November 8, 2021

Consolidated Financial Report for the Six Months Ended September 30, 2021
TOYOBO Co., Ltd.

Listed on the First Section of the TSE

Stock Code: 3101 URL https://ir.toyobo.co.jp/en/ir.html
Representative: Ikuo Takeuchi, President & Representative Director
Contact Person: Sonoko Ishimaru, General Manager, Corporate Communication

TEL: +81-6-6348-3044

Quarterly report filing date (Planned): November 12, 2021

(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
Millions of yen

Operating profit%

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen

%

2021

183,864

16.7

17,11264.2

13,305

127.0

9,705

267.3

2020

157,507(4.5)

10,420

(6.2)

5,862

(34.6)

2,642

(0.8)

(Note) Comprehensive Income:First half ended September 30, 2021: ¥13,600 million 214.1%
First half ended September 30, 2020: ¥4,329 million ---%Net profit per
share

Net profit per shareafter dilution

Yen

Yen

2021

109.21

－

2020

29.75

－

(2) Consolidated Financial Position

September 30,
2021
March 31,2021

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen503,687

198,63938.9

2,202.71

491,188

188,63537.8

2,090.47(Reference) Total shareholders’ equity: September 30, 2021: ¥195,815 million, March 31, 2021: ¥185,729 million

2. Dividends
Dividends per share
Record date

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY 3/2021－

0.00

FY 3/2022－

0.00

FY 3/2022(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, 2022
Percentages indicate year-on-year increase/ (decrease)

Net sales
Millions of yen

Fiscal year

Operating profit%

365,000

Millions of yen

8.2

Fiscal year

Millions of yen

8.8%

24,00015.9

Net profit per share%

13,000%29,000

Profit attributable toowners of parent
Millions of yen

Ordinary profit

Yen

209.4

146.32(Note) Revision of earnings forecast for this period: None

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 (including treasury stock):
September 30, 2021: 89,048,792 shares

