Toray Investor Relations - 2023

TORAY IR Day
Medium-term Management Program

Project AP-G 2025
Fibers & Textiles Business

June 9, 2023
Kenichiro Miki
Senior Vice President, General Manager, Fibers & Textiles Division
Toray Industries, Inc.
Contents
I. Outline of Toray’s Fibers & Textiles Business and

its Strength
II. Reviewing the Medium-Term Management Program,
Project AP-G 2022
III. Business Environment and Trends in Demand
IV. Medium-term Management Program, Project AP-G 2025
V. Target for FY 2025
Copyright © 2023 Toray Industries, Inc. 1

Ⅰ
Outline of Toray Group Fibers & Textiles Business

and its Strength
Position within the Fibers & Textiles Segment
Revenue in FY 2022 ◼ Businesses for all the three major synthetic fibers (nylon, polyester, and
999.2 billion yen acrylic). Supply chain integrated businesses from fibers, textiles to
全社
(40% of the total) garments
◼ Industrial applications including textile for airbags and nonwoven fabrics
◼ Global operation including China and Southeast Asia
< Main products and businesses>

Trend in Revenue
(Billion yen)
1,200
999.2
1,000
831.0 836.2
800 719.2
Nylon fibers Textiles Nonwoven fabrics for Fibers and textiles
600 Polyester fibers hygiene products for airbags
400 Acrylic fibers
200
0
2019 2020 2021 2022 (FY)
Garments Protective clothing Artificial leathers

Strength of Toray’s Fibers & Textiles Business：
World’s only Three Dimensional Business Model
Provide solutions to customers North Africa
with freely combining our South Asia
strengths in three axis Americas

EU
ASEAN
3. Global
South
Korea Business Network
China
Japan
1. Technological
Development & Fibers Textiles Garments
Variety of Nylon
Products Polyester
Acrylic
Industrial FY 2. Vertical Integration
Advanced Materials in Supply Chain
PTT
PPS
PTFE
Nano PLA
Nonwoven SB
Microfiber*
* Nonwoven material created using ultra-fine fibers in an "Islands in the Sea" configuration
Three Dimensional Business Model (1): . Technological Development & Variety of Products
PLA Fibers
Plant-based Fibers
PTT(3GT) Fibers
Nonwovens
Microfibers
Artificial leathers
Nanofibers
High- PTFE (Flurofiber)
functional PPS
Fibers Aramid Fibers
Acrylic
Recycled PET Fibers
Recycled Fibers
Recycled Nylon Fibers
Polyester Fibers
Partially plant-based PET
Plant-based Fibers
100% plant-based PET
N66 Fibers
Nylon 610 Nylon 510
N6 Fibers
1950 60 70 80 90 2000 2010 2020

Three Dimensional Business Model (2): Vertical Integration in Supply Chain
- From Raw Materials to Garments -
Filament and Spinning and Weaving and Dyeing and

Staple fibers Finished yarn Processing Sewing
knitting
Variety of production technologies, Worldwide

Producing three major synthetic development, and production garment
fibers (polyester, nylon, acrylic) capacities to weave and knit production
textiles bases
Producing variety of fibers widely
applicable to apparel and industrial Variety of technological Accumulated
applications development in dying and after know-how for
dying processing sewing

Three Dimensional Business Model (3):Global Business Network
Toray Group’s global production bases for Fibers & Textiles Business
(17 countries, 28 bases)
Europe and Africa Asia Americas As of March 2023
UK Vietnam USA
TTEL (Weaving, Dyeing) VTF (Twisted Yarn) Japan TFA (Flurofiber)
THKVN (Sewing) Toray N-FY･SF,P-FY･SF,A-SF, Nonwoven,
Czech Republic Ultra-microfiber non-woven
Thailand fabric with suede texture, Flurofiber Mexico
TTCE (Weaving, Dyeing)
TTS (N-FY,P-FY) TAMX (N-FY, Weaving)
Italy TTT (P/C&P/R Spinning, Weaving, China
Alcantara (Ultra-microfiber Knitting, Dyeing) TFNL (N-FY,P-FY)
non-woven fabric with suede texture) Indonesia TSD (Weaving, Knitting, Dyeing)
ITS (N-FY,P-FY,P-SF) TPN (Nonwoven)
Sweden ISTEM (P/R Spinning, Weaving, TPF (Nonwoven)
Alva (Head Office)
Dyeing)
ACTEM (A spinning) South Korea
Portugal/Tunisia ETX (P/C Spinning, Weaving) TAK (P-FY,P-SF, Weaving, Dyeing, Nonwoven)
Alva (Airbag cushions)
CTX (P/C Spinning, Weaving,
Dyeing) Hong Kong
TPJ (Nonwoven)
N＝Nylon
THK (Sewing HQ)
P＝Polyester
India A＝Acrylic
TID (Nonwoven) Malaysia C＝Cotton
TKAT(Weaving)
PFR(P-SF) R＝Rayon
PAB(P/C Weaving) FY＝Filament Yarn
SF＝Staple Fiber
Fiber, Textile, Artificial leather, Sewing

