Interim report
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Consolidated Financial Report for the Three Months Ended June 30 , 2026 TOYOBO Co. , Ltd. Stock Code : 3101 ( Prime Market , Tokyo Stock Exchange ) Representative : Ikuo Takeuchi , President & Representative Director URL August 6 , 2026 https://ir.toyobo.co.jp/en/ir.html Contact Person : Godo Sakamoto , General Manager , Corporate Communication Department TEL : + 81-6-6348-3044 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Yes Holding of financial results briefing : Yes ( Presentation to Investors ) ( Figures are rounded to the nearest million yen . ) 1. Consolidated Business Performance ( 1 ) Consolidated Operating Results Three months ended June 30 Percentages indicate year - on - year increase / ( decrease ) Net sales Operating profit Millions of yen 2026 110,373 % 7.3 Millions of yen 7,132 % 28.1 Ordinary profit Millions of yen 6,626 55.3 % Profit attributable to owners of parent Millions of yen % 3,072 95.3 2025 102,910 ( 2.2 ) 5,566 80.2 4,267 111.8 1,573 100.7 ( Note ) Comprehensive Income : Net profit per share Three months ended June 30 , 2026 : ¥ 4,442 million 124.3 % Three months ended June 30 , 2025 : ¥ 1,981 million ( 55.7 % ) Net profit per share after dilution Yen Yen 2026 34.82 2025 17.84 ( 2 ) Consolidated Financial Position Total assets Millions of yen Net assets Millions of yen Equity ratio Net assets per share % Yen June 30 , 2026 March 31 , 2026 620,657 627,667 250,349 251,995 34.0 ( Reference ) Shareholders ' equity : June 30 , 2026 : ¥ 213,069 million , March 31 , 2026 : ¥ 213,315 million 34.3 2,414.65 2,417.30 2. Dividends Years ended / ending March 31 Dividends per share Record date 1st Quarter 2nd Quarter 3rd Quarter Year - end Total Yen Yen Yen Yen Yen 2026 0.00 40.00 40.00 2027 2027 0.00 40.00 40.00 ( Forecast ) ( Note ) Revision of dividends forecast for this period : Yes 1
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2 3. Forecasts for Fiscal Year Ending March 31, 2027 Percentages indicate year-on-year increase/ (decrease) Net sales Operating profit Ordinary profit Millions of yen % Millions of yen % Millions of yen % Fiscal year 435,000 3.2 23,000 (17.6) 18,500 (19.1) Profit attributable to owners of parent Net profit per share Millions of yen % Yen Fiscal year 7,000 (37.4) 79.33 (Note) Revision of earnings forecast for this period: Yes * Other 1. Significant changes in the scope of consolidation during the subject fiscal year: Yes 1) New company : None 2) Excluded company : 1 (TOYOBO STC CO., LTD.) 2. Adoption of simplified and special accounting methods: None 3. Changes from accounting methods, procedures and the presentation of the consolidated financial statements: 1) Changes based on revision of accounting standards : None 2) Changes other than 1) above : None 3) Changes due to accounting estimation change : None 4) Error correction : None 4. Number of shares issued and outstanding (common stock): 1) Number of shares outstanding (including treasury stock): June 30, 2026: 89,048,792 shares March 31, 2026: 89,048,792 shares 2) Number of treasury stock: June 30, 2026: 808,657 shares March 31, 2026: 804,024 shares 3) Average number of shares outstanding for each period (cumulative term): Three months ended June 30, 2026: 88,241,376 shares Three months ended June 30, 2025: 88,169,159 shares * Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: None * Explanation regarding the appropriate use of forecasts of business results The forward-looking statements made in this document, including the aforementioned forecasts, are based on all information available to the management at the time of this document's release. Actual results may differ from the results anticipated in the statements. For information on the forecast, please refer to "1. Qualitative Information and Financial Statements, (3) Forecast for Fiscal 2027 (Ending March 31, 2027)" on page 6 of this document. (How to obtain supplementary document on earnings) The supplementary document on earnings is disclosed on the same day as the Quarterly Financial Results report, and it is made available on the Company’s website.
