May 11, 2023

Consolidated Financial Report for Year Ended March 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 & Representative Director
Contact Person: Sonoko Ishimaru, Executive Officer, General Manager, Corporate Communication Department
TEL: +81-6-6348-3044
Date of the General Meeting of the Shareholders: June 28, 2023
Planned start of dividend payments: June 29, 2023
Planned filling of an annual security report: June 28, 2023
(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%

Millions of yen

2023

399,9216.4

10,063(64.6)

6,590

2022

375,720

11.4

28,4306.6

23,092(Note) Comprehensive Income:

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen%(71.5)

(655)

―

11.5

12,865

206.2

Year ended March 31, 2023: ¥(1,232) million －%Year ended March 31, 2022: ¥12,112 million 27.9%

Net profit per
share

Net profit per shareafter dilution

Return on equity

Ordinary
profit-to-total assets
ratio

Operatingprofit-to-net sales
ratio

Yen

Yen

%

%

%

2023

(7.37)

―

(0.3)

1.2

2.5

2022

144.75

―

6.8

4.6

7.6

(Reference) Gain (loss) on investment by equity method: Year ended March 31,2023: ¥342 million
Year ended March 31,2022: ¥161 million(2) Consolidated Financial Position
At March 31
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

2023

588,906

221,42232.2

2,146.462022

517,774

197,14937.6

2,192.17(Reference) Total shareholders’ equity: March 31, 2023: ¥189,588 million, March 31, 2022: ¥194,876 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

2023

7,798

(36,011)

61,29560,2042022

17,097(24,608)(1,729)26,4331

2. Dividends
Years ended/ending March 31
Total amountof dividends(for the entire
fiscal year)
Millions of yen

Dividends per share
1st
Quarter

2nd
Quarter

3rd
QuarterYearend

Total

Yen

Yen

Yen

Yen

Yen

2022

―

0.00

―

40.00

40.00

2023

―

0.00

―

40.00

40.00

2024
(Forecast)

―

0.00

―

40.00

40.00

Recorddate

Payoutratio

Dividends to
net assets
ratio

%

%

3,556

27.6

1.9

3,533

―

1.8

88.9

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

Net sales
Millions of yen

Fiscal year

Operating profit%

430,000

Millions of yen

7.5

Profit attributable toowners of parent
Millions of yen

Fiscal year%

15,000Millions of yen

49.1

%

11,00066.9

Net profit per share
%

4,000

Ordinary profit

Yen

―

45.00

4. Other
1. Significant changes in subsidiaries during the subject fiscal year (Transfer of particular subsidiaries
following a change in the scope of consolidation): None
1) New company: None2) Excluded company : None
2. 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: None3. Number of shares issued and outstanding (common stock):1) Number of shares outstanding at fiscal year-end (including treasury stock):2023: 89,048,792 shares

2022: 89,048,792 shares

2) Number of treasury stock at fiscal year-end:
2023: 723,040 shares

2022: 152,550 shares

3) Average number of shares outstanding:2023: 88,885,920 shares

2022: 88,876,906 shares

2

(Reference)

1. Non-Consolidated Business Performance(1) Non-Consolidated Operating Results
Year ended March 31

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

Net sales

Operating profit

Millions of yen%

Millions of yen

Ordinary profit%

Millions of yen

Net profit%

Millions of yen

%

2023

253,604

4.9

4,521

(77.6)

1,940(87.9)(2,019)―2022

241,749

22.6

20,183

9.5

16,021

12.4

6,174

―

Net profit per share

Net profit per share after
dilution

Yen

Yen

2023

(22.72)

