TORAY INDUSTRIES, INC.

The company has over 50 years of R&D and data accumulation since it began producing Torayca® carbon fiber in 1971. It maintains a global supply system for both regular tow, offering the world's highest performance and quality, and large tow, which has strong cost competitiveness. It has built long-term relationships of trust with leading global companies, including a carbon fiber composite materials supply agreement with Boeing (through the end of December 2028).

The company began production of the Romembra® RO membrane element in 1980, giving it over 40 years of track record. The Environment & Engineering Business achieved revenue of ¥266,898 million and a business profit margin of 8.9%, capturing steady demand centered on reverse osmosis membranes for the Middle East. The volume of water treatment contribution has expanded to 3.1 times the FY2013 level, and maintaining the No.1 position in seawater desalination is explicitly stated as part of the medium-term strategy.

Total R&D expenditure for the fiscal year under review was ¥75.9 billion (of which ¥53.6 billion was attributable to the Company), with 1,314 domestic patent applications and 2,388 overseas patent applications recorded. The company continues to create new materials such as ultra-thin semiconductor back-end process materials for AI semiconductors, new recycling technologies for CFRP, and piezoelectric polymers capable of withstanding temperatures above 200°C. Its composite technology base spanning organic synthetic chemistry, polymer chemistry, and nanotechnology makes imitation by competitors difficult.

Transitioning from AP-G 2025 to the new mid-term management challenge IGNITION 2028, the company aims to achieve profit growth through business expansion in growth areas and the promotion of structural reforms. For FY2027 (ending March 2027), business profit of ¥160,000 million (up 12.7% year on year) is forecast, with a policy of executing business operations prepared for uncertainty.

The company continues to shift toward high-value-added products and correct pricing, aiming to improve the business profit margin in each segment. In the Fibers & Textiles Business, both apparel and industrial applications performed steadily, achieving a business profit margin of 6.5% (¥68,041 million / ¥1,052,446 million). This initiative continues to be rolled out across all segments.

The RO Membrane business for the Middle East and domestic plant construction business performed steadily, achieving revenue of ¥266,898 million (up 12.8% year on year) and business profit of ¥28,824 million (up 11.2% year on year) for FY2026 (ending March 2026). Positioned as a key growth area under IGNITION 2028, further expansion will be pursued.

In FY2026 (ending March 2026), the company conducted share buybacks totaling ¥111,697 million, reducing the number of shares issued from 1,631 million shares to 1,504 million shares. The annual dividend was increased from ¥18 to ¥20 (payout ratio of 37.8%). For FY2027 (ending March 2027), a dividend of ¥26 (including a commemorative dividend of ¥3) is forecast, with an expected payout ratio of 42.1%.

While aerospace applications are recovering steadily, general industrial applications (pressure vessels and wind turbine blades) are in an adjustment phase, resulting in a difficult business profit of ¥17,640 million for FY2026 (ending March 2026), down 21.7% year on year. The company continues to aim for profitability improvement through the development of new applications such as hydrogen tanks and UAM, alongside the recovery in aerospace.