Toray Industries (3402) Investor Day 2023 Part 2 summary

Fibers and textiles strategy

• FY 2022 revenue reached ¥999.2 billion; revenue and core operating income recovered in FY 2021 and FY 2022 after bottoming in FY 2020. AP-G 2022 core operating income was ¥51.2 billion vs. ¥76.0 billion target.

• AP-G 2025 priorities: improve profitability through value creation, expand growth fields with high-performance products and environmentally responsible materials, and strengthen product and operational excellence.

• Ultrasuede and Alcantara sales target: 1.614 million m/month in FY 2025 vs. 1.096 million in FY 2022; expand production, with new capacity expected to start operations at end-2024.

• Airbag-fabric demand is forecast to grow 7% annually through 2025; expand capacity in India, China, ASEAN and the Americas, and grow cutting and sewing operations.

• FY 2025 targets: revenue ¥1,030.0 billion and core operating income ¥64.0 billion, up ¥12.8 billion from FY 2022; drivers include growth businesses, value-added products and structural reforms.

Resins and chemicals strategy

• FY 2022 Performance Chemicals core operating income was ¥13.0 billion below target, as delayed auto recovery, China’s zero-COVID policy and customer inventory adjustments reduced sales volumes.

• Expand high-performance resins, targeting their share of engineering-plastics revenue to rise from 30% in 2022 to 36% in 2025; focus on PPS, xEV/ADAS applications, and sustainable materials.

• PPS demand is forecast to grow 7% annually through 2025; target compound market share of 36% vs. 32% in 2022, and add 5,000 tonnes of capacity in South Korea, starting in December 2024.

• FY 2025 targets for Performance Chemicals: revenue ¥1,040 billion and core operating income ¥91.0 billion vs. ¥909.4 billion and ¥30.4 billion in FY 2022; the revised revenue targets include resins and chemicals ¥520 billion and films ¥380 billion.

• Expand fine chemicals, veterinary medicines and 3D-printing resin powders; biomass ABS production was expected to start in October 2023, while bio-based adipic acid commercialization is targeted around 2030.

Films strategy

• Shift from “plastic films” to environmentally friendly, high-functional films; prioritize digital innovation, mobility, sustainability, value creation and competitiveness.

• Expand PET release films for MLCCs, ultra-thin OPP capacitor films for xEVs, PET films for semiconductor processing, and PPS films for oil-cooled motors and fuel-cell vehicles.

• The new ultra-thin OPP film line started in FY 2022, raising capacity 1.6x; market share exceeded 60%, with further capacity increases under consideration as xEV demand grows.

• Build film recycling systems and develop mono-material packaging, thinner retort pouches and chemical-recycling options; PET film recycling can reduce manufacturing CO₂ emissions by up to 50%.

• Films’ core operating income target rises by ¥28.0 billion through FY 2025, supported by demand recovery, digital and mobility growth, sustainable products, higher-value products and structural reform.