Ⅱ
Reviewing the Medium-Term Management Program,

Project AP-G 2022
Business Results of Fibers & Textiles Segment
After reaching the bottom in FY 2020, revenue and core operating income has steadily improved, increasing y-o-y in both FY 2021 and FY 2022.
Revenue/ Billion yen Core operating income/ Billion yen(※)
1,200.0 AP-G 2016 AP-G 2019 AP-G 2022 140.0
974.3 999.2 120.0

1,000.0 913.6
892.0
856.7 856.1 831.0 836.2
100.0
800.0 719.2
80.0
600.0
68.9 72.4 72.9 60.0
66.8
400.0 55.6 59.6
51.2 40.0
42.2
200.0 36.6
20.0
00.0 0.0
14年度
FY 2014 15年度
FY 2015 16年度
FY 2016 17年度
FY 2017 18年度
FY 2018 19年度
FY
FY 2019
2019 20年度
FY 2020 21年度
FY 2021 22年度
FY 2022
※～FY 2018 Operating income （J-GAAP） FY 2019～Core operating income (IFRS）

Reviewing the Medium-Term Management Program, Project AP-G 2022
(Billion yen) (Billion yen)
<Summary>
1,200 ■ Revenue (left axis)
Due mainly to the stagnation of economic business activities stemming
■ Core operating income (right axis)
from the expansion of COVID-19 infection and difference in quantity
1,030 caused by changes in market structures, core operating income in FY
999
999.2 2022 was lower than the target of AP-G 2022. Steady progress was
1,000
76.0 made in addressing the issues within each basic strategy.
800
51.2
600
▲24.8
Difference in Net change in price Difference in Difference in currency
quantity fixed cost translation, etc.
400
Di f f erence M ai n Fact ors
⚫ Demand decrease in fiber business
Difference in ⚫ Demand decrease in automobile applications, harsh competition in
200 quantity nonwoven fabrics for hygiene products
⚫ Decrease in demand due to market changes in ASEAN countries
Net change in ⚫ Surge in raw materials and fuel prices as well as transportation
price costs, etc.
0
FY 2022 Target FY 2022 Actual Fixed cost ⚫ Controlling fixed cost for decrease in quantities
Reviewing the Medium-Term Management Program, Project AP-G 2022
Basic Strategies Achievements

⚫ Ultrasuede® and Alcantara®: Automobile interior applications expanded in Japan and Italy
Global expansion in growth ⚫ Airbag: Business field was expanded by sewing business growth
business fields ⚫ Nonwoven fabric business: Expanded PET spunbond production capacity in Japan and South
Korea
Business growth through ⚫ Expanded green Innovation and Life Innovation businesses
sustainability measures ⚫ Started full-fledged expansion of PET bottle recycling “&+”
Advancement of ⚫ Extended and improved the integrated supply chain in Vietnam

business models ⚫ Enhanced global textile brands
Expansion of value-added
⚫ Advancement of textile products utilizing NANODESIGNTM
products
Strengthening the corporate

⚫ Promoted structure reform of low-growth and low-profitability businesses
structure

Ⅲ
Business Environment and Trends in Demand

Business Environment Surrounding the Fibers &Textile business
Change in demand structure by the pandemic
◼ Demand decrease in formal clothing (e.g. dress shirts), pantyhose, and linings for garments
◼ Demand increase in sports/outdoor and interior related products, expansion of e-commerce
Increase in awareness of environmental and

social issues
◼ Accelerating practical measures for transition to circular economy by countries and companies
◼ Attitude for the human rights issues became stricter in the international society
Environmental changes in the backdrop of

geopolitical risks
◼ Surging raw material and energy prices due to the conflict between Russia and Ukraine and global
inflation
◼ Disperse procurement to avoid disorder of supply chains and logistics midst of the pandemic,
accelerating local production for local consumption
Ⅳ
Medium-term Management Program,

