May 12, 2022

Consolidated Financial Report for Year Ended March 31, 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 Director
Contact Person: Sonoko Ishimaru, General Manager, Corporate Communication Department

TEL: +81-6-6348-3044

Date of the General Meeting of the Shareholders: June 24, 2022
Planned start of dividend payments: June 27, 2022
Planned filling of an annual security report: June 24, 2022

(Figures are rounded to the nearest million yen.)

1. Consolidated Business Performance(1) Consolidated Operating Results
Years ended March 31

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

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

2022

375,720

11.4

28,4306.6

23,092

11.5

12,865

206.2

2021

337,406(0.6)

26,65716.9

20,706

14.8

4,202

(69.5)(Note) Comprehensive Income:%Year ended March 31, 2022: ¥12,112 million 27.9%
Year ended March 31, 2021: ¥9,471 million 113.5%

Net profit per
share

Net profit per shareafter dilution

Return on equity

Ordinary
profit-to-total assets
ratio

Operatingprofit-to-net sales
ratio

Yen

Yen

%

%

%

2022

144.75

－

6.8

4.6

7.6

2021

47.30

－

2.3

4.2

7.9

(Reference) Gain (loss) on investment by equity method: Year ended March 31,2022: ¥161 million
Year ended March 31,2021: ¥ (338) million(2) Consolidated Financial Position
At March 31
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

2022

517,774

197,14937.6

2,192.172021

491,188

188,63537.8

2,090.47(Reference) Total shareholders’ equity: March 31, 2022: ¥194,876 million, March 31, 2021: ¥185,729 million(3) Consolidated Cash Flows
Years ended March 31
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end ofyear
Millions of yen

Millions of yen

Millions of yen

Millions of yen

2022

17,097(24,608)(1,729)26,4332021

35,028(31,678)

5,340

34,5261

2. Dividends
Years ended/ending March 31
Total amountof dividends(for the entire
fiscal year)
Millions of yen

Dividends per share
1st
Quarter

2nd
Quarter

3rd
QuarterYearend

Total

Yen

Yen

Yen

Yen

Yen

2021

－

0.00

－

40.00

40.00

2022

－

0.00

－

40.00

40.00

2023
(Forecast)

－

0.00

－

40.00

40.00

Recorddate

Payoutratio

Dividends to
net assets
ratio

%

%

3,554

84.6

2.0

3,556

27.6

1.9

27.3

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

Profit attributable toowners of parent
Millions of yen

Fiscal year%

24,000Millions of yen(15.6)%

18,000(22.1)Net profit per share%

13,000Ordinary profit

Yen

1.0

146.27

4. Other
1. Significant changes in subsidiaries during the subject fiscal year (Transfer of particular subsidiaries
following a change in the scope of consolidation): Yes
1) New company: None2) Excluded company:1(TOYOBO FILM SOLUTIONS LIMITED)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: Yes2) 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 at fiscal year-end (including treasury stock):2022: 89,048,792 shares

2021: 89,048,792 shares

2) Number of treasury stock at fiscal year-end:
2022: 152,550 shares

2021: 203,350 shares

3) Average number of shares outstanding:2022: 88,876,906 shares

2021: 88,834,061 shares

2

(Reference)

1. Non-Consolidated Business Performance(1) Non-Consolidated Operating Results
Year ended March 31

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

Net sales
Millions of yen

Operating profit%

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen

%

2022

241,749

22.6

20,183

9.5

16,021

12.4

6,174

－

2021

197,251(0.9)

18,43018.3

14,24912.0(4,750)－Net profit per Share

Net profit per share after
dilution

Yen

Yen

2022

69.47

－

2021

(53.47)－(2) Non-Consolidated Financial Position
At March 31
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

2022

447,112156,27335.0

1,757.922021

421,593

155,11236.8

1,745.86(Reference) Total shareholders’ equity: March 31, 2022: ¥156,273 million, March 31, 2021: ¥155,112 million※ Financial Results Report are exempt from review by certified public accountants or accounting auditor.
※ Explanation regarding the appropriate use of forecasts of business results
The forward-looking statements made in this document, including the aforementioned forecasts, are based on all
information available to the management at the time of this document's release. Actual results may differ from theresults anticipated in the statements.

(How to obtain supplementary document on earnings)
The supplementary document on earnings is disclosed on the same day as the Financial Results Report, and it ismade available on the Company’s website.

