November 9, 2023

Consolidated Financial Report for the Six Months Ended September 30, 2023
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 Director
Contact Person: Sonoko Ishimaru, Executive Officer, General Manager, Corporate Communication Department
TEL: +81-6-6348-3044
Planned Filing Date of a Quarterly Report: November 13, 2023
(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

%

2023

199,419

(0.8)

2,361

(70.1)

1,038(84.7)

2,011(81.7)

2022

201,123

9.4

7,885

(53.9)

6,760(49.2)

10,97013.0(Note) Comprehensive Income:Six months ended September 30, 2023: ¥4,150 million (69.2%)
Six months ended September 30, 2022: ¥13,490 million (0.8%)

Net profit per
share

Net profit per shareafter dilution

Yen

Yen

2023

22.82

－

2022

123.35－(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

September 30,
577,201
221,79333.0
2,160.40
2023
March 31,588,906
221,42232.2
2,146.46
2023(Reference) Total shareholders’ equity: September 30, 2023: ¥190,331 million, March 31, 2023: ¥189,588 million

2. Dividends
Years ended/ending March 31
Dividends per share
Record date

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

2023

－

0.00

2024

－

0.00

2024
(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, 2024
Percentages indicate year-on-year increase/ (decrease)

Net sales
Millions of yen

Fiscal year

Operating profit%

410,000

Millions of yen

2.5

Fiscal year

Millions of yen

(0.6)

%

6,000

(9.0)

Net profit per share
%

1,000

%

10,000

Profit attributable toowners of parent
Millions of yen

Ordinary profit

Yen

11.24

－

(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 : None
2. 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, 2023: 89,048,792 shares

March 31, 2023: 89,048,792 shares

2) Number of treasury stock:
September 30, 2023: 948,737 shares

March 31, 2023: 723,040 shares

3) Average number of shares outstanding for each period (cumulative term):
Six months ended September 30, 2023: 88,094,277 shares
2022: 88,931,822 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.

2

1. Qualitative Information and Financial Statements(1) Qualitative Information on Consolidated Results
The business environment surrounding the Toyobo Group (hereinafter “the Group”) in the six
months ended September 30, 2023 saw a continued track of recovery in economic activities in the
United States, supported by solid consumption and capital investment amid continued monetary
tightening policy. However, in China, the economic downturn grew stronger due to the depressed
real estate market and the delay in the recovery of the consumer mindset. On the other hand, inJapan, the economy has recovered moderately with the normalization of economic activity after
the COVID-19 pandemic. Going forward, there is concern over the impact on economic recovery
from rising raw material and fuel prices caused by production adjustments by oil-producing
countries and heightened geopolitical risk, progressing yen depreciation caused by the expanding
spread between Japanese and US interest rates and the struggling Chinese economy.
Under this business environment, sales of polarizer protective films for LCDs “COSMOSHINE
SRF” increased significantly driven by strong demand. On the other hand, adjustments ofinventories on the market for mold releasing film for multilayer ceramic capacitors (MLCC) andpackaging film became prolonged due to delays in demand recovery, and demand for reagents for
PCR testing dropped sharply due to the winding down of COVID-19 infections. Additionally,
improvement in profitability for certain products was delayed as product price revisions wereunable to keep up with soaring raw material and fuel prices.
As a result, consolidated net sales in the six months ended September 30, 2023 decreased ¥1.7
billion (0.8%) over the same period of the previous fiscal year, to ¥199.4 billion. Operating profit
decreased ¥5.5 billion (70.1%), to ¥2.4 billion and ordinary profit decreased ¥5.7 billion (84.7%) to¥1.0 billion. Profit attributable to owners of parent decreased ¥9.0 billion (81.7%), to ¥2.0 billion
despite the recording of a gain on sale of investment securities of ¥3.0 billion as extraordinary
income during the second quarter of the consolidated fiscal year.
Results by business segment were as follows:
The Group changed its reporting segment classification from the first quarter of the consolidated
fiscal year. Accordingly, in the following segment information, the figures for the six months ended
September 30, 2022, have been restated in accordance with the classification existing after the
aforesaid change for the purpose of comparing them with those of the six months ended
September 30, 2023.
Films
In this segment, sales increased while operating profit decreased due to a weak recovery indemand for packaging films, in addition to the impact of high raw material and fuel prices.
In the packaging film business, while we worked on product price revisions in response to soaring
raw material and fuel prices, slowed cargo movement throughout the first and second quarter due
to adjustments of distributors’ inventory became prolonged in addition to the costs to install new
production machinery increased significantly.
In the industrial film business, sales of polarizer protective films for LCDs “COSMOSHINE SRF”
increased significantly driven by strong demand. Sales of mold releasing film for MLCC struggled
due to prolonged inventory adjustments throughout the supply chain caused by a delayed3

