May 13, 2024

Consolidated Financial Report for Year Ended March 31, 2024
TOYOBO Co., Ltd.

URL

https://ir.toyobo.co.jp/en/ir.html

Stock Code: 3101 (Prime Market, Tokyo Stock Exchange)
Representative: Ikuo Takeuchi, President and Representative Director
Contact Person: Sonoko Ishimaru, Executive Officer, General Manager, Corporate Communication Department
TEL: +81-6-6348-3044
Date of the General Meeting of the Shareholders: June 25, 2024
Planned start of dividend payments: June 26, 2024
Planned filling date of an annual security report: June 25, 2024

(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

Millions of yen%

Millions of yen

2024

414,265

3.6

8,995

2023

399,9216.4

10,063(Note) Comprehensive Income:Net profit per
share

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen%(10.6)

6,962

5.6

2,455

―

(64.6)

6,590(71.5)(655)―

Year ended March 31, 2024: ¥12,454 million －%Year ended March 31, 2023: ¥(1,232) million －%Ordinary
Net profit per share
Return on equity profit-to-total assets
after dilution
ratio

Yen

Yen

%

Operatingprofit-to-net sales
ratio

%

%

2024

27.87

―

1.3

1.2

2.2

2023

(7.37)

―

(0.3)

1.2

2.5

(Reference) Gain (loss) on investment by equity method: Year ended March 31,2024: ¥(60) million
Year ended March 31,2023: ¥342 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

2024

606,990230,08732.5

2,236.50

2023

588,906

221,42232.2

2,146.46(Reference) Total shareholders’ equity: March 31, 2024: ¥197,033 million, March 31, 2023: ¥189,588 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

2024

21,595(58,784)

8,260

33,310

2023

7,798

(36,011)

61,29560,2041

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

2023

―

0.00

―

40.00

40.00

2024

―

0.00

―

40.00

40.00

2025
(Forecast)

―

0.00

―

40.00

40.00

Recorddate

Payoutratio

Dividends to
net assets
ratio

%

%

3,533

―

1.8

3,524

143.5

1.8

135.5

3. Forecasts for Fiscal Year Ending March 31, 2025
Percentages indicate year-on-year increase/ (decrease)

Net sales
Millions of yen

Fiscal year

Operating profit%

435,000

Millions of yen

5.0

Profit attributable toowners of parent
Millions of yen

Fiscal year%

17,000Millions of yen

89.0

%

11,50065.2

Net profit per share
%

2,600

Ordinary profit

Yen

5.9

29.51

4. Other
1. Significant changes in subsidiaries during the subject fiscal year (Transfer of particular subsidiaries
following a change in the scope of consolidation): None
1) New company: None2) Excluded company: None2. 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: None3. Number of shares issued and outstanding (common stock):1) Number of shares outstanding at fiscal year-end (including treasury stock):2024: 89,048,792 shares

2023: 89,048,792 shares

2) Number of treasury stock at fiscal year-end:
2024: 949,992 shares

2023: 723,040 shares

3) Average number of shares outstanding:
2024: 88,096,555 shares

2023: 88,885,920 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

Operating profit

Millions of yen%

Millions of yen

Ordinary profit%

Millions of yen

Net profit%

Millions of yen

%

2024

183,625(27.6)

(999)

―

2,211

14.0

37

―

2023

253,604

4.9

4,521

(77.6)

