February 8, 2024

Consolidated Financial Report for the Nine Months Ended December 31, 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 and 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: February 13, 2024

(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

Operating profit

Millions of yen%

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen

%

2023

307,323

2.9

4,992

(47.8)

2,395(65.5)

1,573(83.9)

2022

298,738

8.8

9,568

(58.2)

6,943(61.8)

9,759(19.5)(Note) Comprehensive Income:Nine months ended December 31, 2023: ¥3,271 million (67.8%)
Nine months ended December 31, 2022: ¥10,158 million (41.4%)

Net profit per
share

Net profit per shareafter dilution

Yen

Yen

2023

17.85

－

2022

109.72－(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

December 31,
584,434
220,91432.3
2,145.84
2023
March 31,588,906
221,42232.2
2,146.46
2023(Reference) Total shareholders’ equity: December 31, 2023: ¥189,047 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

Year-end

Total

Yen

Yen

Yen

Yen

Yen

2023

－

0.00

－

2024

－

0.00

－

2024
(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, 2024
Percentages indicate year-on-year increase/ (decrease)

Net sales
Millions of yen

Fiscal year

Operating profit%

410,000

Millions of yen

2.5

Fiscal year

Millions of yen(20.5)%

5,000(24.1)Net profit per share
%

1,000

%

8,000

Profit attributable toowners of parent
Millions of yen

Ordinary profit

Yen
－

11.35

(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): None
1) New company: None2) Excluded company: None2. 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):
December 31, 2023: 89,048,792 shares

March 31, 2023: 89,048,792 shares

2) Number of treasury stock:
December 31, 2023: 949,646 shares

March 31, 2023: 723,040 shares

3) Average number of shares outstanding for each period (cumulative term):
Nine months ended December 31, 2023: 88,095,837 shares
2022: 88,946,400 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 ninemonths ended December 31, 2023 saw firm consumer spending supporting economic activities in
the United States, amid the unchanged policy interest rate. However, in China, the sense of
economic stagnation continued due to the prolonged real estate recession and weak consumer
mindset. In Japan, the economy recovered moderately due to a recovery in automobile productionand expansion of inbound demand. There is continued concern over the impact on economic
recovery from the effects of global monetary tightening, the struggling Chinese economy, andheightened geopolitical risk.
Under this business environment, sales of polarizer protective films for LCDs “COSMOSHINE
SRF” and volatile organic compound (VOC) recovery equipment used in the manufacturing
process for lithium-ion battery separators increased, driven by strong demand. On the other hand,adjustments of inventories on the market for packaging film became prolonged due to delays indemand recovery, and demand for reagents for PCR testing dropped sharply as a result of
normalization from the COVID-19 pandemic.
As a result, consolidated net sales in the nine months ended December 31, 2023 increased ¥8.6
billion (2.9%) over the same period of the previous fiscal year, to ¥307.3 billion. Operating profit
decreased ¥4.6 billion (47.8%), to ¥5.0 billion and ordinary profit decreased ¥4.5 billion (65.5%) to¥2.4 billion. Profit attributable to owners of parent decreased ¥8.2 billion (83.9%), to ¥1.6 billion.
Results by business segment were as follows:
The Group changed its reporting segment classification from the first quarter of the consolidated
fiscal year. Accordingly, in the following segment information, the figures for the nine months
ended December 31, 2022, have been restated in accordance with the classification existing after
the aforesaid change for the purpose of comparing them with those of the nine months ended
December 31, 2023.
Films
In this segment, sales increased while operating profit decreased due to a delayed recovery indemand for packaging films.
In the packaging film business, while we worked on product price revisions in response to soaring
raw material and fuel prices, slowed cargo movement continued due to delays in demand recovery,in addition to start-up cost for new production equipment increased.
In the industrial film business, sales of polarizer protective films for LCDs “COSMOSHINE SRF”
increased driven by strong demand. Sales of mold releasing film for multilayer ceramic capacitors(MLCC) struggled as a full-fledged recovery in demand failed to materialize.
As a result, sales in this segment increased ¥7.4 billion (6.7%) from the same period of theprevious fiscal year to ¥117.4 billion, and operating profit decreased ¥0.5 billion (25.3%) to ¥1.5
billion.