recovery in demand.
As a result, sales in this segment increased ¥3.7 billion (5.0%) from the same period of theprevious fiscal year to ¥78.1 billion, and operating profit decreased ¥1.0 billion (41.0%) to ¥1.4
billion.
Life Science
In this segment, sales and operating profit decreased due to a significant drop in sales of reagentsfor COVID-19 PCR testing.
In the biotechnology business, sales of reagents for PCR testing declined significantly due to thereclassification of COVID-19 to a Class 5 Infectious Diseases.
In the medical materials business, sales of artificial kidney hollow fiber trended strong.
In the contract manufacturing business of pharmaceuticals, profitability improved with the lifting of
the Warning Letter by the FDA in July 2023.
As a result, sales in this segment decreased ¥2.7 billion (14.2%) from the same period of theprevious fiscal year to ¥16.6 billion, and operating profit decreased ¥3.0 billion (55.7%) to ¥2.4
billion.
Environmental and Functional Materials
In this segment, sales and operating profit decreased due to the impact of lower demand forelectronic materials and high raw material and fuel prices.
In the resins and chemicals business, engineering plastics secured sales volume with the recovery
in automobile production volume in Japan. Sales of industrial adhesives “Vylon” declined in China
and other Asian markets. Sales of photo functional material for water-wash photosensitive printing
plates were weak in North America.
In the environment and fiber business, VOC recovery equipment used in the manufacturing
process for lithium-ion battery separators saw a decline in sales due to a lag in shipments despite
strong orders received. In the high performance fibers business, recovery was delayed for sales of“Tsunooga” used in cut resistant gloves. Nonwoven materials were affected by both reduced sales
for hygiene products and civil engineering materials as well as soaring raw material and fuelprices.
As a result, sales in this segment decreased ¥3.2 billion (5.8%) from the same period of theprevious fiscal year to ¥52.5 billion, and operating profit decreased ¥1.8 billion (82.6%) to ¥0.4
billion.
Functional Textiles and Trading
In this segment, sales increased and operating loss decreased due to market recovery andstructural reforms in the textile business.
In the textile business, earnings improved as a result of the withdrawal of unprofitable products
and progress in price pass-through.
In the airbag fabric business, sales volume increased with the recovery of automobile production
4

volume, and product price revisions in response to rising raw material prices proceeded, leading to
improved profitability.
As a result, sales in this segment increased ¥0.3 billion (0.7%) from the same period of theprevious fiscal year to ¥45.7 billion, and operating loss of ¥0.9 billion (compared with operating
loss of ¥1.1 billion for the same period of the previous fiscal year).
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 weregenerally in line with plans.
As a result, sales in this segment increased ¥0.2 billion (3.3%) from the same period of theprevious fiscal year to ¥6.6 billion, and operating profit increased ¥0.4 billion (39.6%) to ¥1.4
billion.
(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets decreased ¥11.7 billion (2.0%) from the end of the previous fiscal year, to ¥577.2
billion. This was mainly due to a decrease in cash and deposits and notes and accounts
receivable - trade, despite an increase in property, plant and equipment due to capital investment.
Total liabilities decreased ¥12.1 billion (3.3%) to ¥355.4 billion. This was mainly due to redemptionof bonds and a decrease in notes and accounts payable - trade.
Net assets increased ¥0.4 billion (0.2%) from the end of the previous fiscal year, to ¥221.8 billion
due to an increase in foreign currency translation adjustment, despite a decrease in valuationdifference on available-for-sale securities for sales of investment securities.
Cash FlowsNet cash provided by operating activities amounted to ¥10.1 billion in the subject first half period.
This was mainly due to a cash increase from depreciation of ¥9.4 billion and a decrease in tradereceivables of ¥5.0 billion and a cash decrease from a decrease in trade payables of ¥5.6 billion.
Net cash used in investing activities amounted to ¥26.9 billion. This was mainly due to purchase ofproperty, plant and equipment and intangible assets of ¥28.8 billion.
Net cash used in financing activities amounted to ¥15.4 billion. This was mainly due to net
decrease in short-term borrowings of ¥22.0 billion, redemption of bonds of ¥10.0 billion andproceeds from long-term borrowings of ¥30.2 billion.
As a result, the balance of cash and cash equivalents at the end of the subject first half
(September 30, 2023) stood at ¥29.4 billion, a decrease of ¥30.8 billion from the end of theprevious fiscal year (March 31, 2023).
(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, 2024, which were announced on May 11, 2023. For details, please refer tothe “Notice of Revision of Consolidated Earnings Forecasts” released today (November 9, 2023).
5

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Previous Fiscal Year(As of March 31, 2023)
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
LandConstruction in progress
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, 2023)

60,70388,427407

29,917
83,503
134

12,295

13,91275,343
16,55630,002
15,672(271)
299,133

77,582
20,79029,16913,048(345)
267,71154,51546,90790,81639,8298,166
240,234
4,633

60,64756,24190,89945,8478,191
261,825
4,508

46,037(1,131)44,906
289,773
588,906

44,441(1,284)
43,157309,490577,201

(Millions of yen)Previous Fiscal Year(As of March 31, 2023)
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
Deferred tax liabilities for land revaluation
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, 2023)

