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

 

 In the business environment surrounding the Toyobo Group (hereinafter “the Group”) in the six months ended September 30, 2024, in the United States, steady economic activity was supported by consumer spending amid a change to lowering the policy interest rate as price inflation slowed. In China, the economy remained weak 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 increased inbound tourism demand and expansion of capital investment amid a hike in the policy interest rate. Looking ahead, the business environment is expected to be impacted by raw material and fuel price fluctuations due to the destabilization of the international situation and by economic trends in China, the United States, and others.

 

 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 and traditional Arabic fabric remained steady.

 

 As a result, consolidated net sales in the six months ended September 30, 2024 increased ¥9.7 billion (4.9%) over the same period of the previous fiscal year, to ¥209.2 billion. Operating profit increased ¥4.6 billion (193.5%), to ¥6.9 billion and ordinary profit increased ¥2.1 billion (206.5%) to ¥3.2 billion. Profit attributable to owners of parent decreased ¥1.9 billion (94.3%), to ¥0.1 billion.

 

 Looking ahead, the business environment is expected to be impacted by raw material and fuel price fluctuations due to the destabilization of the international situation and by economic trends in China, the United States, and others.

 The Group aims for increased sales 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.

 

November 2024

TOYOBO CO., LTD.                 

President & Representative Director