August 8, 2022

Consolidated Financial Report for the Three Months Ended June 30, 2022
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

Contact Person: Sonoko Ishimaru, General Manager, Corporate Communication Department

TEL: +81-6-6348-3044

Quarterly report filling date (Planned): August 12, 2022

(Figures are rounded to the nearest million yen)

1. Consolidated Business Performance(1) Consolidated Operating Results
Three months ended June 30

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

Net sales

Operating profit

Millions of yen%

Millions of yen

2022

101,048

6.8

4,621

(50.0)

4,331

2021

94,644

25.4

9,244

112.1

7,468

(Note) Comprehensive Income:

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen%(42.0)

7,797

26.4

170.2

6,170

249.8

Three months ended June 30, 2022: ¥11,021 million 28.4%
Three months ended June 30, 2021: ¥8,583 million 193.7%

Net profit per
share

Net profit per shareafter dilution

Yen

Yen

2022

87.71

-

2021

69.45

-

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

June 30, 2022

533,561

204,42137.9

2,273.14

March 31, 2022

517,774

197,14937.6

2,192.17(Reference) Total shareholders’ equity: June 30, 2022: ¥202,073 million, March 31, 2022: ¥194,876 million

2. Dividends
Dividends per share
Record date

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY 3/2022－

FY 3/2023－

0.00

FY 3/2023
0.00(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, 2023
Percentages indicate year-on-year increase/ (decrease)

Net sales
Millions of yen

Fiscal year

Operating profit%

410,000

Millions of yen

9.1

Fiscal year

Millions of yen(15.6)%

18,000(22.1)Net profit per share%

13,000%24,000

Profit attributable toowners of parent
Millions of yen

Ordinary profit

Yen

1.0

146.27(Note) Revision of earnings forecast for this period: None

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):
June 30, 2022: 89,048,792 shares

March 31, 2022: 89,048,792 shares

2) Number of treasury stock:June 30, 2022: 152,712 shares

March 31, 2022: 152,550 shares

3) Average number of shares outstanding for each period (cumulative term):
Three months ended June 30, 2022: 88,896,148 shares
2021: 88,845,220 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.

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1. Qualitative Information and Financial Statements(1) Qualitative Information on Consolidated Results
As for the business environment surrounding the Toyobo Group (hereinafter the “Group”) in thethree months ended June 30, 2022, consumption recovered due to the transition to a with-COVID
society in Europe and the United States. However, inflation proceeded due to the accumulation ofrising raw material and fuel prices and material supply tightening due to the worsening of thesituation in Ukraine as well as its prolongation. The economy in China slowed down due to its
zero-COVID policy (lockdowns). On the other hand, economic recovery in Japan came to a
standstill due to delays in the recovery of automobile production as a result of raw material and fuelprices remaining high and shortages in the supply of materials, such as semiconductors, in addition
to delays in transitioning to with-COVID policies. Going forward, there are concerns regarding theimpact of the resurgence of COVID-19, the depreciation of the yen and the increase of the pressureof inflation on economic activities.
Under this business environment, polarizer protective films for LCDs “COSMOSHINE SRF”
achieved growth in sales as a result of increasing the productivity of the new line, and sales ofvolatile organic compound (VOC) emissions treatment equipment for recovering solvents suddenly
recovered due to increased demand for lithium-ion batteries. On the other hand, films, engineering
plastics, airbag fabrics, spunbond, polyester staple fibers, etc. were affected by rising raw material
prices.
As a result, consolidated net sales in the three months ended June 30, 2022 increased ¥6.4 billion(6.8%) over the same period of the previous fiscal year, to ¥101.0 billion. Operating profit
decreased ¥4.6 billion (50.0%), to ¥4.6 billion and ordinary profit decreased ¥3.1 billion (42.0%) to¥4.3 billion. Profit attributable to owners of parent increased ¥1.6 billion (26.4%), to ¥7.8 billion due
to the recording of insurance claim income of ¥5.6 billion for the fire accident as extraordinary
income.
Results by business segment were as follows:
Films and Functional Materials
In this segment, sales increased while operating profit decreased due to the impact of rising raw
material prices in the packaging film and industrial film businesses.
In the films business, operating profit declined due to time lag in realizing product price revisions in
response to rising raw material prices despite strong sales of packaging film.
In the industrial film business, although polarizer protective films for LCDs “COSMOSHINE SRF”
achieved growth in sales as a result of increasing the productivity of the new line, it was impacted
by rising raw material prices for many products.
In the functional materials business, sales of photo functional materials for water-washphotosensitive printing plates were strong due to the impact of foreign exchange in addition to the
product price revisions proceeded. On the other hand, sales of industrial adhesives “Vylon”
declined due to the impact of China’s zero-COVID policy.
As a result, sales in this segment decreased ¥0.4 billion (0.9%) from the same period of the3