31. Operating Results(1) Analysis of Operating Results
As for the business environment surrounding the Toyobo Group (hereinafter the “Group”) in thefiscal year ended March 31, 2022 (hereinafter “the fiscal year”), amid the repeated fluctuation in thenumber of people infected by the novel coronavirus disease (COVID-19), economic activity
gradually recovered due to the progression of vaccinations and fiscal and monetary policies.
However, due to the impact of the recent situation in Ukraine, the pressure of inflation is increasing
as there are signs of raw material and fuel prices rising more than they have thus far and material
supply tightening. In Japan, although the number of people infected with COVID-19 variants
surpassed the peak through the end of the fiscal year, concerns are increasing with regard to theprolongation of the hovering of raw material and fuel prices, the semiconductor shortage in theautomotive industry, and disruptions to the component supply chain.
Under this business environment, polarizer protective films for LCDs “COSMOSHINE SRF”
achieved growth in sales due to the operation of the new line, and sales of raw materials andreagents for PCR testing performed strongly. On the other hand, packing films, engineering plastics,
airbag fabrics, polyester staple fibers, spunbond, etc. were affected by rising raw material prices.
Furthermore, financially, the Group recorded ¥6.5 billion in extraordinary income due to the partial
disposal of investment securities held by the Group, in order to increase the efficiency of assets
and improve financial position. On the other hand, impairment loss of a total of ¥9.4 billion wasrecorded as extraordinary losses on business assets for the contract manufacturing business ofpharmaceuticals, assets the Group will stop using for the textile business, and business assets for
the Company’s subsidiary (Xenomax – Japan Co., Ltd.) that manufactures and sells heat-resistantpolyimide films.
As a result, net sales in the fiscal year increased 11.4% from the previous fiscal year to ¥375.7
billion, operating profit increased 6.6% from the previous fiscal year to ¥28.4 billion, ordinary profit
increased 11.5% from the previous fiscal year to ¥23.1 billion, profit attributable to owners of parent
increased 206.2% from the previous fiscal year to ¥12.9 billion.
Results by business segment were as follows:
Films and Functional Materials
In this segment, sales and operating profit increased due to the strong performance of the industrial
films business.
In the films business, despite the continuation of demand from people staying at home, thepackaging film business faced challenges as a result of the decrease of sales because of the fire
accident in the previous fiscal year as well as the impact of rising raw material prices. In theindustrial film business, sales of polarizer protective films for LCDs “COSMOSHINE SRF” achieved
growth due to the operation of the new line. Although mold releasing film for MLCC “COSMOPEEL”
performed strongly in the first half of the fiscal year due to the operation of the new line, sales weresluggish due to changes in the market environment in the second half of the fiscal year.
Although sales of industrial adhesives “VYLON” for electronics applications were strong, thefunctional materials business was affected by rising raw material prices. Furthermore, for the photo4