Project AP-G 2025
Project AP-G 2025, “Innovation and Resilience Management"
- Long term vision of Fibers & Textiles -

Through Toray group’s fibers & textiles products, provide new value and
enrich the lives of people around the world
- AP-G 2025 Basic policy of Fibers & Textiles Business -

Aim for sustainable growth with high profitability through realization of foundation
enhancement and advancement of products, for promoting measures for a
sustainable world, and through global business expansion in growth business fields
- Business Strategies -
1 Improving profitability by ultimate value creation
Business expansion in grow th fields based on high -performance, highly textured

2
products that make use of environmentally responsible materials
3 Product and operational excellence

Project AP-G 2025: Growth Strategies of Fibers & Textiles Business
Business expansion in growth fields based on high -performance, highly textured

2

Growth strategies: (1) Improving Profitability by Ultimate Value Creation
Global Expansion of Business for Ultrasuede ® and Alcantara ®
With two brand strategies, Ultrasuede® and Alcantara®, at its core, continuously promoting brand value
enhancement, and expanding the business globally mainly in fashion and automobile interiors.
<Toray Industries Ultrasuede Dept. (Japan)> <Alcantara S.p.A, (Italy)>

Advanced material brand from Japan made by “Made in Italy” by original creativity and craftmanship
Toray’s leading-edge technology Luxury brand focusing on sustainability
Beautiful Possibilities Extraordinary Every Day

Expand customers’ potential and providing value beyond expectation Sublime technologies and commitment to sustainability
Under the Ultrasuede vision of “To enrich society through Through constant dialogue with people active in the world of
empowered creativity and materials evolution,” we will work with creation, ALCANTARA® continues to evolve with trust from global
customers to increase the brand value each other. companies around the world.

Global Expansion of Business for Ultrasuede ® and Alcantara ®
Business Environment
Sales Target ⚫ Demand for artificial leather is on an upward trend as it is replacing natural leather.
(Unit: 1,000 ㎡/month) ⚫ Automotive production in global is expected to grow at an annual rate of 3% per year while EV
2,000 production is forecasted to grow rapidly, at an annual rate of 37%, 500% increase by 2028,
compared to 2022
1,800
1614
1,614
1,600
Toray’s Strengths
1,400
⚫ Wide range of product variations in fiber fineness and thickness enable multi-purpose use,
1,200 1096
1,096 including automobile interior, fashion, upholstery, accessory, and consumer electronics.
1,000 ⚫ Providing options to customers by increasing the variety of environmentally friendly
800
products certified as carbon neutral or made from recycled PET/partially bio-based PET.
600 Business Strategies

400
200
⚫ Differentiation from competitors by maintaining and strengthening the two-brand strategy
Ultrasuede® and Alcantara®, including environmentally friendly materials.
0
⚫ Ultrasuede® and Alcantara® always developing high-added-value materials with “Tailor Made
2022年度
FY 2022 2025年度
FY 2025
Production” such as lamination with other materials to satisfy customers’ demand.
⚫ Production expansion for Ultrasuede®. Expect to start operations at the end of 2024.

Airbag Business: Enhancing the Global Supply Chain
Linking regions, organizations, product bases to make use of technical resource, connections and know-how
TTS (Thailand) 2002 ～
TTT (Thailand) 2002 ～
TTCE (Czech Republic) 2006 ～
TSD (China) 2013 ～
Europe (TTCE/ ALVA/TIEU)
TKAT (India) 2014 ～
China (TSD)
TAMX (Mexico) 2015 ～
ALVA (Europe/ Africa) 2020 ～
USA (TIAM)
北アフリカ(ALVA)
North Africa (ALVA) Japan (Toray) ●
Mexico (TAMX)
India (TKAT) ● ● ●
Thailand (TTS/TTT)
Brazil (TBL)
Production and sales of yarn: 3 sites
Production and sales of textiles: 6 sites

Sewing of cushions: 2 sites
R&D center: 2 sites*
Marketing : 8 sites 19
*R&D center: 2 sites in Japan.