―

2022

69.47

―

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

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

2023

489,838

150,07330.6

1,699.082022

447,112156,27335.0

1,757.92(Reference) Total shareholders’ equity: March 31, 2023: ¥150,073 million, March 31, 2022: ¥156,273 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 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 Financial Results Report, and it ismade 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 thefiscal year ended March 31, 2023 (hereinafter “the fiscal year”), the global economy slowed down
due to monetary tightening policies in Europe and the United States and China’s zero-COVID
policy (lockdowns) in addition to rising raw material and fuel prices stemming from the impact of
the situation in Ukraine, among others. In Japan, although the normalization of the economy wasseen in the second half of the fiscal year, the recovery of the economy remained slow partly due
to the rising raw material and fuel prices and delays in the recovery of automobile production
resulting from shortages in the supply of materials such as semiconductors, in the full year.
Under this business environment, sales of volatile organic compound (VOC; organic solvent)
recovery equipment used in the manufacturing process for lithium-ion battery separators
proceeded robustly as a result of the global shift to EV. In addition, sales of enzymes fordiagnostic reagents and genetic testing to the overseas market grew. On the other hand, though
the Group proceeded with product price revisions in the films business, the nonwoven materials
business and other businesses, they were not enough to cover the impact of the rising raw
material and fuel prices, and these businesses faced challenges for profitability. Furthermore, inthe films business, sales decreased, affected by a temporary downturn in demand for moldreleasing film for multilayer ceramic capacitors (MLCC), among others.
On the financial front, the Group recorded ¥5.6 billion insurance claim income related to the fire
accident that occurred at the Inuyama Plant and ¥2.9 billion of gain on sale of securities due topartial sale of investment securities in extraordinary income. On the other hand, ¥9.8 billion of
impairment losses were recorded as extraordinary losses on assets to be suspended andbusiness assets for the nonwoven materials business, the engineering plastics business andothers.
As a result, net sales in the fiscal year increased 6.4% from the previous fiscal year to ¥399.9
billion, operating profit decreased 64.6% from the previous fiscal year to ¥10.1 billion, ordinary
profit decreased 71.5% from the previous fiscal year to ¥6.6 billion, loss attributable to owners of¥0.7 billion. (Compared with profit of attributable to owners of ¥12.9 billion for the previous fiscal
year.)
Results by business segment were as follows:
Films and Functional Materials
In this segment, efforts were made to implement product price revisions, although sales andoperating profit decreased due to the significant impacts from rising raw material and fuel prices
and a decline in demand.
In the films business, the packaging film business had difficulties in realizing product pricerevisions to compensate for rising raw material and fuel prices, and furthermore, cargo
movements slowed in the second half of the fiscal year. The industrial film business was affectedby a decrease in demand for mold releasing film for MLCC and other products in addition to therising raw material and fuel prices.
In the functional materials business, sales of industrial adhesives “Vylon” declined due to the4impact of China’s zero-COVID policy.
As a result, sales in this segment decreased ¥0.3 billion (0.2%) from the previous fiscal year to¥170.0 billion, and operating profit decreased ¥15.3 billion (76.7%) to ¥4.6 billion.
MobilityIn this segment, efforts were made to implement product price revisions, and sales increased,
although the operating loss increased due to the significant impact of rising raw material and fuelprices.
As for sales of engineering plastics in Japan, product price revisions were unable to keep up withrising raw material and fuel prices. Overseas, although the Group proceeded with product pricerevisions, there was impact of the rise in raw material prices and logistics costs and an increase inprocessing costs overseas.
With regard to airbag fabrics, despite product price revisions being advanced, profitability was not
improved due to rising procurement prices for airbag yarn and other raw materials.