functional materials for water-wash photosensitive printing plates, sales of products in China, North
America and Europe grew.
As a result, sales in this segment increased ¥17.5 billion (11.4%) from the previous fiscal year to¥170.3 billion, and operating profit decreased ¥0.1 billion (0.7%) to ¥19.9 billion.
MobilityIn this segment, sales increased but operating profit decreased as a result of the impact of the riseof raw material prices and the production curtailment of automobiles due to the semiconductor
shortage and other factors, despite sales recovering from the previous fiscal year.
Overseas, sales prices of engineering plastics were revised due to rising raw material prices, andsales of engineering plastics performed strongly in China, the United States and Thailand. On theother hand, in Japan, engineering plastics were affected by the impact of the production curtailmentof automobiles in the second half of the fiscal year as sales price revisions have not been able tokeep up.
Airbag fabrics faced challenges as sales price revisions have not been able to keep up with rising
raw material prices.
As a result, sales in this segment increased ¥8.1 billion (22.3%) from the previous fiscal year to¥44.7 billion, with an operating loss of ¥1.8 billion. (Compared with operating loss of ¥1.6 billion forthe previous fiscal year.)Lifestyle and Environment
In this segment, sales increased and operating profit decreased as a result of the strong impact ofrising raw material prices despite a portion of demand recovering due to the recovery of economic
activity.
In the environmental solutions business, although volatile organic compound (VOC) emissions
treatment equipment was on a recovery trend due to the expansion of the lithium-ion battery market,
there were challenges due to a decrease in orders as a result of the stagnation of operating
activities overseas in the previous fiscal year.
In the nonwoven fabrics business, sales of spunbond were affected by the production curtailment of
automobiles and rising raw material prices despite recovering for building materials. Sales offunctional filters for masks decreased.
In the functional fiber materials business, with regard to high-performance fibers, “IZANAS” wasstrong for use in fishing line and ropes, and sales of “ZYLON” grew due to the recovery of demand
for use in bicycle tires and firefighter uniforms. On the other hand, polyester staple fibers andfunctional cushion material “BREATHAIR” were affected by rising raw material prices.
In the textile business, although export costs for traditional Arabic fabric improved due to thedepreciation of the yen, and market conditions recovered for underwear, store sales for sports did
not flourish, and sales for uniforms were sluggish in those used for business uniforms.
As a result, sales in this segment increased ¥5.1 billion (4.7%) from the previous fiscal year to¥114.3 billion, and operating profit decreased ¥0.9 billion (21.1%) to ¥3.5 billion.
5Life Science
In this segment, sales and operating profit increased as demand for PCR testing remained firm.
In the biotechnology business, sales of raw materials and reagents for PCR testing, and genetic
testing equipment and diagnostic reagents grew.
The contract manufacturing business of pharmaceuticals was sluggish due to the impact of the
reduction of operation in response to suggestions from the FDA.
In the medical materials business, sales of artificial kidney hollow fiber and virus removing filters
trended strong.
As a result, sales in this segment increased ¥7.9 billion (29.2%) from the previous fiscal year to¥35.0 billion, and operating profit increased ¥4.1 billion (91.6%) to ¥8.7 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 decreased ¥0.4 billion (3.2%) from the previous fiscal year to¥11.4 billion, and operating profit decreased ¥0.1 billion (3.7%) to ¥2.2 billion.
(2) Analysis of Financial Position
Total assets increased ¥26.6 billion (5.4%) from the end of the previous fiscal year, to ¥517.8 billion.
This was mainly due to an increase in inventories.
Total liabilities increased ¥18.1 billion (6.0%) to ¥320.6 billion. This was mainly due to an increasein notes and accounts payable – trade and borrowings.
Net assets increased ¥8.5 billion (4.5%) from the end of the previous fiscal year, to ¥197.1 billion
mainly due to an increase in retained earnings.
(3) Cash FlowsNet cash provided by operating activities amounted to ¥17.1 billion at the end of the subject fiscal
year. This was due mainly to a cash increase from depreciation of ¥20.1 billion and profit before
income taxes of ¥14.8 billion, and a cash decrease from an increase in inventories of ¥18.2 billion.
Net cash used in investing activities amounted to ¥24.6 billion. This was due mainly to purchase ofproperty, plant and equipment and intangible assets of ¥29.1 billion and proceeds from sales ofinvestment securities of ¥11.5 billion.
Net cash used in financing activities amounted to ¥1.7 billion. This was due mainly to proceedsfrom long-term borrowings of ¥15.0 billion, repayments of long-term borrowings of ¥10.4 billion,
proceeds from issuance of bonds of ¥10.0 billion, redemption of bonds of ¥10.0 billion anddividends paid of ¥3.6 billion.
As a result, the balance of cash and cash equivalents at the end of the subject fiscal year (March
31, 2022) stood at ¥26.4 billion, a decrease of ¥8.1 billion from the end of the previous fiscal year
(March 31, 2021).
6

(Reference) Cash Flow Indicators
Years ended March 31
2018

2019

2020

2021

2022

Equity ratio (%)

40.5

38.3

36.4

37.8

37.6

Equity ratio, based on market
value (%)

41.8

27.2

20.8

25.8

18.8

Return on equity (%)

7.5

(0.3)

7.8

2.3

6.8

Interest-bearing debt to cash
flow ratio (Years)

6.5

21.0

4.0

5.3

11.2

Interest coverage ratio (Times)

16.9

6.0

32.2

28.0

14.0

D/E ratio (Times)

