We would like to present the Toyobo Group (hereinafter “the Group”)’s business results for the six months ended September 30, 2023 and full-year forecasts for Fiscal 2024.


 The business environment surrounding the Group in the six months ended September 30, 2023 saw a continued track of recovery in economic activities in the United States supported by solid consumption and capital investment amid continued monetary tightening policy. However, in China, the economic downturn grew stronger due to the depressed real estate market and the delay in the recovery of the consumer mindset. On the other hand, in Japan, the economy has recovered moderately with the normalization of economic activity after the COVID-19 pandemic.


 Under this business environment, sales of polarizer protective films for LCDs “COSMOSHINE SRF” increased significantly driven by strong demand. On the other hand, adjustments of inventories on the market for mold releasing film for multilayer ceramic capacitors (MLCC) and packaging film became prolonged due to delays in demand recovery, and demand for reagents for PCR testing dropped sharply due to the winding down of COVID-19 infections. Additionally, improvement in profitability for certain products was delayed as product price revisions were unable to keep up with soaring raw material and fuel prices.


 As a result, consolidated net sales in the six months ended September 30, 2023 decreased ¥1.7 billion (0.8%) over the same period of the previous fiscal year, to ¥199.4 billion. Operating profit decreased ¥5.5 billion (70.1%), to ¥2.4 billion and ordinary profit decreased ¥5.7 billion (84.7%) to ¥1.0 billion. Profit attributable to owners of parent decreased ¥9.0 billion (81.7%), to ¥2.0 billion despite the recording of a gain on sale of investment securities of ¥3.0 billion as extraordinary income during the second quarter of the consolidated fiscal year.


 Regarding the future business environment, there is concern over the impact on economic recovery from rising raw material and fuel prices caused by production adjustments by oil-producing countries and heightened geopolitical risk, progressing yen depreciation caused by the expanding spread between Japanese and US interest rates, and the struggling Chinese economy. As for the consolidated earnings forecasts for the fiscal year ending March 31, 2024, although sales of “COSMOSHINE SRF” expanded, due to the impact on profits from a slow recovery in demand for packaging film and mold releasing film for MLCC, as well as raw material and fuel prices remaining high, the Group is forecasting net sales of ¥410.0 billion (an increase of ¥10.1 billion year on year), operating profit of ¥10.0 billion (a decrease of ¥0.1 billion year on year), ordinary profit of 6.0 billion (a decrease of ¥0.6 billion year on year), and profit attributable to owners of parent of ¥1.0 billion (an increase of ¥1.7 billion year on year). 


 We acknowledge that providing returns to shareholders is one of its highest priorities. In terms of dividends, its basic policy is to continually provide a stable dividend, in a comprehensive consideration of such factors as sustainable profit levels, retention of earnings for future investment, and improving the financial position to provide shareholders returns. Regarding the year-end dividend for the fiscal year ending March 31, 2024, we currently expect to pay ¥40 per share as well as the previous fiscal year.


 We ask for the continued understanding and support of all of our shareholders and investors.


November 2023

TOYOBO CO., LTD.                 

President & Representative Director