February 9, 2021

Consolidated Financial Report for the Third Quarter ended December 31, 2020
Toyobo Co., Ltd.

Listed on the First Section of the TSE

Stock Code: 3101 URL https://ir.toyobo.co.jp/en/ir.html
Representative: Seiji Narahara, President & Representative Director
Contact Person: Sonoko Ishimaru, General Manager, Investor Relations TEL: +81-6-6348-3044
Quarterly report filing date (Planned): February 12, 2021
(Figures are rounded to the nearest million yen)

1. Consolidated Business Performance(1) Consolidated Operating Results
Nine months ended December 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

%

2020

243,878(1.7)

18,305

14.6

12,460(7.3)

25(99.6)

2019

248,018(0.8)

15,9684.1

13,439

6.1

5,881

－

(Note) Comprehensive profit: Third Quarter ended December 31, 2020: ¥ 832 million (80.2) %,Third Quarter ended December 31, 2019: ¥ 4,200 million -%Net profit per
share

Net profit per shareafter dilution

Yen

Yen

2020

0.28

－

2019

66.23

－

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

December 31,
2020

481,481

179,99736.8

1,993.00

March 31,2020

488,874

182,63636.4

2,003.01(Reference) Total shareholders’ equity: December 31, 2020: ¥ 177,077 million, March 31, 2020: ¥ 177,890 million

2. Dividends
Dividends per share
Record date

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY 3/2020

－

0.00

－

FY 3/2021

－

0.00

－

FY 3/2021(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, 2021
Percentages indicate year-on-year increase/ (decrease)

Net sales

Operating profit

Millions of yen

Fiscal Year%

335,000(1.4)

Profit attributable toowners of parent
Millions of yen

Fiscal Year

Millions of yen%

23,000Millions of yen

0.9

16,000%(11.3)Net profit per share%0

Ordinary profit

Yen(100.0)0(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
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 share)
1) Number of shares outstanding (including treasury stock):
December 31, 2020:

89,048,792 shares

March 31, 2020: 89,048,792 shares

2) Number of treasury stock
December 31, 2020:

199,161 shares

March 31, 2020: 237,610 shares

3) Average number of shares outstanding for each period (cumulative term):
Nine months ended December 31 2020: 88,830,532 shares
2019: 88,789,605 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
As for the business environment surrounding the Toyobo Group (hereinafter the “Group”) in the ninemonths ended December 31, 2020, despite the economic activities recovering in China due to the progressin suppression of the novel coronavirus disease (COVID-19), the slowdown of the economy is intensifying
due to infection spreading again in the United States and Europe. Despite temporary improvement ofbusiness confidence in Japan, it is slowing down due to infection spreading again. While anticipation for
the vaccine is increasing, the outlook for the Japanese and global economies continues to be uncertain as
there are concerns over the impact of infection spreading again.
In this business environment, in “Films and Functional Materials,” sales of polarizer protective films for
LCDs “COSMOSHINE SRF” grew, driven by strong demand. In “Mobility,” sales of engineering plastics andairbag fabrics recovered due to the recovery of automobile production globally, but were unable tocompensate for the impact of reduced automobile production through the six months ended September 30,
2020. In “Lifestyle and Environmental,” high-performance fibers and textiles were sluggish due to thedecline in demand. In “Life Science,” the contract manufacturing business of pharmaceuticals faced
challenges, but sales of PCR testing-related raw materials and reagents achieved significant growth due tothe spread of COVID-19.
Impairment loss of ¥7.8 billion was recorded on business assets for the acrylic fiber business in the ninemonths ended December 31, 2020.

As a result, consolidated net sales in the nine months ended December 31, 2020 decreased ¥4.1 billion(1.7%) over the same period of the previous fiscal year, to ¥243.9 billion. Operating profit increased ¥2.3
billion (14.6%), to ¥18.3 billion, ordinary profit decreased ¥1.0 billion (7.3%) to ¥12.5 billion, and profit
attributable to owners of parent decreased ¥5.9 billion (99.6%), to ¥0.0 billion.

3

Results by business segment were as follows:
The Group changed its reporting segment classification from the three months ended June 30, 2020.
Accordingly, in the following segment information, the figures for the nine months ended December 31,
2019, have been restated in accordance with the method of classification existing after the aforesaidchange for the purpose of comparing them with those of the nine months ended December 31, 2020.

