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

 

 In the business environment surrounding the Group in the nine months ended December 31, 2024, economic activity remained strong in the United States, supported by robust consumer spending amid a lowering of the policy interest rate as price inflation slowed. In China, exports expanded significantly, but the economy remained sluggish due to a downturn in internal demand with factors including a prolonged real estate recession and weak consumption. In Japan, the economy has recovered moderately due to an improvement in the income environment, which led to a recovery in consumer spending, as well as increased inbound tourism demand and expansion of capital investment.

 

 Under this business environment, polarizer protective films for LCDs “COSMOSHINE SRF” and traditional Arabic fabric remained steady. Furthermore, in businesses requiring improvement, including the textile business, the airbag fabric business, and the contract manufacturing business of pharmaceuticals, measures such as product price revisions and review of the production system progressed, and profitability improved.  

 

 As a result, consolidated net sales in the nine months ended December 31, 2024 increased ¥6.9 billion (2.2%) from the same period of the previous fiscal year to ¥314.2 billion. Operating profit increased ¥5.2 billion (103.8%), to ¥10.2 billion and ordinary profit increased ¥3.1 billion (131.0%) to ¥5.5 billion. Profit attributable to owners of parent decreased ¥0.9 billion (54.2%), to ¥0.7 billion.

 

 Looking ahead, the business environment is expected to be impacted by change in the United States policy affecting the global economy. Under the management policy of “Recover earning power,” the Group will proceed with “Endured pricing commensurate with value,” “Measures for businesses requiring improvement,” “Steady recovery and new creation of growth investments” and “Narrowing down of investment and expenses, and cost reduction.” Specifically, we will work to expand sales of “COSMOSHINE SRF”, which continues to see steady demand, while also improving the profitability of packaging film, which is currently showing recovery. In addition, we will be increasing production capacity for mold releasing film for multilayer ceramic capacitors (MLCC), enzymes for diagnostic reagents and artificial kidney hollow fiber, which are expected to expand in the future.

 

 Under this environment, for the fiscal year ending March 31, 2025, the Group will not be changing the forecast announced in May 2024, which stated 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.

 

February 2025

TOYOBO CO., LTD.                 

President & Representative Director