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3 Contents Page 1. Qualitative Information and Financial Statements ································ ································ ··············· 4 (1) Qualitative Information on Consolidated Results ································ ································ ················· 4 (2) Analysis of Financial Position ································ ································ ································ ········ 6 (3) Forecast for Fiscal 2027 (Ending March 31, 2027) ································ ································ ·············· 6 2. Consolidated Financial Statements ································ ································ ································ · 7 (1) Consolidated Balance Sheets ································ ································ ································ ········ 7 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ······················· 9 (Consolidated Statements of Income) ································ ································ ······························ 9 (Consolidated Statements of Comprehensive Income) ································ ································ ········· 10 (3) Notes to Consolidated Financial Statements ································ ································ ····················· 11 (Segment Information) ································ ································ ································ ················· 11 (Notes on Significant Changes in Shareholders’ Equity) ································ ································ ······· 13 (Notes to Going Concern) ································ ································ ································ ············· 13 (Notes to quarterly consolidated statements of cash flows) ································ ································ ··· 13
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4 1. Qualitative Information and Financial Statements (1) Qualitative Information on Consolidated Results As for the business environment surrounding the Toyobo Group (hereinafter “the Group”) in the three months ended June 30, 2026, the global economy showed signs of weakness in some regions but generally maintained a trajectory of moderate recovery. However, uncertainties in the global economy persisted, i ncluding developments in the situation in the Middle East and trade policies. In the United States, despite uncertainties in the employment environment, the economy remained overall resilient, supported by fiscal policies and capital investments by companies. In China, amid the continued slump in the real estate market, the recovery in personal consumption and private investment lacked strength, and economic stagnation continued. In Japan, the economy maintained a trajectory of moderate recovery, supported by improvements in the income environment driven by wage increases and capital investments by companies. Under this business environment, despite being affected by the worsening situation in the Middle East, earnings improved as sales remained steady for polarizer protective films for LCDs “COSMOSHINE SRF” and release film for multilayer ceramic capacitors (MLCC), along with increased sales of engineering plastics and industrial adhesives “VYLON.” As a result, consolidated net sales in the three months ended June 30, 2026 increased ¥7.5 billion (7.3%) from the same period of the previous fiscal year to ¥ 110.4 billion. Operating profit increased ¥1.6 billion (28.1%), to ¥7.1 billion and ordinary profit increased ¥ 2.4 billion (55.3%) to ¥6.6 billion. Profit attributable to owners of parent increased ¥1.5 billion (95.3%), to ¥3.1 billion. Results by business segment were as follows: From the first quarter ended June 30, 2026, we have revised the classification of reporting segments. For the following year -on-year comparison, we have adjusted the figures for the same quarter of the previous fiscal year to reflect the new segment classification. Films In the packaging film business, 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. In the industrial film business, sales of release film for multilayer ceramic capacitors (MLCC) steadily expanded, mainly for AI servers. Sales of polarizer protective films for LCDs “COSMOSHINE SRF” were strong, supported by strong demand. As a result, sales in this segment increased ¥ 4.0 billion ( 8.9%) from the same period of the previous fiscal year to ¥ 48.5 billion, and operating profit increased ¥ 1.2 billion (29.0%) to ¥ 5.2 billion. Life Science In the biotechnology business, sales of raw enzymes for diagnostic reagents and genetic testing reagents for overseas markets remained strong. In the medical materials business, sales of artificia l kidney hollow fiber trended strongly, but were impacted by soaring raw material and fuel prices.
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5 In the contract manufacturing business of pharmaceuticals, sales decreased due to changes in the business environment and adjustments related to equipment upgrades. As a result, sales in this segment increased ¥ 1.1 billion ( 13.4%) from the same period of the previous fiscal year to ¥ 9.1 billion, and operating loss of ¥0. 5 billion. (Compared with operating profit of ¥0.2 billion for the same period of the previous fiscal year.) Environmental and Functional Materials In the resin and chemical business, sales of engineering plastics increased, mainly for automotive applications, which contributed to an improvement in earnings. Sales of industrial adhesives “VYLON” remained strong for electronic materials applications overseas. In the environment and fiber business, environmental solutions saw a decline in sales of reverse osmosis membranes for seawater desalination 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, the spunbond, mainly for building material applications, recovered, leading to improved profitability. As a result, sales in this segment increased ¥ 3.4 billion ( 13.5%) from the same period of the previous fiscal year to ¥ 28.8 billion, and operating profit increased ¥ 1.3 billion (90.2%) to ¥ 2.8 billion. Fibers and Textiles In the textile business, profitability of traditional Arabic fabric significantly declined due to decreased sales and increased costs resulting from the worsening situation in the Middle East. In the airbag fabric business, profitability improved as a result of enhancing production efficiency and consolidating overseas sites. As a result, sales in this segment decreased ¥ 0.8 billion ( 4.1%) from the same period of the previous fiscal year to ¥ 18.8 billion, and operating loss of ¥0. 4 billion. (Compared with operating loss of ¥0.1 billion for the same period of the previous fiscal year.) Real Estate and Other Business This segment includes businesses such as real estate, trading, engineering, information processing services, and logistics services. Results in these businesses were generally in line with plans. As a result, sales in this segment decreased ¥0. 2 billion ( 3.3%) from the same period of the previous fiscal year to ¥ 5.1 billion, and operating profit decreased ¥0. 1 billion ( 8.8%) to ¥ 0.6 billion.