As a result, sales in this segment increased ¥4.6 billion (10.3%) from the previous fiscal year to¥49.3 billion, with an operating loss of ¥4.5 billion. (Compared with operating loss of ¥1.8 billion
for the previous fiscal year.)Lifestyle and Environment
In this segment, although sales of VOC recovery equipment and high performance fibers werestrong, sales increased while operating profit decreased due to the large impact of the rising raw
material and fuel prices on the nonwoven materials business.
In the environmental solutions business, sales of replacement elements as well as VOC recovery
equipment used in the manufacturing process for lithium-ion battery separators were strong due
to the increase in demand for lithium-ion batteries as a result of the global shift to EV.
In the nonwoven materials business, the business faced challenges as product price revisions
were unable to keep up with the rising raw material and fuel prices.
In the high performance fibers business, sales remained strong, centered on “ZYLON” forapplications in building structural reinforcement and bicycle tires and “IZANAS” for use in fishingline.
In the textile business, overseas procurement costs increased due to the depreciation of the yen,
but export margins for traditional Arabic fabric improved.
As a result, sales in this segment increased ¥15.6 billion (13.6%) from the previous fiscal year to¥129.9 billion, and operating profit decreased ¥0.5 billion (13.2%) to ¥3.0 billion.
Life Science
In this segment, although artificial kidney hollow fibers were affected by rising raw materials andfuel prices, sales and operating profit increased due to enzymes for the overseas market
performed strongly.
In the biotechnology business, sales of reagents for PCR testing decreased due to a significant
5drop in the number of people infected by COVID-19 in the fourth quarter. On the other hand, salesof enzymes for diagnostic reagents and genetic testing to the overseas market were robust.
In the contract manufacturing business of pharmaceuticals, despite rising expenses in response
to suggestions from the FDA, sales recovered due to production and shipment of over-the-counter
formulations resumed in sequence.
In the medical materials business, sales of artificial kidney hollow fiber trended strong, but wereaffected by rising raw material and fuel prices.
As a result, sales in this segment increased ¥3.1 billion (8.9%) from the previous fiscal year to¥38.1 billion, and operating profit increased ¥0.6 billion (6.4%) to ¥9.2 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 weregenerally in line with plans.
As a result, sales in this segment increased ¥1.2 billion (10.5%) from the previous fiscal year to¥12.6 billion, and operating profit decreased ¥0.0 billion (1.4%) to ¥2.2 billion.
(2) Analysis of Financial Position
Total assets increased ¥71.1 billion (13.7%) from the end of the previous fiscal year, to ¥588.9
billion. This was mainly due to an increase in cash and deposits and inventories.
Total liabilities increased ¥46.9 billion (14.6%) to ¥367.5 billion. This was mainly due to anincrease in bonds payable and borrowings.
Net assets increased ¥24.3 billion (12.3%) from the end of the previous fiscal year, to ¥221.4
billion mainly due to an increase in non-controlling interests because of a deposit for subscriptionsof share concerning the issuance of a third-party allotment of TOYOBO MC Corporation’s shares
to Mitsubishi Corporation.
(3) Cash FlowsNet cash provided by operating activities amounted to ¥7.8 billion at the end of the subject fiscal
year. This was due mainly to a cash increase from depreciation of ¥19.0 billion and a cash
decrease from an increase in working capital of ¥17.7 billion.
Net cash used in investing activities amounted to ¥36.0 billion. This was due mainly to purchaseof property, plant and equipment and intangible assets of ¥39.2 billion and proceeds from sales ofinvestment securities of ¥3.7 billion.
Net cash provided by financing activities amounted to ¥61.3 billion. This was due mainly to net
increase in short-term borrowings of ¥30.6 billion, proceeds from share issuance tonon-controlling shareholders of ¥30.0 billion, proceeds from long-term borrowings of ¥23.1 billion,
proceeds from issuance of bonds of ¥20.0 billion and repayments of long-term borrowings of¥37.0 billion.
As a result, the balance of cash and cash equivalents at the end of the subject fiscal year (March
31, 2023) stood at ¥60.2 billion, an increase of ¥33.8 billion from the end of the previous fiscal
6year (March 31, 2022).