Films and Functional Materials
In this segment, sales and operating profit increased from the same period of the previous fiscal year due
to the growth in the films business.
In the films business, the packaging film business experienced a decline in sales of films for professionaluse, etc. caused by the spread of infection of COVID-19, but on the other hand, demand from people
staying at home increased. Furthermore, despite a decrease in sales of some products due to the fire
accident, environmentally friendly films achieved growth in sales due to rising eco-consciousness of theworld. In the industrial film business, sales of polarizer protective films for LCDs “COSMOSHINE SRF”
grew steadily, driven by strong demand, and sales of mold releasing film for MLCC “COSMOPEEL”
achieved growth due to the recovery of automotive applications.
In the functional materials business, industrial adhesives “Vylon” and adhesion promoter for polyolefin“HARDLEN” saw signs of a recovery trend, mainly for electronic materials applications, but this was unable
to compensate for the impact of the spread of COVID-19 through the six months ended September 30,
2020. On the other hand, in the photo functional materials business, which handles water-washphoto-sensitive printing plates, sales of products for China were strong.
As a result, sales in this segment increased ¥22.6 billion (25.0%) from the same period of the previous
fiscal year to ¥113.0 billion, and operating profit increased ¥3.7 billion (34.9%) to ¥14.3 billion.

MobilityIn this segment, despite sales recovering due to the recovery of global automobile production, sales andoperating profit decreased from the same period of the previous fiscal year as this recovery was unable tocompensate for the effect of reducing production of vehicles caused by the spread of infection of
COVID-19 through the six months ended September 30, 2020.
Despite recovery in sales of engineering plastics primarily in Japan and China, this recovery was unable
to compensate for decreases through the six months ended September 30, 2020. The airbag fabrics
business continued to face challenges due to production adjustments, etc., despite sales recovering
primarily in North America.
As a result, sales in this segment decreased ¥7.5 billion (22.8%) from the same period of the previous
fiscal year to ¥25.5 billion, with an operating loss of ¥1.7 billion. (Compared with operating loss of ¥0.6
billion for the same period of the previous fiscal year.)Lifestyle and Environmental
In this segment, sales and operating profit decreased from the same period of the previous fiscal year asa result of high-performance fibers and textiles being sluggish caused by decline of demand due to the
influence of COVID-19.
4

In the environmental solutions business, sales of volatile organic compound (VOC) emissions treatment
equipment for recovering solvents were steady due to elements for overseas being on a recovery trend. On
the other hand, although the timing of orders of replacement elements for Reverse Osmosis (RO)membrane for seawater desalination shifted to the latter half of the fiscal year ending March 31, 2021, thiswas unable to compensate for the decrease in sales through the six months ended September 30, 2020.
In the nonwoven fabrics business, sales of spunbond for construction and civil engineering applications
were sluggish. Sales of functional filters were strong for air purifiers and masks, but struggled for officemachinery.
In the functional fiber materials business, sales of polyester staple fibers for use in hygiene products andfunctional cushion material “BREATHAIR” for bedding applications were strong. On the other hand, withregard to high-performance fibers, demand for “Tsunooga” used in cut resistant gloves contracted as plant
operation slowed down throughout the world, and “IZANAS” was affected by the decline in demand for use
in ropes in Japan.
In the textile business, store sales, etc. for sports, underwear and suits were sluggish because of asignificant decline in orders.
The acrylic fiber business struggled as the deterioration of the market environment continued in China
and Europe.
As a result, sales in this segment decreased ¥18.3 billion (19.1%) from the same period of the previous
fiscal year to ¥77.3 billion, and operating profit decreased ¥0.9 billion (22.4%) to ¥3.0 billion.

Life Science
In this segment, sales and operating profit increased from the same period of the previous fiscal year as
demand for reagents for PCR testing increased due to the spread of COVID-19, despite thepharmaceutical business facing challenges.
In the biotechnology business, demand for raw materials for diagnostic reagents and general testing
decreased, but sales increased significantly due to high demand for raw materials for PCR-related testing
and reagents for research following the spread of COVID-19.
The pharmaceutical business faced challenges due to a portion of operations being suspended.
In the medical materials business, sales of membranes for hemodialysis and hemodiafiltration in the
medical membrane business were strong.
As a result, sales in this segment increased ¥0.3 billion (1.6%) from the same period of the previous fiscal
year to ¥19.2 billion, and operating profit increased ¥0.4 billion (16.6%) to ¥3.2 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, total sales in these businesses decreased ¥1.2 billion (12.1%) over the same period of theprevious fiscal year to ¥8.8 billion, and operating profit decreased ¥0.1 billion (4.5%) to ¥1.6 billion.

