August 5, 2021

Consolidated Financial Report for the Three Months Ended June 30, 2021
TOYOBO Co., Ltd.
Stock Code: 3101

Listed on the First Section of the TSE

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): August 12, 2021

(Figures are rounded to the nearest million yen)

1. Consolidated Business Performance(1) Consolidated Operating Results
First quarter ended June 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

94,644

25.4

9,244

112.1

7,468

170.2

6,170

249.8

2020

75,450

(6.7)

4,359

(16.7)

2,764(36.3)

1,764

5.6(Note) Comprehensive income: First quarter ended June 30, 2021: ¥ 8,583 million 193.7 %,First quarter ended June 30, 2020: ¥ 2,922 million --- %Net profit per
share

Net profit per shareafter dilution

Yen

Yen

2021

69.45

－

2020

19.86

－

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

June 30, 2021

492,422

193,55538.7

2,146.41

March 31, 2021

491,188

188,63537.8

2,090.47(Reference) Total shareholders’ equity: June 30, 2021: ¥190,698 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－

FY 3/2022－

FY 3/2022(Forecast)

0.00

－

40.00

40.00

0.00

－

40.00

40.00

(Note) Revision of dividends forecast for this period: None1

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%

29,000

Profit attributable toowners of parent
Millions of yen

Ordinary profit
Millions of yen

8.8%

24,00015.9

Net profit per share
%

Yen

209.4

146.32

13,000(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): Yes
1) New company: None
2) 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):
June 30, 2021: 89,048,792 shares

March 31, 2021: 89,048,792 shares

2) Number of treasury stock:June 30, 2021: 203,765 shares

March 31, 2021: 203,350 shares

3) Average number of shares outstanding for each period (cumulative term):
Three months ended June 30

