In 1926, Toray was originally founded under the name Toyo Rayon as a manufacturer of the synthetic fiber viscous rayon. We celebrated our 80th anniversary in 2006.

Since our founding, our corporate culture has been forged under the concept of “Safety First” along with the fundamental philosophy of “aiming for strength and discipline, we place importance on the development of our human resources and our contribution to society,” reflecting our tradition of “R&D-centered management” and “management with a pioneering spirit.”

This management philosophy bore fruit in the commercialization of the three major synthetic fibers of nylon, polyester, and acrylic. Since 1970, when the company name was changed to Toray, we have progressively expanded operations to include plastic resins, films, and chemical products, as well as carbon fiber composite materials, IT-related products, pharmaceuticals and medical products, water treatment, and more.

As Toray Group looks toward the future, our history and experience provide numerous assets to be deployed and utilized. One of these is our “power of know-how accumulated in the workplace” in R&D, manufacturing technologies, and marketing and sales; another is our “power of management” with a high degree of flexibility to adapt to changing times to promote greater progress.

One form taken by this “power of know-how accumulated in the workplace” is the core technology cultivated by the business of synthetic fibers, which are organic synthetic chemistry, polymer chemistry, and biotechnology. Furthermore, we have broadened the domain of our proprietary technology by integrating leading-edge nanotechnology with these core technologies and thereby accelerated the development of new products and technologies. Other important assets include manufacturing technologies and capabilities which have enabled us to steadily improve quality and productivity with an emphasis on the details, and sales and marketing capability in the form of a corporate culture that seeks to provide new value from the customer's perspective.

Our management capability incorporates three significant aspects. First is our adoption of a stance that seeks to strengthen our profit base through self-improvement effort. Through the company's daily operations we have created a robust business model that is not easily affected by inevitable economic fluctuations; you might call it a “self-improvement management style.” In doing so we have sought to incorporate what we believe to be the most important aspect of management capability, namely, the wisdom to take steps to cope with difficult times while avoiding complacency in times of prosperity.

The second aspect of our management capability is the “development of global operations.” Starting with fibers & textiles, Toray Group has been developing its businesses on a global scale for more than 50 years. Subsequently we expanded our global operations in plastic resins and films, followed by carbon fiber composite materials, which are increasingly used as structural materials for aircraft. As a result of these efforts, we are now securing significant profits in regions of the world that are experiencing growth in demand.

The third aspect is the practice of adhering at all times to the approach of “continual cultivation of strategic businesses,” a strategy for facilitating sustainable growth by consistently developing medium- and long-term earnings pillar. Specifically, we are moving to effect a strategic expansion of our businesses in carbon fiber composite materials and IT-related products as drivers of near-term profitability, while cultivating operations that are expected to develop into the pillars of future business: life science including pharmaceuticals and medical products; our water treatment, which is closely involved in resolving the planet's environmental challenges; and new businesses utilizing non-petrochemical raw materials.

Today, the social and economic environment in which Toray Group operates continues to change at an extraordinary pace. In all manufacturing industries, there is unprecedented competition on a global scale, as well as soaring prices in crude oil. Critical issues such as energy and the natural resource agenda, the global environment problems, and rising demand for corporate social responsibility, require each of us to effectively respond to these diverse changes.

We see our most important task as coping with these changes in the external environment and treating them as opportunities for securing sustainable growth. For this reason, we continue to take steps to create a strong management foundation for our operations while pursuing “Innovation” to create new value. This forward-looking evolution is of great importance to our future.

Toray Group celebrated its 80th anniversary in 2006, formulating the long-term corporate vision “AP-Innovation TORAY 21” with the goal of securing sustainable growth and further leap. We have adopted the corporate slogan of “Innovation by Chemistry” based on our corporate philosophy of “contributing to society through the creation of new value with innovative ideas, technologies and products” and reflecting our aim of becoming “a global top company of advanced materials.”

In addition to pursuing technological innovation, we seek to achieve high profitability, evolve dynamically, and grow sustainably by rising to the challenge of “Innovation” in every aspect of our corporate activities.

In addition to seeking to expand our businesses and increase profitability, we are dedicated to the principles of corporate social responsibility through the active pursuit of safety, accident prevention, environmental preservation, corporate ethics, and legal compliance programs. Toray Group has always practiced management with an emphasis on social responsibility, and we believe that playing an active role through social contributions and striving to offer high value to all stakeholders are important factors to fulfill our long-term corporate vision.

I am pleased to reaffirm our commitment to achieving bold yet sustainable development in the 21st century by building a robust management foundation and evolving through the theme of “Innovation.”

For corporations, the fulfillment of CSR is a constant imperative. This CSR Report summarizes the accomplishments of Toray Group's CSR activities during FY 2006, and I am confident that it will enable you to gain an understanding of how we are making steady, step-by-step progress.

I look forward to your understanding and support for Toray Group's corporate activities, now and in the future.