1,940(87.9)(2,019)―Net profit per share

Net profit per share after
dilution

Yen

Yen

2024

0.42

―

2023

(22.72)―(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

2024

492,805

146,21929.7

1,659.72

2023

489,838

150,07330.6

1,699.08(Reference) Total shareholders’ equity: March 31, 2024: ¥146,219 million, March 31, 2023: ¥150,073 million※ Financial Results Reports 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
The business environment surrounding the Toyobo Group (hereinafter “the Group”) in the fiscal
year ended March 31, 2024 (hereinafter “the fiscal year”) saw the economic expansion in the
United States thanks to economic activities driven by strong consumer spending, amid theunchanged policy interest rate. However, in China, the economic slowed due to the prolonged realestate recession and weak consumption. In Japan, the economy picked up moderately due to arecovery in automobile production and inbound tourism demand.
Under this business environment, sales of polarizer protective films for LCDs “COSMOSHINE
SRF” and volatile organic compound (VOC) recovery equipment used in the manufacturing
process for lithium-ion battery separators increased, driven by strong demand. On the other hand,adjustments of inventories on the market for packaging film became prolonged due to delays indemand recovery. Demand for reagents for PCR testing dropped sharply due to the winding downof COVID-19 infections.
As a result, consolidated net sales in the fiscal year increased 3.6% from the previous fiscal yearto ¥414.3 billion, operating profit decreased 10.6% from the previous fiscal year to ¥9.0 billion,
ordinary profit increased 5.6% from the previous fiscal year to ¥7.0 billion, profit attributable toowners of parent of ¥2.5 billion. (Compared with loss of attributable to owners of parent of ¥0.7
billion for the previous fiscal year.)
The Group established Toyobo MC Corporation with Mitsubishi Corporation (headquartered in
Chiyoda-ku, Tokyo) as a joint venture which is engaged in planning, development, manufacturing
and sales of functional materials, and the said company started business on April 1, 2023. The
Company combines the Group’s product and technological development capabilities and theextensive industrial knowledge and managerial ability of Mitsubishi Corporation to realize asustainable society and expand the growth of the joint venture.
Results by business segment were as follows:
The Group changed its reporting segment classification from the fiscal year. Accordingly, in thefollowing segment information, the figures for the previous fiscal year, have been restated inaccordance with the classification existing after the aforesaid change for the purpose ofcomparing them with those of the fiscal year.
Films
In the packaging film business, while we worked on product price revisions in response to soaring
raw material and fuel prices, slowed cargo movement continued due to delays in demand
recovery, in addition to start-up cost for new production equipment increased.
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 multilayer
ceramic capacitors (MLCC) struggled as a full-fledged recovery in demand failed to materialize,
affected by inventory adjustments throughout the supply chain.
As a result, sales in this segment increased ¥10.5 billion (7.2%) from the previous fiscal year to¥156.5 billion, and operating profit increased ¥1.1 billion (65.6%) to ¥2.7 billion.

4

Life Science
In the biotechnology business, demand for reagents for PCR testing declined significantly due tothe winding down of COVID-19 infections.
In the medical materials business, sales of artificial kidney hollow fiber trended strong.
In the contract manufacturing business of pharmaceuticals, profitability improved due to adecrease in costs for supporting good manufacturing practice (GMP) (including manufacturingand quality control standards for pharmaceuticals, etc.) as a result of the lifting of the Warning
Letter by the FDA.
As a result, sales in this segment decreased ¥3.6 billion (9.4%) from the previous fiscal year to¥34.6 billion, with an operating profit decreased ¥4.8 billion (51.8%) from the previous fiscal yearto ¥4.4 billion.
Environmental and Functional Materials
In the resin and chemicals business, engineering plastics sales increased with the recovery inautomobile production, and product price revisions proceeded. Sales of industrial adhesives“Vylon” declined for electronic materials applications for the Chinese market.
In the environment and fiber business, sales of VOC recovery equipment used in the
manufacturing process for lithium-ion battery separators significantly increased. In the highperformance fibers business, sales of “IZANAS” for use in fishing line were weak. Nonwoven
materials were affected by both reduced sales for hygiene products, and civil engineering andbuilding materials, as well as soaring raw material and fuel prices.
As a result, sales in this segment increased ¥4.5 billion (4.1%) from the previous fiscal year to¥115.3 billion, and operating profit increased ¥0.6 billion (15.3%) to ¥4.7 billion.
Functional Textiles and Trading
In the textile business, profitability improved as a result of progress in price pass-through in
addition to reforms of business structure such as the consolidation of production bases in Japanand withdrawal of unprofitable products.
In the airbag fabric business, profitability improved as product price revisions proceeded, in
addition to sales volume increased with the recovery of automobile production.
As a result, sales in this segment increased ¥3.3 billion (3.6%) from the previous fiscal year to¥95.7 billion, and operating loss of ¥1.0 billion. (Compared with operating loss of ¥2.5 billion forthe 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 decreased ¥0.4 billion (3.1%) from the previous fiscal year to¥12.2 billion, and operating profit increased ¥0.8 billion (37.8%) to ¥3.0 billion.
5(2) Analysis of Financial Position
Total assets increased ¥18.1 billion (3.1%) from the end of the previous fiscal year to ¥607.0
billion. This was mainly due to an increase in property, plant and equipment due to capital
investment, despite a decrease in cash and deposits.
Total liabilities increased ¥9.4 billion (2.6%) from the end of the previous fiscal year to ¥376.9
billion. This was mainly due to an increase in borrowings, despite a decrease in retirement benefit
liability.
Net assets increased ¥8.7 billion (3.9%) from the end of the previous fiscal year to ¥230.1 billion
mainly due to an increase in foreign currency translation adjustment and remeasurements ofdefined benefit plans.
(3) Cash FlowsNet cash provided by operating activities amounted to ¥21.6 billion at the end of the subject fiscal
year. This was mainly due to a cash increase from depreciation of ¥19.8 billion and profit before
income taxes 5.6 billion, and a cash decrease from an increase in working capital of ¥4.3 billion.
Net cash used in investing activities amounted to ¥58.8 billion. This was mainly due to purchaseof property, plant and equipment and intangible assets of ¥56.6 billion and proceeds from sales ofinvestment securities of ¥3.8 billion.
Net cash provided by financing activities amounted to ¥8.3 billion. This was mainly due toproceeds from long-term borrowings of ¥50.1 billion and proceeds from issuance of bonds of¥10.0 billion, and repayments of long-term borrowings of ¥30.4 billion and redemption of bonds of¥10.0, net decrease in short-term borrowings of ¥3.6 billion and dividends paid of ¥3.5 billion.
As a result, the balance of cash and cash equivalents at the end of the subject fiscal year (March
31, 2024) stood at ¥33.3 billion, a decrease of ¥26.9 billion from the end of the previous fiscal
year (March 31, 2023).

