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 113 non-Japanese as regular employees as of fiscal 2022. 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 Fiscal 2018-2022 (Toray Industries, Inc.)

Result		2018	2019	2020	2021	2022
New graduates	Men	224	244	176	123	110
	Women	41	44	36	38	20
	Total	265	288	212	161	130
Mid-career hires	Men	55	37	9	13	53
	Women	17	8	2	6	7
	Total	72	45	11	19	60

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 recent years, Toray Industries has focused on reorganizing its training system to further enhance the Company's human resource development. 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 2022, practical skills training and discussion-based training sessions were held in-person, while lecture-based training was held online. For all in-person sessions, thorough measures were taken to prevent the spread of COVID-19. Training expenditures per employee at Toray Industries stood at 65,017 yen in fiscal 2022, compared to 58,899 yen in the previous fiscal year.
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 creation of new 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 Fiscal 2022 (Toray Industries, Inc.)

Training category	Persons enrolled			Time dedicated to training per employee (hour)1
	Men	Women	Total
Management	699	59	758	44.8
Technical	620	84	704	29.0
Sales, marketing, and administration	262	74	336	20.2
Global	74	12	86	50.2
Total	1,655	229	1,884	34.7

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

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 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 28th session in 2022, the school has produced 815 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. By having employees participate in hands-on learning experiences, they get a deeper understanding of the theory taught in class. During the one-year period of enrollment, each student aims to develop the skills to become a frontline leader who can think and act without being micromanaged, by utilizing every opportunity for their own professional development.
In October 2022, the Toray School of Technology and Business Administration opened a new Frontline Skills Enhancement School to develop unit manager candidates. Students learn soft skills such as leadership, team building, followership, and motivation by solving problems in their own departments. The curriculum features a new method that involves having students form teams and share a vision, before carrying out activities. They are taught to consider even activities that do not bring the desired results to have achieved something positive and to see this as a valuable process. 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.

Personnel System (Toray Industries, Inc.)

Management-by-objectives system2	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 system2	Designed to facilitate a fair appraisal of employee contributions in terms of duties, responsibilities, capabilities, and performance3.
Individual meeting system2	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.

• 2 Applies 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
• 3 Including CSR initiatives

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.

Toray Group implements training in order to systematically develop future management candidates. Numerous employees who have undergone the training are already active in management positions. In fiscal 2021, Management Training for Executive Candidates was created as a new program with the aim of developing senior management successors. In fiscal 2022, as well, the Group continued to hold various training sessions, while taking the necessary measures to prevent the spread of COVID-19.

Strategies for Developing Future Management Candidates

Program	Participants	Purpose	Year started	Total participants through FY2022
Management Training for Executive Candidates	Department managers of Toray Industries	Develop management leaders at Toray Industries and group companies	2021	22
Toray Management School	Section managers of Toray Industries	Develop future management candidates at Toray Industries and group companies	1991	600
Toray Group Management School	Department managers of group companies in Japan	Develop management candidates focusing on group companies in Japan	2006	328
Toray Group Executive Seminar	Board members/officers of group companies outside Japan	Develop core staff at group companies outside Japan	2004	98

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 2022, a total of eight core staff outside Japan help manage Toray Group, with two serving as vice presidents of Toray Industries and six 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.

FY2022 Training Courses Held for Core Staff Outside Japan

Toray Group Senior Management Seminar (Toray Industries)

The Toray Group Senior Management Seminar was established to develop executive human resources (mainly general managers) working at Toray Group companies outside Japan. It allows participants to improve their understanding of Toray management policies and strategies and Toray-style management, as well as to demonstrate leadership as a driving force for overseas companies. Since its inception in 1996, more than 300 employees hired outside Japan have taken the course.
In 2023, in-person training was held at the Toray Human Resources Development Center in Japan, the first such event since the COVID-19 travel restrictions were lifted, and thorough infection control measures were taken. The 2022 Toray Group Senior Management Seminar was held for five days, from March 6 to 10. The participants included 18 employees from 14 group companies located in 9 countries, namely, the United States, Mexico, the United Kingdom, France, Germany, Switzerland, the Czech Republic, Hungary, and Malaysia.
During the seminar, the participants deepened their understanding of Toray and Toray-style management (the Toray Philosophy and management strategies, as well as compliance and quality assurance activities, etc.). In sessions provided by external lecturers, the participants learned about developing their own management style, how to approach specific regional cultures, and how to recognize their own cultural biases. In addition to learning how to demonstrate effective leadership in various situations, as well as deepening their understanding of Toray's corporate culture, each participant created an action plan to strengthen their own group company in a way that is consistent with Toray's corporate culture. As the 2022 seminar was conducted in person, it also provided an opportunity for dynamic interaction between the participants and became a meaningful way for them to enhance their personal networks.

Toray Group U.S. Management Training
[Toray Industries (America), Inc.]