Medium-term Management Program "Project AP-G 2019"
1.Position of the Medium-term Management Program
Toray implements three to five year medium-term management programs in order to achieve the goals set in the long-term corporate vision AP-Growth TORAY 2020.
Under the current medium-term management program Project AP-G 2019, Toray will further acclelerate growth and enhance corporate value through the three basic strategies and five key initiatives.
Presentation Materials of the Medium-term Management Program "AP-G 2019"（2.90MB)
2. Basic Strategies
Basic Strategy 1. Business Expansion in Growth Business Fields
Expansion of Green Innovation Businesses
Expansion in business fields that contribute to resolving environmental, resource, and energy issues.
- Examples of Green Innovation Businesses
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Reduction of GHG Emmissions
- Carbon fiber for aircraft, automobiles, wind turbine blades, pressure vessels, etc.
- Lithium-ion battery separator
Low Environmental Load
- Non-halogen flame-retardant material
- Toray Waterless Plate™
Water Treatment
- RO・MBR・MF/UF
membrane
- Home water purifier
Recycling
Regeneration-type recycling, circulation-
type recycling / Material, chemical recyclingAir Purification
- Dust collecting filter/Air filter
Expansion of Life Innovation Businesses
Improve quality of healthcare, ease burden on medical professionals, and contribute to health and longevity with Toray Group's management resources
- Examples of Life Innovation Businesses
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Advanced Materials in LI Business
Pharmaceuticals / Medical Devices
Basic Strategy 2. Expansion and Advancement of Global Business
Expand business globally by capturing profit opportunities in growth countries and regions
- AE (Asia, Americas, Europe, and Emerging Regions) Project
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- Prioritize allocation of capital investment and R&D resources to growth countries and regions
- Establish a supply system for cost competitive products
- Radically reform business and organizational structures for advancement of business
- In the businesses which have global platform, differentiated products, and core technologies, will implement brand initiatives based on integrated business strategies and establish supply chain
Basic Strategy 3. Strengthening Competitiveness
Pursue total cost reduction, and strengthen corporate structure and sales and marketing
- Total Cost Reduction
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- Promote Total Cost Reduction (TC) Project on a group-wide basis
- Activities of variable cost reduction (annual target at over 3.6%)
- Control fixed costs through P-ratio(*) accounting method (P-ratio: under 0.96 each fiscal year)
- For innovation of production process, identify themes by category in terms of "innovative cost reduction," "large-scale total reduction," and "capacity increase of existing facilities" to achieve reduction effects by more than 50 billion Yen in 3 years * P(Performance)-ratio: fixed growth rate/marginal profit growth rate target: less than 1.0 or monitored by division under budget
- Strengthening Corporate Structure
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- Clarify issues of companies and businesses with profitability problems, and gather Toray group's collective efforts to improve revenue and profit
→options include reducting or withdrawing from businesses with limited growth potential or excessive competition - Manage the group's assets effectively and expand revenue and profit
- Clarify issues of companies and businesses with profitability problems, and gather Toray group's collective efforts to improve revenue and profit
- Strengthening Sales and Marketing
-
- Sales and marketing leads to build a "profit-making system" in cooperation with production, technology, R&D departments, and external partners
- Maximize revenue and profit of existing businesses through improvement in price policies, distribution systems, and brand initiatives
2. Key Initiatives
- Key Initiative 1. New Business Creation
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In order to make sources of earnings for the next growth stage, identify several large scale items which leads to the creation of new business domain in the 2020s
Accelerate product development and business formation by allocating the resources selectively
Create New Business with
Revenue of 1 trillion Yen in the 2020s
- Key Initiative 2. R&D and Intellectual Property
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Investment of 220 billion Yen of R&D expenses in 3 years from FY 2017
1/2 of R&D expenses will be allocated to
Green Innovation, and 1/4 to Life Innovation
- Key Initiative 3. Capital Investment
-
500 billion Yen of capital investment planned in 3 years from FY 2017
- Key Initiative 4. M&A and Business Alliances
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To increase and complement growth of existing businesses, proactively utilize M&A and business alliances as means to adjust to the changing business environment and to attain sustainable growth
- Key Initiative 5. Human Resources
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Develop leaders at management level for the next generation, secure and develop core human resources who will exhibit "strong operational competency" at the frontlines
3. Medium-term Business Strategies by Segment
Fibers & Textiles
- Basic Policy
- As a core growth driving business of Toray, Fibers and Textiles segment's challenges are to achieve significant growth by strengthening its earnings structure, expand business in growth business fields and regions, and further enhance its global operations
- Growth Products and Applications
- - Functional materials for apparels and garment
- - Fiber and textile for airbags
- - PP spunbond for hygiene products
- - Suede-texture artificial leather
Performance Chemicals
- Basic Policy
- Expand business by expansion of high value-added products in growth business fields and maximum utilization of global bases, strengthen earnings base by business structure reform
- Growth Products and Applications
- - Resin compound for automotive use
- - PPS Resin, Transparent ABS resin
- - Lithium-ion battery separator film
- - Films for electronic components
- - OLED related materials
Carbon Fiber Composite Materials
- Basic Policy
- Further expand the business as the world's number-one manufacturer of carbon fibers
- Growth Products and Applications
- - Regular tow (high-functional, high-quality TORAYCA™)
- - Large tow (ZOLTEK™)
- - Composites for automobile parts
Environment & Engineering
- Basic Policy
- Expand business in the environment and energy field with focus on water treatment membranes and facility desgn capabilities
- Growth Products and Applications
- - Reverse-Osmosis membrane, Ultrafiltration membrane
- - Water-treatment and plant systems
- - Plant systems for pharmaceuticals and new energy
Life Science
- Basic Policy
- Expand sales of strategic products globally, enhance effective product development
- Growth Products and Applications
- - Oral pruritus treatment drug Remitch™*
- - Blood purification device for treating septicemia Toraymyxin™
- - Dialyzers(hemodiafiltration-related products)
*REMITCH™ is a registered trademark of Torii Pharmaceutical Co., Ltd.
