November 10, 2022

Consolidated Financial Report for the Six Months Ended September 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): November 14, 2022

(Figures are rounded to the nearest million yen)

1. Consolidated Business Performance(1) Consolidated Operating Results
Six months ended September 30

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

Net sales

Operating profit

Millions of yen%

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen

%

2022

201,123

9.4

7,885

(53.9)

6,760(49.2)

10,97013.0

2021

183,864

16.7

17,11264.2

13,305

127.0

9,705

267.3

(Note) Comprehensive Income:Six months ended September 30, 2022: ¥13,490 million (0.8%)
Six months ended September 30, 2021: ¥13,600 million 214.1%

Net profit per
share

Net profit per shareafter dilution

Yen

Yen

2022

123.35-2021

109.21-(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

September 30,
541,167
206,97537.8
2,290.07
2022
March 31,517,774
197,14937.6
2,192.17
2022(Reference) Total shareholders’ equity: September 30, 2022: ¥204,573 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－

0.00

FY 3/2023－

0.00

FY 3/2023(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(40.2)%

14,000(39.4)Net profit per share%

12,000%17,000

Profit attributable toowners of parent
Millions of yen

Ordinary profit

Yen

(6.7)

134.93(Note) Revision of earnings forecast for this period: Yes

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

March 31, 2022: 89,048,792 shares

2) Number of treasury stock:
September 30, 2022: 68,074 shares

March 31, 2022: 152,550 shares

3) Average number of shares outstanding for each period (cumulative term):
Six months ended September 30, 2022: 88,931,822 shares
2021: 88,860,021 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 the six
months ended September 30, 2022, in Europe and the United States, business conditions, which
had been in recovery following the easing of COVID-19, have now entered a phase of slowdown
brought about by increasing inflationary pressure, monetary tightening policies and rising raw
material and fuel prices accompanying the worsening and prolongation of the situation in Ukraine.
In China, the weakening of economic growth has become more pronounced due to zero-COVID
policy (lockdowns) and a slump in the real estate sector. In Japan, on the other hand, despiteprevious signs of a business recovery due to an easing of requests for voluntary restriction of
movement following the present reduction in COVID-19 infections, the trade deficit has expanded
as a result of yen depreciation and rising raw material and fuel prices. Going forward, there areconcerns regarding the negative impact on economic activities from continuing yen depreciation
and raw material and fuel prices remaining high.
Under this business environment, sales of volatile organic compound (VOC) treatment equipment
for recovering solvents have proceeded robustly owing to increased demand for lithium-ion
batteries. Moreover, sales of raw materials and reagents for PCR testing grew in response to thedemand for PCR testing due to the resurgence of COVID-19 infections since July. On the other
hand, sales of polarizer protective films for LCDs “COSMOSHINE SRF” and mold releasing film for
multilayer ceramic capacitors (MLCC) fell due to a temporary deterioration in the market. In addition,
sales of films and spunbond faced challenges as product price revisions were unable to keep up
with the rising raw material and fuel prices.
As a result, consolidated net sales in the six months ended September 30, 2022 increased ¥17.3
billion (9.4%) over the same period of the previous fiscal year, to ¥201.1 billion. Operating profit
decreased ¥9.2 billion (53.9%), to ¥7.9 billion and ordinary profit decreased ¥6.5 billion (49.2%) to¥6.8 billion. Profit attributable to owners of parent increased ¥1.3 billion (13.0%) to ¥11.0 billion
after recording extraordinary income in the first three months of the fiscal year of ¥5.6 billion frominsurance claim income for a fire accident.
Results by business segment were as follows:
Films and Functional Materials
In this segment, sales increased while operating profit decreased due to impacts from rising raw
material and fuel prices and a deterioration of market conditions for the industrial film business.
In the films business, the packaging film business was sluggish due to difficulties in realizing
product price revisions to compensate for rising raw material and fuel prices, despite strong sales.
In the industrial film business, sales fell due to a temporary deterioration in the market for polarizer
protective films for LCDs “COSMOSHINE SRF” and mold releasing film for MLCC.
In the functional materials business, sales of industrial adhesives “Vylon” declined due to theimpact of China’s zero-COVID policy.
As a result, sales in this segment increased ¥0.8 billion (0.9%) from the same period of theprevious fiscal year to ¥86.7 billion, and operating profit decreased ¥8.0 billion (65.4%) to ¥4.2
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billion.
MobilityIn this segment, sales increased while operating loss increased due to the impact of production
