Message from the President

Toray Industries, Inc.
Akihiro Nikkaku

We would like to take this opportunity to thank you for the invaluable understanding and support you have extended to Toray Industries, Inc. and the Toray Group.

First and foremost, let us express our deepest apologies again for the inappropriate actions relating to UL LLC certification in the Toray resins business. The sustained and systematic inappropriate actions have caused enormous inconvenience to society, including customers, and have significantly damaged the company’s reputation. To determine management responsibility, we reduced the monthly salaries of the President and of the Representative members of the Board, and the outside directors have voluntarily returned a portion of their salaries. In addition, we will make sincere efforts to prevent recurrence going forward.

In the fiscal year 2021, the global economy recovered significantly on the back of the continued economic recovery in China, rebound from the decline caused by the novel coronavirus (COVID-19), easing of restrictions on movement given the progress in vaccination and major economic measures in the U.S. At the same time, differences between countries came to the fore in terms of control of COVID-19 infection and recovery in economy corresponding to the progress in vaccination and economic measures. In addition, emerging supply restrictions including tight supply-demand situation for semiconductors and other parts and materials as well as labor shortage resulted in reduction in automobile production, contributing to a moderate pace of economic recovery from the second half of 2021.

Under such circumstances, Toray Group has been implementing its new medium-term management program “Project AP-G 2022” since May 2020, aiming for achieving sound, sustainable growth through the implementation of basic strategies such as global expansion in growth business fields, strengthening competitiveness, and strengthening the management foundation.

As a result, consolidated revenue for the fiscal year ended March 31, 2022, increased 18.3% compared with the previous fiscal year to ¥2,228.5 billion, and core operating income rose 46.3% to ¥132.1 billion. Operating income increased 80.0% to ¥100.6 billion and profit attributable to owners of parent rose 83.9% to ¥84.2 billion. Taking into consideration such earnings performance, the Company declared a year-end dividend of 8.0 yen per share of common stock, for an aggregate annual dividend of 16.0 yen per share of common stock including interim dividend of 8.0 yen.

The global economy, including Japan, is likely to continue its recovery with the rollout of coronavirus vaccines and progress in economic measures. However, the highly uncertain situation is expected to continue given concerns regarding the impact of the resurgence in infections from variants, supply chain constraints caused by shortage of parts and labor, logistic congestion, and the prolonged situation in Ukraine. It is necessary to pay attention to the growing inflationary pressure from surging fuel and raw material prices and the shift in monetary tightening policies of the U.S. and European countries. In addition, the continued zero-COVID policy of the Chinese authority, its tightening of control of the real estate market and the technology sector, among other factors may place downward pressure on the recovery of the global economy.

Under such circumstances, Toray Group will promote the basic strategies under the medium-term management program “Project AP-G 2022” and carry out its business operation in anticipation of uncertainties.

We would like to ask our shareholders for their continued understanding and support.

July, 2022