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6 (2) Analysis of Financial Position Total assets decreased ¥ 7.0 billion ( 1.1%) from the end of the previous fiscal year to ¥ 620.7 billion. This was mainly due to a decrease in notes and accounts receivable – trade and property, plant and equipment. Total liabilities decreased ¥5.4 billion (1.4%) from the end of the previous fiscal year to ¥370.3 billion. This was mainly due to a decrease in notes and accounts payable – trade and provisions, despite an increase in interest-bearing debt. Net assets decreased ¥1.6 billion (0.7%) from the end of the previous fiscal year to ¥ 250.3 billion. This was mainly due to a decrease in retained earnings and non-controlling interests resulting from dividend payments. (3) Forecast for Fiscal 2027 (Ending March 31, 2027) The consolidated earnings forecasts for the fiscal year ending March 31, 2027, were previously undecided due to the difficulty in appropriately and reasonably assessing the impact on business from the intensification of the situation in the Middle East. However, at this time , we have calculated the consolidated earnings forecasts based on availa ble information and predictions, and hereby announce them. For details, please refer to the Notice of Consolidated Earnings Forecasts and Dividend Forecast for the Fiscal Year Ending March 2027 released today (August 6, 2026).
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7 2. Consolidated Financial Statements (1) Consolidated Balance Sheets (Millions of yen) Previous Fiscal Year (As of March 31, 2026) Current First Quarter (As of June 30, 2026) Assets Current assets Cash and deposits 31,107 29,783 Notes and accounts receivable - trade 88,208 86,202 Contract assets 732 812 Electronically recorded monetary claims - operating 12,755 12,403 Merchandise and finished goods 66,699 64,603 Work in process 23,401 24,368 Raw materials and supplies 37,955 39,626 Other 10,207 8,935 Allowance for doubtful accounts (521) (437) Total current assets 270,543 266,296 Non-current assets Property, plant and equipment Buildings and structures, net 88,751 89,795 Machinery, equipment and vehicles, net 82,648 85,607 Land 92,402 92,394 Construction in progress 23,022 17,083 Other, net 13,109 12,870 Total property, plant and equipment 299,932 297,751 Intangible assets 4,844 4,747 Investments and other assets Other 52,407 51,922 Allowance for doubtful accounts (59) (58) Total investments and other assets 52,348 51,864 Total non-current assets 357,124 354,361 Total assets 627,667 620,657
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8 (Millions of yen) Previous Fiscal Year (As of March 31, 2026) Current First Quarter (As of June 30, 2026) Liabilities Current liabilities Notes and accounts payable - trade 45,075 42,397 Electronically recorded obligations - operating 1,773 1,797 Short-term borrowings 54,700 59,903 Commercial papers 2,000 － Current portion of bonds payable 10,000 10,000 Current portion of long-term borrowings 12,426 17,536 Provisions 5,891 2,984 Other 25,730 24,728 Total current liabilities 157,595 159,344 Non-current liabilities Bonds payable 67,000 67,000 Long-term borrowings 108,345 101,380 Deferred tax liabilities for land revaluation 18,956 18,956 Provision for retirement benefits for directors (and other officers) 202 159 Retirement benefit liability 13,100 13,129 Other 10,474 10,340 Total non-current liabilities 218,077 210,965 Total liabilities 375,672 370,308 Net assets Shareholders' equity Share capital 51,730 51,730 Capital surplus 32,614 32,614 Retained earnings 76,238 75,780 Treasury shares (845) (845) Total shareholders' equity 159,737 159,280 Accumulated other comprehensive income Valuation difference on available-for-sale securities 2,064 1,793 Deferred gains or losses on hedges 13 74 Revaluation reserve for land 40,755 40,755 Foreign currency translation adjustment 3,112 3,720 Remeasurements of defined benefit plans 7,632 7,447 Total accumulated other comprehensive income 53,577 53,789 Non-controlling interests 38,681 37,280 Total net assets 251,995 250,349 Total liabilities and net assets 627,667 620,657
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9 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Millions of yen) (Consolidated Statements of Income) Previous First Quarter (From April 1, 2025 To June 30, 2025) Current First Quarter (From April 1, 2026 To June 30, 2026) Net sales 102,910 110,373 Cost of sales 77,726 83,006 Gross profit 25,183 27,367 Selling, general and administrative expenses 19,617 20,235 Operating profit 5,566 7,132 Non-operating income Dividend income 146 74 Other 558 688 Total non-operating income 704 762 Non-operating expenses Interest expenses 671 768 Foreign exchange losses 416 － Other 916 499 Total non-operating expenses 2,004 1,268 Ordinary profit 4,267 6,626 Extraordinary losses Impairment losses － 225 Loss on disposal of non-current assets 324 167 Loss on valuation of investment securities － 392 Business restructuring expenses － 103 Loss on revision of retirement benefit plan 939 － Total extraordinary losses 1,263 887 Profit before income taxes 3,004 5,739 Income taxes 1,034 1,658 Profit 1,970 4,081 Profit attributable to non-controlling interests 397 1,008 Profit attributable to owners of parent 1,573 3,072
