profit of ¥27.0 (an increase of ¥0.3 billion),ordinary profit of ¥22.0 billion (an increase of ¥1.3 billion), and profit attributable to owners of parent of ¥11.5
billion (an increase of ¥7.3 billion).

7(5) Basic Policy Regarding Earnings Distribution, and Dividends for Fiscal 2021 and 2022
Toyobo considers providing returns to shareholders to be one of its highest priorities. Our basic policy is tocontinually provide a stable dividend, in a comprehensive consideration of such factors as sustainable profits
levels, retention of earnings for future investment, and improving the financial position to provide
shareholders returns, including the acquisition of treasury shares, with a target total return ratio (*1) of 30%.
Regarding dividends for the next fiscal year, the basic policy of continuous stable dividends has notchanged. Currently, dividends of ¥40 per share are being forecast, but the Group will review this going
forward based on the policy above.

(*1)Total return ratio = (total dividend + total amount of share buybacks) ÷ profit attributable to owners ofparent2. Basic Approach to Selection of Accounting Standards
After considering the possibility of comparisons among financial results for consolidated accounting periods
and the possibility of comparisons with other companies, the Group has decided to continue to adopt
generally accepted accounting principles in Japan for the time being. Please note that, regarding the
adoption of International Financial Reporting Standards (IFRS), the policy of the Group is to take appropriate
action after the consideration of related issues in Japan and overseas.

8

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)2020
(As of March 31, 2020)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

92021(As of March 31, 2021)

25,247
85,34534,69585,182

8,208

8,709

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

45,785
11,48019,0458,203(136)
212,963

52,746
43,343
97,05529,876
8,459
231,478

54,22756,053
93,16912,454
8,738
224,640

4,641
4,641

4,674
4,674

20,916
17,9778,203(757)
46,339282,458
488,874

26,50315,066
8,191(849)
48,911
278,225
491,188

(Millions of yen)2020
(As of March 31, 2020)
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
Provision for bonuses
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

10

2021
(As of March 31, 2021)

41,65940,879

8,357

4,881

32,027
－
8,510
4,366
27,403
122,32140,767
10,00010,107
4,691
20,118131,444

55,00075,851
21,27745,00077,046
20,156

247

241

331
21,6139,598
183,916
306,23831
18,288
10,347
171,109302,553

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

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

4,013

7,038

(8)
44,457(11,954)(4,128)11
42,708(11,052)(965)

32,38137,7404,746
182,636
488,874

2,906
188,635
491,188(2) Consolidated Statements of Income andConsolidated Statements ofComprehensive Income(Consolidated Statements of Income)(Millions of yen)
2020
(From April 1, 2019
To March 31, 2020)

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 for using
equity method
Insurance claim income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Salaries paid to dispatched employees
Loss on suspension of production
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on extinguishment of tie-in shares
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on bargain purchase
Gain on liquidation of subsidiaries andassociates
Insurance claim income
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on fire
Loss on disposal of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

11

2021
(From April 1, 2020
To March 31, 2021)

339,607
255,140
84,467
61,673
22,794

337,406
247,032
90,37563,71826,657

650

555

469

－

598
38
1,575
3,329

368
1,041
1,167
3,131

1,369
859
947
4,914
8,089
18,035

1,283
753
1,854
5,192
9,082
20,706

－
16
448
65

387
85
－
－

30

157

10,647
11,206

－
629

2,397
3,112
3,979
37
9,525
19,716
5,587
819
6,406
13,310(464)
13,774

8,923
1,906
3,558
1,366
15,753
5,582
3,541
(271)
3,270
2,313
(1,889)4,202

(Millions of yen)(Consolidated Statements ofComprehensive Income)

2020(From April 1, 2019
To March 31, 2020)

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

12

2021
(From April 1, 2020
To March 31, 2021)

13,3102,313(5,052)

3,015

25(1,705)19
1,069(2,089)

3,162

(52)

(107)

(8,873)
4,437

7,158
9,471

4,974

11,309(538)(1,838)

(3) Consolidated Statements of Changes in Net Assets
2020 (From April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

51,73032,206

Balance at beginning of
periodRetainedearnings

Treasury shares

Total
shareholders'equity(415)

135,378

51,858Changes during period
Dividends of surplus(3,551)(3,551)

Profit attributable toowners of parent

13,774

13,774

26

26

(167)

(167)

(9)

(9)

Reversal of revaluation
reserve for land
Change in scope of
consolidation
Change in scope ofequity method
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
period(6)