53,436
5,156
71,595
10,00029,472
4,956
27,885202,500

48,9985,146
49,967
15,00026,243
5,245
31,066
181,664

65,00049,09919,64150,00074,32919,641

239

246

12
22,427
8,566
164,984
367,484

11
21,922
7,594
173,744355,408

51,73032,40270,490(781)
153,840

51,73033,187
68,967(1,005)
152,880

3,434

1,475

67
41,435(4,556)(4,632)

163
41,435(1,257)(4,365)35,74837,452

31,834
221,422588,906

31,462
221,793577,201

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Millions of yen)(Consolidated Statements of Income)Previous First Half
(From April 1, 2022
To September 30, 2022)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating 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
Gain on sale of investment securities
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on change in equity
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, 2023
To September 30, 2023)

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

199,419
157,659
41,76039,399
2,361

1,164
822
1,985

1,395
898
2,293

665
2,445
3,110
6,760

636
2,980
3,616
1,038

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

－
3,047
－
3,047

1,423
－
1,423
14,841
3,872
10,968(2)
10,970

787
212
998
3,086
1,519
1,567
(444)
2,011

(Millions of yen)(Consolidated Statements ofComprehensive Income)Previous First Half
(From April 1, 2022
To September 30, 2022)

ProfitOther comprehensive income
Valuationdifferenceonavailable-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
incomeattributabletonon-controlling interests

9

Current First Half
(From April 1, 2023
To September 30, 2023)

10,968

1,567(1,840)(1,878)

73
3,724

96
3,647

3

267

561

451

2,521
13,490

2,584
4,150

13,224

4,170

266

(20)

(3) Consolidated Statements of Cash Flows(Millions of yen)Previous First Half
(From April 1, 2022
To September 30, 2022)
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
Cash and cash equivalents at end of period

10

Current First Half
(From April 1, 2023
To September 30, 2023)

14,841
9,612
665(5,607)
4,496(16,354)
4,550(2,578)9,625(3,041)
5,607
12,191

3,086
9,395
636
－
5,005
(3,924)(5,568)3,105
11,736(1,655)－
10,081(19,480)(28,772)

2,696(16,783)1,839(26,933)

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

(22,022)
30,208(8,554)(10,000)(628)(3,527)(900)(15,423)

1,052

1,510

1,672

(30,765)

26,433
28,10660,20429,439(4) Notes to Consolidated Financial Statements(Note to Going Concern Assumption)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicable(Segment Information)(ⅰ) Six months ended September 30, 2022
(Millions of yen)Segment to Be Reported
Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statements ofIncome(Note 3)

Films

Life
Science

Environmental
andFunctional
Materials

74,341

19,30955,73845,344

2,026

196,758

4,365

201,123－

201,123

83

17

2,142

284

188

2,714

7,883

10,597(10,597)－

Total

74,424

19,32657,88045,6282,214

199,472

12,248211,720(10,597)

201,123

Segment profit(loss)

2,429

5,412

2,127

(1,127)

805

9,647

184

9,831

(1,946)

7,885

Functional
TextilesandTrading

Real
Estate

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 ¥(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.
3. Segment profit or loss has been adjusted with operating profit on the consolidated financial statements.

11

(ⅱ) Six months ended September 30, 2023
(Millions of yen)Segment to Be Reported
Other
Businesses(Note 4)

Adjustment(Note 5)

Consolidated
Statementsof Income(Note 6)

Films

Life
Science

Environmental
andFunctional
Materials

78,055

16,55952,52945,6742,000

194,817

4,602

199,419－

199,419

1,134

7

4,776

591

582

7,090

9,572

16,662(16,662)－

Total

79,18916,56657,30546,264

2,582

201,907

14,175

216,082(16,662)

199,419

Segment profit(loss)

1,433

2,395

370

(854)

971

4,315

411

4,725

(2,364)

2,361

Functional
TextilesandTrading

Real
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 ¥(2,364) million includes eliminations of intersegment transactionsof ¥(240) million and companywide expenses that are not allocated across reporting segments of¥(2,124) million. The principal components of companywide expenses are those related to basic
research and development.
6. Segment profit or loss has been adjusted with operating profit on the consolidated financial statements.
(ⅲ) Matters concerning changes to reporting segments
From the first quarter of the fiscal year ending March 31, 2024, the Group changed its organization
structure in order to position films, life science and the environment as business fields on which toparticularly focus and carry out business operations in accordance with each positioning while evaluating
and categorizing each business in accordance with their “profitability” and “growth potential.” Accordingly,
the Group reviewed the reportable segment classification, and changed them from the previous “Films andFunctional Materials,” “Mobility” and “Lifestyle and Environment” to “Films,” “Environmental and Functional
Materials” and “Functional Textiles and Trading.”
Segment information for the six months ended September 30, 2022 was prepared in accordance with theclassifications after the change.

(Significant Subsequent Events)
Not applicable12