Enhancing People-Centric Management

1. People-Centric Management
   Accompanying the May 2020 announcement of the Long-Term Corporate Vision, TORAY VISION 2030, Toray Group organized the principles it has followed since the beginning in the form of the Toray Philosophy. Within these principles, people-centric management was positioned as a key part of the Corporate Culture, which forms the foundation of the Group’s Corporate Philosophy.
   People-centric management involves efforts to develop dedicated talent capable of creating new value, and to foster a group-wide environment where these professional individuals can grow and work with motivation.
   This is a basic strategy that places human resource development, a focus since Toray's early days, at the core of management. The aim is to maximize corporate value and ultimately contribute to society.
2. Enhanced People-Centric Management
   “Enhanced people-centric management” is an updated version of the original people-centric management approach. This revision was made in response to recent changes in employment dynamics, such as increasing uncertainty in the business environment, diversification of personal values, and a growing desire for career autonomy.
   To ensure that it continues to create new value, the Group has defined key transformation points in its human resources strategy as areas with gaps between the current state (As-Is) and the desired state (To-Be), identifying three areas for focus: 1) inclusion of diverse human resources and values, 2) creating human resources and organizations that adapt to change, and 3) fostering empathy with the Toray Philosophy and promoting career development with rewarding and engaging work. The Group is working to reform its organizational culture by addressing these strategic focuses in pursuit of maximizing corporate value and enhancing employee well-being.

Human Resource Strategies and Details of Enhancement

Human Resources Strategies	Details of Enhancement
Inclusion of Diverse Human Resources and Values Diversity	All employees at the Toray Group fully demonstrate their individual strengths, regardless of the differences in their values, life events, or other personal circumstances Current work responsibilities and capability demonstration are fairly assessed, irrespective of gender, age, nationality, or other attributes
Creating Human Resources and Organizations that Adapt to Change Talent portfolio	More extensive successor candidates for management personnel who will lead innovation Ability to stably secure (= hiring and retention) personnel who will take responsibility for the future of the Toray Group, to reliably pass on skills and know-how, and to appropriately promote generational transition A culture that focuses on taking the initiative on learning and that allows for ongoing self-directed learning, and organizations that can adapt to change
Empathy with Toray Philosophy and Career Development with Rewarding and Engaging Work Engagement	High degree of harmony between corporate HR strategies and individual career building allows employees to realize self-fulfillment at the Toray Group Employees can take on challenges without fear of failure, solve problems as a team, and attain a sense of growth and well-being through work

Employee Survey

Toray Group conducts an annual employee survey of personnel at group companies worldwide, with the aim of better understanding employee perceptions of the corporate culture, workplace environment, and human resource and compensation systems. The findings are used to devise future improvements.
In fiscal 2023, the survey was updated to capture the state of the organization from both the perspective of employees’ expectations and their actual experiences. For its pilot implementation, the survey was limited to managers and occupational specialists, G-Course¹ employees, and core staff at group companies in Japan.
Based on the principle that each workplace is a driving force for organizational culture transformation, Toray Group also adopted a new system that allows immediate access to survey results. Certain indicators are further used as KPIs to track progress in enhancing people-centric management.
Survey results are released on the Group intranet, and examples of workplace-level discussions and best practices for improvement are shared group-wide. This supports individual workplaces and enables them to take ownership of organizational culture transformation and engage in the necessary initiatives.

FY 2024 Survey Results (Toray Industries, Inc.)

EX Score®2	Year-on-year increase	66.1	64.8	66.7

• 1 G-Course: A career path for Toray Group executive or upper-level professional candidates
• 2 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. which conducted the employee survey for the Group.

Employing a Diverse Workforce

Toray Group employs talented human resources with high aspirations who can play an active role in global business, inclusive of gender and whether employees were hired out of university or mid-career.
Since 1998, Toray Industries, Inc. has been expanding its efforts to recruit a diverse human resource population and has hired 119 non-Japanese as regular employees as of fiscal 2024. The Company actively recruits non-Japanese students who are studying in Japan, and Japanese students who graduate from universities abroad. Then, it seeks to build a work environment where all employees are able to fully demonstrate their individual abilities and perform to their utmost potential.
In addition, Toray is actively pursuing mid-career hiring, while providing follow-up support for these hires, including additional training after joining the company.

Number of Employees Hired in FY 2020-2024 (Toray Industries, Inc. and group companies in Japan)

Personnel System (Toray Industries, Inc.)