Balance at end of period

(3)

(3)

68

62

-

(6)

10,071

64

10,13051,73032,20061,929(350)

145,509

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference onavailabl
e-for-salesecurities

Deferred gainsorlossesonhedges

9,071

(33)

Revaluation
reservefor landForeigncurrencytranslationadjustm
ent

Remeasurementsof defined
benefit
plans

Total
accum
ulatedothercomprehensiveincome44,483(10,277)(2,038)41,206

Non-controlling
interests

Total net
assets

4,641

181,226

Changes during period
Dividends of surplus(3,551)

Profit attributable toowners of parent

13,774

Reversal of revaluation
reserve for land
Change in scope of
consolidation
Change in scope ofequity method
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period

26
(167)
(9)
(3)
62
(5,058)25(26)(1,677)(2,089)(8,825)105(8,720)(5,058)25(26)(1,677)(2,089)(8,825)

105

1,410

4,013

(8)

44,457(11,954)(4,128)32,381

4,746

182,63613

2021 (From April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

51,73032,200

Balance at beginning of
periodRetainedearnings

Treasury shares

Total
shareholders'equity(350)

145,50961,929Changes during period
Dividends of surplus(3,552)(3,552)

Profit attributable toowners of parent

4,202

4,202

1,745

1,745

28

28

Reversal of revaluation
reserve for land
Change in scope of
consolidation
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
period2

Balance at end of period

(3)

(3)

59

61

－

2

2,422

56

2,480

51,73032,20264,351(294)

147,989

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference onavailabl
e-for-salesecurities

Deferred gainsorlossesonhedges

Revaluation
reservefor landForeigncurrencytranslationadjustm
ent

Remeasurementsof defined
benefit
plans

Total
accum
ulatedothercomprehensiveincome4,013(8)44,457(11,954)(4,128)32,381

Non-controlling
interests

Total net
assets

4,746

182,636

Changes during period
Dividends of surplus(3,552)

Profit attributable toowners of parent

4,202

Reversal of revaluation
reserve for land
Change in scope of
consolidation
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period

1,745
28
(3)
61
3,025

19

(1,749)

902

3,162

5,359

(1,840)

3,518

3,025

19

(1,749)

902

3,162

5,359

(1,840)

5,999

7,038

11

42,708(11,052)(965)

37,7402,906

188,635

14

(4) Consolidated Statements of Cash Flows(Millions of yen)
2021
(From April 1, 2020
To March 31, 2021)

2020(From April 1, 2019
To March 31, 2020)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted forusing equity method
Impairment losses
Loss (gain) on sales and disposal of property,
plant and equipment, net
Loss (gain) on sale and valuation of investment
securities
Loss (gain) on sale of shares of subsidiaries
and associates
Insurance claim income
Loss due to fire
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in retirement benefit asset
Other, net
Subtotal
Payments for Loss due to fire
Income taxes refund (paid)
Proceeds from insurance income
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment andintangible assets
Proceeds from sale of property, plant andequipment and intangible assets
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from collection of long-term loans
receivable
Long-term loan advancesInterest and dividends received
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
Redemption of bonds
Purchase of treasury sharesInterest paid
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
15

19,71617,005

5,582
19,095

48

68

230

1,189

(791)
1,369

(619)
1,283

(469)

338

2,397

8,923

3,963

3,658

(448)

78

－

4

(10,647)
3,112(2,005)
1,678
3,367
142
552
39,219(4,147)(1,464)
10,647

－
1,906
306
5,067
(4,664)(420)
467
42,261(952)(6,281)－

44,25535,028(30,858)(27,495)

1,344

473

(8,797)

－

903

29

(117)
810
(2,500)(73)
619(5,230)(39,216)(31,678)(13,498)

8,466

14,595(12,460)
25,000(10,000)(3)(1,376)(3,551)(25)(487)

12,004(9,471)－－(2)(1,249)(3,550)(2)(856)(1,805)

5,340

(621)

461

2,613

9,151

22,16725,084

Increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Increase in cash and cash equivalents resulting
from merger with unconsolidated subsidiaries
Cash and cash equivalents at end of period