2021: 88,845,220 shares
2020: 88,811,123 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 thethree months ended June 30, 2021, the economy continued to expand in China, economic activities
restarted in the United States due to the rollout of vaccinations against COVID-19, and economic
recovery accelerated. Furthermore, economic recovery was supported by the continuation of largescale monetary easing policies in various countries, such as the United States, China and Japan.
Under these circumstances, despite an intensifying sense of economic stagnation due to delays of
the COVID-19 vaccine roll-out in Japan, it is expected that the economy will recover as the vaccine
is rolled out in the second half of the fiscal year. Uncertainties are increasing with regard to theoutlook of the economy as a result of concerns about delays in the recovery of global economic
activities due to the recent spread of COVID-19 variants.
In this business environment, in “Films and Functional Materials,” sales grew due to the full-fledged
operation of the new line (Unit 3) for polarizer protective films for LCDs “COSMOSHINE SRF” andthe new processing equipment for mold releasing film for MLCC “COSMOPEEL” against the
backdrop of strong market conditions. In “Mobility,” sales of engineering plastics and airbag fabrics
performed strongly due to the recovery from the COVID-19 pandemic for automobile demand
globally. In “Lifestyle and Environment,” demand for high-performance fibers recovered after the
beginning of the pandemic, but spunbond and polyester staple fibers were affected by the high costof raw materials. 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 three months ended June 30, 2021 increased ¥19.2 billion(25.4%) over the same period of the previous fiscal year, to ¥94.6 billion. Operating profit increased¥4.9 billion (112.1%), to ¥9.2 billion, ordinary profit increased ¥4.7 billion (170.2%) to ¥7.5 billion,
and profit attributable to owners of parent increased ¥4.4 billion (249.8%), to ¥6.2 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 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 of polarizer
protective films for LCDs “COSMOSHINE SRF” and mold releasing film for MLCC “COSMOPEEL”
achieved growth due to the full-fledged operation of each of their new lines.
In the functional materials business, sales of industrial adhesives “Vylon” were strong in Japan andoverseas. Furthermore, in the photo functional materials business, which handles water-wash photosensitive printing plates, sales of products for China and Europe grew.
As a result, sales in this segment increased ¥9.4 billion (26.0%) from the same period of theprevious fiscal year to ¥45.7 billion, and operating profit increased ¥2.9 billion (73.9%) to ¥6.8 billion.
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Mobility
In this segment, sales increased and operating loss decreased as a result of sales of engineering
plastics and airbag fabrics performing strongly due to the recovery from the COVID-19 pandemic forautomobile demand globally.
Sales of engineering plastics recovered and were strong in both Japan and overseas.
The airbag fabrics business faced challenges as a result of the decreasing spread between raw
material prices and sales prices due to the sudden rise of raw material prices despite the recovery
of sales.
As a result, sales in this segment increased ¥4.3 billion (63.0%) from the same period of theprevious fiscal year to ¥11.1 billion, with an operating loss of ¥0.5 billion. (Compared with operating
loss of ¥0.7 billion for the same period of the previous fiscal year.)Lifestyle and Environment
In this segment, spunbond and polyester staple fibers, etc. were affected by the high cost of raw
materials, demand for high-performance fibers picked up due to recovery from the COVID-19
pandemic.
In the environmental solutions business, volatile organic compound (VOC) emissions treatment
equipment for recovering solvents faced challenges due to the impact of a decrease in orders as aresult of the stagnation of operating activities in the previous fiscal year because of the COVID-19
pandemic.
In the nonwoven fabrics business, sales of spunbond grew from the same period of the previous
fiscal year, but were affected by the high cost of raw materials. 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 of polyester staple fibers
were affected by the high cost of raw materials, but functional cushion material “BREATHAIR” forbedding applications was strong.
In the textile business, due to the impact of factors such as sluggish store sales because of the
COVID-19 pandemic, sales for sports, uniforms and traditional Arabic fabric did not recover.
As a result, sales in this segment increased ¥4.8 billion (21.1%) from the same period of theprevious fiscal year to ¥27.7 billion, and operating profit increased ¥1.1 billion (338.0%) to ¥1.5 billion.
Life Science
In this segment, sales and operating profit increased due to the growth in demand for PCR testingrelated products as the COVID-19 pandemic 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
temporary operational suspension for compliance with Good Manufacturing Practice (GMP).
In the medical materials business, sales of artificial kidney hollow fiber trended strong.
4As a result, sales in this segment increased ¥1.1 billion (18.0%) from the same period of theprevious fiscal year to ¥7.5 billion, and operating profit increased ¥0.9 billion (86.6%) to ¥1.9 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 ¥0.5 billion (15.4 %) over the same period of
the previous fiscal year to ¥2.6 billion, and operating profit decreased ¥0.1 billion (19.4 %) to ¥0.4
billion.
(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets increased ¥1.2 billion (0.3%) from the end of the previous fiscal year, to ¥492.4 billion.
This was mainly due to an increase in inventories, an increase in property, plant and equipment due
to capital investment, and an increase in investments and other assets due to the mark-to-market
valuation of investment securities, despite a decrease in cash and deposits.
Total liabilities decreased ¥3.7 billion (1.2%) to ¥298.9 billion. This was mainly due to a decrease inborrowings.
Net assets increased ¥4.9 billion (2.6%) from the end of the previous fiscal year, to ¥193.6 billion
due to an increase in retained earnings and an increase in valuation difference on available-for-salesecurities.
(3) Qualitative Information on Consolidated Forecasts
In light of recent developments, we have revised our consolidated earnings forecasts for the fiscal
year ending March 31, 2022, which were announced on May 10, 2021. For details, please refer tothe “Notice of Revision of Consolidated Earnings Forecasts” released today (August 5, 2021).

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

Current First Quarter(As of June 30, 2021)

34,69526,072

85,18282,356

8,709

9,422

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

47,715
12,842
20,731
10,783(180)
209,740

54,22754,96156,05355,502

93,16921,191

93,15723,473

224,640

227,093

4,674

4,557

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

51,888(856)
51,032
282,682
492,422

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable trade
Electronically recorded monetaryclaims - 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 andvehicles, net
Land
Other, net
Total property, plant andequipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

(Millions of yen)Previous Fiscal Year(As of March 31, 2021)

Current First Quarter(As of June 30, 2021)