(Reference) Cash Flow Indicators
Years ended March 31
2019

2020

2021

2022

2023

Equity ratio (%)

38.3

36.4

37.8

37.6

32.2

Equity ratio, based on market
value (%)

27.2

20.8

25.8

18.8

15.6

Return on equity (%)

(0.3)

7.8

2.3

6.8

(0.3)

Interest-bearing debt to cash
flow ratio (Years)

21.0

4.0

5.3

11.2

29.4

Interest coverage ratio (Times)

6.0

32.2

28.0

14.0

5.9

D/E ratio (Times)

0.93

0.98

1.01

0.98

1.21

Notes:
Equity ratio: shareholders’ equity / total assets
Equity ratio, based on market value: total market capitalization / total assets
Return on equity: profit attributable to owners of parent / an average of the balances at the
beginning and end of period for the total net assets excluding non-controllinginterests
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 2024 (Ending March 31, 2024)
Regarding the business environment for the fiscal year ending March 31, 2024, while theeconomy is expected to recover in China following the resumption of economic activities due tothe lifting of lockdowns, there are concerns that the economy will slow down as a result ofmonetary tightening policies in response to increasing inflationary pressure in Europe and theUnited States. In Japan, a moderate economic recovery is expected mainly in domestic demand,following the end of the COVID-19 pandemic.
Although sales of reagents for PCR testing will decrease due to a fall in the demand, the Group’s
profitability is forecasted to improve because raw material and fuel prices have become stableagain with a recovery of the market for industrial film. In addition, the Group will focus on a further
improvement in the earnings power by re-examining sales prices, reducing costs, reviewing
capital investment and selling, general and administrative expenses, and implementing measures
for unprofitable businesses.
Under this environment, for the fiscal year ending March 31, 2024, the Group is forecasting net
sales of ¥430.0 billion (an increase of ¥30.1 billion year on year), operating profit of ¥15.0 (anincrease of ¥4.9 billion), ordinary profit of ¥11.0 billion (an increase of ¥4.4 billion), and profit
attributable to owners of parent of ¥4.0 billion. (Compared with loss of attributable to owners of¥0.7 billion for the previous fiscal year.)7(5) Basic Policy Regarding Earnings Distribution, and Dividends for Fiscal 2023 and 2024
Toyobo (hereinafter “the Company”) considers providing returns to shareholders to be one of its
highest priorities. Our basic policy is to continually 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 theacquisition 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
not changed. 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 toowners of parent
2. 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 inJapan and overseas.

8

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)2022
(As of March 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
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
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

92023(As of March 31, 2023)

27,176
7,437
83,644421

60,703
5,873
82,553407

10,747

12,29557,362
14,48324,204
14,150(311)
239,31475,343
16,55630,002
15,672(271)
299,133

53,96051,786
91,586
21,721
8,522
227,574

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

4,307
4,307

4,633
4,633

19,064562
18,4499,476(972)
46,579278,460
517,774

13,951
702
21,527
9,857(1,131)44,906
289,773
588,906

(Millions of yen)2022
(As of March 31, 2022)
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

2023
(As of March 31, 2023)

46,876
6,326
40,592－
21,418
4,778
26,759146,750

53,436
5,156
71,595
10,00029,472
4,776
28,064
202,500

55,00070,681
19,64165,00049,09919,641

236

239

12
19,841
8,465
173,876
320,626

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

51,73032,19374,700(221)
158,40251,73032,40270,490(781)
153,840

4,882

3,434

7
41,562(7,656)(2,321)

67
41,435(4,556)(4,632)36,47435,7482,273
197,149
517,774

31,834
221,422588,906

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Millions of yen)(Consolidated Statements of Income)

2023(From April 1, 2022
To March 31, 2023)

2022(From April 1, 2021
To March 31, 2022)

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
Foreign exchange gains
Insurance claim income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on suspension of production
Salaries paid to dispatched employees
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
Impairment losses
Loss on disposal of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes – current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent

11375,720
279,594
96,126
67,69628,430399,921314,91585,00674,943
10,063

531

323

161

342

673
123
918
2,406

443
250
1,088
2,446

1,211
953
746
4,833
7,743
23,092

1,328
－
699
3,891
5,919
6,590

－
6,529
－
6,529

1,200
2,946
5,607
9,753

9,362
4,232
1,232
14,825
14,796
5,627(2,892)
2,735
12,061(804)
12,865

9,794
3,851
2,086
15,731612
3,202(1,783)
1,419
(807)
(152)
(655)

(Millions of yen)(Consolidated Statements ofComprehensive Income)

2022(From April 1, 2021
To March 31, 2022)

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

12

2023
(From April 1, 2022
To March 31, 2023)

12,061(807)(2,151)(1,428)

(4)
3,320

60
2,815

(1,356)(2,311)

243

439

51
12,112(425)(1,232)

12,745(1,254)(633)