0.81

0.93

0.98

1.01

0.98

Notes:
Equity ratio: shareholders’ equity / total assets
Market-based rate of equity ratio: total market capitalization / total assets
Return on equity: profit attributable to owners of parent / an average of the balances at the
beginning and end of period for the total net assets excluding non-controllinginterests.
Interest-bearing debt to cash flow ratio: interest-bearing debt / operating cash flows
Interest coverage ratio: operating cash flows / interest expense
D/E ratio: interest-bearing debt / net assets excluding non-controlling interests(4) Forecast for Fiscal 2023 (Ending March 31, 2023)
Regarding the business environment for the fiscal year ending March 31, 2023, there are concernsthat the speed of economic recovery from COVID-19 will slow down as the pandemic has not yet
ended, in addition to rising raw material and fuel prices, material supply tightening, prolongation of
the acceleration of inflation due to the situation in Ukraine, and further decline of the exchange rateof yen. The Group expects that there will be factors that affect business, such as the production
curtailment of automobiles due to shortages of semiconductors, etc., and raw material and fuelprices remaining high. On the other hand, to respond to the growth of demand in thetelecommunication equipment market, we will install a new line (Unit 2) and begin production on
mold releasing film for MLCC “COSMOPEEL.” Furthermore, supported by strong demand forlarge-sized TVs, we will promote increased production for polarizer protective films for LCDs
“COSMOSHINE SRF” with a new line (Unit 3). In addition, to respond to demand for PCR testingeven after the spread of COVID-19 calms down, we will continue to make every effort to continue tooffer reagents for PCR testing and provide genetic testing equipment, etc.
Furthermore, as stated in the “Notice of Recording of Extraordinary Income” released today (May12, 2022), the Group expects to record ¥5.6 billion in extraordinary income for insurance received
for the fire accident that occurred at Inuyama Plant in September 2020, which is reflected in theforecasts for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023).
Under this environment, for the fiscal year ending March 31, 2023, the Group is forecasting net
sales of ¥410.0 billion (an increase of ¥34.3 billion year on year), operating profit of ¥24.0 (adecrease of ¥4.4 billion), ordinary profit of ¥18.0 billion (a decrease of ¥5.1 billion), and profit
attributable to owners of parent of ¥13.0 billion (an increase of ¥0.1 billion).

7(5) Basic Policy Regarding Earnings Distribution, and Dividends for Fiscal 2022 and 2023
Toyobo considers providing returns to shareholders to be one of its highest priorities. Our basic
policy is to continually provide a stable dividend, in a comprehensive consideration of such factors
as sustainable profits levels, retention of earnings for future investment, and improving the financial
position to provide shareholders returns, including the acquisition of treasury shares, with a target
total return ratio (*1) of 30%.
Regarding dividends for the next fiscal year, the basic policy of continuous stable dividends has notchanged. Currently, dividends of ¥40 per share are being forecast, but the Group will review thisgoing forward based on the policy above.
(*1)Total return ratio = (total dividend + total amount of share buybacks) ÷ profit attributable toowners of parent
2. Basic Approach to Selection of Accounting Standards
After considering the possibility of comparisons among financial results for consolidated accounting
periods and the possibility of comparisons with other companies, the Group has decided tocontinue to adopt generally accepted accounting principles in Japan for the time being. Please note
that, regarding the adoption of International Financial Reporting Standards (IFRS), the policy of theGroup is to take appropriate action after the consideration of related issues in Japan and overseas.

8

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)2021
(As of March 31, 2021)

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
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
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

92022(As of March 31, 2022)

34,6958,368
76,814－

27,176
7,437
83,644421

8,709

10,74745,785
11,48019,0458,203(136)
212,963

57,362
14,48324,204
14,150(311)
239,31454,22756,053
93,16912,454
8,738
224,640

53,96051,786
91,586
21,721
8,522
227,574

4,674
4,674

4,307
4,307

26,503420
15,066
7,771(849)
48,911
278,225
491,188

19,064562
18,4499,476(972)
46,579278,460
517,774(Millions of yen)2021
(As of March 31, 2021)
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
Provision for bonuses
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

10

2022
(As of March 31, 2022)

40,8794,881
40,767
10,00010,107
4,691
20,118131,444

46,876
6,326
40,592－
21,418
4,778
26,759146,750

45,00077,046
20,15655,00070,681
19,641

241

236

31
18,288
10,347
171,109302,553

12
19,841
8,465
173,876
320,626

51,73032,20264,351(294)
147,989

51,73032,19374,700(221)
158,402

7,038

4,882

11
42,708(11,052)(965)