16

303

20

－

270

25,08434,526

(5) Notes to Consolidated Financial Statements(Note to Going Concern)
Not applicable(Segment Information)a. Segment Information
1. Reportable Segment Operating Results
Toyobo’s reportable segments allow it to acquire financial data separated into the various components ofthe corporate group. The scope of the segments is reviewed on a regular basis in order to allow the highest
decision-making body to determine the allocation of management resources, and evaluate earnings
performance.
Toyobo’s basic organization comprises solution headquarters and business divisions within the head office,separated by the type, nature and market region for products and services. Each solution headquarters andbusiness division formulates comprehensive strategies for its domestic and overseas operations, andconducts business activities.
Accordingly, Toyobo comprises segments by market region. Its five reportable segments are “Films andFunctional Materials,” “Mobility,” “Lifestyle and Environmental,” “Life Science” and “Real Estate.”
The “Films and Functional Materials” segment manufactures and sells packaging films, industrial films,
industrial adhesives, photo functional materials and other products. The “Mobility” segment manufacturesand sells engineering plastics, airbag fabrics and other products. The “Lifestyle and Environmental” segment
manufactures and sells water treatment membranes, functional filters, high-performance fibers, nonwoven
fabrics, functional textiles, apparel products, apparel textiles, apparel fibers and other products. The “Life
Science” segment manufactures and sells bio-products such as enzymes for diagnostics, pharmaceuticals,
medical-use membranes, medical equipment, equipment devices and other products. The “Real Estate”
segment leases and manages real estate properties.

(Matters concerning changes to reportable segments)
From the subject 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 to provide solutions” (contribution to society through business), which is the Group’s materiality.
Accordingly, business segments were changed from “Films and Functional Polymers,” “Industrial Materials,”“Health care” and “Textiles and Trading” to “Films and Functional Materials,” “Mobility,” “Lifestyle andEnvironmental” and “Life Science.”
Segment Information for the previous fiscal year was restated in accordance with the method ofclassification after the aforesaid change.

2. Calculation Method for the Amounts of Net Sales, Profit or Loss, Assets and Other Items by Reportable
Segment
The accounting method used for the reported business segments is the same as the method described in“Basis of preparing Consolidated Financial Statements.”
Profit of reportable segments is based on operating profit.
Intersegment sales and transfers are based on actual market pricing.

17

3. Segment Operating Results and Assets[Fiscal Year ended March 31, 2020](Millions of yen)Segment to be Reported

Total

Total

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statementsof Profit(Note 3)

Films andFunctional
Materials

Mobility

LifestyleandEnvironmental

127,127

43,905

128,40925,5384,405

329,383

10,224

339,607－339,607

86

10

435

48

393

971

22,47323,444(23,444)－

Total

127,21343,915

128,844

25,586

4,797

330,355

32,697363,052(23,444)

339,607

Operating profit(loss)

14,582

(701)

5,936

3,798

1,482

25,097

1,141

26,238(3,444)

22,794

Assets158,950

51,153

135,923

32,571

48,709427,306

21,972449,278

39,596

488,874

6,724

1,550

3,921

2,330

657

15,182336

15,5181,487

17,005

21,528

3,360

6,689

2,704

377

34,658341

34,9991,446

36,445

Life
ScienceReal
EstateNet sales
Outsidecustomers
Inter-segment
sales andtransfers

OthersDepreciation andamortization
CapitalexpenditureNote:
1. Other includes design and construction of buildings, equipment, etc., information services, logistics
services and other items.
2. (1) Segment profit or loss adjustment of ¥(3,444) million includes eliminations of intersegment
transactions of ¥(388) million and companywide expenses that are not allocated across reporting
segments of ¥(3,056) million. The principal components of companywide expenses are those related
to basic research and development.
(2) The adjustment of segment assets of ¥39,596 million includes corporate assets of ¥79,682 million
that are not allocated to the reportable segments.
(3) The adjustment of increases in property, plant and equipment and intangible assets of ¥1,446 million
represents that amount of capital investment related to research and development expenses.
3. Segment profit has been adjusted with operating income on the consolidated financial statements.

18

[Fiscal Year ended March 31, 2021](Millions of yen)Segment to be Reported

Other
Businesses(Note 1

Adjustment(Note 2)

Consolidated
Statementsof Profit(Note 3)

Films andFunctional
Materials

Mobility

LifestyleandEnvironmental

152,842

36,753

109,148

27,087

3,959

329,608

7,798

337,406－

337,406

110

27

362

40

463

1,002

13,631

14,663(14,633)－

Total

152,952

36,599109,509

27,127

4,422

330,610

21,429352,039(14,633)

337,406

Operating profit(loss)

20,028(1,572)