Airbag Business: Advancement of Global Supply Chain
～1990s 2000s 2010s 2020s Shift from sales of fibers to fabrics for airbag
applications
Started airbag fibers and fabrics business in Japan
Established global supply chain that covers major

Production of airbag fabrics started in ASEAN countries, China and Europe
production areas for automobiles and can provide
the same high-quality airbag fabrics worldwide
Started airbag fabrics business in India and Americas
Acquired a company producing cushions for automotive airbag systems

Constructed an integrated supply chain
including cutting and sewing
Established R&D system
Automobile
Toray Cushion Component Automobile
manufacturers manufacturers manufacturers
Japan
Production same high-quality

Japan Japan
ASEAN
Japan countries
South Korea South Korea
ASEAN countries
Thailand ASEAN countries
products worldwide China China

China China
Thailand
India India India India
Mexico Americas Americas Americas

Mexico
Czech Portugal
Republic Tunisia Europe Europe
Expansion Strategies of Airbag Business
Business environment ■ Airbag fabrics
（1 million m2/year）
⚫ Demand expanded due to recovery of automobile production, 1,200 Expand at an annual

growth rate of
increase of airbag installment rate in emerging countries 1,000
7%
Automobile production 82 million units per year in 2022 → 90 million units per year in 2025 800
Airbag installment rate Expanded mainly in emerging countries (e.g.: in India, installing 600
6 airbags in a car has become mandatory). 400
⚫ Market needs 200
0
◆ Global supply chain
(CY) 2022 2025
◆ Ensuring stable supply for growing demand
Demand forecast for airbag
◆ Responsiveness in development targeted at autonomous driving and sustainability fabrics
Business strategies
 Improving and/or increasing capacity of production facilities to meet increasing demand in India, China, ASEAN countries and Americas
 Business advancement by expanding cutting & sewing business
 Strengthening next-generation development focused on autonomous driving
Aiming to expand business beyond the demand growth of airbag fabrics,

leveraging our strengths, global supply chain, and business model integrating fibers, fabrics, and cutting & sewing

Grow th strategies: (1) Improving Profitability by Ultimate Value Creation
Adding Higher Value Utilizing Toray’s Unique Technologies: NANODESIGN TM
Cross-sectional shape of the fiber to be designed on a nano-order basis

<Comparing to the conventional technology (concept)>
Spinneret
Composite fiber Composite fiber with Composite fiber with

Composite fiber with
with triangular island cross-section specially arranged islands specially arranged islands
different island polymers
B polymer
A Polymer
Special Diverse polymer

100nm 1μm
Tri-component
Ultra-fine arrangement 500nm application 30μm
Utilizing Toray’s unique technologies that enable to control precisely various “fineness” and “shapes”
14/17
provides higher added-value to bio-based and recycled fibers
Grow th strategies: (1) Improving Profitability by Ultimate Value Creation
Proceeding high added value creation w ith Toray’s unique technology: NANODESIGNTM
Major Products (already in the market)

Cross-sectional
uts-fitTM Bimetal islands in
the sea
KinariTM imitation of silk
• Smooth and sleek texture • Luster that surpasses silk
• Bulkiness, retention of • Noble glaze, rustling sound
shape of silk
• Rich in stretchability • Easy to process and
sewing, looking beautiful
when tailored
Ultra-thin Post elution flat C cross-
QticleTM coated bimetal
CamifuTM sectional shaped
asymmetric bimetal
• Natural and deep color • Warm texture
• Elastic and stretchable • Lightness, elasticity
• Functional addtives
retainability
Awards： Technology Award of The Society of Fiber Science and Technology; Grand Prix of Senken Gosen Award Material Division;
Chemical Society of Japan’s Award for Technical Development, etc.
Continuously creates advanced materials by NANODESIGNTM


2

Bus i ne s s S tr a te gi e s : (2 ) Bus i ne s s e x pa ns i on i n grow th fi e l ds ba s e d on hi gh -pe r for m a nc e , hi ghl y te x tur e d pr oduc ts tha t m a k e us e of
e nvi r onm e nta l l y re s pons i bl e ma te ri a l s
Toray’s Initiatives for Realization of a Circular Economy
・ Across the Group, accelerating initiatives including the following: bio-based materials and pellets; material and chemical recycling; CO2 recycling
・ In the fibers and textiles business, development and sales expansion are currently progressing for bio-based and recycled materials, which have evolved utilizing Toray's
unique technologies
Raw materials Production, use
Use of plant-based raw

materials
Fossil resources (Bio-based PET, nylon
raw materials, etc.
Membrane-integrated Used plastics

biotechnology Toray materials
(including those Waste
Raw Materials Pellets (fibers and textiles,
resins, films)
generated outside (minimize)
the Toray Group)
Biomass PET (fibers and textiles, films),
ABS resins
Nylon fiber products