21

(3) Consolidated Statements of Changes in Net Assets
2022 (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

51,730Retained earnings

32,202

Treasury shares

64,351

Cumulative effects ofchanges in accounting
policies

Total shareholders'equity(294)

147,989(108)

Restated balance

51,73032,202(108)

64,243(294)

147,881

Changes during period
Dividends of surplus(3,554)(3,554)

Profit (loss) attributable toowners of parent

12,865

12,865

Reversal of revaluation
reserve for land

1,146

1,146

Purchase of treasury shares
Disposal of treasury shares

(9)

(2)

(2)

76

68

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period-(9)10,45774

10,522

51,73032,19374,700(221)

158,402

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

7,038

11

42,708Total
Foreign
Remeasurem accumulat
currency
ents ofed othertranslation
definedcomprehenadjustment benefit plans
siveincome(11,052)(965)

37,740Noncontrollinginterests

2,906

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets188,635
(108)

7,038

11

42,708(11,052)(965)

37,7402,906

188,527

Changes during period
Dividends of surplus(3,554)

Profit (loss) attributable toowners of parent

12,865

Reversal of revaluation
reserve for land

1,146

Purchase of treasury shares(2)

Disposal of treasury shares

68

Net changes in items otherthan shareholders' equity(2,156)(4)(1,146)

3,396(1,356)(1,266)(633)(1,900)Total changes during period(2,156)(4)(1,146)

3,396(1,356)(1,266)

(633)

8,622

Balance at end of period

4,882

7

41,562(7,656)(2,321)

36,474

2,273

197,14913

2023 (From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

51,730Retained earnings

32,193

Treasury shares

74,700Total shareholders'equity(221)

158,402

Cumulative effects ofchanges in accounting
policies－

Restated balance

51,73032,19374,700(221)

158,402

Changes during period
Dividends of surplus
Profit (loss) attributable toowners of parent(3,556)(3,556)

(655)

(655)

Purchase of treasury shares
Disposal of treasury shares(37)

Purchase of shares of
consolidated subsidiaries

246

(684)

(684)

124

87
246

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period－

209(4,211)(560)(4,562)

51,73032,40270,490(781)

153,840

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

4,882

7

41,562

Total
Foreign
Remeasurem accumulat
currency
ents ofed othertranslation
definedcomprehenadjustment benefit plans
siveincome(7,656)(2,321)

36,474

Noncontrollinginterests

2,273

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets

197,149
－

4,882

7

41,562(7,656)(2,321)

36,474

2,273

197,149

Changes during period
Dividends of surplus(3,556)

Profit (loss) attributable toowners of parent(655)

Purchase of treasury shares(684)

Disposal of treasury shares

87

Purchase of shares of
consolidated subsidiaries

246

Net changes in items otherthan shareholders' equity(1,447)

60

(127)

3,099

(2,311)(726)

29,561

28,835

Total changes during period(1,447)

60

(127)

3,099

(2,311)(726)

29,561

24,273

Balance at end of period

3,434

67

41,435(4,556)(4,632)35,74831,834

221,42214

(4) Consolidated Statements of Cash Flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted forusing equity method
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 andassociates
Insurance claim income
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
Subtotal
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
Proceeds from sale of shares of subsidiaries andassociates
Proceeds from sale of investment securities
Long-term loan advances
Proceeds from collection of long-term loans
receivable
Interest and dividends received
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
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
Proceeds from share issuance to non-controllingshareholders
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
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents at end of period(Millions of yen)
2023
(From April 1, 2022
To March 31, 2023)

2022(From April 1, 2021
To March 31, 2022)

15

14,79620,0809,362

612
19,050
9,794

265

98

(340)
(331)
(605)
1,211

461
(1,456)
(448)
1,328

(161)

(342)

4,268

2,651

(5,472)(2,067)－289－(6,866)(18,212)6,295(3,530)20,760(3,663)－17,097(5,607)
2,322(24,551)
4,557
1,001
7,693
(5,502)
5,607
7,798

(29,112)(39,158)

39

2,345

－

2,194

11,485
(53)

3,652
(88)

