We would like to present the Toyobo Group (hereinafter “the Group”)’s business results for the nine months ended December 31, 2023 and full-year forecasts for Fiscal 2024.

 

 The business environment surrounding the Group in the nine months ended December 31, 2023 saw firm consumer spending supporting economic activities in the United States, amid the unchanged policy interest rate. However, in China, the sense of economic stagnation continued due to the prolonged real estate recession and weak consumer mindset. In Japan, the economy recovered moderately due to a recovery in automobile production and expansion of inbound 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, and demand for reagents for PCR testing dropped sharply as a result of normalization from the COVID-19 pandemic.

 

 As a result, consolidated net sales in the nine months ended December 31, 2023 increased ¥8.6 billion (2.9%) over the same period of the previous fiscal year, to ¥307.3 billion. Operating profit decreased ¥4.6 billion (47.8%), to ¥5.0 billion and ordinary profit decreased ¥4.5 billion (65.5%) to ¥2.4 billion. Profit attributable to owners of parent decreased ¥8.2 billion (83.9%), to ¥1.6 billion.

 

 Regarding the future business environment, there is continued concern over the impact on economic recovery from the effects of global monetary tightening, the struggling Chinese economy, and heightened geopolitical risk. As for the consolidated earnings forecasts for the fiscal year ending March 31, 2024, although strong demand for TV applications is expected, due to the impact on profits from a slow recovery in demand for packaging film, etc., the Group is forecasting net sales of \410.0 billion (an increase of ¥10.1 billion year on year), operating profit of ¥8.0 billion (a decrease of ¥2.1 billion year on year), ordinary profit of 5.0 billion (a decrease of ¥1.6 billion year on year), and profit attributable to owners of parent of ¥1.0 billion (an increase of ¥1.7 billion year on year).

 

 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, 2024, 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 2024

TOYOBO CO., LTD.                 

President & Representative Director