Material recycling
Air/Emission gas CO2 Chemical Recycling

(CO2)
CO2 recycling
Gas separation
membrane
Toray’s technologies
related to energy and
Electric power Green
from renewable Hydrogen
Water Treatment water that support a
Toray’s Technology energy
circular economy
and Products
Business Strategies: (2) Business expansion in grow th fields based on high -performance, highly textured
Strategies for Biomass-Based and Recycling Brands
Biomass-based Recycling
(Ecodear TM ) (&+ TM )
Brand focused on recycled fibers & textile products
containing post-consumer materials as raw materials
Absorption Emission
CO2 CO2
• Plant-based carbon contained in the plant-based • Raw materials are wastes such as collected PET
synthetic fibers is atmospheric CO2 absorbed by bottles and fishing nets, which are made mainly
plants during photosynthesis. from post-consumer materials.
• Even if this plant-based materials are incinerated, the • The Company recycles waste generated outside
plant-based carbon contained in the products will be the Toray Group to reduce consumption of limited
returned to the atmosphere and will not affect the and precious fossil resources and also
atmospheric CO2 concentration. contributes to waste reduction.
Business Strategies (2): Business expansion in grow th fields based on high -performance, highly textured products
that make use of environmentally responsible materials
Development and Expanding of Plant -based Polyester Ecodear TM PET
Conventional Ethylene Terephthalic Polymerization Fiber Polyester

product glycol acid spinning (PET)
(EG) Spinneret Fiber
Petroleum- (TPA)
Chip
derived
polyester
Mass- production Plant- Terephthalic

Fiber Partially
based acid Polymerization
spinning
Conversion to
plant-based non-fossil fuel-
Partially plant- EG (TPA) polyester based materials
based polyester
Contributing to
CO2 emission
reduction of
Developed products
product Plant- Fiber 100%
through value
based Plant- Polymerization spinning plant-based
chains
100% Plant-based EG based TPA polyester
polyester

Business Strategies (2): Business expansion in grow th fields based on high -performance, highly textured
Developing and Expanding Plant-based Nylon Ecodear TM N510
EcodearTM N510 is 100% plant-based*1 nylon fiber which is made by polymerizing sebacic
acid (from castor-oil plants) and pentamethylenediamine (from corn) and spinning.
Plant-based
sebacic acid 100%
plant-based
Plant-based
Nylon
About 63% N510
Castor-oil Plant
Polymerization Spinning
About 37%
Yarn
Plant-based
Corn
pentamethylenediamine
(*１：ISO16620-1 3.1.5 biobased synthetic polymer content (percentage of plant-based material) is 100 %)
Business Strategies (2): Business expansion in grow th fields based on high -performance, highly textured
Example of Development and Expansion of 100% Plant -based Fibers
Pre-marketing example of 100% 100% Plant-based Nylon

EcodearTM N510
Plant-based Polyester
(from news release on January 14, 2022)
UltrasuedeTM nu:
Head rest covers for ANA’s “Future
Promise” project, a specially painted
aircraft
Sports, outdoor, leg, inner

applications
©ISSEY MIYAKE INC EcodearTM N510 is 100% plant-based*1 nylon
fiber which is made by polymerizing sebacic
RESONANT SUIT PB: acid (from castor-oil plants) and
Patagonia’s Sugar Down shown at ISSEY MIYAKE’s Spring-Summer pentamethylenediamine (from corn) and
spinning.
Collection 2023
Strategies for Biomass-Based/ Recycling Brands
Biomass-based Recycling
(Ecodear TM ) (&+ TM )
Brand focused on recycled fibers & textile products
containing post-consumer materials as raw materials
Absorption Emission
CO2 CO2
• Plant-based carbon contained in the plant-based • Raw materials are wastes such as collected PET
synthetic fibers is atmospheric CO2 absorbed by bottles and fishing nets, which are made mainly
plants during photosynthesis. from post-consumer materials.
• Even if this plant-based materials are incinerated, the • The Company recycles waste generated outside
plant-based carbon contained in the products will be the Toray Group to reduce consumption of limited
returned to the atmosphere and will not affect the and precious fossil resources and also
atmospheric CO2 concentration. contributes to waste reduction.
Fibers & Textiles Recycling Business Brand “&+”
• Recycling Fibers & Textiles brand characterized by “high-added-value” and “traceability”

