We would like to present the Toyobo Group (hereinafter “the Group”)’s business results for the fiscal year ended March 31, 2026 (hereinafter “the fiscal year”).

 

 As for the business environment surrounding the Group in the fiscal year, in the United States, despite continuing concerns about the impact of reciprocal tariff policies, personal consumption remained generally strong against the backdrop of the resilience of the employment environment, and the economy remained overall resilient. In China, due to the lingering slump in the real estate market and the lack of strength in personal consumption, the recovery of domestic demand was limited, and the economic stagnation continued. In Japan, the economy maintained a trajectory of moderate recovery due to improvements in the income environment driven by widespread wage increases and companies resuming capital investments.

 

 Under this business environment, polarizer protective films for LCDs “COSMOSHINE SRF” and mold releasing film for multilayer ceramic capacitors (MLCC) remained steady. In addition, in the packaging film business, earnings improved as a result of improving the productivity of the new facility.

 

 As a result, consolidated net sales in the fiscal year decreased 0.1% from the previous fiscal year to ¥421.6 billion, operating profit increased 67.6% from the previous fiscal year to ¥27.9 billion, ordinary profit increased 116.0% from the previous fiscal year to ¥22.9 billion, profit attributable to owners of parent increased 457.8% from the previous fiscal year to ¥11.2 billion.

 

 As for the future business environment, the outlook is difficult to predict due to the intensification of the situation in the Middle East. In the short-term, the Group will prepare for emergency situations, including in procurement, and in the medium-term, it will work on diversifying its procurement and logistics network, reforming its business portfolio, and strengthening its financial base.

 

 Under these circumstances, the Group chooses the FY 3/27 Management Policy of Enhance earning power and asset efficiency to create the future, and will promote the 5 actions of Thorough safety and disaster prevention, quality, and compliance, Realization of results from investment, Ensured pricing commensurate with value, Improvement of capital efficiency, and Narrowing down of investment and expenses, realization of TX*, and cost reduction through One-team management.

* Toyobo-transformation

 

 Due to the prolonged unrest in the Middle East, the impact from the disruption in the supply of oil and naphtha-derived raw materials, along with soaring prices, is expected.

 

 As the outlook for the business environment is difficult to predict due to the intensification of the situation in the Middle East, thereby making it difficult to appropriately and reasonably calculate its impact on business, the consolidated earnings forecasts are undecided at this time.

 

 They will be promptly announced as soon as such appropriate and reasonable calculation becomes possible while monitoring future developments.

 

 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, 2027, dividend forecasts will be promptly announced as soon as the earnings forecasts can be reasonably calculated.

 

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

May 2026

TOYOBO CO., LTD.                 

President & Representative Director