curtailment of automobiles in addition to rising raw material and fuel prices.
Sales of engineering plastics decreased due to product price revisions being unable to keep up
with the rising raw material and fuel prices both in Japan and overseas, in addition to the impact ofthe production curtailment of automobiles.
Regarding airbag fabrics, despite achieving sales increase, spread between raw material prices
and sales prices deteriorated due to rising procurement prices for airbag yarn caused by yen
depreciation and the rising raw materials.
As a result, sales in this segment increased ¥2.6 billion (12.0%) from the same period of theprevious fiscal year to ¥24.1 billion, with an operating loss of ¥2.0 billion. (Compared with operating
loss of ¥0.9 billion for the same period of the previous fiscal year.)Lifestyle and Environment
In this segment, sales increased while operating profit decreased as product price revisions wereunable to keep up with rising raw material and fuel prices, such as for nonwoven materials
business, despite strong sales of VOC treatment equipment for recovering solvents.
In the environmental solutions business, with regard to VOC treatment equipment, sales of
replacement elements as well as VOC treatment equipment used in the manufacturing process forlithium-ion battery separators were strong due to the increase in demand for lithium-ion batteries asa result of the global shift to EV.
In the nonwoven materials business, sales of spunbond and functional filters were affected by the
production curtailment of automobiles in Japan, and sales of functional cushion material“BREATHAIR” were affected by zero-COVID policy in China. Moreover, the business faced
challenges as product price revisions were unable to keep up with the rising raw material and fuelprices.
In the high performance fibers business, sales of “ZYLON” for applications for bicycle tires andbuilding structural reinforcement were strong.
As a result, sales in this segment increased ¥9.9 billion (18.1%) from the same period of theprevious fiscal year to ¥64.6 billion, and operating profit decreased ¥0.7 billion (35.1%) to ¥1.2
billion.
Life Science
In this segment, sales and operating profit increased as demand for reagents for PCR testing
increased significantly in the second quarter.
In the biotechnology business, sales of raw materials and reagents for PCR testing grew inresponse to the demand for PCR testing due to the resurgence of COVID-19 infections. Sales of
enzymes for diagnostic reagents as well as those for genetic testing reagents were strong due tothe impact of foreign exchange in addition to an increase in sales for Europe and the United States.
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In the medical materials business, sales of artificial kidney hollow fiber and virus removing
membranes trended strong, but were affected by rising raw material and fuel prices.
As a result, sales in this segment increased ¥3.0 billion (18.1%) from the same period of theprevious fiscal year to ¥19.3 billion, and operating profit increased ¥0.8 billion (17.3%) to ¥5.4
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 ¥1.1 billion (19.7%) from the same period of theprevious fiscal year to ¥6.4 billion, and operating profit decreased ¥0.1 billion (8.1%) to ¥1.0 billion.
(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets increased ¥23.4 billion (4.5%) from the end of the previous fiscal year, to ¥541.2 billion.
This was mainly due to an increase in inventories and an increase in property, plant and equipment
due to capital investment.
Total liabilities increased ¥13.6 billion (4.2%) to ¥334.2 billion. This was mainly due to an increasein notes and accounts payable – trade and borrowings.
Net assets increased ¥9.8 billion (5.0%) from the end of the previous fiscal year, to ¥207.0 billion
mainly due to an increase in retained earnings and foreign currency translation adjustment.
Cash FlowsNet cash provided by operating activities amounted to ¥12.2 billion in the subject first half period.
This was due mainly to a cash decrease from an increase in inventories of ¥16.4 billion, and a cash
increase from profit before income taxes of ¥14.8 billion and depreciation of ¥9.6 billion.
Net cash used in investing activities amounted to ¥16.8 billion. This was due mainly to purchase ofproperty, plant and equipment and intangible assets of ¥19.5 billion.
Net cash provided by financing activities amounted to ¥5.2 billion. This was due mainly to proceedsfrom long-term borrowings of ¥22.9 billion, repayments of long-term borrowings of ¥19.2 billion.
As a result, the balance of cash and cash equivalents at the end of the subject first half (September
30, 2022) stood at ¥28.1 billion, an increase of ¥1.7 billion from the end of the previous fiscal year
(March 31, 2022).
(3) Qualitative Information on Consolidated Forecasts
In light of recent developments, we have revised our consolidated earnings forecasts for the fiscal
year ending March 31, 2023, which were announced on May 12, 2022. For details, please refer tothe “Notice of Revision of Consolidated Earnings Forecasts” released today (November 10, 2022).