March 31, 2021: 89,048,792 shares

2) Number of treasury stock
September 30, 2021: 151,664 shares

March 31, 2021: 203,350 shares

3) Average number of shares outstanding for each period (cumulative term):
Six months ended September 30, 2021: 88,860,021 shares
2020: 88,822,279 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, 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 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 thesix months ended September 30, 2021, the economic recovery remained moderate despite thecontinuation of monetary easing policies and the spread of vaccinations, primarily in developed
countries, supporting the recovery of economic activities amid the resurgence of COVID-19.
Recently, uncertainties concerning economic outlook have been increasing due to factors such as
the sudden rise of raw material and fuel prices, the production curtailment of automobiles due tothe semiconductor shortage, the disparity of vaccination rates between developed countries andemerging countries, and concerns regarding procurement of some raw materials and components
due to power shortages in China.
In this business environment, in “Films and Functional Materials,” sales grew due to operation of
the new lines amid continuing strong market conditions for polarizer protective films for LCDs
“COSMOSHINE SRF” and mold releasing film for MLCC “COSMOPEEL.” In “Mobility,” sales ofengineering plastics and airbag fabrics performed strongly due to the recovery of automobile
demand globally. In “Lifestyle and Environment,” demand for high-performance fibers recovered invarious regions globally, but polyester staple fibers and spunbond were affected by rising raw
material prices. In “Life Science,” sales of raw materials and reagents for PCR testing grew as theGroup worked to meet the societal demand for PCR testing.
As a result, consolidated net sales in the six months ended September 30, 2021 increased ¥26.4
billion (16.7%) over the same period of the previous fiscal year, to ¥183.9 billion. Operating profit
increased ¥6.7 billion (64.2%), to ¥17.1 billion, ordinary profit increased ¥7.4 billion (127.0%) to¥13.3 billion, and profit attributable to owners of parent increased ¥7.1 billion (267.3%), to ¥9.7
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 theindustrial films business and the functional materials 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 the industrial film business, against the backdrop of strong market conditions, sales ofpolarizer protective films for LCDs “COSMOSHINE SRF” and mold releasing film for MLCC
“COSMOPEEL” achieved growth due to the operation of the new lines.
In the functional materials business, sales of industrial adhesives “VYLON” for electronics
applications were strong. Furthermore, in the photo functional materials business, which handles
water-wash photo-sensitive printing plates, sales of products for China and Europe trended strong.
As a result, sales in this segment increased ¥12.1 billion (16.5%) from the same period of theprevious fiscal year to ¥85.9 billion, and operating profit increased ¥3.5 billion (40.4%) to ¥12.2
billion.
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Mobility
In this segment, sales increased and operating loss decreased as a result of sales ofengineering plastics and airbag fabrics performing strongly due to the recovery of automobile
demand globally.
Sales of engineering plastics were strong in Japan and overseas in spite of rising raw material
prices, unstable supply of semiconductors, etc.
The airbag fabrics business faced challenges as a result of the decreasing spread between raw
material prices and sales prices due to rising raw material prices despite the recovery of sales.
As a result, sales in this segment increased ¥6.5 billion (43.5%) from the same period of theprevious fiscal year to ¥21.6 billion, with an operating loss of ¥0.9 billion. (Compared with operating
loss of ¥1.3 billion for the same period of the previous fiscal year.)Lifestyle and Environment
In this segment, polyester staple fibers and spunbond etc. were affected by the high cost of raw
materials, but sales and operating profit increased as a result of increased demand forhigh-performance fibers due to the recovery from the decline caused by the spread of COVID-19.
In the environmental solutions business, volatile organic compound (VOC) emissions treatment
equipment for recovering solvents faced challenges due to a decrease in orders as a result of thestagnation of operating activities in the previous fiscal year because of the spread of COVID-19.
In the nonwoven fabrics business, sales of spunbond were affected by rising raw material prices
despite performing strongly for building materials and automotive applications. Sales of functional
filters decreased for masks, but were strong for air purifiers and automobile-related products.
In the functional fiber materials business, with regard to high-performance fibers, sales of“IZANAS” were strong for use in fishing line and ropes, and sales of “Tsunooga” used in cut
resistant gloves grew due to the recovery of plant operations throughout the world. Sales ofpolyester staple fibers were affected by rising raw material prices, and store sales of functional
cushion material “BREATHAIR” were sluggish.
In the textile business, sales for sports and uniforms did not recover due to the continuing
decline in market conditions despite market conditions recovering for traditional Arabic fabric andunderwear.
As a result, sales in this segment increased ¥4.5 billion (9.0%) from the same period of theprevious fiscal year to ¥54.7 billion, and operating profit increased ¥0.1 billion (5.7%) to ¥1.9 billion.
Life Science
In this segment, sales and operating profit increased due to the growth in demand for
PCR-related products as the spread of COVID-19 has not yet ended.
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 trended strong.
4As a result, sales in this segment increased ¥4.0 billion (32.3%) from the same period of theprevious fiscal year to ¥16.3 billion, and operating profit increased ¥3.0 billion (188.8%) to ¥4.6
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 ¥0.8 billion (13.3%) from the same period of theprevious fiscal year to ¥5.3 billion, and operating profit increased ¥0.0 billion (4.0%) to ¥1.1 billion.
(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets increased ¥12.5 billion (2.5%) from the end of the previous fiscal year, to ¥503.7
billion. This was mainly due to an increase in inventories, an increase in property, plant andequipment due to capital investment, and an increase in investments and other assets due to themark-to-market valuation of investment securities, despite a decrease in cash and deposits.
Total liabilities increased ¥2.5 billion (0.8%) to ¥305.0 billion. This was mainly due to an increasein notes and accounts payable - trade.
Net assets increased ¥10.0 billion (5.3%) from the end of the previous fiscal year, to ¥198.6
billion due to an increase in retained earnings and an increase in valuation difference on
available-for-sale securities.
Cash FlowsNet cash provided by operating activities amounted to ¥11.8 billion in the subject first half period.
This was due mainly to a cash decrease from an increase in inventories of ¥10.5 billion, and acash increase from profit before income taxes of ¥11.5 billion and depreciation of ¥10.0 billion.
Net cash used in investing activities amounted to ¥14.5 billion. This was due mainly to purchaseof property, plant and equipment and intangible assets of ¥13.8 billion.
Net cash used in financing activities amounted to ¥5.7 billion. This was due mainly to proceedsfrom long-term borrowings of ¥7.9 billion, repayments of long-term borrowings of ¥6.0 billion andredemption of bonds of ¥5.0 billion.
As a result, the balance of cash and cash equivalents at the end of the subject first half
(September 30, 2021) stood at ¥26.1 billion, a decrease of ¥8.4 billion from the end of the previous
fiscal year (March 31, 2021).
(3) Qualitative Information on Consolidated Forecasts
The performance of the Group in the six months ended September 30, 2021 was generally as
forecast. Regarding the consolidated earnings forecast for fiscal year ending March 31, 2022, nochanges have been made in the outlook announced on August 5, 2021.

52. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Previous Fiscal Year(As of March 31, 2021)

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, 2021)

34,69585,182－

26,28081,341
112

8,709

9,420

45,785
11,48019,0458,203(136)
212,963

50,10613,99522,726
12,819(210)
216,589

54,22756,053
93,16921,191
224,640
4,674

55,15654,947
93,157
24,971
228,231
4,562

49,760(849)
48,911
278,225
491,188

55,182(877)
54,305
287,098
503,687(Millions of yen)Previous Fiscal Year(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
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, 2021)

40,8794,881
40,767
10,00010,107
4,743
20,067
131,444

42,7135,800
42,8085,000
22,825
4,962
20,329144,437

45,00077,04645,00065,966

241

208

31
18,28830,503
171,109302,553

23
18,09531,319160,611305,048

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

51,73032,19370,406(220)
154,109

7,038

10,6791142,708(11,052)(965)

1142,697(10,682)(999)

37,74041,706

2,906
188,635
491,1882,824
198,639
503,687

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Consolidated Statements of Income)Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Dividend 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 sale of non-current assets
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

Previous First Half
(From April 1, 2020
To September 30, 2020)
157,507
116,189
41,31830,898
10,420(Millions of yen)
Current First Half
(From April 1, 2021
To September 30, 2021)
183,864
134,41749,44732,335
17,112

317
602
919

309
557
866

683
1,289
3,505
5,476
5,862

632
617
3,424
4,673
13,305

95
95

－
－

1,715
291
2,006
3,952
1,599
2,353
(289)
2,642

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

8

(Millions of yen)(Consolidated Statements ofComprehensive Income)Previous First Half
(From April 1, 2020
To September 30, 2020)

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, 2021
To September 30, 2021)

2,353

9,643

1,879

3,643

(6)
(146)

0
173

396

(34)

(146)

174

1,976
4,329

3,956
13,6004,647

13,681

(318)

(82)

(3) Consolidated Statements of Cash Flows(Millions of yen)Previous First Half
(From April 1, 2020
To September 30, 2020)

Cash flows from operating activities
Profit before income taxes
Depreciation
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
Subtotal
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
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 (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

10

Current First Half
(From April 1, 2021
To September 30, 2021)

3,952
9,128
683
11,562
49(10,021)
2,178
17,530(4,136)
13,394

11,467
10,009632
3,053(10,480)
2,691(3,956)
13,416(1,615)
11,801(15,545)(13,808)(2,410)(17,955)(707)(14,515)

8,749
11,900(6,624)－(667)(3,546)
(471)
9,341

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

(10)

36

4,770

(8,426)25,08434,526

18

－

－

5

29,873

26,105

(4) Note to Consolidated Financial Statement(Note to Going Concern)
Not applicable(Notes on Significant Changes in Shareholders' Equity)
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 beginning of
the first quarter of the fiscal year ending March 31, 2022, and it has recognized revenue at thetime the control of promised goods or services is transferred to the customer at the amount
expected to be received upon exchange of said goods or services. In accounting of buy-selltransactions where the Company bears an obligation to repurchase supplied materials, thetransaction is treated as a financial transaction and supplied materials remaining at the
supplyee are continued 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 to paragraph
84 of the Accounting Standard for Revenue Recognition. The cumulative effect of theretrospective application, assuming the new accounting policy had been applied to periods prior
to the beginning of the first quarter of the fiscal year ending March 31, 2022 was added to or
deducted from the opening balance of retained earnings of the first quarter of the fiscal year
ending 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 first quarter of the fiscal year ending March 31, 2022, and in accordance with the transitional
treatment prescribed in paragraph 19 of the Accounting Standard for Fair Value Measurement
and paragraph 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 the consolidated financial statements for the first half ended September 30, 2021.

11

3. Effects of COVID-19
There are no significant changes to the presumption related to the impact of COVID-19
stated in Additional Information of the securities report for the fiscal year ended March 31, 2021.
(Segment Information)(ⅰ) Previous first half (from April 1, 2020 to September 30, 2020)(Millions of yen)Segment to Be Reported

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statementsof Income(Note 3)

Films andFunctional
Materials

Mobility

LifestyleandEnvironment

73,77915,02250,19012,3581,920

153,268

4,239

157,507－

157,507

59

13

154

10

224

460

6,706

7,166

(7,166)－

Total

73,83815,03550,344

12,3682,144

153,728

10,945

164,673(7,166)

157,507

Segment profit(loss)

8,715(1,291)

1,771

1,598

737

11,530298

11,827(1,407)

10,420Life
ScienceReal
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 andother items.
2. Segment profit or loss adjustment of (¥1,407) million includes eliminations of intersegment transactions of ¥80
million and companywide expenses that are not allocated across reporting segments of (¥1,488) million.
The principal components of companywide expenses are those related to basic research and development.
3. Segment profit or loss has been adjusted with operating profit on the consolidated financial statements.

(ⅱ) Current first half (from April 1, 2021 to September 30, 2021)(Millions of yen)Segment to Be Reported

Adjustment(Note 5)

Consolidated
Statementsof Income(Note 6)

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

Other
Businesses(Note 4)

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:4. Other includes design and construction of buildings, equipment, etc., information services, logistics services andother items.
5. Segment profit or loss adjustment of (¥1,823) million includes eliminations of intersegment transactions of (¥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 and development.
6. Segment profit or loss has been adjusted with operating profit on the consolidated financial statements.

12