13

38

668
(7,649)(24,608)507(5,501)(36,011)(611)
14,959(10,370)
10,000(10,000)(3)(1,225)(3,553)－30,60623,087(37,018)
20,000－(682)(1,324)(3,555)(14)－

30,000(926)(1,729)194
61,295

1,143

688(8,097)

33,771

34,52626,433

5－

26,43360,204

(5) Notes to Consolidated Financial Statements(Note to Going Concern)
Not applicable(Segment Information)
1. Reportable Segment Operating Results
The Company’s reportable segments allow it to acquire financial data separated into the various
components of the corporate group. The scope of the segments is reviewed on a regular basis inorder to allow the highest decision-making body to determine the allocation of management
resources and evaluate earnings performance.
The Company’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. Eachsolution headquarters and business division formulates comprehensive strategies for its domestic
and overseas operations and conducts business activities.
Accordingly, the Company comprises segments by market region. Its five reportable segments
are “Films and Functional Materials,” “Mobility,” “Lifestyle and Environment,” “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
manufactures and sells engineering plastics, airbag fabrics and other products. The “Lifestyle andEnvironment” segment manufactures and sells water treatment membranes, functional filters, highperformance 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 membranes, medical
devices and other products. The “Real Estate” segment mainly leases and manages real estate
properties.
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 based on the accounting
policies applied to prepare the consolidated financial statements.
Profit of reportable segments is based on operating profit.
Intersegment sales and transfers are based on actual market pricing.

16

3. Net sales, profit of loss, assets and other items by reportable segment(ⅰ) Fiscal Year ended March 31,2022(Millions of yen)Segment to Be Reported

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statementsof Income(Note 3)

Films andFunctional
Materials

Mobility

LifestyleandEnvironment

170,326

44,721

114,295

35,003

3,957

368,301

7,419

375,720―375,720

152

22

377

43

419

1,012

16,145

17,157(17,157)―

Total

170,477

44,743

114,672

35,046

4,376

369,314

23,564

392,878(17,157)

375,720

Segment profit(loss)

19,897(1,753)

3,453

8,655

1,408

31,661810

32,471(4,041)

28,430Assets181,12158,860134,685

30,11847,206451,991

17,234469,225

48,550517,774

9,826

1,357

3,779

2,397

750

18,109404

18,514

1,566

20,08017,888

1,132

7,274

3,752

494

30,539209

30,7492,891

33,640Life
ScienceReal
Estate

Total

Total

Net sales(1) Outside
customers(2) 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 ¥(4,041) million includes eliminations of intersegment
transactions of ¥(376) million and companywide expenses that are not allocated across reporting
segments of ¥(3,665) million. The principal components of companywide expenses are those related
to basic research and development.
(2) The adjustment of segment assets of ¥48,550 million includes corporate assets of ¥86,912 million
that are not allocated to the reportable segments.
(3) The adjustment of capital expenditure of ¥2,891 million represents that amount of capital investment
related to research and development.
3. Segment profit or loss has been adjusted with operating income on the consolidated financial
statements.

17

(ⅱ) Fiscal Year ended March 31,2023(Millions of yen)Segment to Be Reported

Other
Businesses(Note 4)

Adjustment(Note 5)

Consolidated
Statementsof Income(Note 6)

Films andFunctional
Materials

Mobility

LifestyleandEnvironment

170,028

49,320129,872

38,134

4,053

391,4078,514

399,921―399,921

127

20

324

41

429

940

15,652

16,592(16,592)―

170,155

49,340130,195

38,175

4,481

392,347

24,166

416,514(16,592)

399,921

4,641(4,485)

2,999

9,212

1,439

13,806748

14,554(4,490)10,063

204,70261,429148,527

41,332

45,468501,459

16,699518,158

70,748588,906

8,582

1,829

4,126

2,211

514

17,262416

17,6791,371

19,05020,202

1,217

7,774

7,551

488

37,232666

37,8984,836

42,734

Life
ScienceReal
Estate

Total

Total

Net sales(1) Outside
customers(2) Inter-segment
sales andtransfers
Total
Segment profit(loss)
AssetsOthersDepreciation andamortization
Capitalexpenditure

