Slides
Page 1
August 6 , 2026 Presentation to Investors for the First Quarter Ended June 30 , 2026 TOYOBO CO . , LTD . TOYOBO Beyond Horizons
Page 2
2 Sales and operating profit increased because Industrial film and Resin and chemical performed strongly, despite the impact of the worsening situation in the Middle East. Operating profit was ¥7.1 bn. and net profit was ¥3.1 bn. 102.9 110.4 5.6 7.1 1.6 3.1 ＋7.3% Sales are expected to increase, but operating profit is expected to decrease due to higher depreciation, lower sales in the Middle East, and the impact of raw material and fuel costs, despite continued strength in Industrial film. Operating profit is forecasted at ¥23.0 bn, net profit at ¥7.0 bn and the annual dividend at ¥40 per share. ＋28.1% ＋95.3% Highlights FY 3/27 Forecasts Q1 FY 3/27 Results Operating profit Profit attributable to owners of parentNet sales (¥ bn.) Q1 FY 3/27Q1 FY 3/26 Q1 FY 3/27Q1 FY 3/26 Q1 FY 3/27Q1 FY 3/26
Page 3
3 FY 3/26 FY 3/27 Q1 Q1 Amount % 102.9 110.4 +7.5 +7.3% 25.2 27.4 +2.2 +8.7% (Ratio to sales) 24.5% 24.8% - - 5.6 7.1 +1.6 +28.1% (Ratio to sales) 5.4% 6.5% - - - 1.3 - 0.5 +0.8 - 4.3 6.6 +2.4 +55.3% - 1.3 - 0.9 +0.4 - 11.4 14.1 +2.7 +23.3% 17.8 34.8 - - 5.9 7.0 +1.1 +18.8% CAPEX 6.6 5.0 - 1.7 - 25.1% 3.5 3.6 +0.1 +3.3% 1.6 3.1 +1.5 +95.3% Depreciation EPS (\) Ordinary profit Non-operating income and expenses EBITDA* Extraordinary income and losses R&D expenses Profit attributable to owners of parent Operating profit Net sales Gross profit YOY *Operating profit + Depreciation (includes goodwill) (¥ bn.) Summary of Results: P&L
Page 4
4 Total extraordinary income - - - impairment losses - 0.2 +0.2 loss on disposal of non-current assets 0.3 0.2 - 0.2 Loss on valuation of investment securities - 0.4 +0.4 Business restructuring expenses - 0.1 +0.1 loss on revision of retirement benefit plan 0.9 - - 0.9 Total extraordinary losses 1.3 0.9 - 0.4 - 1.3 - 0.9 +0.4 Total extraordinary income and losses YOYFY 3/26 Q1 FY 3/27 Q1 Dividend income 0.1 0.1 - 0.1 Foreign exchange gains - 0.0 +0.0 Other 0.6 0.7 +0.1 Total non-operating income 0.7 0.8 +0.1 Interest expenses 0.7 0.8 +0.1 Foreign exchange losses 0.4 - - 0.4 Other 0.9 0.5 - 0.4 2.0 1.3 - 0.7 - 1.3 - 0.5 +0.8 Total non-operating income and expenses YOYFY 3/26 Q1 FY 3/27 Q1 Total non-operating expenses Non-operating Income and Expenses, Extraordinary Income and Losses (¥ bn.)(¥ bn.) Non-operating income and expenses: breakdown Extraordinary income and losses: breakdown
Page 5
5 0.0 2.0 4.0 6.0 8.0 10.0 7.1 ( +1.6 ) Films Resin and chemical 5.6 Raw material and fuel costs +2.1 Prices +0.5 Volume Others - 1.9+0.8 Industrial film Resin and chemical Depreciation FY 3/27 Q1 Q2 Q3 Q4 Q1 Exchange rate (\/US$) 144 147 154 157 160 Naphtha price in Japan (thousand\/kl) 65 64 66 67 119 FY 3/26 Analysis in Changes in Operating Profit (¥ bn.) Q1 FY 3/26 Q1 FY 3/27
Page 6
6 (B) (A) Mar. 31, 2025 Mar. 31, 2026 Jun. 30, 2026 (A)-(B) 617.8 627.7 620.7 - 7.0 28.6 31.1 29.8 - 1.3 106.2 101.7 99.4 - 2.3 119.0 128.1 128.6 +0.5 296.5 299.9 297.8 - 2.2 232.0 252.0 250.3 - 1.6 195.3 213.3 213.1 - 0.2 (Retained earnings) 69.0 76.2 75.8 - 0.5 36.7 38.7 37.3 - 1.4 267.9 261.0 262.2 +1.2 1.37 1.22 1.23 - 1.15 1.03 1.04 - Property, plant and equipment Total assets Cash and deposits Inventories Net assets Shareholder's equity Trade receivables Non-controlling interests Interest-bearing debt D/E ratio D/E ratio (after adjustment of equity content)* Summary of Results: BS (¥ bn.) *D/E ratio after adjustment of equity content of a subordinated term loan and publicly offered subordinated bond
Page 7
7 FY 3/26 FY 3/27 FY 3/26 FY 3/27 Q1 Q1 Q1 Q1 Films 44.6 48.5 4.0 5.2 +1.2 Life Science 8.0 9.1 0.2 - 0.5 - 0.6 Environmental and Functional Materials 25.4 28.8 1.5 2.8 +1.3 Fibers and Textiles 19.6 18.8 - 0.1 - 0.4 - 0.3 Real Estate and Others 5.3 5.1 0.7 0.6 - 0.1 Elimination & Corporate - - - 0.7 - 0.6 +0.1 Total 102.9 110.4 5.6 7.1 +1.6 Operating profit YOY Net sales We have revised the classification of reporting segments as follows from FY 3/27 and adjusted the figures for FY 3/26 to reflect the new segment classification. - Changed the name of the previous Functional Textiles and Tradingto Fibers and Textiles - Reclassified some businesses previously included in Functional Textiles and Trading into Others. Summary of Results: Segment (¥ bn.)
