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

 

 The business environment surrounding the Group in the fiscal year saw heightened uncertainty about the outlook in the United States with recent signs of a slowdown in demand, despite economic activities remaining strong. In China, exports expanded, but the economy remained sluggish as effects of the policy against a prolonged real estate recession and weak consumption were limited. 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 packaging film business, and the nonwoven materials business, measures such as product price revisions and review of the production system progressed, and profitability improved. 

 

 As a result, consolidated net sales in the fiscal year increased 1.9% from the previous fiscal year to ¥422.0 billion, operating profit increased 85.1% from the previous fiscal year to ¥16.7 billion, ordinary profit increased 52.1% from the previous fiscal year to ¥10.6 billion, profit attributable to owners of parent decreased 18.4% from the previous fiscal year to ¥2.0 billion.

 

 Regarding the future business environment, uncertainty about the global economy is expected to increase due to the shift in the trade policy of the United States.

 

 In such situations, under the management policy in the fiscal year ending March 31, 2026 “Recover earning power to create the future,” the Group will proceed with “Thorough safety, disaster prevention and quality assurance, and compliance,” “Endured pricing commensurate with value,” “Measures for businesses requiring improvement,” “Secure investment returns and create new value,” “Narrowing down of investment and expenses, and cost reduction,” and “Reduce capital employed.”

 

 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, 2026, 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 2025

TOYOBO CO., LTD.                 

President & Representative Director