(Reference) Financial Position Indicators
Years ended March 31
2020

2021

2022

2023

2024

Equity ratio (%)

36.4

37.8

37.6

32.2

32.5

Equity ratio, based onmarket value (%)

20.8

25.8

18.8

15.6

16.4

Return on equity (%)

7.8

2.3

6.8

(0.3)

1.3

4.0

5.3

11.2

29.4

11.5

32.2

28.0

14.0

5.9

16.2

0.98

1.01

0.98

1.21

1.26

Interest-bearing debt tocash flow ratio (Years)
Interest coverage ratio(Times)D/E ratio (Times)

Notes:
Equity ratio: shareholders’ equity / total assets
Equity ratio, based on market value: 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
6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 2025 (Ending March 31, 2025)
Regarding the business environment for the fiscal year ending March 31, 2025, while theeconomy is expected to remain strong in the United States due to the favorable employment andincome environment, there is a risk of a prolonged economic slump stemming from the continued
real estate recession and weakness in consumption recovery in China. In Japan, although there
are concerns about trends of raw material and fuel prices and the impact of exchange fluctuations,a moderate economic recovery is expected mainly in domestic demand.
The Group’s profitability is forecasted to improve because a recovery in demand is expected for
packaging film and electronic materials, and fuel prices currently show stability. In addition, theGroup will further reinforce the earnings power by revising product prices, reducing costs,
implementing measures for businesses requiring improvement, and ensuring recovery of growthinvestment.
Under this environment, for the fiscal year ending March 31, 2025, the Group is forecasting net
sales of ¥435.0 billion (an increase of ¥20.7 billion year on year), operating profit of ¥17.0 billion(an increase of ¥8.0 billion), ordinary profit of ¥11.5 billion (an increase of ¥4.5 billion) and profit
attributable to owners of parent of ¥2.6 billion (an increase of ¥0.1 billion) .
(5) Basic Policy Regarding Earnings Distribution, and Dividends for Fiscal 2024 and 2025
Toyobo (hereinafter “the Company”) 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 theacquisition of treasury shares, with a target total return ratio (*1) of 30%.
Regarding dividends for the fiscal year, dividends of ¥40 per share are being forecast, and for the
next fiscal year, dividends of ¥40 per share are being forecast, but the Group will review this going
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 to continue 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 the Group is to take appropriate action after the consideration of related issues inJapan and overseas.