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10 (Millions of yen) (Consolidated Statements of Comprehensive Income) Previous First Quarter (From April 1, 2025 To June 30, 2025) Current First Quarter (From April 1, 2026 To June 30, 2026) Profit 1,970 4,081 Other comprehensive income Valuation difference on available-for-sale securities 37 (274) Deferred gains or losses on hedges (5) (17) Foreign currency translation adjustment 230 735 Remeasurements of defined benefit plans, net of tax 81 (185) Share of other comprehensive income of entities accounted for using equity method (333) 102 Total other comprehensive income 11 361 Comprehensive income 1,981 4,442 Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,651 3,284 Comprehensive income attributable to non-controlling interests 330 1,158
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11 (3) Notes to Consolidated Financial Statements (Segment Information) (ⅰ) Previous First Quarter (From April 1, 2025 to June 30, 2025) 1. Net sales, profit and loss by reporting segment (Millions of yen) Segment to Be Reported Other Busines- ses (Note 1) Total Adjust- ment (Note 2) Consolid- ated Stateme- nts of Income (Note 3) Films Life Science Environm- ental and Functional Materials Fibers and Textiles Real Estate Total Net sales (1) Outside customers 44,576 8,033 25,422 19,574 1,114 98,719 4,190 102,910 ― 102,910 (2) Inter-segment sales and transfers 217 28 1,960 351 281 2,837 2,435 5,272 (5,272) ― Total 44,793 8,061 27,382 19,925 1,395 101,556 6,626 108,181 (5,272) 102,910 Segment profit (loss) 4,005 164 1,463 (83) 498 6,047 203 6,250 (684) 5,566 Note: 1. Other Businesses includes distribution of industrial products, design and construction of buildings, equipment, etc., information services, logistics services and other items. 2. Segment profit or loss adjustment of ¥ (684) million includes eliminations of intersegment transactions of ¥ 109 million and companywide expenses that are not allocated across reporting segments of ¥ (793) million. The principal components of companywide expenses are those related to basic research and development. 3. Segment profit or loss has been adjusted with operating income on the consolidated financial statements.
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12 (ⅱ) Current First Quarter (From April 1, 2026 to June 30, 2026) 1. Net sales, profit and loss by reporting segment (Millions of yen) Segment to Be Reported Other Busines- ses (Note 4) Total Adjust- ment (Note 5) Consolid- ated Stateme- nts of Income (Note 6) Films Life Science Environm- ental and Functional Materials Fibers and Textiles Real Estate Total Net sales (1) Outside customers 48,526 9,111 28,843 18,763 1,100 106,343 4,030 110,373 ― 110,373 (2) Inter-segment sales and transfers 239 19 1,660 353 265 2,536 2,684 5,220 (5,220) ― Total 48,765 9,130 30,503 19,117 1,364 108,879 6,714 115,593 (5,220) 110,373 Segment profit (loss) 5,169 (478) 2,783 (363) 536 7,645 103 7,749 (617) 7,132 Note: 4. Other Businesses includes distribution of industrial products, design and construction of buildings, equipment, etc., information services, logistics services and other items. 5. Segment profit or loss adjustment of ¥ (617) million includes eliminations of intersegment transactions of ¥ 169 million and companywide expenses that are not allocated across reporting segments of ¥ (786) million. The principal components of companywide expenses are those related to basic research and development. 6. Segment profit or loss has been adjusted with operating income on the consolidated financial statements. 2. Matters concerning changes to reporting segments From the first quarter ended June 30, 2026, we have changed the organizational structure of the Group due to the reorganization of a consolidated subsidiary that was engaged in a trading business. In line with this, we have revised the classification of reporting segments, changing the name of the previous Functional Textiles and Trading to Fibers and Textiles and reclassifying some businesses previously included in Functional Textiles and Trading into Others. The segment information for the three months ended June 30, 2025 has been prepared based on the revised classification.
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13 (Notes on Significant Changes in Shareholders’ Equity) Not applicable (Notes to Going Concern) Not applicable (Notes to quarterly consolidated statements of cash flows) Quarterly consolidated statements of cash flows for the three months ended June 30, 2026 are not prepared. Depreciation (including amortization related to intangible assets excluding goodwill) of the three months ended June 30, 2026 is as follows. (Millions of yen) Previous First Quarter (From April 1, 2025 To June 30, 2025) Current First Quarter (From April 1, 2026 To June 30, 2026) Depreciation 5,859 6,958