Message from the President

President
Toray Industries, Inc.
Akihiro Nikkaku

We would like to express our sincere appreciation for the continuous support and understanding of our stockholders and investors.

In the year ended March 31, 2019 (fiscal year 2018), the global economy as a whole continued to recover gradually, underpinned by the strong U.S. economy amid prolonged pressure from the uncertain future weighing on the economy, but the pace of growth slowed in the second half of the fiscal year due to intensified trade frictions and the notable deceleration in the Chinese economy. The Japanese economy continued on its gradual recovery track, as both the corporate and household sectors remained steady in general, although there were some weaknesses in exports and production towards the end of the fiscal year. At the same time, however, the rise in raw material and fuel prices had a negative impact on Toray Group’s profit.

Under such circumstances, Toray Group, since April 2017, has been working on the medium-term management program “Project AP-G 2019” that spans over three years through fiscal year 2019 and has been implementing the growth strategy with focus on taking advantage of growth business fields, pursuing business expansion in growth countries and regions as well as further bolstering its cost competitiveness.

As a result, consolidated net sales for the fiscal year ended March 31, 2019 increased 8.3% compared with the previous fiscal year to 2,388.8 billion yen. Operating income declined 9.6% to 141.5 billion yen, and ordinary income fell 11.7% to 134.5 billion yen. Net income attributable to owners of parent declined 17.2% to 79.4 billion yen.

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 as a whole is forecasted to recover slightly from late 2019, though a slowdown in the pace of growth primarily in China and the U.S. is expected. However, attention should be also paid to risk factors such as increasing trade friction between countries such as the U.S. and China, the downward swing in the Chinese economy and the outcome of the negotiations for the U.K.’s withdrawal from the EU.

The Japanese economy is expected to continue on a gradual recovery track on the back of improvement in the employment and income environment while growths in exports and production are likely to slow. Nevertheless, it is necessary to note the economic impact of the uncertainties in overseas economies and the fluctuations in crude oil prices and in the financial markets.

Under such circumstances, Toray Group will continue to implement the growth strategies under the medium-term management program “Project AP-G 2019.”

We hope all stockholders and investors will grant continued understanding and support in the future.

July, 2019