August 8, 2022

Presentation to Investors
for the First Quarter Ended June 30, 2022

TOYOBO CO., LTD.

Highlights
Q1 FY 3/23 Results- Sales increased while operating profit decreased due to the impact of rising raw material and fuel prices
despite sales of films achieving growth.
- Profit of ¥7.8 bn. (up 26.4%) due to extraordinary income despite operating profit of ¥4.6 bn. (down 50.0%).

(¥ bn.)Net sales

Operating profit

Profit attributable toowners of parent+6.8%- 50.0%+26.4%

94.6

101.0

Q1 FY 3/22 Q1 FY 3/239.2
4.6
Q1 FY 3/22 Q1 FY 3/23

6.2

7.8

Q1 FY 3/22 Q1 FY 3/23

FY 3/23 Forecasts
Forecast of operating profit of ¥24.0 bn. and net profit of ¥13.0 bn. based on the impact of raw material
and fuel prices remaining high and the prolongation of the production curtailment of automobiles
despite expecting effects from increased production of films and increased demand for PCR tests.

2

Summary of Results: P&L(¥bn.)

Net sales
Operating profit(Ratio to sales)
Ordinary profit
Extraordinary income and losses
Profit attributable to owners of parent
EBITDA*EPS (\)
Depreciation
CAPEX*Operating profit + Depreciation (includes goodwill)

FY 3/22
Q194.6
9.2
9.8 %
7.5
- 0.5
6.2

FY 3/23
Q1
101.0
4.6
4.6 %
4.3
6.5
7.8

14.3
69.5

9.5
87.7

5.0
7.3

4.8
9.0

YOYAmount
+ 6.4
- 4.6
- 3.1
+ 1.6%+ 6.8%- 50.0%- 42.0%+ 26.4%- 4.8-- 33.7%-- 0.2+ 1.7- 3.6%+ 23.5%- Extraordinary income: Of which ¥5.6 billion was insurance received for the fire accident
3Analysis in Changes in Operating Profit
Raw materials
and fuel costs

10.0- 4.9(¥bn.)

8.0

PricesVolume+3.0- 2.0Others

6.0- 0.6

9.2
4.0- Absorption-type merger of TFS- Spunbond, ESS

2.0
0.0

4.6
( - 4.6 )- Responses to the FDA- Research and development

Q1 FY 3/22

Q1 FY 3/23

Exchange rate (\/US$)
Naphtha price in Japan (thousand\/kl)

FY 3/22Q1
110
48

FY 3/23
Q1
130
86

4

Summary of Results: BS(¥bn.)

(B)

(A)

Mar. 31, 2021

Mar. 31, 2022

Jun. 30, 2022

491.2

517.8

533.6

+ 15.8Cash and deposits

34.7

27.2

32.5+ 5.3

Inventories

76.3

96.0

103.8

+ 7.7

Property, plant and equipment

224.6

227.6

232.1

+ 4.5

188.6

197.1

204.4+ 7.3

Shareholder's equity

185.7

194.9

202.1

+ 7.2

(Retained earnings)

64.4

74.7

78.9

+ 4.2

Non-controlling interests

2.9

2.3

2.3

+ 0.1

Interest-bearing debt

187.0

191.2

198.7

+ 7.5

D/E ratio

1.01

0.98

0.98

-

Net Debt / EBITDA ratio*

3.3

3.4

4.4-

Total assets

Net assets* (Interest-bearing debt‐Cash and deposits)＜Ending＞／EBITDA＜Annualized＞(A) - (B)5

Summary of Results: Segment(¥bn.)Net sales

Operating profit

Q1 FY 3/22 Q1 FY 3/23 Q1 FY 3/22 Q1 FY 3/23

YOY

Films and Functional Materials

45.7

45.3

6.8

3.5

- 3.3

Mobility

11.1

11.8

-0.5

-0.8

- 0.3

Lifestyle and Environment

27.7

32.1

1.5

0.3

- 1.2

Life Science

7.5

8.7

1.9

2.1

+ 0.3

Real Estate and Others

2.6

3.1

0.4

0.3

- 0.0

--0.8

-0.9

- 0.1

101.0

9.2

4.6

- 4.6Elimination & Corporate
Total

94.66Films and Functional Materials

Net sales
Operating profit(OPM)

FY 3/22 FY 3/23
YOYQ1
Q1
Amount%
45.7
45.3
- 0.4
- 0.9%
6.8
3.5- 3.3 - 48.3%
14.9%
7.8%‐‐(¥bn.)

Packaging film
- Although shipments were strong, there was a time lag between high raw material prices
and product price revisions. Spread improvements from Q2 onward.

Industrial film
- Sales of polarizer protective films for LCDs increased by approx. 15% due to increased productivityof the new line (Unit 3). However, impacted by high raw material prices.

Functional Materials- Sales of industrial adhesives “Vylon” were affected by China’s zero-COVID policy (lockdowns).
7

Mobility

Net sales
Operating profit(OPM)

FY 3/22 FY 3/23
YOY
Q1
Q1
Amount%11.1
11.8+ 0.7
+6.8%
- 0.5
- 0.8- 0.3‐‐‐(¥bn.)