previous fiscal year to ¥45.3 billion, and operating profit decreased ¥3.3 billion (48.3%) to ¥3.5
billion.
MobilityIn this segment, sales increased while operating loss increased as product price revisions wereunable to keep up with rising raw material prices.
Sales of engineering plastics faced challenges due to the impact of rising raw material prices in
addition to the production curtailment of automobiles both in Japan and overseas.
With regard to airbag fabrics, the improvement of the spread which deteriorated due to rising raw
material prices, was delayed.
As a result, sales in this segment increased ¥0.7 billion (6.8%) from the same period of theprevious fiscal year to ¥11.8 billion, with an operating loss of ¥0.8 billion. (Compared with operating
loss of ¥0.5 billion for the same period of the previous fiscal year.)Lifestyle and Environment
In this segment, sales increased while operating profit decreased due to the impact of rising raw
material prices, such as for spunbond and polyester staple fibers, despite the recovery of sales ofequipment for VOC emissions treatment for recovering solvents.
In the environmental solutions business, with regard to equipment for VOC emissions treatment,
sales of replacement elements as well as equipment for VOC emissions treatment used in the
manufacturing process for lithium-ion battery separators suddenly recovered due to the increase indemand for lithium-ion batteries as a result of the global shift to EV.
In the nonwoven materials business, sales of spunbond faced challenges due to rising raw material
prices in addition to the production curtailment of automobiles. Sales of polyester staple fibers foruse in hygiene products were strong, but were affected by rising raw material prices.
In the high performance fibers business, sales of “ZYLON” for use in bicycle tires were strong.
As a result, sales in this segment increased ¥4.4 billion (15.8%) from the same period of theprevious fiscal year to ¥32.1 billion, and operating profit decreased ¥1.2 billion (81.5%) to ¥0.3
billion.
Life Science
In this segment, sales and operating profit increased as sales of enzymes for diagnostic reagents,
etc. were strong despite a decrease in sales of reagents for PCR tests for COVID-19.
In the biotechnology business, sales were strong due to the impact of foreign exchange in addition
to sales of enzymes for diagnostic reagents as well as those for genetic testing reagents increased,
despite sales of reagents for PCR tests decreasing due to COVID-19 infections calming down.
The contract manufacturing business of pharmaceuticals faced challenges as a result of risingexpenses in response to suggestions from the FDA.
In the medical materials business, sales of artificial kidney hollow fiber and virus removing
membranes trended strong.
4As a result, sales in this segment increased ¥1.2 billion (16.2%) from the same period of theprevious fiscal year to ¥8.7 billion, and operating profit increased ¥0.3 billion (14.7%) to ¥2.1 billion.
Real Estate and Other BusinessThis segment includes infrastructure-related businesses such as real estate, engineering,
information processing services, and logistics services. Results in these businesses were generally
in line with plans.
As a result, sales in this segment increased ¥0.5 billion (18.5%) from the same period of theprevious fiscal year to ¥3.1 billion, and operating profit decreased ¥0.0 billion (9.5%) to ¥0.3 billion.
(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets increased ¥15.8 billion (3.0%) from the end of the previous fiscal year, to ¥533.6 billion.
This was mainly due to an increase in cash and deposits, inventories and an increase in property,
plant and equipment due to capital investment.
Total liabilities increased ¥8.5 billion (2.7%) to ¥329.1 billion. This was mainly due to an increase innotes and accounts payable – trade and borrowings.
Net assets increased ¥7.3 billion (3.7%) from the end of the previous fiscal year, to ¥204.4 billion
mainly due to an increase in retained earnings and foreign currency translation adjustment.
(3) Qualitative Information on Consolidated Forecasts
The performance of the Group in the three months ended June 30, 2022 was generally as forecast.
Regarding the consolidated earnings forecast for fiscal year ending March 31, 2023, no changes
have been made in the outlook announced on May 12, 2022.

