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Medium-term Management Program
In the medium-term management program, “Project AP-G 2022” (AP-G 2022), Toray Group will work on basic strategies of "global expansion in growth business fields," “strengthening competitiveness,“ and newly added the concept, “strengthening the management foundation, ” in order to increase cash flow and improve asset efficiency.
We will maximize the value we create in the medium- to long-term and will build a structure that will enable us to achieve sustainable growth in the future.
Basic strategies of “Project AP-G 2022”
Basic Strategy 1Global expansion in growth business fields
Utilizing its advanced materials and core technologies to contribute to solving social issues on a global scale, Toray Group will expand its business not only by meeting rising demand, but also by creating new demand. Through a group-wide project, we will promote GR businesses, which help solve global environmental, resource and energy issues, as well as LI businesses, which contribute to better medical care and longevity, foster public health, and support personal safety.
1. Expansion of Green Innovation (GR) businesses : Sales Revenue Target in FY 2022 1 trillion yen
Contribute to solving global environmental, resource and energy issues
Toray Group will implement the GR Project as a group-wide project. We will actively expand business by prioritizing resource use for capital expenditures and R&D to large-scale initiatives such as lightweight materials, biomass-origin materials, recycling materials, lithium-ion battery separator films, large tow carbon fiber for wind turbine blades, water treatment membranes, and materials related to hydrogen and fuel cells.
Revenue from Green Innovation Businesses
In FY 2021, revenue increased from the previous fiscal year due to the growth in carbon fibers for wind turbine blades, water treatment membranes, etc., while carbon fibers for aircraft continued to be sluggish. Overall, Green Innovation Business is on the track to recovery from the impact of COVID-19.
Main business domains in Green Innovation businesses
Energy conservation
- Lightweight materials such as carbon fiber for aircrafts, resins for automobiles
- Materials related to energy-saving displays such as OLED
- Warm innerwear, Cool innerwear etc.
New energy
- Carbon fiber for wind-turbine blades
- Battery separator film for lithium-ion batteries
- Materials related to fuel cells and hydrogen infrastructure etc.
Low Environmental Impact
- Non-fluorine water-repellent material
- Toray Waterless Plate™ etc.
Water Treatment
- RO, MBR, MF/UF membranes etc.
Recycling
- Fiber recycling
- Film recycling etc.
Air Purification
- Dust collecting filter / Air filter etc.
FY 2021 Revenue of Green Innovation Businesses Breakdown by Business field
2. Expansion of Life Innovation (LI) businesses : Sales Revenue Target in FY 2022 300 billion yen
Contribute to better medical care and longevity, foster public health, and support personal safety
In addition to the conventional concepts of contributing to health maintenance and longevity and improving the quality of medical care, will broaden the definition to include products for “personal safety” to respond to threats on society such as recently increasing natural disasters and extreme weather, and aim for business expansion through a group-wide approach.
Revenue from Life Innovation Businesses
In FY 2021, revenue increased from the previous fiscal year due to increase in shipment of non-woven fabrics for hygiene applications and sports related materials.
Main business domains in Life Innovation businesses
Support health and longevity
Nonwoven fabric for hygiene products
Materials for facilitating access
Sportswear fabrics
Home water purifiers
- etc.
Improve quality of medical care, Ease burdens on medical professionals
Dialyzers
Catheter
Medical-use hitoe™
Pharmaceuticals
- etc.
Support personal safety
Heat-shielding/light shielding/UV protective SUMMER SHIELD™
Nonwoven fabric with flame-shielding property, GULFENG™
Protective clothing LIVMOA™
- etc.
FY 2021 Revenue of Life Innovation Businesses Breakdown by Business field
Initiatives for Supporting Future Growth
Toray Group will proactively implement capital investment, work on research and technological development, and create new businesses, in order to pursue business expansion in growth business fields.
- Capital Investment
-
- Proactively implement growth investments in growth business domains
- Research & Technological Development
-
- Invest resources to future large scale themes, contribute to the realization of the Sustainability Vision
- Further leverage comprehensive capabilities by integrating fundamental technologies with original technologies
- New Business Creation
-
Future TORAY-2020s Project (FT Project)
- Continue to promote the group-wide "FT Project” under “AP-G 2022,” to generate revenue sources that will drive the next growth stage
- Will invest resources selectively to large scale themes for the next growth stage, and accelerate product development and the establishment of business models, with the aim to achieve total sales of around 1 trillion yen in the 2020s
Examples of themes in “AP-G 2022”
Hydrogen-fuel cell related materials