741,562(7,656)(2,321)37,74036,474

2,906
188,635
491,188

2,273
197,149
517,774(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

2021
(From April 1, 2020
To March 31, 2021)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Dividend income
Foreign exchange gains
Insurance claim income
Subsidy income
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 extinguishment of tie-in shares
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on fire
Loss on disposal of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

11

2022
(From April 1, 2021
To March 31, 2022)

337,406
247,032
90,37563,71826,657375,720
279,594
96,126
67,69628,430

555
－
368
1,041
1,167
3,131

531
673
123
87
993
2,406

1,283
1,854
5,945
9,082
20,706

1,211
953
5,579
7,743
23,092

387
85
－
157
629

－
－
6,529
－
6,529

8,923
1,906
3,558
1,366
15,753
5,582
3,541
(271)
3,270
2,313
(1,889)
4,202

9,362
－
4,232
1,232
14,825
14,796
5,627(2,892)
2,735
12,061(804)
12,865

(Millions of yen)(Consolidated Statements ofComprehensive Income)

2021(From April 1, 2020
To March 31, 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

12

2022
(From April 1, 2021
To March 31, 2022)

2,313

12,061

3,015(2,151)

19
1,069

(4)
3,320

3,162

(1,356)

(107)

243

7,158
9,471

51
12,112

11,30912,745(1,838)(633)

(3) Consolidated Statements of Changes in Net Assets
2021 (From April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders' equity

Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies

51,730

Restated balance

51,730Capital surplus Retained earnings Treasury shares
32,20061,929Total
shareholders'equity(350)

145,509－32,20061,929(350)

145,509

Changes during period
Dividends of surplus(3,552)(3,552)

Profit attributable toowners of parent

4,202

4,202

Reversal of revaluation
reserve for land

1,745

1,745

28

28

Change in scope of
consolidation
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
period2

Balance at end of period

(3)

(3)

59

61

－

2

2,422

56

2,480

51,73032,20264,351(294)

147,989

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation reserve
for land

4,013

(8)

44,457

Total
Foreign
Remeasure accumulat
currency
ments ofed othertranslation
definedcompreheadjustment benefit plans
nsiveincome(11,954)(4,128)32,381

Noncontrollinginterests

Total net
assets

4,746

182,636

Cumulative effects ofchanges in accounting
policies
Restated balance

－
4,013

(8)

44,457(11,954)(4,128)32,381

4,746

182,636

Changes during period
Dividends of surplus(3,552)

Profit attributable toowners of parent

4,202

Reversal of revaluation
reserve for land
Change in scope of
consolidation
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
period1,745

Balance at end of period

28
(3)
61
3,025

19

(1,749)

902

3,162

5,359

(1,840)

3,518

3,025

19

(1,749)

902

3,162

5,359

(1,840)

5,999

7,038

11

42,708(11,052)(965)

37,7402,906

188,63513

2022 (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders' equity

Share capital
Balance at beginning of
periodCapital surplus Retained earnings Treasury shares

51,73032,20264,351

Cumulative effects ofchanges in accounting
policies

Total
shareholders'equity(294)

147,989(108)

Restated balance

51,73032,20264,243

(108)
(294)

147,881

Changes during period
Dividends of surplus(3,554)(3,554)

Profit attributable toowners of parent

12,865

12,865

Reversal of revaluation
reserve for land

1,146

1,146

Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
period-(9)

Balance at end of period

51,73032,193

(2)

(2)

76

68

10,45774

10,52274,700(221)

158,402(9)

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation reserve
for land

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies

7,038

11

42,708

Restated balance

7,038

Total
Foreign
Remeasure accumulat
currency
ments ofed othertranslation
definedcompreheadjustment benefit plans
nsiveincome(11,052)(965)

37,740Noncontrollinginterests

Total net
assets

2,906

188,635(108)

11

42,708(11,052)(965)

37,7402,906

188,527

Changes during period
Dividends of surplus(3,554)

Profit attributable toowners of parent

12,865

Reversal of revaluation
reserve for land
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
period1,146

Balance at end of period(2)68(2,156)(4)(1,146)

3,396(1,356)(1,266)(633)(1,900)(2,156)(4)(1,146)

3,396(1,356)(1,266)

(633)