Engineering plastics- Faced challenges both in Japan and overseas due to the impact of high raw material prices
in addition to the production curtailment of automobiles.

Airbag fabrics- Delays in improvement of deteriorated spread due to high raw material prices.
8Lifestyle and Environment

Net sales
Operating profit(OPM)

FY 3/22 FY 3/23YOYQ1
Q1Amount%
27.7
32.1+ 4.4 + 15.8%
1.50.3- 1.2 - 81.5%
5.4%
0.9%‐‐(¥bn.)

Environmental solutions- Sales of equipment for VOC emissions treatment and replacement elements for
Lithium-Ion Battery (LIB) separator plants recovered due to increased demand for LIB
because of the global shift to EV.

Nonwoven materials- Sales of spunbond faced challenges due to the impact of the production curtailment ofautomobiles and high raw material prices.
- Sales of polyester staple fibers were strong for use in hygiene products, but were affectedby rising raw material prices.

High performance fibers- Sales of “ZYLON” were strong for use in bicycle tires.

9Life ScienceNet sales
Operating profit(OPM)

FY 3/22 FY 3/23
YOY
Q1Q1Amount%
7.5
8.7+ 1.2 + 16.2%
1.9
2.1+ 0.3 + 14.7%
24.9% 24.6%‐‐(¥bn.)

Biotechnology- 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.

Medical materials- Strong sales of artificial kidney hollow fibers and virus removing membranes.

Pharmaceuticals- Contract manufacturing of pharmaceuticals faced challenges due to expenses
in response to suggestions from the FDA and declining operation rates.

10Forecasts for FY 3/23
Forecast of operating profit of ¥24.0 bn. and net profit of ¥13.0 bn. based on the impact of raw materialand fuel prices remaining high and the prolongation of the production curtailment of automobiles
despite expecting effects from increased production of films and increased demand for PCR tests.

(¥bn.)

FY 3/22
Result375.7
28.4
7.6%
23.1
- 8.3
12.9

FY 3/23Forecasts
410.0
24.0
5.9%
18.0
0.6
13.0

EBITDAEPS (\)

48.5
144.8

45.0
146.3

-

Depreciation
CAPEX

20.1
33.6

21.0
38.0

Net sales
Operating profit(Ratio to sales)
Ordinary profit
Extraordinary income and losses
Profit attributable to owners of parent

YOYAmount+ 34.3
- 4.4
- 5.1
+ 0.1

%
+ 9.1%- 15.6%- 22.1%+ 1.0%

- 3.5

- 7.2%-+ 0.9+ 4.4+ 4.6%
+ 13.0%11

Analysis in Changes in Operating Profit
Raw materials
and fuel costs- 12.430.0
25.0

PricesVolumeOthers+9.0+0.4- 1.5- Responses
to the FDA- Research anddevelopment- Depreciation(¥bn.)

20.0
15.0- Packaging film
- Airbag fabrics etc.

28.4

10.0

- Equipment for VOC
emissions treatment (+)- Industrial film (+)- Reagents for PCR tests (-)

5.00.024.0( - 4.4 )FY 3/22

FY 3/23
Previous

FY 3/22

FY 3/23forecasts(May. 2022)

Exchange rate (\/US$)

112

132

125

Naphtha price in Japan (thousand\/kl)

57

78

8412

Forecasts by Segment(¥bn.)Net sales

Operating profit

FY 3/22
resultFY 3/23
forecasts

FY 3/22
resultFY 3/23
forecasts

Films and Functional Materials

170.3

186.0

19.9

18.5

- 1.4

19.0

Mobility

44.7

53.0

- 1.8

- 2.3

- 0.5

- 1.6

Lifestyle and Environment

114.3

125.0

3.5

3.0

- 0.5

3.0

Life Science

35.0

35.0

8.7

6.7

- 2.0

5.5

Real Estate and Others

11.4

11.0

2.2

2.1

- 0.1

2.1Elimination & Corporate--- 4.0- 4.0

+ 0.0

- 4.0

Total

375.7

410.0

28.4

24.0

- 4.4

24.0

YOY

Previousforecasts(May. 2022)

13

Appendix

14

Business Performance(¥bn.)

