Overview of Fiscal 2012

The business environment for the Toyobo Group during fiscal 2012, ended March 31, 2012 (April 1, 2011, through March 31, 2012), in the domestic economy was characterized by a sharp decline in industrial activities at the beginning of the fiscal year as a result of the Great East Japan Earthquake. Nevertheless, signs of recovery were seen in the second quarter of the fiscal year as progress was made toward the early restoration of supply chains. However, in the second half of the fiscal year, floods in Thailand, the appreciation of the yen, the increase in crude oil prices, and other factors combined to create a challenging business environment. In overseas economies also, the overall outlook continued to be uncertain because of slower economic growth in China and other countries in Asia, the debt crises in Europe, and other factors.

Amid this operating environment, the Toyobo Group aimed to become “The category leader for providing new value in the environment, life science, and high-function products fields.” In the environment field, the Company worked to expand sales of high-melting point polyamide made from biomass and the volatile organic compounds (VOC) emission treatment equipment in overseas, while in the life science field, Toyobo endeavored to increase sales of enzymes for blood glucose sensors and new types of medical membranes. In the field of high-function products, the Company worked to expand sales of films for the manufacturing process of ceramic capacitors and expanded its coating facilities for these films as well as the production capacity for a chlorinated polypropylene paint used as an undercoating for automobile bumpers. In addition, the Company worked to expand specialty business activities globally, including making the decision to establish a manufacturing and sales company for co-polymer polyester in Thailand and a sales company for airbag fabrics in North America.

As a result, consolidated net sales for the subject fiscal year increased ¥8.9 billion (2.6%) from the previous fiscal year to ¥349.5 billion, with operating income down ¥2.6 billion (12.4%) to ¥18.3 billion, and net income of ¥4.6 billion.