Message from the 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, 2018 (fiscal year 2017), the U.S. and European economy continued to register a gradual recovery. There were signs of the economy picking up in many emerging countries. The Japanese economy, in general, continued on its gradual recovery track on the back of improving employment and income situation.

In the meantime, the rise in raw material and fuel prices had a negative impact on Toray Group's profits.

Under such circumstances, Toray Group, in April 2017, embarked on the new medium-term management program “Project AP-G 2019” that spans over three years from fiscal year 2017 to 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, 2018 increased 8.8% compared with the previous fiscal year to 2,204.9 billion yen. Operating income rose 6.5% to 156.5 billion yen, and ordinary income increased 6.0% to 152.3 billion yen. Net income attributable to owners of parent declined 3.5% to 95.9 billion yen.

Taking into consideration such earnings performance, the Company declared a year-end dividend of 8.0 yen per share of common stock, increasing 1.0 yen from the previous fiscal year. As a result, annual dividend, consisting of an interim dividend of 7.0 yen and year-end dividend of 8.0 yen, will be 15.0 yen per share.

The global economy as a whole is expected to continue its gradual expansion, as the economies of the U.S., Europe and other developed countries maintain their expansion and emerging economies in general perform strongly except for a slight slowdown in China.

However, attention should be paid to risk factors such as the protectionism trade policy of developed countries, trade friction and financial market turmoil caused by moves towards monetary policy normalization in the U.S. and Europe. The Japanese economy is also expected to continue on a gradual recovery track on the back of improving employment and income situations, though there are concerns that the economy may be affected by uncertainties in overseas economies and 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, 2018