Net sales
Films and Funcitonal Materials
Mobility
Lifestyle and Environment
Life Science
Real estate and Others
Elimination & Corporate
Total

Operating profit
Films and Funcitonal Materials
Mobility
Lifestyle and Environment
Life Science
Real estate and Others
Elimination & Corporate
Total

FY 3/22
Q1
45.7
11.1
27.7
7.5
2.6
94.6

Q2
40.2
10.5
27.0
8.9
2.7
89.2

Q341.410.6
27.78.2
2.890.7

FY 3/23
Full year
Q443.0
170.3
12.6
44.7
31.9
114.3
10.4
35.0
3.3
11.4
101.2
375.7

FY 3/22
Q16.8
- 0.5
1.5
1.9
0.4
- 0.8
9.2

Q2
5.4
- 0.4
0.4
2.8
0.7
- 1.0
7.9

Q3
4.3
- 0.6
0.8
1.8
0.5
- 1.1
5.8

Q1
45.3
11.8
32.1
8.7
3.1
101.0
FY 3/23

Full year
Q4
3.3
19.9
- 0.3
- 1.8
0.8
3.5
2.3
8.7
0.6
2.2
- 1.1
- 4.0
5.5
28.4

Q13.5
- 0.80.3
2.1
0.3
- 0.9
4.615

Product Topics 1
Polarizer protective films for LCDs “COSMOSHINE SRF”
Polyester-based super retarder film
Elimination of coloration (rainbow pattern) caused by birefringence while beinga stretched film.
◼ Main application: Polarizer protective films for LCD TVs◼ Strengths:- Superior handling ability (superior dimensional stability, low degree of warping)
due to low absorbency⇒Display strengths in increasing size, shifting to no bezel and shifting toopen cell panels for LCD TVs- Price competitive as they are polyester and melt-formed film
◼ Competitive materials: TAC、Acrylic (PMMA)* Only TOYOBO uses Polyester◼ Customers: Overseas polarizing plate manufacturers◼ Sale: Sales began from FY 3/14
Net sales in FY 3/22 grew approx. threefold
compared to FY 3/18
◼ Increased production response: Unit 2 (FY 3/18), Unit 3 (FY 3/21)◼ Share: Approx. 50%16

Product Topics 2Equipment for VOC emissions treatment
Equipment for VOC emissions treatment (adsorption and recovery type), etc. equipped with “K-FILTER”
A “K-FILTER” is TOYOBO’s proprietary activated carbon fiber, for which TOYOBO was the first in the world
to put it into production in 1974
◼ Application:
VOC emissions treatment (solvent recovery) for exhaust and waste water from plants◼ Strengths:“K-FILTER”
Makes it possible to recover solvents with a high level of efficiency and high quality
due to suppresses thermal decomposition of solvents and fast adsorption and desorption speed.
Particularly superior for treating chloride solvents, such as methylene chloride◼ Customers:
Manufacturers of Lithium-Ion Battery Separators (LIBS), TAC films, printers,chemicals, pharmaceuticals, automobiles, food, etc.
* Adopted in over 1,300 units in Japan and overseas◼ Share: Top share for adsorption and recovery types
20 to 30% (combustion treatment is the mainstream) for adsorption
and recovery types in the VOC emissions treatment equipment market
Equipment for VOC◼ Market: Sudden increase in demand for LIB due to global shift to EV andemissions treatment
spread of renewable energy◼ Sales plan: In FY 3/26 of approx. 2x compared with FY 3/2217

Product Topics 3: PCR test-related Products
Detection kit for COVID-19◼ Strengths:- Uses PCR enzymes that amplify rapidly, copy accurately, and are highly resistant to contaminants- Eliminates work to remove impurities in samples (throat swab, saliva) with unique enzymes, etc.,
and reduces the processes for gene extraction.
Able to test for COVID-19 within a minimum of 60 minutes◼ Customers: Private centers, hospitals, etc.
◼ Share: Approx. 15 % (TOYOBO’s estimate) Top 3 in Japan

Fully automated gene analysis system “GENECUBE”◼ Strengths:- Able to test within as quickly as 30 minutes from reagent mixingto gene amplification and detection- Integrated development from diagnostic reagents to analysis system.
Enzymes also proprietary procurement- Able to simultaneously measure 24 tests, 4 items maximum◼ Customers: Major testing centers, hospitals, etc.

Detection kit for COVID-19

Diagnostic reagents“GENECUBE” (modelＣ)➢ Diagnostic businesses, such as enzymes, reagents, diagnostic reagents and diagnostic devices
for genetic testing, currently in development.
Expansion of solutions business for infection diagnosis.

18Topics: ESG
Continued to be selected as one of the constituents ofthe four global ESG indexes• FTSE Blossom Japan Index• FTSE Blossom Japan Sector Relative Index• MSCI Japan ESG Select Leaders Index• MSCI Japan Empowering Women Index (WIN)

Also selected one of the constituents of ‘’S&P/JPX Carbon Efficient Index’’⇒ Selected as a constituent of all five Japanese ESG indexes
adopted by GPIF

19

Notice

Online meeting with investors (Scheduled)➢ Life Science Business (Date: Sep. 16, 2022)➢ Films Business (Date: Sep. 29, 2022)
Plan to disclose below materials to the Company’s website at a later datePresentation, Presentation with script, Q&A summary for the presentation

20

Please Note
The business performance forecasts and targets included in thebusiness plans contained in this presentation are based on
information known to the Company’s management as of the dayof presentation. Please be aware that the content of the futureforecasts may differ significantly from actual results, due toa number of unforeseeable factors.

TOYOBO CO., LTD

All Rights Reserved21©️ TOYOBO CO., LTD. All rights reserved.