3

Life Science
In this segment, sales and operating profit decreased due to a significant drop in demand ofreagents for PCR testing.
In the biotechnology business, sales of reagents for PCR testing declined significantly due to thewinding down of COVID-19 infections.
In the medical materials business, sales of artificial kidney hollow fiber trended strong.
In the contract manufacturing business of pharmaceuticals, profitability improved due to adecrease in costs for supporting good manufacturing practice (GMP) (including manufacturing andquality control standards for pharmaceuticals, etc.) as a result of the lifting of the Warning Letterby the FDA.
As a result, sales in this segment decreased ¥4.1 billion (13.8%) from the same period of theprevious fiscal year to ¥25.3 billion, and operating profit decreased ¥4.5 billion (56.3%) to ¥3.5
billion.
Environmental and Functional Materials
In this segment, despite the impact of delays in demand recovery for electronic materials for the
Chinese market and high raw material and fuel prices, sales and operating profit increased due tosales of VOC recovery equipment and engineering plastics increased.
In the resins and chemicals business, engineering plastics sales increased with the recovery inautomobile production volume, and product price revisions proceeded. Sales of industrial
adhesives “Vylon” declined for electronic materials applications for the Chinese market.
In the environment and fiber business, sales of VOC recovery equipment and replacement
elements used in the manufacturing process for lithium-ion battery separators significantly
increased in the third quarter. In the high performance fibers business, sales of“ZYLON” forapplications in building structural reinforcement and bicycle tires were weak. Nonwoven materials
were affected by both reduced sales for hygiene products, and civil engineering and building
materials, as well as soaring raw material and fuel prices.
As a result, sales in this segment increased ¥3.7 billion (4.5%) from the same period of theprevious fiscal year to ¥86.2 billion, and operating profit increased ¥0.1 billion (2.5%) to ¥3.0
billion.
Functional Textiles and Trading
In this segment, sales increased and operating loss decreased due to structural reforms in the
textile business and recovery of automobile market.
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, and product price revisions in response to rising raw material prices proceeded, leading to
improved profitability.
As a result, sales in this segment increased ¥1.3 billion (1.9%) from the same period of the4

previous fiscal year to ¥68.9 billion, and operating loss of ¥1.5 billion (compared with operating
loss of ¥1.8 billion for the same period of the previous fiscal year).
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 weregenerally in line with plans.
As a result, sales in this segment increased ¥0.2 billion (2.7%) from the same period of theprevious fiscal year to ¥9.6 billion, and operating profit increased ¥0.5 billion (28.8%) to ¥2.1
billion.
(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets decreased ¥4.5 billion (0.8%) from the end of the previous fiscal year, to ¥584.4
billion. This was mainly due to a decrease in cash and deposits and notes and accounts
receivable - trade, despite an increase in property, plant and equipment due to capital investment.
Total liabilities decreased ¥4.0 billion (1.1%) from the end of the previous fiscal year, to ¥363.5
billion. This was mainly due to a decrease in notes and accounts payable - trade.
Net assets decreased ¥0.5 billion (0.2%) from the end of the previous fiscal year, to ¥220.9 billion
due to a decrease in retained earnings, despite an increase in foreign currency translation
adjustment.
(3) Qualitative Information on Consolidated Forecasts
The consolidated earnings forecasts for the fiscal year ending March 31, 2024 are now expected
to be lower than the previously announced figures, which were announced on November 9, 2023,
due to the delayed improvement in profitability owing to a slow recovery in demand for packaging
film, etc., although sales of polarizer protective films for LCDs “COSMOSHINE SRF” and VOC
recovery equipment used in the manufacturing process for lithium-ion battery separators
expanded.