Management-by-objectives system	Each employee establishes annual objectives. At the end of the fiscal year, employees and their supervisors meet to review accomplishments and the extent to which they were able to meet their objectives.
Personnel appraisal system	Designed to facilitate a fair appraisal of employee contributions in terms of duties, responsibilities, capabilities, and performance. In order to link ethics and compliance with individual performance reviews and compensation, evaluation items concerning safety, CSR, quality assurance, and compliance have been added to performance appraisal.
Individual meeting system	Employees meet with their supervisors twice a year in a one-on-one setting. Supervisors provide consultation on employee performance and new objectives.
Self-assessment system for managers, occupational specialists, and G-Course employees	Employees are surveyed annually on topics concerning work experience and desires for interdepartmental transfer. Surveys can then be linked to individual personnel transfers and placement.
Career assessment system for G-Course employees	Employees participate in a regular review consisting of presentations of daily operations and personnel interviews in order to focus on the direction of their future growth.
Job opening system	Employees are given an opportunity to apply for jobs inside the Company and proactively develop their career, while ensuring optimal staff assignment.

Note: The management-by-objectives, personnel appraisal, and individual meeting systems apply to 100% of managers, occupational specialists, and employees pursuing G-Course and S-Course career paths.
G-Course: A career path for Toray Group executive or upper-level professional candidates
S-Course: A career path for manager, supervisor, or specialist candidates
“Performance” under the personnel appraisal system also includes efforts to address CSR-related issues.

Toray Industries has introduced career path worksheets as a human resource development tool designed to promote employee growth. These worksheets encourage employees to reflect on their past work experience and the level of skill required in their field, as well as facilitate career-related discussions through interviews with supervisors and subordinates.
The career path worksheets were first introduced in fiscal 2020 for employees pursuing G-Course career paths in sales and corporate administration. In fiscal 2021, their use was extended to technical G-Course employees and, as of March 2022, has been expanded to all G-Course employees.
Since fiscal 2022, Toray Industries and some of its affiliated companies have adopted the career path worksheet program, and in April 2025, it was adopted by key group companies in Japan.

Toray Industries develops well-designed training programs and systematically executes diverse training programs to enhance management, sales, production technology, and specialized skills, and to better equip employees to address globalization. These programs cover all levels of employees and fields, aiming to develop future management candidates while expanding and educating the base of core staff ready to employ their strong capabilities to lead on the front lines.
In its grade-specific management training programs, Toray Industries has long been working to strengthen leadership development. In recent years, 360-degree (full-circle) feedback has been incorporated into the training to help participants recognize their own leadership performance and apply it to further improvement. For training on the Toray Philosophy and history, a step-by-step learning framework has been designed to deepen understanding of the Company’s management philosophy. The content for senior-level participants is structured to encourage participants to commit themselves to implementing these guiding principles.
Toray Industries is continually reorganizing its training system. Management Training for Executive Candidates was created as a new program with the aim of developing senior management successors. Two other new programs, management training for general managers and management training for managers, were established in order to enhance organizational management capabilities. At the same time, the Company has launched multiple programs to train personnel involved in digital transformation (DX) initiatives, as part of specialized field-specific training for technology and sales personnel.
In fiscal 2024, training expenditures per employee at Toray Industries stood at 158,400 yen, compared to 146,300 yen in the previous fiscal year. (Since much of the training is now being done in-house, starting in fiscal 2023 the calculation also includes costs related to in-house training.)
Moreover, to allow everyone regardless of age to regularly update their abilities and skills, Toray is working to enhance its professional development programs for employees, including the expansion of eligibility for Challenge Courses (subscription-based e-learning).
In addition to training, the Group is adopting various personnel programs to develop an organization in which human resources who are ready for new challenges can play a greater and more active part in the Company.

Company-Wide Training Course Enrollment in FY 2024 (Toray Industries, Inc.)

Note: Time dedicated to group training at the Toray Human Resources Development Center. It does not include time for correspondence learning or study abroad, etc.

Development of Future Management Candidates for Toray Group

In 1991, Toray opened the Toray Management School, which selected 20 talented section managers who are expected to take over management in the future. This kind of program for systematically developing successors for management positions was unusual at the time and a cutting-edge initiative, and 640 employees in total, including 39 women, have completed the program as of fiscal 2024. Many of these graduates have excelled as those responsible for management at group companies in and outside of Japan. To date, 192 graduates have served as top management at Toray and its group companies worldwide.
Opened in 2006, the Toray Group Management School continues to serve as a management successor development institution for Toray group companies in Japan and for the members of the Toray Synthetic Textile Cluster.
Moreover, in 2021 Toray launched Management Training for Executive Candidates targeting talented individuals in general manager positions capable of serving as candidates for the next batch of top management for the Toray Group, as part of an effort to further expand training to systematically develop management successor candidates for the Toray Group.