Note:
4. Other includes design and construction of buildings, equipment, etc., information services, logistics
services and other items.
5. (1) Segment profit or loss adjustment of ¥(4,490) million includes eliminations of intersegment
transactions of ¥(270) million and companywide expenses that are not allocated across reporting
segments of ¥(4,220) million. The principal components of companywide expenses are those related
to basic research and development.
(2) The adjustment of segment assets of ¥70,748 million includes corporate assets of ¥84,551 million
that are not allocated to the reportable segments.
(3) The adjustment of capital expenditure of ¥4,836 million represents that amount of capital investment
related to research and development.
6. Segment profit or loss has been adjusted with operating income on the consolidated financial
statements.

18

(Significant subsequent events)(Company split involving the spin-off of the functional materials business to Toyobo MC
Corporation)
The Company decided at a meeting of the Board of Directors held on January 25, 2023 thatToyobo MC Corporation (“the New Company” hereafter), a wholly owned subsidiary establishedon September 5, 2022, would succeed the Company’s business involving functional materials
through an absorption-type company split (hereinafter “the Company Split”) and entered into anabsorption-type company split agreement on the same date. The Company Split was
implemented effective April 1, 2023.
1. Background and Aim
The Company signed an agreement with Mitsubishi Corporation (headquartered in Chiyoda-ku,
Tokyo, and headed by Representative Director, President & CEO Katsuya Nakanishi
hereinafter “MC”) to set up the New Company, which was intended to carry out the Company
Split and an investment (hereinafter “the Investment”) provided from MC to the New Company
with the aim of sharpening the competitive edge of the Company’s functional materials andcontinuing to provide solutions globally. The Company and MC continued to consider how to
implement the Company Split and the Investment. The Company Split was implemented aspart of the procedure in the runup to the contract shareholders’ agreement between the
Company and MC and the start of the joint venture.
2. Summary of the Company Split(1) Schedule of the Company Split
Date of decision at the board of directors meeting
Date of sealing the agreement on the absorption-type company split
Effective date of the Company Split

January 25, 2023
January 25, 2023
April 1, 2023

(Note) The Company Split was carried out without the approval at a general shareholders’meeting, because it falls under a simple absorption-type company split prescribed by
Paragraph 2, Article 784 of the Companies Act.
(2) Method of the Company Split
The Company is the split company and the New Company is the succeeding company inthe absorption-type company split (simple absorption-type company split).
(3) Allocations of shares due to the Company Split
At the time of the Company Split, the New Company newly issued 31,000 common shares
and allocated them to the Company as compensation for the Company Split.
(4) Handling of the stock acquisition right and bond with stock acquisition right due to theCompany Split
Not applicable.
(5) Capital stock subject to change due to the Company Split
No change in the capital stock for the split company (the Company).
(6) Rights and obligations that the succeeding company succeeds
The New Company has succeeded what the absorption-type company split contract
stipulates regarding the assets, liabilities, and rights and obligations such as contractual
status, which are related to the functional materials business described in 4. below.
(7) Projected execution of debt obligations
We deem there is no projected problem for the succeeding company to execute debt
obligations it must shoulder after the Company Split went into effect.
19

3. Outline of those involved in the Company Split (As of March 31, 2023)
Split company
1) Company name2) Address

Toyobo Co., Ltd.
1-13-1, Umeda, Kita-ku, Osaka3) Title and name ofrepresentative (Note)

President and Representative
Director,
Ikuo Takeuchi
Business related to films andfunctional materials; mobility;
lifestyle and environment;
life science
51,730 million yen
June 26, 1914

