Toray Industries (3402) Investor update summary

Business position and competitive edge

• Water treatment membranes are positioned as a growth business, with 10% revenue CAGR over the past 10 years and double-digit ROIC.

• RO membranes hold the No. 1 global market share in seawater desalination; strengths include broad product coverage, high removal and durability, and localized production in Saudi Arabia.

• Global operating network comprises 35 sales offices, 6 production bases, and 4 R&D centers, supported by integrated technical service.

Demand and growth markets

• Water demand is projected to reach 140% of available freshwater resources by 2030; water shortages and environmental pressures are expanding treatment opportunities.

• Seawater desalination demand is shifting toward new projects outside the Middle East and periodic membrane replacement; Middle East construction is expected to remain strong through 2027.

• Wastewater reuse demand is growing 6–7% annually, supported by industrial reuse, potable reuse, PFAS removal, and regional initiatives such as China’s zero liquid discharge.

• Semiconductor ultrapure water and data-center cooling demand is growing at double-digit annual rates; water recycling and high-removal membranes are key requirements.

• Agricultural water, food processing, lithium recovery, and PFAS treatment are targeted adjacent markets, alongside established desalination and reuse applications.

Vision 2030 and business objectives

• Vision 2030 aims to sustain profitability in the membrane business, expand priority applications, and build solution businesses through peripheral technologies and integrated technical services.

• Priority growth fields include seawater desalination, wastewater reuse, semiconductor ultrapure water, data-center cooling water, and agricultural water.

• FY2025 water-treatment revenue is projected at 1.3 times FY2022, with progress expected to exceed the AP-G 2025 target and improve ROIC.

• FY2025–2030 revenue CAGR target is 7% for the water treatment membrane business, with double-digit ROIC to be maintained or improved.