8,622

4,882

7

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

36,474

2,273

197,149

14

(4) Consolidated Statements of Cash Flows(Millions of yen)
2022
(From April 1, 2021
To March 31, 2022)

2021(From April 1, 2020
To March 31, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted forusing equity method
Loss (gain) on sales and disposal of property,
plant and equipment, net
Loss (gain) on sale and valuation of investment
securities
Loss (gain) on sale of shares of subsidiaries andassociates
Loss due to fire
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
Subtotal
Payments for Loss due to fire
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment andintangible assets
Proceeds from sale of property, plant andequipment and intangible assets
Proceeds from sale of investment securities
Long-term loan advances
Proceeds from collection of long-term loans
receivable
Interest and dividends received
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
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury sharesInterest paid
Dividends paid
Dividends paid to non-controlling interests
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 (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents at end of period

15

5,582
19,095
8,923

14,79620,080
9,362

68

265

1,189
(420)
(619)
1,283

(340)
(331)
(605)
1,211

338

(161)

3,658

4,268

78

(5,472)

4

－

1,906
306
5,067
(4,664)467
42,261(952)(6,281)35,028－(6,866)(18,212)6,295(3,530)20,760－(3,663)17,097(27,495)(29,112)

473

39

190
(73)

11,485
(53)

29

13

619
(5,421)(31,678)

668(7,649)(24,608)

8,466
12,004(9,471)－－(2)(1,249)(3,550)
(2)
(856)
5,340

(611)
14,959(10,370)
10,000(10,000)(3)(1,225)(3,553)－(926)(1,729)

461

1,143

9,151

(8,097)25,08434,526

20

－

270

5

34,52626,433

(1) Note to Consolidated Financial Statement(Note to Going Concern)
Not applicable(Additional Information)
1. Application of Accounting Standard for Revenue Recognition and Relevant Revised ASBJ
Regulations
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and “Implementation Guidance on Accounting Standard for
Revenue Recognition” (ASBJ Guidance No. 30, March 26, 2021) effective from the beginningof the fiscal year ended March 31, 2022, and it has recognized revenue at the time the control
of promised goods or services is transferred to the customer at the amount expected to bereceived upon exchange of said goods or services. In accounting of buy-sell transactions
where the Company bears an obligation to repurchase supplied materials, the transaction istreated as a financial transaction and supplied materials remaining at the supplyee arecontinued to be recognized as inventories while the amount of ending inventories
corresponding to the supplied materials remaining at the supplyee is recognized as financial
liabilities.
The application of the Accounting Standard for Revenue Recognition and relevant revised
ASBJ regulations is subject to the transitional treatment provided for in the proviso toparagraph 84 of the Accounting Standard for Revenue Recognition. The cumulative effect of
the retrospective application, assuming the new accounting policy had been applied to periods
prior to the beginning of the fiscal year ended March 31, 2022 was added to or deducted fromthe opening balance of retained earnings of the fiscal year ended March 31, 2022, and thus the
new accounting policy was applied from such opening balance. The impact of the application of
the accounting standard on consolidated financial statements is immaterial.
2. Application of Accounting Standard for Fair Value Measurement and Relevant ASBJ
Regulations
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, July 4, 2019) and relevant ASBJ regulations effective from the beginning of
the fiscal year ended March 31, 2022, and in accordance with the transitional treatmentprescribed in paragraph 19 of the Accounting Standard for Fair Value Measurement andparagraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No.
10, July 4, 2019), the new accounting policies set forth in the Accounting Standard for Fair
Value Measurement and relevant ASBJ regulations have been applied prospectively. There is
no impact on consolidated financial statements.

16

(Segment Information)(ⅰ) Fiscal Year ended March 31,2021(Millions of yen)Segment to Be Reported

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statementsof Income(Note 3)

337,406－

337,406

13,631

14,633(14,633)－

330,610

21,429352,039(14,633)

337,406

1,548

28,897754

29,650(2,993)26.65736,034

48,237432,465

16,141

448,606

42,582

491,188

3,802

2,372

704

17,128421

17,550

1,545

19,095

5,892

3,159

348

19,609751

20,3602,893

23,253

Mobility

LifestyleandEnvironment

Life
ScienceReal
EstateTotal

152,842

36,573

109,148

27,087

3,959

329,608

7,798

110

27

362

40

463

1,002

Total

152,952

36,599109,509

27,127

4,422

Segment profit(loss)