Page 8
8 Packaging film - Amid concerns over soaring raw material and fuel prices and increased procurement risks, the impact was limited to some extent due to revisions in sales approaches and improvements in productivity. Industrial film - Sales of polarizer protective films for LCDs were strong. - Sales of release film for MLCC steadily expanded, mainly for AI servers. FY 3/26 FY 3/27 Q1 Q1 Amount % Net sales 44.6 48.5 +4.0 +8.9% Operating profit 4.0 5.2 +1.2 +29.0% (OPM) 9.0% 10.7% - - EBITDA 6.5 8.2 +1.7 +26.7% YOY Films (¥ bn.)
Page 9
9 FY 3/27 Q1 Q1 Amount % Net sales 8.0 9.1 +1.1 +13.4% Operating profit 0.2 - 0.5 - 0.6 - (OPM) 2.0% - - - EBITDA 1.1 0.7 - 0.4 - 33.2% YOYFY 3/26 Medical materials - Sales of artificial kidney hollow fiber trended strongly but were impacted by soaring raw material and fuel prices. Pharmaceuticals - Sales decreased due to changes in the business environment and adjustments related to equipment upgrades. Biotechnology - Sales of raw enzymes for diagnostic reagents and genetic testing reagents for overseas markets remained strong. (¥ bn.) Life Science
Page 10
10 FY 3/27 Q1 Q1 Amount % Net sales 25.4 28.8 +3.4 +13.5% Operating profit 1.5 2.8 +1.3 +90.2% (OPM) 5.8% 9.6% - - EBITDA 2.6 4.1 +1.5 +59.6% YOYFY 3/26 Resin and chemical - Sales of engineering plastics increased mainly for automotive applications and earnings improved. - Sales of industrial adhesives “VYLON” remained strong for electronic materials applications overseas. Environment and fiber - Sales of reverse osmosis (RO) membranes for seawater desalination decreased due to the worsening situation in the Middle East. - Sales of High performance fibers increased following the recovery in demand for “ZYLON.” - In Nonwoven materials, spunbond, mainly for building material applications, recovered, leading to improved profitability. (¥ bn.) Environmental and Functional Materials (mainly TOYOBO MC Corporation)
Page 11
11 FY 3/27 Q1 Q1 Amount % Net sales 19.6 18.8 - 0.8 - 4.1% Operating profit - 0.1 - 0.4 - 0.3 - (OPM) - - - - EBITDA 0.5 0.3 - 0.2 - 40.1% YOYFY 3/26 Airbag fabric - Profitability improved as a result of enhancing production efficiency and consolidating overseas sites. Textiles - Profitability of traditional Arabic fabric significantly declined due to decreased sales and increased costs resulting from the worsening situation in the Middle East. (¥ bn.) Fibers and Textiles
Page 12
12 Segment Business Forecasts Films Packaging Same level year on year but expected to slow down slightly in the latter half. Industrial Continued strong demand for polarizer protective films for LCDs. Demand for MLCC for AI servers continue to grow. Life Science Biotechnology Strong in Europe and the U. S. but competition intensifies in China. Medical materials Strong demand for artificial kidney hollow fiber both in Japan and overseas. Environmental and Functional Materials Resin and chemical Strong demand for automotive use, varies by region. Strong demand for electronic materials applications in both Japan and overseas. Environment and fiber The Middle East situation continues to affect reverse osmosis (RO) membranes for seawater desalination (through transportation, negotiations). Demand for Nonwoven materials is expected to remain at the same level year on year. Fibers and Textiles Textiles Affected by the situation in the Middle East for traditional Arabic fabric (decrease in shipments, etc.). Airbag fabric Strong demand for automotive use, varies by region. Others Expected to decline of domestic naphtha prices in the latter half but depend on the situation in the Middle East. Forecasts for Business Environment in the FY 3/27
Page 13
13 Results Forecasts Amount % 421.6 435.0 +13.4 +3.2% 27.9 23.0 - 4.9 - 17.6% (Ratio to sales) 6.6% 5.3% - - 22.9 18.5 - 4.4 - 19.1% - 3.5 - 4.0 - 0.5 - 11.2 7.0 - 4.2 - 37.4% 52.5 51.5 - 1.0 - 2.0% 126.7 79.3 - - 24.6 28.5 +3.9 +15.7% CAPEX 29.0 22.5 - 6.5 - 22.5% 14.1 15.0 +0.9 +6.3% YOY Depreciation EBITDA Net sales Operating profit Ordinary profit FY 3/27FY 3/26 EPS (\) R&D expenses Profit attributable to owners of parent Extraordinary income and losses Forecasts for FY 3/27 (¥ bn.) Sales are expected to increase, but operating profit is expected to decrease due to higher depreciation, lower sales in the Middle East, and the impact of raw material and fuel costs, despite continued strength in Industrial film. Operating profit is forecasted at ¥23.0 bn, net profit at ¥7.0 bn and the annual dividend at ¥40 per share.
