Toray Industries (3402) Investor presentation summary

Progress on financial and operational targets

• Core operating income increased by 54 billion yen since FY 2022, driven by structural reforms, but remains below target due to lower sales in Performance Chemicals and Carbon Fiber Composite Materials.

• ROIC is expected to reach about 5% in FY 2025, meeting the target, while ROE will fall short.

• All segments except Life Science saw improved core operating income and ROIC; Environment & Engineering led with 11% ROIC.

• Strategic pricing and the Darwin Project contributed to a 30 billion yen increase in profitability.

Business strategy and portfolio management

• Business segments were realigned, combining water treatment and healthcare to accelerate growth in health and comfort markets.

• The business portfolio is managed by growth potential, profitability, and competitiveness, with a focus on next-generation markets like semiconductors and space.

• Structural reform businesses' invested capital ratio is targeted to drop below 10% by FY 2028.

• Continuous innovation and strategic pricing are emphasized to create highly profitable businesses.

Medium- and long-term management programs

• IGNITION 2028 aims for deeper growth and faster reform, targeting ROIC of about 7% and core operating income of 230 billion yen by FY 2028.

• The long-term strategy, "TORAY Challenges 2035," seeks to achieve an ROIC of about 10% by delivering value in next-generation markets.

• Key management measures include business competitiveness, optimal capital allocation, innovation, cost competitiveness, and human capital management.