We would like to present the Toyobo Group (hereinafter “the Group”)’s business results for the fiscal year ended March 31, 2024 (hereinafter “the fiscal year”) and full-year forecasts for fiscal 2025.


 The business environment surrounding the Group in the fiscal year saw the economic expansion in the United States thanks to economic activities driven by strong consumer spending, amid the unchanged policy interest rate. However, in China, the economic slowed due to the prolonged real estate recession and weak consumption. In Japan, the economy picked up moderately due to a recovery 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 in demand recovery. Demand for reagents for PCR testing dropped sharply due to the winding down of COVID-19 infections.


 As a result, consolidated net sales in the fiscal year increased 3.6% from the previous fiscal year to ¥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 to owners of parent of ¥2.5 billion. (Compared with loss of attributable to owners of parent of ¥0.7 billion for the previous fiscal year.)


 Regarding the business environment for the fiscal year ending March 31, 2025, while the economy is expected to remain strong in the United States due to the favorable employment and income 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, the Group will further reinforce the earnings power by revising product prices, reducing costs, implementing measures for businesses requiring improvement, and ensuring recovery of growth investment.


 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 (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) .


 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, 2025, 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.


May 2024

TOYOBO CO., LTD.                 

President & Representative Director