March 23, 2023
To whom it may concern,
Name of company:

Toyobo Co., Ltd.

Name of representative:

Ikuo Takeuchi,President & Representative Director(Stock code: 3101, Prime Market of the Tokyo Stock Exchange)
Contact:

Hidekazu Takahashi, General Manager,
Financial Department(TEL +81-6-6348-3137)

Notice regarding early repayment of subordinated loan
Toyobo Co., Ltd. (“Toyobo,” hereafter) hereby announces that it decided to make an early repayment (the“Early Repayment,” hereafter) of the subordinated loan (the “Subordinated Loan,” hereafter) financed in March2018 on March 27, 2023. The total amount of the Subordinated Loan is 15.0 billion yen.
1. Background of the Early Repayment(1) Toyobo aimed to maintain its financial stability by financing the Subordinated Loan for an early
repayment of the subordinated loan financed in March 2014.
(2) On the other hand, Toyobo strived to strengthen its financial base and grow business by formulating2018 Medium-Term Management Plan in May 2018 and 2025 Medium-Term Management Plan in May
2022.
(3) As a result, since Toyobo satisfied the exception 1 and 2(*1) of replacement clause listed in 2. (7),Toyobo makes an early repayment by its own capital and borrowings. The impact of the Early Repayment
on Toyobo’s consolidated business performance of fiscal year ending March 2023 is minor.
(*1) The consolidated shareholder’s equity is 164.4 billion yen and D/E ratio is 0.99 as of December 31,2022.
2. Outline of the Subordinated Loan
(1) Loan amount

15.0 billion yen(2) Signing date

March 20, 2018(3) Loan execution dateMatch 26, 2018

(4) Final repayment date

March 28, 2078
However, Toyobo may make early repayment of all or part of theprincipal of the Subordinated Loan on any interest payment datethereafter March 2023.

(5) Mandatory suspension of interest

The interest payable on the relevant interest payment date shall besuspended in full when (a) the EBITDA margin (ratio of sum ofoperating profit and depreciation to net sales) is less than 6% for themost recent two consecutive fiscal years with respect to theToyobo’s annual consolidated financial statements, or (b) when theratio of net liabilities (amount obtained by subtracting cash anddeposits from interest-bearing debt) to total capital (sum of net
assets and net liabilities) exceeds 70% with respect to Toyobo’s
annual or interim period consolidated financial statement.
In addition to the aforementioned, interest payable shall besuspended either in part or in full when the distributable amount isless than the required amount.

(6) Optional suspension of interest

Toyobo may, as its discretion, suspend payment of all or a portionof the interest when the interest payable does not mandatory
suspended and continued.

(7) Replacement clauseIn the case of an early repayment of the Subordinated Loan, Toyobo
intends to procure funds, within a six-month period before the dateon which it will make that early repayment, that have been approvedby ratings agencies as having equity credit attributed equal to or
greater than the Subordinated Loan.
However, Toyobo may make an early repayment of theSubordinated Loan five years or later after the drawdown of theSubordinated Loan except in those cases that satisfy any of thefollowing:(1) The amount of consolidated shareholder’s equity in Toyobo’s
most recent consolidated balance sheet at the time theannouncement to make an early repayment is made stands at
155.2 billion yen or more, and(2) Toyobo’s D/E ratio based on its most recent consolidatedbalance sheet at the time the announcement to make an early
repayment is made comes in at 1.0 times or less.

(8) Subordination

In the event liquidation proceedings are commenced, the decision tocommence bankruptcy proceedings is made, or the decision tocommence corporate reorganization, civil rehabilitation, or any
other proceedings is made against Toyobo, the provider of theSubordinated Loan may request repayment under the agreement
after the repayment of all liabilities in full excluding other liabilities
of a similar nature including preferred stock and the SubordinatedLoan.

Any change to the terms and conditions of the Subordinated Loanthat disadvantage any creditors of the aforementioned liabilities
shall not be reorganized, and any agreement on such change has noeffect.
(9) Equity credit attributed of theClass 4 / 70 (Rating and Investment Information, Inc.)

Subordinated Loan evaluated byHigh / 75 (Japan Credit Rating Agency, Ltd.)

ratings agencies(10) Lenders

Mizuho Bank, Ltd., Mitsubishi HC Capital Inc., Sumitomo Mitsui
Trust Bank, Limited, DAIDO LIFE INSURANCE COMPANY,Development Bank of Japan Inc., Sumitomo Mitsui Banking
Corporation, Sumitomo Mitsui Finance and Leasing Company,Limited, Tokyo Century Corporation