We would like to present the Toyobo Group (hereinafter the “Group”)’s business results for the three months ended June 30, 2024 and full-year forecasts for fiscal 2025.

 

 The business environment surrounding the Group in the three months ended June 30, 2024 saw steady economic activity supported by robust consumer spending, amid the unchanged policy interest rate in the United States. However, in China, the economy slowed due to the prolonged real estate recession and weak consumption. In Japan, the economy has recovered moderately due to increased inbound tourism demand and expansion of capital investment.

 

 Under this business environment, a full-fledged recovery in demand for mold releasing film for multilayer ceramic capacitors (MLCC) and packaging film failed to materialize despite the moderate recovery in cargo movement. On the other hand, polarizer protective films for LCDs “COSMOSHINE SRF” and volatile organic compound (VOC) recovery equipment used in the manufacturing process for lithium-ion battery separators remained steady.

 

 As a result, net sales in the three months ended June 30, 2024 increased ¥8.1 billion (8.4%) from the same period of the previous fiscal year to ¥105.2 billion, operating profit was ¥3.1 billion (compared with operating loss of ¥0.1 billion for the same period of the previous fiscal year), ordinary profit was ¥2.0 billion (compared with ordinary loss of ¥0.3 billion for the same period of the previous fiscal year), profit attributable to owners of parent was ¥0.8 billion (compared with loss of attributable to owners parent of ¥0.5 billion for the previous fiscal year).

 

 There are concerns over the impact on economic activity from the effects of raw material and fuel prices remaining high, the prolonged slowdown in the Chinese economy and the delayed interest rate cuts in the United States. The Group aims for sales expansion of “COSMOSHINE SRF,” which continues to see steady demand, and for packaging film and mold releasing film for MLCC, which are forecast to see recovery. In addition, the Group will advance “Endured pricing commensurate with value,” “Measures for business requiring improvement,” “Steady recovery and new creation of growth investments,” and “Narrowing down of investment and expenses, and cost reduction” to recover earning power.

 

 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.

 

August 2024

TOYOBO CO., LTD.                 

President & Representative Director