• Post-consumer materials are mainly used as raw materials. In addition to polyester made from collected PET bottles as
a raw material, nylon made from a portion of collected fishing nets has been newly commercialized.
• Projects and activities that “consumers and various organizations participate in and share the brand story”, which is a
distinctive feature of the brand, are expanding
* “&+” made from collected garments has not been commercialized yet, but will be developed in the future.
Thoughts behind the naming and logo

Recycling business is made possible by involving the people around us. When everyone's thoughts and actions for the future are connected
with "&," value of “ + (plus) ” is created.
Connecting Recycled materials + potential
thoughts and action (=Upgraded recycling)
And Plus

Examples of initiative on &+ TM in Japan
Collecting PET bottles at Toray’s plants and offices

Tokyo Marathon in Japan
Activities to produce &+TM yarn from PET bottles collected

Activities to produce &+TM yarn from PET
at the venue and recycle it into volunteer wear for the next bottles collected from vending machines
year onwards installed in the Company
Strengthening brand power by communicating the appeal of &+TM, which

contributes to the environment through resource circulation
Business Strategies:(2) Business expansion in grow th fields based on high -performance, highly textured
Examples of Initiative on “&+” Outside Japan
Starting initiatives for promoting recycled polyester fibers with the Penang state government at Toray Malaysia, Penang.
Demonstration of PET bottle recycling by the

Penang state government and Toray Malaysia
Donating shirts for school uniforms to local elementary schools. Theｙ were produced as unforms
using fabric made from yarns
Collecting PET bottles at Toray Malaysia from PET bottles collected at a Toray Malaysia facility.

Nylon Recycling: Examples of raw materials derived from fishing nets
Chemical recycling Repolymerization Refining Depolymerization Preprocessing Sorting Recovering

&+TM *
Establishing collecting and Pelletize

recycling system in Japan
Yarn- Making
Polymerization Making fishing net Using
Fishing Disposed
Lactam nets fishing nets
Industry’s first “Fishing net to Disposing

fishing net recycling” Scrap
Repelletize
Material recycling
Preprocessing Sorting
*Currently preparing to acquire international certifications, GRS and RCS
Initiatives to realize a sustainable circular economy


2

Business Strategies: (3) Product and operational excellence
Enhancing Global Megabrand Expansion
Advanced nylon and polyester fabric made of Advanced fabric with flexible and stretching texture. Functional fabric offering a high level of
Toray’s unique thin yarns, light and compact, Has durability, lightness, comfortability, fast-drying water resistance, breathability and
with soft textures properties, applicable to various purposes resistance to condensation, as well as
excellent elasticity

Strengthening Global Supply Chains of Apparel Applications
Asia
China
Europe Filament Textile Sewing
Korea
Japan
UK Czech Republic Bangladesh Filament &
Staple fibers
Filament &
USA
Textile Textile Staple fibers
Textile
India Sewing Textile
Textile
<ASEAN>
Sewing
Indonesia Thailand
Vietnam Malaysia
Filament & Staple fibers Textile Sewing
◼ Responding flexibly to customer needs with integrated business from raw yarn and cotton, textiles to sewing
◼ Proceeding with establishing supply chain for Indian market.

Business Structure Reform for Low -growth and Low -profitability Businesses
Aiming to improve profit foundation, steadily implement business structure reform plans for low-
growth and low-profitability businesses developed in the AP-G 2022.
Businesses Business structure reform
⚫ Reviewing production capacity of spinning, weaving, dyeing in 4 production bases in

Polyester / cotton fabric
ASEAN countries and enhancing group operation.
business
⚫ Conversion of applications: expansion of the uniform and casual wear applications.
⚫ Optimizing global production capacity of 2 plants in Japan and 3 production sites outside
Japan
Nylon fiber business ⚫ Enhancing expansion of environmentally responsible materials including recycled/ bio-
based materials.
⚫ Increasing sales of textiles by specially made products and higher-level processing.
⚫ Stop or suspend of the low-profitability businesses, given the analysis of business

Affiliates of fiber in Japan structures for each company, in addition to the business portfolio to shift to the high-profit
businesses.

