TOYOBO : REPORT 2021

T O Y O B O

R E P O R T

2 0 2 1

Year Ended March 31, 2021

Principle Principle

Vision	Our Vision

Values	Our Values

Collaboration	Challenge
Reliability
Principle Principle

"Jun-Ri-Soku-Yu" (Adhering to reason leads to prosperity)

"Jun-Ri" • Do what must be done

positive standpoint

• Don't do what must not be done defensive standpoint

"Soku-Yu" • Adhering to "Jun-Ri" leads to a prosperous society

while also realizing self-growth

This is the founding spirit of our company and is our belief.

Vision Our Vision

We will continue to create the solutions needed by people and the earth with materials and science.

Values

Our Values

We welcome change, enjoy change, and create change.

TOYOBO Spirit

Our 9 Commitments

Challenge

Reliability

Collaboration

Think	Create	Accomplish	Safety	Customer	Factual	Mutual	Diversity	Providing
Ahead			First	Satisfaction	Basis	Communication		Opportunities

1 TOYOBO REPORT 2021

President & CEO

Editorial policy

A fire that broke out at Toyobo's Inuyama Plant in September 2020 resulted in the loss of two employees and injury to another employee. Besides offering my prayers for the employees who lost their lives, I would also like to express my sincere condolences to their family members. I offer my heartfelt apologies to the injured employee, to local residents, and to all other affected parties.

Also in fiscal 2021, the company experienced some quality fraud incidents in relation to engineering plastics products, which were a significant source of inconvenience and worry for our customers and other stakeholders. I am deeply sorry for this. Going forward, we will learn from this experience, which our company's management is united in taking very seriously, and the company as a whole will be working together to implement measures for preventing re-occurrence. We will be working to thoroughly strengthen awareness of Toyobo's corporate spirit, based on the Jun-Ri part of the company's founding principle, Jun-Ri-Soku-Yu, which requires that we "Do what must be done," and "Don't do what must not be done."

Contents Please see page 15 for details of "Fire prevention measures" and page 17 "Response to quality fraud incidents."

Since 2019, Toyobo has issued an "Integrated Report" instead of the "CSR Report" and "Annual Report" we issued previously. This single publication contains an overview of financial and non-financial information, including Environmental, Social, and Governance (ESG) related data. Through this Integrated Report, we aim to deepen understanding of the Company among our wide range of stakeholders, including our shareholders and investors. We introduce our philosophy and business activities, our growth strategy and outlook for the future, along with messages from senior management. Our intention is that this report will be actively employed as a tool for dialogue with our stakeholders, and will enhance the Group's corporate value.

Reference Guidelines, etc. :

• GRI "Sustainability Reporting Standards"

• Ministry of the Environment

"Environmental Reporting Guidelines"

(2018 versions)

• Ministry of Economy Trade and

Introduction
Our Origins .....................................	03
Who We Are ....................................	05
Where We Are Heading .........................	07
CEO Message ..................................	09
Fire prevention measures .......................	15
Response to quality fraud incidents ............	17
Value Creation Process
Value Creation Process .........................	19
Materiality .......................................	21
CSV Examples by Solution .....................	25
Value Creation Strategy
Director Dialogue
Controlling Supervisors of Corporate Planning
and Administration Divisions ...................	27
KAERU Project: Beginning of Change ..........	31
Feature	Strengthening Human Capital .........	33
Feature	Toyobo's promotion of
women's participation and advancement.......	35

Feature	The Future our R&D is Creating	.......	37
Feature	Films ...................................	43
Feature	Life Science ...........................	45
Overview by Solution ...........................	47
The Basis of Value Creation
The Basis of Value Creation ....................	55
Message from the Sustainability Ofcer ........	56
ESG Management ..............................	57
Environmental Policy & Activities ...............	58
Social Contribution Policy & Activities ..........	66
Governance Policy & Activities ..................	75
Management Team ..........................	75
Corporate Governance ......................	79
Overview of Fiscal 2021
Key Events in Fiscal 2021 .......................	89
Financial and Non-Financial Highlights .........
Investor Information and Corporate Data	......	91
103

Industry "Guidance for Collaborative

Value Creation"

• International Integrated Reporting

Council

Reporting entity:

Unless otherwise stated, the report refers to TOYOBO CO., LTD. (non-consolidated basis), and references to "Toyobo" or the "Company" mean TOYOBO CO., LTD. Numerical data in financial information is reported on a consolidated basis.