5

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Previous Fiscal Year(As of March 31, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Contract assets
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

Current First Quarter(As of June 30, 2022)

27,17691,082421

32,46889,306799

10,747

11,92657,362
14,48324,204
14,150(311)
239,314

61,382
15,141
27,275
13,244(332)
251,21053,96051,786
91,58630,242
227,574
4,307

55,94352,73790,82332,565232,068
4,249

47,551(972)
46,579278,460
517,774

47,054(1,021)
46,033282,351
533,561(Millions of yen)Previous Fiscal Year(As of March 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Provisions
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Provision for retirement benefits for directors(and other officers)
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

7

Current First Quarter(As of June 30, 2022)

46,876
6,326
40,592
21,418
4,823
26,714
146,750

50,1206,843
46,625
21,971
3,013
25,593
154,165

55,00070,68155,00071,757

236

223

12
19,841
28,106
173,876
320,626

12
19,74028,242
174,974
329,139

51,73032,19374,700(221)
158,40251,73032,13578,941(221)
162,585

4,882

4,893

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

29
41,562(4,677)(2,319)36,474

39,4882,273
197,149
517,774

2,348
204,421533,561(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)Previous First Quarter(From April 1, 2021
To June 30, 2021)

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
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on sale of securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

8

Current First Quarter(From April 1, 2022
To June 30, 2022)

94,644
68,571
26,073
16,8299,244

101,048
77,892
23,156
18,536
4,621

220
－
376
596

135
844
302
1,280

317
2,055
2,372
7,468

327
1,244
1,571
4,331

－
－
－

1,195
5,607
6,802

279
185
464
7,004
878
6,126
(44)
6,170

257
－
257
10,875
3,065
7,810
13
7,797

(Millions of yen)(Consolidated Statements ofComprehensive Income)Previous First Quarter(From April 1, 2021
To June 30, 2021)

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 First Quarter(From April 1, 2022
To June 30, 2022)

6,126

7,810

1,898

11

(13)
437

22
2,946

(10)

2

146

230

2,457
8,583

3,211
11,021

8,632

10,811(49)

210

(3) Note to Consolidated Financial Statement(Note to Going Concern)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicable(Segment Information)(ⅰ) Three months ended June 30, 2021
(Millions of yen)Segment to Be Reported

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statementsof Income(Note 3)

94,644－

94,644

2,330

2,586

(2,586)－

93,253

3,977

97,230(2,586)

94,644

10,01766

10,083

(839)

9,244

Mobility

LifestyleandEnvironment

Life
ScienceReal
Estate45,734

11,061

27,750

7,482

969

92,997

1,647

42

5

96

13

100

256

Total

45,777

11,066

27,846

7,495

1,069

Segment profit(loss)

6,808

(458)

1,489

1,862

316

Films andFunctional
Materials

Total

Total

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

Note:
1. Other includes design and construction of buildings, equipment, etc., information services, logistics
services and other items.
2. Segment profit or loss adjustment of (¥839) million includes eliminations of intersegment transactions of¥72 million and companywide expenses that are not allocated across reporting segments of (¥911)
million.
The principal components of companywide expenses are those related to basic research anddevelopment.
3. Segment profit or loss has been adjusted with operating profit on the consolidated financial statements.

10(ⅱ) Three months ended June 30, 2022
(Millions of yen)Segment to Be Reported

Other
Businesses(Note 4)

Adjustment(Note 5)

Consolidated
Statementsof Income(Note 6)

Films andFunctional
Materials

Mobility

LifestyleandEnvironment

45,306

11,811

32,137

8,694

1,036

98,984

2,064

101,048－

101,048

40

1

58

6

84

189

3,142

3,331

(3,331)－

Total

45,346

11,81232,195

8,700

1,120

99,173

5,206

104,379(3,331)

101,048

Segment profit(loss)

3,520

(765)

275

2,135

389

5,554

(42)

5,512

(891)

4,621

Life
ScienceReal
Estate

Total

Total

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

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 (¥891) million includes eliminations of intersegment transactions of¥36 million and companywide expenses that are not allocated across reporting segments of (¥927)
million.
The principal components of companywide expenses are those related to basic research anddevelopment.
6. Segment profit or loss has been adjusted with operating profit on the consolidated financial statements.

11