Ⅴ
Target for FY2025

Target for FY 2025: Aiming Sustainable Growth with Profitability
Target of core operating income for FY 2025 is 64.0 billion yen, up 12.8
■ Revenue (left axis) billion yen compared to FY 2022, from expansion of growth business fields we
■ Core operating income (right axis) have been working on since AP-G 2022, promoting high-added-value creation,
ROIC improving profitability by implementing structure reform for low-growth and low-
億円yen
Billion 7% Billion yen
profitability business, and expansion of environmentally responsible materials.
1,200 6%
999 1,030.0
1,030 Difference in Net change in Difference in Difference
999.2 quantity price fixed cost in currency
1,000
translation,
+12.8 etc.
800 64.0
51.2
51.2
600
Variance Main Factors
⚫ Expansion of business growth fields such as airbag and artificial leathers
Difference in
400 ⚫ Capturing recovering demand for integrated apparel business
quantity
⚫ Sales expansion of textile with advanced functions and high-added-value
200 ⚫ Expansion of high-added-value such as NANODESIGNTM products

Net change in price ⚫ Proceeding with passing on the rise in raw material and fuel prices to the sales price
⚫ Business structure reform for low-growth and low profitability
0 Difference in fixed ⚫ Expansion of new production lines for products including airbag and artificial leathers
FY
FY2022
2022Actual
Actual FY 2025
FY 2025 Target
Target cost ⚫ Increase of expenses and labor cost due to expansion of sales activities

Descriptions of predicted business results, projections and
business plans contained in this material are based on
assumptions and forecasts regarding the future business
environment, made at the time of publication.
Information provided in this material does not constitute any

guarantee concerning the Toray Group’s future performance.
Copyright © 2023 Toray Industries, Inc.

Copyright © 2023 Toray Industries, Inc.

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TORAY IR Day

Medium-term Management Program

Fibers & Textiles Business

I. Outline of Toray’s Fibers & Textiles Business and

Copyright © 2023 Toray Industries, Inc. 1

Outline of Toray Group Fibers & Textiles Business

< Main products and businesses>

Garments Protective clothing Artificial leathers

Copyright © 2023 Toray Industries, Inc. 3

with freely combining our South Asia

strengths in three axis Americas

1950 60 70 80 90 2000 2010 2020

Filament and Spinning and Weaving and Dyeing and

Variety of production technologies, Worldwide

Copyright © 2023 Toray Industries, Inc. 6

Europe and Africa Asia Americas As of March 2023

Fiber, Textile, Artificial leather, Sewing

Reviewing the Medium-Term Management Program,

Revenue/ Billion yen Core operating income/ Billion yen(※)

1,200.0 AP-G 2016 AP-G 2019 AP-G 2022 140.0

974.3 999.2 120.0

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Basic Strategies Achievements

Advancement of ⚫ Extended and improved the integrated supply chain in Vietnam

Strengthening the corporate

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Business Environment and Trends in Demand

Change in demand structure by the pandemic

Increase in awareness of environmental and

Environmental changes in the backdrop of

Medium-term Management Program,

- Long term vision of Fibers & Textiles -

- AP-G 2025 Basic policy of Fibers & Textiles Business -

Business expansion in grow th fields based on high -performance, highly textured

3 Product and operational excellence

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1 Improving profitability by ultimate value creation

Business expansion in growth fields based on high -performance, highly textured

3 Product and operational excellence

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<Toray Industries Ultrasuede Dept. (Japan)> <Alcantara S.p.A, (Italy)>

Beautiful Possibilities Extraordinary Every Day

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600 Business Strategies

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Production and sales of textiles: 6 sites

R&D center: 2 sites*

*R&D center: 2 sites in Japan.

Established global supply chain that covers major

Acquired a company producing cushions for automotive airbag systems

Production same high-quality

products worldwide China China

Mexico Americas Americas Americas

⚫ Demand expanded due to recovery of automobile production, 1,200 Expand at an annual

Aiming to expand business beyond the demand growth of airbag fabrics,

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Cross-sectional shape of the fiber to be designed on a nano-order basis

Composite fiber Composite fiber with Composite fiber with

Special Diverse polymer