7

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)2023
(As of March 31, 2023)
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

82024(As of March 31, 2024)

60,703
5,873
82,553407

33,796
3,775
83,968140

12,295

14,921

75,343
16,55630,002
15,672(271)
299,133

69,996
20,566
31,421
15,488(337)
273,733

54,51546,90790,81639,8298,166
240,234

64,57559,85591,04953,025
12,972
281,475

4,633
4,633

4,670
4,670

13,951
702
21,527
9,857(1,131)44,906
289,773
588,906

11,072
3,196
21,40012,712(1,268)47,112
333,257
606,990

(Millions of yen)2023
(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
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

92024(As of March 31, 2024)

53,436
5,156
71,595
10,00029,472
4,776
28,064
202,500

49,782
4,229
68,38515,00013,0695,253
28,430184,148

65,00049,09919,64160,00085,637
18,762

239

274

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

11
15,901
12,171
192,755
376,903

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

51,73033,18770,315(1,006)
154,227

3,434

1,801

67
41,435(4,556)(4,632)(1)
40,603(548)
951

35,74842,806

31,834
221,422588,906

33,054230,087
606,990

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Millions of yen)(Consolidated Statements of Income)

2023(From April 1, 2022
To March 31, 2023)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Dividend income
Share of profit of entities accounted for using
equity method
Foreign exchange gains
Insurance claim income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Salaries paid to dispatched employees
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
Impairment losses
Loss on disposal of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

10

2024
(From April 1, 2023
To March 31, 2024)

399,921314,91585,00674,943
10,063414,265
326,267
87,99879,003
8,995

323

323

342

－

443
250
101
986
2,446

1,333
219
583
1,244
3,702

1,328
699
3,891
5,919
6,590

1,355
793
3,587
5,735
6,962

1,200
2,946
5,607
9,753

－
3,312
－
3,312

9,794
3,851
2,086
15,731612
3,202(1,783)
1,419
(807)
(152)
(655)

799
3,511
377
4,687
5,587
5,303
(3,295)
2,007
3,580
1,125
2,455

(Millions of yen)(Consolidated Statements ofComprehensive Income)

2023(From April 1, 2022
To March 31, 2023)

Profit (loss)
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, 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

11

2024
(From April 1, 2023
To March 31, 2024)
(807)

3,580

(1,428)(1,623)

60
－
2,815

(25)
72
4,505

(2,311)

5,583

439

362

(425)
(1,232)

8,873
12,454(1,254)

10,87221

1,581

(3) Consolidated Statements of Changes in Net Assets
2023 (From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

51,730Retained earnings

32,193

Treasury shares

74,700Total shareholders'equity(221)

158,402

Changes during period
Dividends of surplus
Profit attributable to ownersof parent(3,556)(3,556)

(655)

(655)

Purchase of treasury shares
Disposal of treasury shares(37)

Purchase of shares of
consolidated subsidiaries

246

(684)

(684)

124

87
246

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period－

209(4,211)(560)(4,562)

51,73032,40270,490(781)

153,840

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

4,882

7

41,562

Total
Foreign
Remeasurem accumulat
currency
ents ofed othertranslation
definedcomprehenadjustment benefit plans
siveincome(7,656)(2,321)

36,474

Noncontrollinginterests

2,273

Total net
assets

197,149

Changes during period
Dividends of surplus(3,556)

Profit attributable to ownersof parent(655)

Purchase of treasury shares(684)

Disposal of treasury shares

87

Purchase of shares of
consolidated subsidiaries

246

Net changes in items otherthan shareholders' equity(1,447)

60

(127)

3,099

(2,311)(726)

29,561

28,835

Total changes during period(1,447)

60

(127)

3,099

(2,311)(726)

29,561

24,273

Balance at end of period

3,434

67

41,435(4,556)(4,632)35,74831,834

221,42212

2024 (From April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

51,730Retained earnings

32,402

Treasury shares

70,490Total shareholders'equity(781)

153,840

Changes during period
Dividends of surplus(3,533)(3,533)

Profit attributable to ownersof parent

2,455

2,455

904

904

Reversal of revaluation
reserve for land
Purchase of treasury shares
Disposal of treasury shares(4)

Capital increase of
consolidated subsidiaries

790

(321)

(321)

95

92
790

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

－

786

(174)

(225)

386

51,73033,18770,315(1,006)

154,227

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

3,434

67

41,435

Total
Foreign
Remeasurem accumulat
currency
ents ofed othertranslation
definedcomprehenadjustment benefit plans
siveincome(4,556)(4,632)35,748

