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Medium-Term Management Program "IGNITION 2028"
－Deeper Growth, Faster Reform－
Positioning of IGNITION 2028
IGNITION 2028 is our Medium-Term Management Program, which covers FY 2026 to 2028, positioned as the first implementation phase toward achieving the Long-Term Management Strategy “TORAY Challenges 2035.”
The Toray Group will accelerate the reignition of growth and the transformation of its business structure, building on the structural reforms and profitability improvement initiatives advanced through the previous Medium-Term Management Program. “Project AP-G 2025.”
Direction under IGNITION 2028
Under IGNITION 2028, with our future vision for 2035 in mind, we will focus on the following priorities over the next three years:
- Achieve both growth strategies and structural reform to evolve the business structure to the next stage
- Build future growth platforms through initiatives in next-generation markets
- Strengthen the management foundation, including human resources, DX, and governance
Financial Target for FY 2028
Billion yen
| FY 2025 Forecast*1 | FY 2028 Target | |
|---|---|---|
| ROIC*2 | About 5% | About 7% |
| ROE | About 5% | About 8% |
| (The above figures are based on the following assumptions.) | ||
| Revenue | 2,600 | 3,000 |
| Core operating income | 150 | 230 |
| Core operating income margin | 5.8% | 8％ |
| D/E ratio | 0.7 or lower (Guideline) |
0.7 or lower (Guideline) |
*1: Forecast announced on February 10, 2026
*2: Core operating income after tax / average invested capital (average of the balances at beginning and end of the period)
Assumption of foreign exchange rate for FY 2028: 150 yen / US＄
Assumption of crude oil price for FY 2028: 72.5US＄/ bbl
Sustainability Target for FY 2030
| FY 2025 Forecast | FY 2030 Target (vs FY 2013) |
|
|---|---|---|
| GHG emission reduction*1*2*3 | 19% reduction | 20% reduction |
| The EX Score™ *4 (Engagement Score) |
67.4 | 70 or higher |
| *1: | With the use of renewable energies and other zero emission power sources rising worldwide, the Toray Group aims to employ zero-emission power sources at a rate equivalent to or better than the targets in each country by FY 2030. |
| *2: | Calculated by multiplying the degree of financial control Toray has over the individual subsidiary, in accordance with the GHG protocol, the international standard. |
| *3: | Calculations include data for companies that joined the Toray Group in FY 2014 or later. |
| *4: | The EX Score™ provides an indicator of organizational health. It measures the gap between each individual’s expectations and their actual experiences. The score is maximized when both expectations and actual experiences are high and the gap between them is minimal. EX Score™ is a registered trademark of HRBrain, Inc. |
Business Portfolio Strategy
In addition to structural reform implemented through FY 2025, we will continually consider and decide whether or not they are in line with Toray's value creation model, and whether Toray is the best owner. Based on these assessments, we plan to reduce the ratio of investing capital allocated to businesses subject to structural reform from slightly over 20% to less than 10% by FY 2028.
Based on the “growth potential x profitability x competitiveness x time axis” in the future,
we have clarified the positioning of each business
Analysis of Core Operating Income
We pursue high-quality business expansion through innovation creation and strategic pricing, while continuing Darwin Project to enhance effectiveness.
(1) Creation of Innovation and Strategic Pricing
- To realize the continuous creation of highly profitable businesses, we will further accelerate the creation of innovation initiatives and enhance the link with strategic pricing.
- We will focus on proactive engagement with markets, customers, and partners; the integrated implementation of R&D and business strategies; and the expansion of contribution margins through the creation of new products and new value.
- We will strengthen our overall value creation capability through close collaboration across production, quality assurance, sales, and R&D.
(2) Promotion of Darwin Project
- Under IGNITION 2028, we will maintain our structural reform framework and, for businesses with large invested capital and low ROIC, advance reforms from a company-wide perspective under strong top management leadership. Through these efforts, we will steadily enhance the stability of our earnings base and reallocate resources to growth business fields.
(3) Initiatives for the Next Generation Markets
- To enter next-generation markets with strong growth potential, we will expand our product portfolio while continuing forward-looking capital investment and R&D investment.
- Specifically, for AI data centers and AI semiconductors, we will also strengthen development in anticipation of next-generation technologies, including opto-electronic integration.
Capital Allocation
With ROIC as our core management principle, we will make disciplined investments to drive further growth, accelerate structural reforms to strengthen cash generation, and deliver sustainable returns to shareholders through appropriate capital allocation
Capital Investment
- During the IGNITION 2028 period, we plan 400–500 billion yen of capital investment.
- Aiming to contribute to profitability and competitiveness, we allocate resources toward building and reinforcing sustainable competitive advantages, creating high-added-value, and promoting smart factory transformation.
- In parallel, we plan investments in semiconductor and AI data center-related fields (included in Performance Chemicals), as well as in environmental measures and DX (included in others), with a long-term perspective.
Shareholders Return Policy in IGNITION 2028
Under IGNITION 2028, we aim to achieve a DOE of 3% or higher by FY 2028, maintaining stable and sustainable dividends as a base, while pursuing progressive dividends supported by profit growth. Furthermore, we implement flexible share buybacks, with due consideration to both strengthening our financial position and optimizing our capital structure.
Presentation Materials
Long-Term Management Strategy “TORAY Challenges 2035” and Medium-Term Management Program “IGNITION 2028” (March 25, 2026)