20,028(1,572)

4,376

4,517

Assets

165,697

50,396132,101

8,886

1,364

8,802

1,408

Films andFunctional
Materials

Total

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

OthersDepreciation andamortization
CapitalexpenditureNote:
1. Other includes design and construction of buildings, equipment, etc., information services, logistics
services and other items.
2. (1) Segment profit or loss adjustment of ¥(2,993) million includes eliminations of intersegment
transactions of ¥150 million and companywide expenses that are not allocated across reporting
segments of ¥(3,144) million. The principal components of companywide expenses are those related
to basic research and development.
(2) The adjustment of segment assets of ¥42,582 million includes corporate assets of ¥79,074 million
that are not allocated to the reportable segments.
(3) The adjustment of increases in property, plant and equipment and intangible assets of ¥2,893 million
represents that amount of capital investment related to research and development expenses.
3. Segment profit or loss has been adjusted with operating income on the consolidated financial
statements.

17

(ⅱ) Fiscal Year ended March 31,2022(Millions of yen)Segment to Be Reported

Other
Businesses(Note 4)

Adjustment(Note 5)

Consolidated
Statementsof Income(Note 6)

Films andFunctional
Materials

Mobility

LifestyleandEnvironment

170,326

44,721

114,295

35,003

3,957

368,301

7,419

375,720－375,720

152

22

377

43

419

1,012

16,145

17,157(17,157)－

Total

170,477

44,743

114,672

35,046

4,376

369,314

23,564

392,878(17,157)

375,720

Segment profit(loss)

19,897(1,753)

3,453

8,655

1,408

31,661810

32,471(4,041)

28,430Assets181,12158,860134,685

30,11847,206451,991

17,234469,225

48,550517,774

9,826

1,357

3,779

2,397

750

18,109404

18,514

1,566

20,08017,888

1,132

7,274

3,752

494

30,539209

30,7492,891

33,640Life
ScienceReal
Estate

Total

Total

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

OthersDepreciation andamortization
Capitalexpenditure

Note:
4. Other includes design and construction of buildings, equipment, etc., information services, logistics
services and other items.
5. (1) Segment profit or loss adjustment of ¥(4,041) million includes eliminations of intersegment
transactions of ¥(376) million and companywide expenses that are not allocated across reporting
segments of ¥(3,665) million. The principal components of companywide expenses are those related
to basic research and development.
(2) The adjustment of segment assets of ¥48,550 million includes corporate assets of ¥86,912 million
that are not allocated to the reportable segments.
(3) The adjustment of increases in property, plant and equipment and intangible assets of ¥2,891 million
represents that amount of capital investment related to research and development expenses.
3. Segment profit or loss has been adjusted with operating income on the consolidated financial
statements.

18

(Significant subsequent events)(Receipt of Insurance Claims)
The insurance amount related to the fire accident that occurred at the Inuyama Plant in
September 2020 has been determined, and the Company plans to record an extraordinary
income of ¥5,607 million as “insurance claim income” in the first quarter ending June 30, 2022.
(Issuance of unsecured straight bonds in the Japanese market)
At the meeting of the Board of Directors held on April 25, 2022, a comprehensive resolution
regarding the issuance of unsecured straight bonds in the Japanese market was passed. The
details of this resolution are as follows:(1) Issue amount: ¥20,000 million or less.
However, multiple issues within the scope of this amount are not ruled out.
(2) Issue price: ¥100 for each bond with par value of ¥100.
(3) Interest rate: Market yield of Japanese government bonds with the same maturities plus
1.0% or less
(4) Payment dates: From April 26, 2022 to March 31, 2023.
However, if the bonds are offered during this period, payments after this period will be
accepted.
(5) Term of redemption: 5 years or more, to 10 years.
(6) Method of redemption: Full amount on maturity.
However, a retirement by purchase clause may be included.
(7) Uses of funds: For redemption of bonds, repayment of borrowings, purchases of plant andequipment (includes acquisition of stock through mergers and acquisitions), working capitaland capital investments.
(8) Special provisions: These bonds will include a negative pledge clause.
(9) Other: Decisions regarding matters covered in Article 676 of the Companies Act and allother items related to the issuance of bonds will be made within the scope stated above at
the discretion of the director in charge of the Finance Division.

19