We will develop a project structure for the particularly important NT-II management issues that require a Group-wide approach. Though the seven reform projects implemented under the NT21 program were, in general, brought to a close in the fiscal year ended March 2004, Toray Group will continue to advance its reforms in the areas of promoting marketing innovation, the TC Project, the FK Project, and certain themes outlined in other individual NT-II projects. (See the following chart.).
| Management Issues | Project | Main Themes to be Addressed |
|---|---|---|
| Developing innovative attitudes and ideas/reinforcing corporate structure |
|
Strengthen communication and information sharing; select young, outstanding human resources; and establish corporate culture where women can realize their full potential; etc. |
|
Steady implementation of TC-3 (reduction target: 15 billion yen) |
|
|
Improve profits through comprehensive efforts to increase efficiency; reduce expenses through greater operating efficiency | |
|
Balance two-pronged approach of expanding investment in advanced materials businesses and reinforcing financial structure; early reduction of D/E ratio to 1.0 or below | |
| Expanding revenues and profits through business structure reform |
|
Develop innovative attitudes and ideas among marketing staff; promote the "New Value Creator"concept; reduce inventory by half (ZH Project); expand one-stop total service function; etc. |
|
Eliminate products that generate negative gross profits; improve gross margin by 5 percentage points or more over the next three years; maintain and/or reduce the ratio of operating expenses to net sales | |
|
Commercialize new advanced materials in near future; strengthen R&D function; expand established advanced materials; strengthen intellectual property capacity | |
|
Allot abundant management resources to No.1 businesses; enhance employee awareness (instill self-confidence and pride); etc. | |
|
Expand businesses in ASEAN, China, Korea, the U.S.A., and Europe |