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 Third Quarter(As of December 31, 2023)

60,70388,427407

27,91384,327
139

12,295

14,84675,343
16,55630,002
15,672(271)
299,133

73,73820,21431,057
12,429(326)
264,337

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

63,75159,061
90,98548,674
8,228
270,698
4,548

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

46,129(1,278)44,850320,097584,434

(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 Third Quarter(As of December 31, 2023)

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

48,292
5,295
54,08615,00025,1802,798
29,635
180,286

65,00049,09919,64160,00074,54019,641

239

266

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

11
21,387
7,388
183,233
363,520

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

51,73033,187
68,529(1,005)
152,442

3,434

1,454

67
41,435(4,556)(4,632)(6)
41,435(2,048)(4,230)35,74836,60531,834
221,422588,906

31,867
220,914584,434

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Millions of yen)(Consolidated Statements of Income)Previous Third Quarter(From April 1, 2022
To December 31, 2022)

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

8

Current Third Quarter(From April 1, 2023
To December 31, 2023)

298,738
233,449
65,28955,721
9,568

307,323
242,546
64,77759,786
4,992

256
390
1,178
1,824

249
783
1,020
2,052

1,003
3,446
4,449
6,943

989
3,659
4,648
2,395

1,198
2,796
5,607
9,601

－
3,049
－
3,049

2,309
－
2,309
14,235
4,540
9,695
(64)
9,759

1,605
212
1,816
3,628
1,936
1,692
119
1,573

(Millions of yen)(Consolidated Statements ofComprehensive Income)Previous Third Quarter(From April 1, 2022
To December 31, 2022)

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 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, 2023
To December 31, 2023)

9,695

1,692

(1,923)(1,885)

2
1,637

(73)
2,568

4

402

743

568

463
10,158

1,579
3,271

10,088

2,885

70

386

(3) Notes to Consolidated Financial Statements(Note to Going Concern Assumption)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicable(Segment Information)( i ) Nine months ended December 31, 2022
(Millions of yen)Segment to Be Reported
Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statements ofIncome(Note 3)

Films

Life
Science

Environmental
andFunctional
Materials

109,974

29,32082,47767,601

3,124

292,496

6,242

298,738－

298,738

98

34

2,824

462

301

3,718

11,176

14,894(14,894)－

110,072

29,35485,301

68,062

3,424

296,214

17,418313,632(14,894)

298,738

2,008

7,968

2,931

(1,793)

1,204

12,317450

12,767(3,199)9,568

Functional
TextilesandTrading

Real
Estate

Total

Total

Net sales(1) Outside
customers(2) Inter-segment
sales andtransfers
Total
Segment profit(loss)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 ¥(3,199) million includes eliminations of intersegment transactionsof ¥(204) million and companywide expenses that are not allocated across reporting segments of¥(2,995) 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.

10( ii ) Nine months ended December 31, 2023
(Millions of yen)Segment to Be Reported
Other
Businesses(Note 4)

Adjustment(Note 5)

Consolidated
Statementsof Income(Note 6)

Films

Life
Science

Environmental
andFunctional
Materials

117,393

25,262

86,166

68,888

3,073

300,782

6,542

307,323－

307,323

1,674

79

6,688

848

870

10,158

12,571

22,729(22,729)－

119,066

25,34092,85469,736

3,943

310,939

19,113330,052(22,729)

307,323

1,499

3,485

3,003

(1,546)

1,559

8,000

571

8,571

(3,579)4,992

Functional
TextilesandTrading

Real
Estate

Total

Total

Net sales(1) Outside
customers(2) Inter-segment
sales andtransfers
Total
Segment profit(loss)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 ¥(3,579) million includes eliminations of intersegment transactionsof ¥(407) million and companywide expenses that are not allocated across reporting segments of¥(3,172) 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 profit 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 business fields on which toparticularly focus and carry out business operations in accordance with each positioning while evaluating
and categorizing each business in accordance with their “profitability” and “growth potential.” Accordingly,
the Group reviewed the reportable segment classification, and changed them from the previous “Films andFunctional Materials,” “Mobility” and “Lifestyle and Environment” to “Films,” “Environmental and Functional
Materials” and “Functional Textiles and Trading.”
Segment information for the nine months ended December 31, 2022 was prepared in accordance with theclassifications after the change.

(Significant Subsequent Events)
Not applicable11