5(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets decreased ¥7.4 billion (1.5%) from the end of the previous fiscal year, to ¥481.5 billion. Thiswas due mainly to financing through borrowings from financial institutions in order to increase liquidity on
hand, taking into account the impact of the spread of COVID-19, a decrease in notes and accounts
receivable - trade, despite an increase in cash and deposits, and a decrease in property, plant andequipment resulting from impairment losses.
Total liabilities decreased ¥4.8 billion (1.6%) from the end of the previous fiscal year to ¥301.5 billion. Thiswas mainly because of a decrease in notes and accounts payable - trade.
Total net assets decreased ¥2.6 billion (1.4%) to ¥180.0 billion. This was due mainly to a decrease in
non-controlling interests resulting from impairment loss.

(3) Qualitative Information on Consolidated Forecasts
The Company has revised its consolidated forecasts for the fiscal year ending March 31, 2021 from theforecast announced on August 6, 2020 in light of the recording of impairment loss on business assets forthe acrylic fiber business, the recent trend of business performance and other factors.

6

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Previous Fiscal Year(As of March 31, 2020)(Condensed)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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

7

Current Third Quarter(As of December 31, 2020)

25,247
85,34529,58278,289

8,208

8,441

49,15012,75018,7287,141(154)
206,416

49,743
11,97017,0606,843(153)
201,774

52,746
43,343
97,05538,334
231,478
4,641

53,98256,493
93,467
21,749225,692
4,521

47,096(757)
46,339282,458
488,874

50,327(833)
49,493279,706
481,481(Millions of yen)Previous Fiscal Year(As of March 31, 2020)(Condensed)
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

8

Current Third Quarter(As of December 31, 2020)

41,65935,488

8,357

5,634

32,027
－
8,510
4,664
27,106
122,321

41,271
10,0009,631
2,413
20,434
124,871

55,00075,85145,00079,119

247

232

331
21,61330,875
183,916
306,238100
21,78930,373
176,613
301,484

51,73032,20061,929(350)
145,509

51,73032,20260,176(293)
143,815

4,013

6,069

(8)
44,457(11,954)(4,128)(19)
42,707(11,950)(3,545)32,38133,262

4,746
182,636
488,874

2,919
179,997
481,481(2) Consolidated Statements of Income(Millions of yen)Previous Third Quarter(From April 1, 2019
To December 31, 2019)

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 sales of investment securities
Gain on extinguishment of tie-in shares
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss due to fire
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit attributable to owners of parent

9

Current Third Quarter(From April 1, 2020
To December 31, 2020)

248,018
186,632
61,38545,417
15,968

243,878
178,795
65,083
46,77818,305

580
2,107
2,687

484
918
1,402

1,025
704
3,487
5,216
13,439

1,005
1,567
4,674
7,247
12,460

440
－
15
455

－
387
73
460

2,338
－
3,040
37
5,415
8,479
2,891
5,588
(292)
5,881

2,207
7,817
1,749
1,377
13,150(230)
1,539(1,769)(1,795)25

(3) Consolidated Statements ofComprehensive Income(Millions of yen)Previous Third Quarter(From April 1, 2019
To December 31, 2019)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable tonon-controlling interests

10

Current Third Quarter(From April 1, 2020
To December 31, 2020)

5,588(1,769)(1,179)

2,048

48
(291)

(11)
112

235

582

(201)

(130)

(1,388)
4,200

2,601
832

4,499

2,656

(298)

(1,825)

(4) Note to Going Concern
Not applicable(5) Notes on Significant Changes in Shareholders' Equity
Not applicable(6) Additional Information
1. Effects of COVID-19
With regard to the effects of COVID-19, a state of emergency has been declared in Japan, and it is still
difficult to foresee the end of COVID-19. Accordingly, it is difficult to reasonably forecast the impact on theGroup’s business performance. However, the Group is assessing the need to recognize and measure
impairment loss on non-current assets and the recoverability of deferred tax assets for the end of thecurrent fiscal year, assuming performance will gradually recover from areas where economic activity has
resumed, although it will take about another year for demand to recover for certain products, such as
textiles.
We make accounting estimates and judgments based on currently available information. However, due tothe high degree of uncertainty, any change in the above assumptions could affect the Group’s futurefinancial position and operating results.

11

2. Merger with TOYOBO FILM SOLUTIONS LIMITEDThe Company has resolved to implement an absorption-type merger, effective April 1, 2021, with its
consolidated subsidiary, TOYOBO FILM SOLUTIONS LIMITED (hereinafter, “TFS”), at the meeting of theBoard of Directors held on December 25, 2020, and entered into a merger agreement on the same date.
Pursuant to Article 796, paragraph 2 (as for the Company) and Article 784, paragraph 1 (as for TFS) of theCompanies Act, the merger will be conducted without the general meeting of shareholders of eachcompany on their respective approval for the merger agreement.

