Toyobo : Presentation to Investors for Year Ended March 31, 2023 (249KB)

May 11, 2023

Presentation to Investors

for Year Ended March 31, 2023

TOYOBO CO., LTD.

Highlights

FY 3/23 Results

Although sales increased because we proceeded with product price revisions, profit declined due to the considerable impacts of higher raw material and fuel prices, along with deteriorating market conditions for industrial film and increasing expenses to launch new equipment. Loss came to ¥0.7 bn. due to an extraordinary losses of ¥15.7 bn. including impairment losses on the nonwoven materials business.

Net sales

+6.4%

Operating profit

- 64.6%

Profit (loss) attributable to

owners of parent

(¥ bn.)

375.7

399.9

28.4 10.1

12.9

- 0.7

FY 3/22

FY 3/23

FY 3/24 Forecasts

FY 3/22

FY 3/23

FY 3/22

FY 3/23

We forecast operating profit of ¥15.0 bn. (approx. 1.5x increase YOY) and net profit of ¥4.0 bn., reflecting not only
a recovery in market conditions for industrial film, etc., but further price revisions and implementation of measures
for businesses requiring improvement.	2

Reference: External Environment -

FY 3/23 reviews and FY 3/24 assumptions

FY 3/23

The global economy slowed down

• Rising raw material and fuel prices stemming from the impact of the situation in Ukraine, among others.
• Monetary tightening policies in Europe and the United States and China's zero-COVID policy (lockdowns).

The domestic economy's recovery remained slow

• The normalization of the economy from COVID-19 pandemic was seen in the second half of the year.
• Rising raw material and fuel prices, and delays in the recovery of automobile production due to shortages in the supply of materials such as semiconductors.

FY 3/24

The global economy

• The economy in China is expected to recover gradually following the resumption of economic activities due to the lifting of lockdowns.
• The economy in Europe and the United States will slow down as a result of monetary tightening policies in response

to increasing inflationary pressure.

The domestic economy

• The raw material and fuel prices will remain high, although decline compared to FY 3/23.
• A moderate economic recovery is expected mainly in domestic demand, following the end of the COVID-19 pandemic.

3

Summary of Results: P&L

								(¥ bn.)
									Previous
		FY 3/21	FY 3/22	FY 3/23	YOY
						forecasts
		Amount		%
							(Feb. 2023)
Net sales		337.4	375.7	399.9	+24.2		+ 6.4%		400.0
Operating profit	26.7	28.4	10.1	- 18.4		- 64.6%		11.0
(Ratio to sales)	7.9%	7.6%	2.5%	-		-		2.8%
Ordinary profit		20.7	23.1	6.6	- 16.5		- 71.5%		7.5
Extraordinary income	0.6	6.5	9.8	+3.2		-		-
Extraordinary losses	15.8	14.8	15.7	+0.9		-		-
Profit attributable to owners of parent	4.2	12.9	- 0.7	- 13.5		-		6.5
EBITDA*	*Operating profit + Depreciation (includes goodwill)	45.8	48.5	29.1	- 19.4		- 40.0%		30.5
EPS ()		47.3	144.8	- 7.4	-		-	73.1
ROE* *Profit / Beginning and ending balance average shareholder's equity	2.3%	6.8%	-	-		-
ROIC*	*NOPAT / (Interest-bearing debt + Net assets）	5.0%	5.1%	1.7%	-		-

• Extraordinary income: ¥5.6 bn. for insurance claim income related to the fire accident, ¥2.9 bn. for gain on sale of investment securities.
• Extraordinary losses: Impairment losses of ¥9.8 bn. on assets to be suspended and business assets for the nonwoven materials business, etc.

- Dividends will be ¥40 per share (planned)

4

Analysis in Changes in Operating Profit

30.0

25.0

Raw material and fuel costs

- 17.0

Prices Volume

+11.9 - 7.0

20.0

(¥bn.) 15.0 10.0

5.0

0.0

28.4

- Industrial film (-) - VOC recovery equipment (+), etc.

Others

- 6.2

• Expenses to launch new equipment
• Responses to FDA
• Development of the business base
• Cost reduction (+)

10.1

(- 18.4)

FY 3/22

FY 3/23

	FY 3/21		FY 3/22			FY 3/23
		H1	H2		H1	H2
Exchange rate (/US$)	106	110	115	112	134	137	135
Naphtha price in Japan (thousand/kl)	31	51	63	57	84	70	77		5