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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 Half
(As of September 30, 2022)

27,17691,082421

28,87586,921841

10,747

11,51957,362
14,48324,204
14,150(311)
239,314

67,745
16,85029,881
13,776(327)
256,082

53,96051,786
91,58630,242
227,574
4,307

56,78552,90990,84335,739236,276
4,172

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

45,691(1,054)
44,637
285,085
541,167(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 bonds payable
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 Half
(As of September 30, 2022)

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

52,657
6,287
47,48810,0008,290
5,640
23,391
153,753

55,00070,68145,00088,048

236

240

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

12
19,722
27,417
180,438
334,191

51,73032,19374,700(221)
158,40251,73032,09882,114(97)
165,845

4,882

3,042

7
41,562(7,656)(2,321)80
41,562(3,639)(2,318)36,47438,7282,273
197,149
517,774

2,402
206,975
541,167(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)Previous First Half
(From April 1, 2021
To September 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
Loss on suspension of production
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
Loss on disposal of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

8

Current First Half
(From April 1, 2022
To September 30, 2022)

183,864
134,41749,44732,335
17,112

201,123
155,942
45,18037,296
7,885

309
－
557
866

218
1,164
604
1,985

632
617
3,424
4,673
13,305

665
－
2,445
3,110
6,760

－
－
－
－

1,196
2,700
5,607
9,503

1,577
261
1,838
11,467
1,824
9,643
(61)
9,705

1,423
－
1,423
14,841
3,872
10,968(2)
10,970(Millions of yen)(Consolidated Statements ofComprehensive Income)Previous First Half
(From April 1, 2021
To September 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 Half
(From April 1, 2022
To September 30, 2022)

9,643

10,968

3,643(1,840)

0
173

73
3,724

(34)

3

174

561

3,956
13,6002,521
13,49013,681

13,224(82)

266

(3) Consolidated Statements of Cash Flows(Millions of yen)Previous First Half
(From April 1, 2021
To September 30, 2021)

Cash flows from operating activities
Profit before income taxes
Depreciation
Interest expenses
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
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
Redemption of bonds
Interest paid
Dividends paid
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

10

Current First Half
(From April 1, 2022
To September 30, 2022)

11,467
10,009632－
3,053(10,480)
2,691(3,956)
13,416(1,615)－
11,801

14,841
9,612
665(5,607)
4,496(16,354)
4,550(2,578)9,625(3,041)
5,607
12,191(13,808)(19,480)(707)(14,515)

2,696(16,783)

2,052
7,867
(6,027)(5,000)(643)(3,549)(448)(5,747)

6,361
22,909(19,173)－(672)(3,549)
(664)
5,213

36

1,052

(8,426)

1,672

34,52626,433

5－

26,105

28,106

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

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statementsof Income(Note 3)

183,864－

183,864

7,367

7,862

(7,862)－

180,948

10,779191,726(7,862)

183,864

18,607328

18,935(1,823)

17,112

Mobility

LifestyleandEnvironment

Life
ScienceReal
EstateTotal

85,917

21,55654,706

16,347

1,926

180,452

3,412

68

15

192

16

204

495

Total

85,985

21,571

54,89816,3632,130

Segment profit(loss)

12,238

(867)

1,872

4,616

748

Films andFunctional
Materials

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 (¥1,823) million includes eliminations of intersegment transactionsof (¥63) million and companywide expenses that are not allocated across reporting segments of (¥1,760)
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.

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(ⅱ) Six months ended September 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

86,694

24,13564,594

19,3092,026

196,758

4,365

201,123－

201,123

83

13

110

17

188

411

7,883

8,294

(8,294)－

Total

86,777

24,14864,704

19,3262,214

197,169

12,248

209,417(8,294)

201,123

Segment profit(loss)

4,233(2,019)

1,215

5,412

805

9,646

184

9,830

(1,946)

7,885

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 (¥1,946) million includes eliminations of intersegment transactionsof (¥38) million and companywide expenses that are not allocated across reporting segments of (¥1,908)
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.

12