March 24, 2022
TOYOBO Co., Ltd.
Representative: Ikuo Takeuchi, President & Representative Director
Stock Code: 3101 (TSE1)
Contact Person: Sonoko Ishimaru, General Manager,
Corporate Communication Department
TEL: +81-6-6348-3044

Notice Regarding Recording of Extraordinary Income and Expected
Recording of Extraordinary Losses, Revision of Full-Year Earnings Forecasts
Toyobo Co., Ltd. (hereinafter the “Company”) is announcing that in light of a recording ofextraordinary income and an expected recording of extraordinary losses as detailed below, it has
resolved at its Board of Directors meeting held today to revise its earnings forecasts for the fiscal
year ending March 31, 2022 announced on February 10, 2022 as follows.

1. Recording of extraordinary income (gain on sale of investment securities)
The Company has recorded a gain on sale as detailed below, which was realized by selling part ofthe investment securities held by it and its subsidiaries for the purpose of improving asset
efficiency and bringing greater soundness to the financial position.
(1) Shares sold(2) Period of sale(3) Gain on sale ofinvestment securities

Listed securities of 29 issues
January 2022 to March 2022
Recording of a gain on sale of investment securities of ¥6.2 billion
as extraordinary income in the consolidated financial statements

2. Expected recording of extraordinary losses(1) Expected recording of impairment losses
The Company is continuing to record deficits in the contract manufacturing business ofpharmaceuticals due to accumulating costs required for response to Good Manufacturing
Practice (GMP; standards for manufacturing and quality control of pharmaceuticals, etc.). We
have estimated future cashflow because we expect that costs for GMP response will continue toarise in the future, with the result that the recoverable amount has fallen below the carrying
amount of assets for business use in this business, so we expect to reduce the carrying amountto the recoverable amount to record that reduced amount of ¥4.5 billion as impairment losses.
Moreover, in the textile business, we plan to further improve production efficiency by aiming toshut down production at the Nyuzen Mill and Inami Mill at around March 31, 2024, and reducing
production in the woven material department of Shogawa Mill. The Company had examined ways
to utilize the land, etc. of Nyuzen Mill and Inami Mill for its business, but it has decided toexamine future ways to utilize said land, etc. including non-business related utilization.
Accordingly, as the recoverable amount has significantly lowered, we expect to record
impairment losses of ¥2.7 billion as a result of examining the recoverability.
In addition, at Xenomax - Japan Co., Ltd., the Company’s consolidated subsidiary which
manufactures and sells high heat-resistant polyimide film, although efforts have been underway
to boost sales for this materials application in flexible TFT substrates and circuit substrates for1use in electronic paper, sensors, etc. as well as develop further applications, we have recognizedsigns of impairment losses as a result of reviewing our business plan. We have estimated future
cashflow in light of the current business environment and other factors, with the result that therecoverable amount has fallen below the carrying amount of assets for business use in thisbusiness, so we expect to reduce the carrying amount to the recoverable amount to record that
reduced amount of ¥2.3 billion as impairment losses.
Based on the above, we expect to record impairment losses of ¥9.5 billion on a consolidated
basis and impairment losses of ¥7.2 billion on a non-consolidated basis in the fiscal year ending
March 31, 2022.
(2) Expected recording of loss on valuation of shares of subsidiaries and associates, etc.
In association with the aforementioned, we expect to record a loss on valuation of shares ofsubsidiaries and associates of ¥2.3 billion and a provision for loss on guarantees of ¥0.7 billion
as extraordinary losses in the Company’s non-consolidated financial statements. Note that theloss on valuation of shares of subsidiaries and associates, and the provision for loss on
guarantees will be eliminated through consolidated accounting, and it will have no impact on theconsolidated financial statements.
3. Revision of full-year earnings forecasts(1) Revision to the forecasts for fiscal year ending March 31, 2022 (From April 1, 2021 to March 31, 2022)
ProfitNet sales

Operating

Ordinary

attributable toNet profit

profitprofitowners ofper shareparent
Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous Forecasts (A)370,000

29,00024,00013,000146.32

Revised Forecasts (B)370,000

29,00024,00010,500118.15000(2,500)

0.0

0.0

0.0

(19.2)

337,406

26,657

20,706

4,202

Change (B-A)
Percent Change (%)(Reference)
Actual results for the fiscal year
ended March 31, 2021 (FY 3/2021)

47.30(2) Reasons for revision
Concerning the consolidated earnings forecasts for the fiscal year ending March 31, 2022, wehave not changed our forecasts for net sales, operating profit and ordinary profit, from thepreviously announced forecasts (announced on February 10, 2022) bearing in mind theexpansion in sales of raw materials and reagents for PCR testing on one hand and the current
environment such as the rising raw material and fuel prices, on the other.
For profit attributable to owners of parent, however, we have revised the previously announced
forecast because we expect to record the extraordinary income described in 1 above and theextraordinary losses described in 2 above.
Note that the forecast for year-end dividends has not changed from the ¥40 per share announced
on February 10, 2022.
(Note) The above business forecasts have been prepared based on the information available as of the data of
this announcement, and actual results may differ from these forecasts due to various factors.
2