4,376

4,517

1,548

28,897754

29,650(2,993)26,657

Assets

165,697

50,396132,101

36,034

48,237432,465

16,141

448,606

42,582

491,188

8,886

1,364

3,802

2,372

704

17,128421

17,550

1,545

19,095

8,802

1,408

5,892

3,159

348

19,609751

20,3602,893

23,253

Life
ScienceReal
Estate

Total

Total

Net sales
Outsidecustomers
Inter-segment
sales andtransfers

OthersDepreciation andamortization
CapitalexpenditureNote:
1. Other includes design and construction of buildings, equipment, etc., information services, logistics
services and other items.
2. (1) Segment profit or loss adjustment of ¥(2,993) million includes eliminations of intersegment
transactions of ¥150 million and companywide expenses that are not allocated across reporting
segments of ¥(3,144) million. The principal components of companywide expenses are those related
to basic research and development.
(2) The adjustment of segment assets of ¥42,582 million includes corporate assets of ¥79,074 million
that are not allocated to the reportable segments.
(3) The adjustment of increases in property, plant and equipment and intangible assets of ¥2,893 million
represents that amount of capital investment related to research and development expenses.
3. Segment profit has been adjusted with operating income on the consolidated financial statements.

19

(Significant subsequent events)
Merger with TOYOBO FILM SOLUTIONS LIMITEDThe Company has resolved to implement an absorption-type merger with its consolidated subsidiary,
TOYOBO FILM SOLUTIONS LIMITED (hereinafter, “TFS”), at the meeting of the Board of Directors held on
December 25, 2020, entered into a merger agreement on the same date and carried out the merger effective
April 1, 2021. Pursuant to Article 796, paragraph 2 (as for the Company) and Article 784, paragraph 1 (as for
TFS) of the Companies Act, the merger has been conducted without the general meeting of shareholders ofeach company on their respective approval for the merger agreement.
The outline of the merger is as follows.

1. Outline of the transaction(1) Name and content of business of the company involved in the merger
Name of the company involved in the merger: TOYOBO FILM SOLUTIONS LIMITED
Content of business: Manufacturing and sale of films(2) Date of the business combination
April 1, 2021
(3) Legal form of the business combination
The merger has been conducted as an absorption-type merger, with the Company as the surviving
company and TFS as the disappearing company.
(4) Name of the company after the business combination
TOYOBO CO., LTD.
(5) Other items related to the outline of the transaction(i) Purpose of the merger
The Company decided to implement an absorption-type merger with TFS with the aim ofestablishing a structure to seamlessly and efficiently provide high-performance film products tocustomers by combining the distinctive technologies and product lineups of TFS and the Company.
(ii) Allotment regarding the merger
There was no issuance of new shares or allotment of any other consideration with respect to themerger.
(iii) Financial position and operating results of the company involved in the merger for immediately
preceding fiscal year (Fiscal year ended December 31, 2020)
Assets ¥18,145 million
Liabilities ¥7,801 million
Net assets ¥10,344 million
Net sales ¥24,939 million
Profit ¥2,107 million

20

2. Outline of the accounting method
In accordance with the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, January
16, 2019) and the “Guidance on Accounting Standard for Business Combinations and Accounting Standard
for Business Divestitures” (ASBJ Guidance No. 10, January 16, 2019), the merger was accounted for as atransaction under common control.

Issuance of unsecured straight bonds in the Japanese market
At the meeting of the Board of Directors held on April 23, 2021, a comprehensive resolution regarding theissuance of unsecured straight bonds in the Japanese market was passed. The details of this resolution are
as follows:(1) Issue amount: ¥20,000 million or less.
However, multiple issues within the scope of this amount are not ruled out.
(2) Issue price: ¥100 for each bond with par value of ¥100.
(3) Interest rate: Market yield of Japanese government bonds with the same maturities plus 1.0% or less
(4) Payment dates: From April 24, 2021 to March 31, 2022.
However, if the bonds are offered during this period, payments after this period will be accepted.
(5) Term of redemption: 5 years or more, to 10 years.
(6) Method of redemption: Full amount on maturity.
However, a retirement by purchase clause may be included.
(7) Uses of funds: For redemption of bonds, repayment of borrowings, purchases of plant and equipment(includes acquisition of stock through mergers and acquisitions), working capital and capital
investments.
(8) Special provisions: These bonds will include a negative pledge clause.
(9) Other: Decisions regarding matters covered in Article 676 of the Companies Act and all other items
related to the issuance of bonds will be made within the scope stated above at the discretion of thedirector in charge of the Finance Division.

21