Noncontrollinginterests

31,834

Total net
assets

221,422

Changes during period
Dividends of surplus(3,533)

Profit attributable to ownersof parent

2,455

Reversal of revaluation
reserve for land

904

Purchase of treasury shares(321)

Disposal of treasury shares

92

Capital increase of
consolidated subsidiaries

790

Net changes in items otherthan shareholders' equity(1,633)

(68)

(832)

4,008

5,583

7,058

1,220

8,278

Total changes during period(1,633)

(68)

(832)

4,008

5,583

7,058

1,220

8,665

Balance at end of period

1,801

(1)

40,603(548)

951

42,80633,054230,08713

(4) Consolidated Statements of Cash Flows(Millions of yen)2024
(From April 1, 2023
To March 31, 2024)

2023(From April 1, 2022
To March 31, 2023)
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
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
Proceeds from sale of property, plant andequipment and intangible assets
Proceeds from sale of shares of subsidiaries andassociates
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
Proceeds from share issuance to non-controllingshareholders
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

14612
19,0509,794

5,587
19,806
799

98

171

461
(1,456)
(448)
1,328

(34)
(1,005)
(612)
1,355

(342)

60

2,651

3,511

(2,067)(3,147)289－(5,607)
2,322(24,551)
4,557
1,001
7,693
(5,502)
5,607
7,798

－
60
2,033
(6,357)
3,451
25,681(4,085)－
21,595(39,158)(56,629)

2,345

113

2,194

－

3,652
(88)

3,834
(68)

38

36

507
(5,501)(36,011)628(6,698)(58,784)

30,60623,087(37,018)
20,000－(682)(1,324)(3,555)(14)(3,594)50,143(30,422)
10,000(10,000)(321)(1,330)(3,531)(14)

30,000－194
61,295(2,670)
8,260

688

2,034

33,771(26,894)

26,43360,20460,20433,310(5) Notes to Consolidated Financial Statements(Note to Going Concern)
Not applicable(Additional Information)(Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System)
The Company and some of its domestic consolidated subsidiaries will transition from thenon-consolidated taxation system to the group tax sharing system since the next fiscal year ended
March 31, 2025. The Company have adopted “the Practical Solution on the Accounting andDisclosure Under the Group Tax Sharing System (Practical Solution No. 42, August 12, 2021)”
from the end of the current fiscal year for accounting treatment and disclosure of national andlocal corporate taxes and tax effect accounting.
(Segment Information)
1. Reportable Segment Operating Results
The Company’s reportable segments allow it to acquire financial data separated into the various
components of the corporate group. The scope of the segments is reviewed on a regular basis inorder to allow the highest decision-making body to determine the allocation of management
resources and evaluate earnings performance.
The Company’s basic organization comprises business headquarters and business divisions
within the head office, separated by the type, nature and market region for products and services.
Each business headquarters and business division formulates comprehensive strategies for its
domestic and overseas operations and conducts business activities.
Accordingly, the Company comprises segments by market region. Its five reportable segments
are “Films,” “Life Science,” “Environmental and Functional Materials,” “Functional Textiles andTrading” and “Real Estate.”
The “Films” segment manufactures and sells packaging film, industrial film and other products.
The “Life Science” segment manufactures and sells bio-products such as enzymes for diagnostics,
pharmaceuticals, medical membranes, medical devices and other products. The “Environmental
and Functional Materials” segment manufactures and sells engineering plastics, industrial
adhesives, photo functional materials, water treatment membranes, functional filters, highperformance fibers, nonwoven fabrics and other products. The “Functional Textiles and Trading”
segment manufactures and sells airbag fabrics, functional textiles, apparel products, appareltextiles, apparel fibers and other products. The “Real Estate” segment mainly leases andmanages real estate properties and other products.
(Matters concerning changes to reporting segments)
From the fiscal year ending March 31, 2024, the Group changed its organization structure in orderto position films, life science and the environment as business fields on which to particularly focus
and carry out business operations in accordance with each positioning while evaluating andcategorizing each business in accordance with their “profitability” and “growth potential.”
Accordingly, the Group reviewed the reportable segment classification, and changed them fromthe previous “Films and Functional Materials,” “Mobility” and “Lifestyle and Environment” to15