The outline of the merger is as follows.

Outline of the transaction(1) Name and content of business of the company involved in the merger
Name of the company involved in the merger: TOYOBO FILM SOLUTIONS LIMITED
Content of business: Manufacturing and sale of films(2) Date of the business combination
April 1, 2021
(3) Legal form of the business combination
The merger will be conducted as an absorption-type merger, with the Company as the surviving
company and TFS as the disappearing company, and TFS will be dissolved upon the merger.
(4) Name of the company after the business combination
TOYOBO CO., LTD.
(5) Other items related to the outline of the transaction(i) Purpose of the merger
The Company decided to implement an absorption-type merger with TFS with the aim ofestablishing a structure to seamlessly and efficiently provide high-performance film products tocustomers by combining the distinctive technologies and product lineups of TFS and the Company.
(ii) Allotment regarding the merger
There shall be no issuance of new shares or allotment of any other consideration with respect to themerger.
(iii) Financial position and operating results of the company involved in the merger for immediately
preceding fiscal year (Fiscal year ended December 31, 2019)
Assets ¥16,723 million
Liabilities ¥8,486 million
Net assets ¥8,237 million
Operating income ¥37 million
Loss ¥629 million

Outline of the accounting method to be applied
In accordance with the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21,
January 16, 2019) and the “Guidance on Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures” (ASBJ Guidance No. 10, January 16, 2019), the merger
will be accounted for as a transaction under common control.
12(7) Segment Information(Ⅰ) Nine months ended December 31, 2019 (from April 1, 2019 to December 31, 2019)
Segment to Be Reported(Millions of yen)

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statements ofProfit(Note 3)

Films andFunctional
Materials

Mobility

LifestyleandEnvironmental

90,431

33,043

95,562

18,932

3,335

241,302

6,715

248,018－

248,018

61

7

318

27

286

699

13,892

14,591(14,591)－

Total

90,49133,05095,88018,9593,621

242,001

20,607

262,608(14,591)

248,018

Operating profit(loss)

10,626

(597)

3,877

2,714

1,122

17,742597

18,338(2,371)

15,968

Life
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 (¥2,371) million includes eliminations of intersegment transactions of (¥119)
million and companywide expenses that are not allocated across reporting segments of (¥2,252) million.
The principal components of companywide expenses are those related to basic research and development.
3. Segment profit has been adjusted with operating profit on the consolidated financial statements.

(Ⅱ) Nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)
Segment to Be Reported(Millions of yen)

Other
Businesses(Note 4)

Adjustment(Note 5)

Consolidated
Statements ofProfit(Note 6)

Films andFunctional
Materials

Mobility

LifestyleandEnvironmental

113,020

25,51877,273

19,2373,000

238,047

5,831

243,878－

243,878

91

21

252

32

337

732

9,226

9,958

(9,958)－

Total

113,11125,53977,524

19,2693,337

238,780

15,057

253,837(9,958)

243,878

Operating profit(loss)

14,337(1,658)

3,009

3,163

1,221

20,072419

20,491(2,187)18,305

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 andother items.
5. Segment profit or loss adjustment of (¥2,187) million includes eliminations of intersegment transactions of ¥140
million and companywide expenses that are not allocated across reporting segments of (¥2,326) million.
The principal components of companywide expenses are those related to basic research and development.
6. Segment profit has been adjusted with operating profit on the consolidated financial statements.

(Ⅲ) Matters concerning changes to reporting segments
From the first quarter of this fiscal year, the Group is reviewing the method of classification of reportable segments inconformity with the changes of the Group’s internal organizational structure carried out in order to realize the “ability
to provide solutions” (contribution to society through business), which is the Group’s materiality. Accordingly,
business segments were changed from “Films and Functional Polymers,” “Industrial Materials,” “Health care” and“Textiles and Trading” to “Films and Functional Materials,” “Mobility,” “Lifestyle and Environmental” and “Life science.”
Segment Information for the third quarter of the previous fiscal year was restated in accordance with the method of13

classification after the aforesaid change.

(Ⅳ ) Information regarding impairment loss on non-current assets or goodwill by segment to be reported(Significant impairment loss on non-current assets)
Impairment loss on non-current assets was recorded in the Lifestyle and Environmental Solutions segment.
Impairment loss amounted to ¥7,817 million in the nine months ended December 31, 2020.

14