Financial Information

Non-financial Information

TOYOBO REPORT (Integrated Report)

This report outlines our company's value creation-oriented growth strategy, and presents an overview of our business operations. We actively utilize this report as a tool for dialog with shareholders, investors and other stakeholders. https://ir.toyobo.co.jp/en/ir/library/integrated.html

Reporting period:

April 2020-March 2021 (Partially includes information dated after April 2021) Published:

October 2021 (next scheduled publication: September 2022)

Website

Investor Relations

https://ir.toyobo.co.jp/en/ir.html

Annual Financial Report

https://ir.toyobo.co.jp/en/ir/library/

securities.html

TOYOBO NOW shareholder newsletter (in Japanese)

https://ir.toyobo.co.jp/ja/ir/library/

toyobonow.html

FACT BOOK

https://ir.toyobo.co.jp/en/ir/library/fact.html

Website

Sustainability

https://www.toyobo-global.com/sustainability/

Sustainability Reports

https://www.toyobo-global.com/ sustainability/report/

PDF versions, compiled in November each year, of sustainability related information posted on the company website

Corporate Governance Report

https://ir.toyobo.co.jp/en/ir/library/

governance.html

TOYOBO REPORT 2021 2

Molding and processing

Film

Polymerization

modification

Osaka Boseki

Japan's first large-scale spinning company

Eiichi Shibusawa

Jun-Ri-Soku-Yu

Merger with Kureha Boseki

Mie Boseki

MURATAKA trademark

* Names followed by the ® symbol or by "TM" are registered trademarks or pending trademarks respectively in Japan of TOYOBO CO., LTD.

3 TOYOBO REPORT 2021

IZANAS®	Knitted fabric exhibition
	Plastics
Signing an agreement with DSM	Resins

A HOLLOSEP® module pilot project

in the Middle East

Seawater desalination

New types of synthetic fiber

Reducing environmental impact
Biotechnology	Reagents	Comfort evaluation technology
		TOM® III

For 140 years, we have continued to embody

the spirit that we inherited from our founder

The spirit of Jun-Ri-Soku-Yu (adhering to reason leads to prosperity), which was one of our founder's mottos and subsequently became our corporate philosophy, has been the foundation for our growth.

Osaka Boseki, one of the companies that later evolved into Toyobo, came into being in 1882 with Eiichi Shibusawa, renowned as the "father of Japan's modernization," as its founder. The company went on to expand the scope of its business from natural fiber to synthetic fiber, and brought the world a wide range of textile products that have brightened up the era they were created in and helped people to enjoy comfortable lives.

In the 1960s, Toyobo launched its film business, and the company later expanded into other business areas, including plastics, bio-business and functional membranes. With polymerization, modification, molding and processing,

and biotechnology, as its core technologies, Toyobo steadily expanded into new business areas.

From the late 1990s onwards, Toyobo has focused on actively expanding its business into the areas of films, functional polymers, industrial materials, automotive and healthcare, and the company has generated a steady stream of high-value-added products that have contributed towards solving social issues.

The attitude that Jun-Ri-Soku-Yu represents-in terms of helping to solve various issues that have affected society at different times, contributing to the prosperity of society, and the way that the company itself has achieved growth-can be thought of as a forerunner of today's concept of Creating Shared Value (CSV).

TOYOBO REPORT 2021 4