Strategies for Developing Future Management Candidates

• 3 As of July 2025, 17 of Toray Industries' 28 executive officers have completed the Toray Management School program. Toray Industries' non-consolidated sales grew from 599.2 billion yen in fiscal 1991, when the school opened, to 651.7 billion yen in fiscal 2024.

Toray School of Technology and Business Administration Develops Leaders to Improve Frontline Capabilities Across the Toray Group

Toray Industries is dedicated to improving the capabilities of frontline employees across the Toray Group. It opened the Toray School of Technology and Business Administration in September 1994 as a training facility for young group employees in Japan. The aim is to develop human resources who can think and act without being micromanaged. As of the 29th session in 2024, the school has produced 844 graduates.
Classes include general subjects such as mathematics and English, along with specialized subjects including polymer chemistry, engineering basics, and robotics, as well as more practical group problem-solving exercises and chemical experiments.
In response to the rapidly growing internal demand for development of human resources with digital transformation (DX) expertise, the Toray School of Technology and Business Administration established a new course, “Information I,” linked to the group-wide DX human resource certification system. This course provides instruction that meets frontline needs, including algorithms, programming, and training using collaborative robots.
In October 2022, the Toray School of Technology and Business Administration opened a new Frontline Skills Enhancement School (Genba-ryoku Kyoka School: GKS) to develop unit manager candidates, producing 32 graduates in the first two years. Students learn soft skills such as leadership, team building, followership, and motivation by solving problems in their own departments. Toray Group is developing frontline leaders who have acquired the basic skills needed by working members of society in order to succeed in a changing world.

The Toray Global HR Management (“G-HRM”) Fundamental Policy was established through a resolution of the Board of Directors. The goal of the policy is to manage human resources from a common perspective shared by the entire Group, thereby surmounting differences between countries, regions, cultures, customs, and individual companies.
Toray Group regards the development of core staff at its group companies outside Japan as one of its priority management objectives. The Group makes active efforts to promote employees locally hired at these companies (national staff) to executive management positions, as well as to key posts and management positions at Toray Industries' head office. In fiscal 2024, national staff were appointed as president at 24 key group companies outside Japan.
In fiscal 2024, a total of five core staff outside Japan help manage Toray Group, with one serving as vice president of Toray Industries and four serving as director (riji), a position that is equivalent in scope and level of responsibility to senior management.
In terms of human resource development and promotions, Toray Group has been working on a succession plan and personnel development plan based on a medium- and long-term perspective and drawing up its Medium-Term Human Resources Plan with the goal of implementing systematic personnel assignments to ensure that core staff can tackle important business issues.
The Group implements human resources strategies designed to support business strategies by verifying the availability of successor candidates for core positions and developing individualized development plans for future management candidates, including for core staff outside Japan. In addition, the Group is systematically fostering human resources by offering career development opportunities such as domestic and international job rotations.
Human resource development is systematically implemented using both on-the-job and off-the-job training. Off-the-job training consists of training implemented by each group company outside Japan. This is combined with grade-specific training programs held in Japan to ensure understanding of management principles and policies. These are linked with personalized long-term development plans.
Toray Group, with direct involvement from the head office, is developing and regularly providing management training courses outside Japan specially designed for the particular circumstances and needs of group companies in each respective country.
As a result of these initiatives, approximately 60% of key positions (factory and department manager or higher) at major group companies in Europe and the United States and about 45% of comparable positions in Asia are now held by locally hired national staff. Today, a diverse workforce supports Toray Group’s global management.

FY 2024 Training Courses Held for Core Staff Outside Japan

Toray Group Senior Management Seminar for Japanese-Speaking National Staff (TGSMS-J) (Toray Industries, Inc.)

The Toray Group Senior Management Seminar (TGSMS) was launched in 1996 for senior managers (mainly general manager level) at group companies outside Japan. Its aim is to deepen understanding of the Group’s management policies, strategies, and management style, while fostering leaders capable of advancing their respective companies. The seminar is conducted in English, and to date, more than 350 national staff have participated.
In fiscal 2024, in response to national staff who expressed interest in having the seminar in Japanese rather than English, the first-ever Toray Group Senior Management Seminar in Japanese (TGSMS-J) was held. Fourteen participants from 13 companies across various countries and regions took part. Through the seminar, they gained a deeper understanding of the Group and its management approach, strengthened their appreciation of the corporate culture, and formulated action plans to improve their own organizations in ways consistent with that culture. After completing the seminar, participants reflected on their own workplace initiatives in follow-up online sessions.
It is worth noting that the planning and holding of TGSMS-J were handled by a national staff member from a group company in China (currently a manager in that company’s HR department) as the primary theme of her OJT program in Japan.