Biomass-utilization products and processing technologies

Environmentally-friendly printing solutions

Hygiene, Health-care products

Sensing devices related materials

Basic Strategy 2Strengthening Competitiveness
Toray Group will continue with the group-wide project “total cost reduction,” and will add specific measures of “business advancement, high-added value creation,” and “enhancing workplace competency in sales & marketing and production.”
1. Total Cost Reduction

2. Business Advancement / High Added-value Creation
- Achieve advancement in products
- Add high-value by integrating and combining products and services
- Create new value in collaboration with external partners
- Pursue innovation in the value chain using Information and Communication Technology (ICT)
3. Enhancing Workplace Competency in Sales & Marketing and Production
- Lead the maximization of value-adding by strengthening the ability of the sales force to gather information, provide supply chain insight, the ability to make comprehensive sales proposals, and the ability to resolve issues
- Continually improve labor productivity by strengthening the ability to maintain equipment, resolve onsite problems, and the ability to resolve issues in order to meet customer requirements
Basic Strategy 3Strengthening the Management Foundation
To expand cash flow and enhance asset efficiency, Toray Group will strengthen its financial structure by improving capital efficiency, and conduct business structure and organizational structure reforms of low-growth and low-profitability businesses.
1. Strengthening financial structure by improving cash efficiency
2. Business structure reform of low-growth and low-profitability businesses
- Conduct business structure and organizational structure reforms of low-growth and low-profitability businesses
- Will consider options including reducing or withdrawal from businesses with low market growth potential or where it would be difficult to make the most of Toray Group’s strengths in the future
Determine once a year of target businesses and companies that fall below boundary value for “sales growth” and “profitability”, and conduct business structure and organizational structure reforms
Revenue Targets in FY 2022
Billion yen
FY 2020 Actual | FY 2021 Actual | FY 2022 Forecast | FY 2022 Target | |
---|---|---|---|---|
Revenue | 1,883.6 | 2,228.5 | 2,500.0 | 2,600.0 |
Core Operating Income | 90.3 | 132.1 | 140.0 | 180.0 |
Core Operating Margin | 4.8% | 5.9% | 5.6% | 7% |
ROE | 3.9% | 6.4% | about 7% | about 9% |
ROA | 3.2% | 4.5% | about 5% | about 7% |
Free Cash Flow | 113.7 | 81.1 | Positive | 120 billion yen or more (total of 3 years) |
D/E Ratio | 0.79 | 0.67 | Management in accordance with the guideline (around 0.8) | around 0.8 (guideline) |
Dividend Payout Ratio | 31% | 30% | 29% | about 30% |
Exchange rate for “AP-G 2022” target : 105 yen / US$
ROA = Core Operating Income / Total Assets
ROE = Net profit Attributable to Owners of Parent / Owners’ Equity
Sustainability Targets in FY 2022
FY 2013 Actual (baseline year) (J-GAAP) |
FY 2020 Actual (compared with FY 2013) (IFRS) |
FY 2021 Actual (compared with FY 2013) (IFRS) |
FY 2022 Target (compared with FY 2013) (IFRS) |
|
---|---|---|---|---|
GR Net sales / Revenue | 463.1 billion yen | 711.8 billion yen (1.5 fold) |
832.2 billion yen (1.8 fold) |
1,000.0 billion yen (2.2 fold) |
LI Net sales / Revenue | 119.6 billion yen | 275.6 billion yen (2.3 fold) |
297.7 billion yen (2.5 fold) |
300.0 billion yen (2.5 fold) |
Avoided CO2 emissions | 38.4 million tons | 6.4 fold | 8.0 fold | 5.3 fold |
Contributed Annual water filtration throughput | 27.23 million tons/day | 2.0 fold | 2.2 fold | 2.4 fold |
Greenhouse gas emissions per unit of sales in production activities | 3.37 thousand tons /billion yen | 2.90 thousand tons /billion yen (14% reduction) |
2.67 thousand tons /billion yen (21% reduction) |
20% reduction |
Water consumption per unit of sales in production activities | 152 thousand tons /billion yen | 125.2 thousand tons /billion yen (18% reduction) |
110 thousand tons /billion yen (27% reduction) |
25% reduction |