40,87940,710

4,881

5,704

40,767
10,00040,02410,00010,107

7,688

4,743
20,067
131,444

2,270
20,919127,315

45,00077,04645,00077,346

241

226

31

30

18,28830,503
171,109302,553

18,15930,790171,551
298,867

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

51,73032,202
66,871(295)
150,507

7,038

8,933

11
42,708(2)
42,697(11,052)(10,462)

(965)

(976)

37,74040,191

2,906
188,635
491,1882,857
193,555
492,422

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations operating
Short-term borrowings
Current portion of bonds payable
Current portion of long-termborrowings
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
incomeValuation difference on available-forsale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

(2) Consolidated Statements of Income
and Consolidated Statements ofComprehensive Income(Consolidated Statements of Income)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 forusing equity method
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
Loss on sale of securities
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controllinginterests
Profit attributable to owners of parent(Millions of yen)Previous First Quarter(From April 1, 2020
To June 30, 2020)
75,45055,397
20,053Current First Quarter(From April 1, 2021
To June 30, 2021)
94,644
68,571
26,073

15,694

16,829

4,359

9,244

246

220

168

113

360
773

263
596

338
700
1,330
2,368
2,764

317
358
1,697
2,372
7,468

94
94

－
－

362
－
92
454
2,404
799
1,605

279
185
－
464
7,004
878
6,126

(159)

(44)

1,764

6,170

8

(Consolidated Statements ofComprehensive Income)
ProfitOther comprehensive income
Valuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit
plans, net of tax
Share of other comprehensive incomeof entities accounted for using equity
methodTotal other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

Previous First Quarter(From April 1, 2020
To June 30, 2020)
1,605(Millions of yen)
Current First Quarter(From April 1, 2021
To June 30, 2021)
6,126

1,073

1,898

5
185

(13)
437

198

(10)

(143)

146

1,318
2,922

2,457
8,583

3,065

8,632

(142)

(49)

9

(3) Note to Consolidated Financial Statements(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 firstquarter of the fiscal year ending March 31, 2022, and it has recognized revenue at the time thecontrol 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 theCompany bears an obligation to repurchase supplied materials, the transaction is treated as afinancial transaction and supplied materials remaining at the supplyee are continued to berecognized as inventories while the amount of ending inventories corresponding to the suppliedmaterials 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 the retrospective
application, assuming the new accounting policy had been applied to periods prior to the beginningof the first quarter of the fiscal year ending March 31, 2022 was added to or deducted from theopening 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 theapplication 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 thefirst 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 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 the consolidated financial statements for the first quarter ended June 30, 2021.
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.
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(Segment Information)(ⅰ) Previous first quarter (from April 1, 2020 to June 30, 2020)(Millions of yen)Segment to Be Reported
Life
ScienceReal
Estate

Total

Other
Businesses(Note 1)

Adjustment(Note 2)

Consolidated
Statementsof Profit(Note 3)

Films andFunctional
Materials

Mobility

LifestyleandEnvironment

36,3086,786

22,922

6,341

997

73,3552,095

75,450－75,450

15

4

45

8

99

170

2,630

2,800

(2,800)－Total

36,323

6,790

22,967

6,349

1,096

73,525

4,725

78,250(2,800)75,450Operating profit(loss)

3,914

(653)

340

998

391

4,990

84

5,074

(715)

4,359

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 (¥715) million includes eliminations of intersegment transactions of ¥45
million and companywide expenses that are not allocated across reporting segments of (¥759) 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) Current first quarter (from April 1, 2021 to June 30, 2021)(Millions of yen)Segment to Be Reported
Life
ScienceReal
Estate

Total

Other
Businesses(Note 4)

Adjustment(Note 5)

Consolidated
Statementsof Profit(Note 6)

Films andFunctional
Materials

Mobility

LifestyleandEnvironment

45,734

11,061

27,750

7,482

969

92,997

1,647

94,644－

94,644

42

5

96

13

100

256

2,330

2,586

(2,586)－

Total

45,777

11,066

27,846

7,495

1,069

93,253

3,977

97,230(2,586)

94,644

Operating profit(loss)

6,808

(458)

1,489

1,862

316

10,01766

10,083

(839)

9,244

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 (¥839) million includes eliminations of intersegment transactions of ¥72
million and companywide expenses that are not allocated across reporting segments of (¥911) 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.

11