Page 14
14 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 FY 3/26 FY 3/27 Exchange rate (\/US$) 151 161 Naphtha price in Japan (thousand\/kl) 65 91 27.9 23.0 ( - 4.9) Raw material and fuel costs +7.0 Prices - 6.5 Volume Others +2.4 - 7.8 Films Resin and chemical Depreciation Analysis in Changes in Operating Profit (¥ bn.) FY 3/26 FY 3/27 (Forecasts) Industrial film increase Shipments to the Middle East decrease (RO* membrane, Textiles) *Reverse osmosis membranes for seawater desalination
Page 15
15 Forecasts by Segment H1 H2 Full year H1 H2 Full year Films 86.5 88.6 175.2 99.0 86.0 185.0 +9.8 Life Science 16.5 18.0 34.5 18.0 21.0 39.0 +4.5 Environmental and Functional Materials 50.7 59.4 110.1 55.0 60.0 115.0 +4.9 Fibers and Textiles 39.9 40.6 80.5 36.5 38.5 75.0 - 5.5 Real Estate and Others 10.3 11.0 21.3 10.5 10.5 21.0 - 0.3 Elimination & Corporate - - - - - - - Total 204.0 217.5 421.6 219.0 216.0 435.0 +13.4 Net sales YOY Full year FY 3/26 Results* FY 3/27 Forecasts H1 H2 Full year H1 H2 Full year Films 8.6 8.0 16.6 9.0 5.0 14.0 - 2.6 Life Science 0.1 -0.1 0.1 - 0.3 0.4 0.1 +0.0 Environmental and Functional Materials 3.1 6.6 9.7 4.5 5.2 9.7 - 0.0 Fibers and Textiles - 0.0 1.0 0.9 - 0.7 0.8 0.1 - 0.8 Real Estate and Others 1.5 2.1 3.5 1.0 1.1 2.1 - 1.4 Elimination & Corporate - 1.5 - 1.5 - 2.9 - 1.5 - 1.5 - 3.0 - 0.1 Total 11.8 16.1 27.9 12.0 11.0 23.0 - 4.9 Operating profit YOY Full year FY 3/26 Results* FY 3/27 Forecasts *H1, H2 and Full year results of FY 3/26 under the new segment structure are preliminary figures before audit and are subject to change. (¥ bn.)
Page 16
16 Appendix
Page 17
17 Q1 Q2 Q3 Q4 Full year Q1 Films 44.6 41.9 43.5 45.1 175.2 48.5 Life Science 8.0 8.5 8.3 9.7 34.5 9.1 Environmental and Functional Materials 25.4 25.3 27.2 32.2 110.1 28.8 Fibers and Textiles 19.6 20.3 19.7 20.9 80.5 18.8 Real Estate and Others 5.3 5.0 4.9 6.1 21.3 5.1 Elimination & Corporate - - - - - - Total 102.9 101.1 103.5 114.0 421.6 110.4 Q1 Q2 Q3 Q4 Full year Q1 Films 4.0 4.6 4.2 3.8 16.6 5.2 Life Science 0.2 - 0.0 - 0.4 0.3 0.1 - 0.5 Environmental and Functional Materials 1.5 1.6 2.3 4.4 9.7 2.8 Fibers and Textiles - 0.1 0.0 0.4 0.6 0.9 - 0.4 Real Estate and Others 0.7 0.7 0.8 1.3 3.5 0.6 Elimination & Corporate - 0.7 - 0.8 - 0.8 - 0.7 - 2.9 - 0.6 Total 5.6 6.2 6.5 9.6 27.9 7.1 FY 3/27 FY 3/27 Net sales Operating profit FY 3/26* FY 3/26* Business Performance (¥ bn.) *Q2, Q3, Q4 and Full year results of FY 3/26 under the new segment structure are preliminary figures before audit and are subject to change.
Page 18
18 Please Note The business performance forecasts and targets included in the business plans contained in this presentation are based on information known to the Company’s management as of the day of presentation. Please be aware that the content of the future forecasts may differ significantly from actual results, due to a number of unforeseeable factors. TOYOBO CO., LTD. All Rights Reserved
Page 19
©️ TOYOBO CO., LTD. All rights reserved.