4) Business description

Succeeding company(The New Company)
Toyobo MC Corporation
Osaka Umeda Twin Towers South, 113-1, Umeda, Kita-ku, Osaka
Director, Chikao Morishige(The Company’s Representative
Director, Co-COO and CTO)
Planning, development, manufacturing
and sales of products related tofunctional materials5) Capital stock
100 million yen
6) Date of
September 5, 2022
establishment
7) End of each
March 31
March 31accounting term8) Business performance and fiscal conditions of the latest business year
Net assets
221,422 million yen (consolidated)
30,134 million yen (non-consolidated)
Total assets
588,906 million yen (consolidated)
33,823 million yen (non-consolidated)
Net assets per share
2,146.46 yen (consolidated)
6,699.97 yen (non-consolidated)(Note): After the Company Split, the representatives of the New Company are two persons in
total: President & Representative Director Chikao Morishige (Representative Director,
Co-COO and CTO of the Company), and Executive Vice-president & Representative
Director, COO Juro Baba (Senior Vice President of Mitsubishi Corporation).
4. Business operations of the division that was spun off and succeeded by the New Company
Business related to planning, development, manufacturing and sales of functional materials inJapan and overseas (business related to polymerization development, Vylon and Hardlen,
photo functional materials, fine chemicals, engineering plastics, water treatment membranes,
environment solution devices, activated carbon products, activated carbon fibers, spun-bonded
fabrics, lifestyle materials, high-performance fibers), and businesses related to thesebusinesses.
5. Other important items
After the Company Split, the Company holds 51% of the shares in the New Company while MCholds 49% through a third-party allocation of shares for the Investment.
1) Date of payment
2) Number of new shares to be issued
3) Issue price4) Amount of proceeds to be raised5) Offering and allotment method

April 1, 2023
49,000 common shares
The amount obtained by dividing by 49,000 shares theamount JPY 30,000,000,000 per share
JPY 30,000,000,000
Through third-party allotment
MC 49,000 shares

6. 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 Company Split was accounted for as a transaction under common control.
7. Items regarding changes in the Company’s equity related to transactions with non-controllinginterests(1) Major factors for changes in capital surplus
Changes in equity through the third-party allocation of shares for the New Company in20

association with the Investment(2) Amount of capital surplus increased through transactions with non-controlling interests
The amount has not been determined at this point.
(Merger with Toyobo Information System Create Co., Ltd.)The Company had resolved to implement an absorption-type merger (hereinafter “the Merger”)
with its consolidated subsidiary, Toyobo Information System Create Co., Ltd. (hereinafter “TISC”),
at the meeting of the Board of Directors held on December 26, 2022, and entered into a merger
agreement on the same date. The absorption-type merger was conducted effective April 1, 2023.
Pursuant to Article 796, paragraph 2 (as for the Company) and Article 784, paragraph 1 (as forTISC) of the Companies Act, the Merger was conducted without the general meeting ofshareholders of each 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 Information System Create Co., Ltd.
Content of business: System consulting; system development, operation, andmaintenance; ERP solutions (GRANDIT, Oracle E-Business Suite, etc.); and network
solutions(2) Date of the business combination
April 1, 2023
(3) Legal form of the business combination
The Merger was conducted as an absorption-type merger, with the Company as thesurviving company and TISC as the disappearing company, and TISC was dissolved upon
the Merger.
(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 importance of digital technologies has been increasing every year and they havebecome essential in our business activities. Under these circumstances, the Company
decided to conduct an absorption-type merger with TISC, aiming to consolidate the IT
resources of the Group, build a system that can quickly respond to changes in thebusiness environment associated with the advancement and increasing use of digitaltechnologies, and contribute to reforms and growth in the Company’s business.
(ii) Allotment regarding the Merger
There was no issuance of new shares or allotment of any other consideration withrespect to the Merger.
(iii) Financial position and operating results of the Company involved in the Merger for
immediately preceding fiscal year (Fiscal year ended March 31, 2023)
Assets ¥2,568 million
Liabilities ¥1,969 million
Net assets ¥599 million
Net sales ¥4,864 million
Loss ¥11 million21

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 a transaction under common control.
(Issuance of unsecured straight bonds in the Japanese market)
At the meeting of the Board of Directors held on April 25, 2023, a comprehensive resolution
regarding the issuance 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 26, 2023 to March 31, 2024.
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 andequipment (includes acquisition of stock through mergers and acquisitions), working capitaland 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 allother items related to the issuance of bonds will be made within the scope stated above at
the discretion of the director in charge of the Finance Division.

22