“Films,” “Environmental and Functional Materials” and “Functional Textiles and Trading.” Segment
information for the previous fiscal year ended March 31, 2023 was prepared in accordance withthe classifications after the change.
2. Calculation Method for the Amounts of Net Sales, Profit or Loss, Assets and Other Items by
Reportable Segment
The accounting method used for the reported business segments is based on the accounting
policies applied to prepare the consolidated financial statements.
Profit of reportable segments is based on operating profit.
Intersegment sales and transfers are based on actual market pricing.
3. Net sales, profit of loss, assets and other items by reportable segment(ⅰ) Fiscal Year ended March 31,2023(Millions of yen)Segment to Be Reported

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statementsof Income(Note 3)

Films

Life
Science

Environm
ental andFunctional
Materials

Functional
TextilesandTrading(1) Outside customers

146,064

38,134

110,796

92,361

4,053

391,4078,514

399,921―399,921(2) Inter-segment
sales and transfers

126

41

3,792

700

429

5,089

15,652

20,741(20,741)―

146,190

38,175

114,588

93,062

4,481

396,496

24,166420,662(20,741)

399,921

1,623

9,212

4,048

(2,514)

1,439

13,807748

14,555(4,492)

10,063

180,321

41,332

127,361

108,12145,468502,603

16,699519,30269,604

588,906

OthersDepreciation andamortization

7,787

2,211

4,334

2,415

514

17,262416

17,6791,371

19,050Capitalexpenditure

18,280

7,551

7,314

3,599

488

37,232666

37,8984,836

42,734Real
Estate

Total

Total

Net sales

Total
Segment profit(loss)
AssetsNote:
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 ¥(4,492) million includes eliminations of intersegment
transactions of ¥(271) million and companywide expenses that are not allocated across reporting
segments of ¥(4,220) million. The principal components of companywide expenses are those related
to basic research and development.
(2) The adjustment of segment assets of ¥69,604 million includes corporate assets of ¥84,551 million
that are not allocated to the reportable segments.
(3) The adjustment of capital expenditure of ¥4,836 million represents that amount of capital investment
related to research and development.
3. Segment profit or loss has been adjusted with operating income on the consolidated financial
statements.

16

(ⅱ) Fiscal Year ended March 31,2024(Millions of yen)Segment to Be Reported

Other
Businesses(Note 4)

Adjustment(Note 5)

Consolidated
Statementsof Income(Note 6)

Films

Life
Science

Environm
ental andFunctional
Materials

Functional
TextilesandTrading(1) Outside customers

156,531

34,564

115,327

95,665

4,070

406,1578,108414,265―414,265(2) Inter-segment
sales and transfers

2,185

118

8,848

1,238

1,151

13,54017,38330,923(30,923)―

158,716

34,682

124,175

96,903

5,221

419,697

25,491

445,188(30,923)

414,265

2,688

4,438

4,668

(1,044)

2,018

12,768995

13,763(4,768)

8,995

203,361

71,315

139,730

108,425

49,113571,945

14,578586,523

20,467

606,990

OthersDepreciation andamortization

8,946

2,135

3,770

2,541

498

17,891

114

18,005

1,802

19,806

Capitalexpenditure

18,621

20,71010,933

6,072

1,409

57,746

152

57,897

3,672

61,569Real
Estate

Total

Total

Net sales

Total
Segment profit(loss)
AssetsNote:
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 ¥(4,768) million includes eliminations of intersegment
transactions of ¥(516) million and companywide expenses that are not allocated across reporting
segments of ¥(4,252) million. The principal components of companywide expenses are those related
to basic research and development.
(2) The adjustment of segment assets of ¥20,467 million includes corporate assets of ¥58,806 million
that are not allocated to the reportable segments.
(3) The adjustment of capital expenditure of ¥3,672 million represents that amount of capital investment
related to research and development.
6. Segment profit or loss has been adjusted with operating income on the consolidated financial
statements.

17

(Significant subsequent events)(Issuance of unsecured straight bonds in the Japanese market)
At the meeting of the Board of Directors held on April 25, 2024, 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
1.5% or less
(4) Payment dates: From April 26, 2024 to March 31, 2025.
However, if the bonds are offered during this period, payments after this period will be
accepted.
(5) Term of redemption: 3 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 repayment of borrowings, redemption of bonds, purchases of securities(includes acquisition of stock through mergers and acquisitions), working capital and 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.

18