Message from the President

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.

We would like to express our heartfelt sympathy to the victims of the COVID-19 infection. I would like to express my sincere respect to all those who are working hard day and night to prevent the spread of the disease. I would also like to express my sincere respect for those who are working day and night on the front lines to prevent the spread of the infection.

Toray as a company has taken necessary preventive measures to deal with the spread of the disease, and will do our utmost for this situation to be resolved as well as for the development of the society and the economy thereafter.

In the fiscal year 2019, the global economy slowed down due to strong uncertainties caused by concerns regarding the intensifying trade frictions between the U.S. and China, the rising geopolitical risks in areas such as the Middle East, and the political confusion over Brexit in Europe. The Japanese economy was relatively steady but lacked strength, affected by typhoons and other natural disasters as well as the increase in the consumption tax rate. Meanwhile, the COVID-19 disease spread globally in 2020 greatly disrupting the economies of Japan and elsewhere, and production and consumption activities, which were stagnating, started to rapidly decelerate.

Under such circumstances, Toray Group, since April, 2017, worked on the medium-term management program “Project AP-G 2019” that spans over three years through fiscal year 2019 and implemented a 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 2019 declined 7.3% compared with the previous fiscal year to ¥2,214.6 billion. Operating income declined 7.3% to ¥131.2 billion, and ordinary income fell 23.2% to ¥103.4 billion. Net income attributable to owners of parent declined 29.8% to ¥55.7 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.

As the world fights to prevent the spread of the COVID-19 disease, it appears that the global economy would not be able to avoid a recession, faced with stagnating production and consumption activities and disruption of supply chains. When and how the economy normalizes largely depends on when the COVID-19 pandemic subsides, and till then there also is the possibility of the global economic growth rate to further decline caused by credit crunch and steeper declines in demand due to bankruptcies and prolonged unemployment. The governments and central banks around the world are employing expansionary fiscal policies and monetary easing, but it is also necessary to pay attention to the impact of fluctuations in the financial and capital markets as well as crude oil price.

Under such circumstances, Toray Group launched the long-term management vision “TORAY VISION 2030” and the medium-term management program “Project AP-G 2022,” both announced on May 13, 2020. Toray Group will carry out business structural reform and strengthening of financial structure to realize a growth strategy against uncertainties, while maintaining the basic strategy of business expansion through active investment.

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

June, 2020