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Medium-Term Management Program
Project AP-G 2022
“Resilience and Proactive Management”
—Sustainable Growth and New Development
Under the Medium-Term Management Program, Project AP-G 2022 (AP-G 2022), a three-year business plan for fiscal 2020 to fiscal 2022, the Toray Group will maintain the basic strategy of business expansion through active investment. The Group will maximize the value it creates over the medium to long term by promoting structural reforms while also reinforcing its financial structure, which will facilitate its growth strategy. It will also build a resilient business foundation that will drive sustainable growth into the future. The aim is to achieve sound, sustainable growth as set out in the Long-Term Corporate Vision, TORAY VISION 2030.
Regarding the anticipated business environment over the coming years, major changes are expected due to aging populations, environmental issues, and technological innovation which create business opportunities. However, there is a risk that existing business areas will contract. For this reason, the Toray Group will strive to accurately grasp changes in industrial trends and to achieve sustainable growth by pursuing business model transformation.
Addressing these trends, AP-G 2022 calls for global expansion in growth business fields, strengthening competitiveness, and strengthening the management foundation as basic strategies. The Toray Group will continue to expand Green Innovation (GR) and Life Innovation (LI) businesses and strengthen competitiveness, while increasing awareness of the balance among profit, cash flow, and asset efficiency in business operations to ensure financial soundness. We will also work on business structure reform for low-growth and low-profitability businesses to formulate a new growth track.
The Toray Group will promote the Green Innovation Business Expansion Project (GR Project), the Life Innovation Business Expansion Project (LI Project), and the New Total Cost Reduction Project (NTC Project) as group-wide projects to ensure execution of these strategies.
KPIs for Fiscal 2022
1. Financial KPIs
| FY 2019 Forecast | FY 2022 Target (IFRS) |
||
|---|---|---|---|
| (J-GAAP*) | (IFRS; estimation) | ||
| Net Sales / Revenue | 2,250.0 billion yen | 2,130.0 billion yen | 2,600.0 billion yen |
| Operating Income / Core Operating Income |
130.0 billion yen | 125.0 billion yen | 180.0 billion yen |
| Operating Income to Net Sales / Core Operating Income to Revenue |
5.8% | 5.9% | 7% |
| ROA | About 5% | About 5% | About 7% |
| ROE | About 7% | About 7% | About 9% |
| Free Cash Flow | - | - | 120 billion yen or more (over 3 years) |
| D/E ratio | Around 0.8 | Around 0.9 | Around 0.8 (guideline) |
| Dividend Payout Ratio | - | - | About 30% |
* Forecast announced on February 10, 2020
Exchange rate for AP-G 2022 target: 105 yen / US$
ROA = Operating Income / Total Assets, Core Operating Income / Total Assets
ROE = Net Income Attributable to Owners of Parent, Profit Attributable to Owners of Parent / Owners’ Equity
2. Sustainability KPIs
| FY 2013 Actual (baseline year) (J-GAAP) |
FY 2019 Forecast (compared to FY 2013) (J-GAAP) |
FY 2022 Target (compared to FY 2013) (IFRS) |
|
|---|---|---|---|
| Sales of Green Innovation (GR) products | 463.1 billion yen | 830.0 billion yen | 1,000.0 billion yen |
| Sales of Life Innovation (LI) products | 119.6 billion yen | 220.0 billion yen | 300.0 billion yen |
| Contribution to CO2 reduction in value chain | 40 million tons | 5.1-fold | 5.3-fold |
| Water filtration throughput contribution of Toray's water treatment membranes | 27.23 million tons /day |
1.9-fold | 2.4-fold |
| Greenhouse gas emissions per unit of sales in production activities | 337 tons /100 million yen |
13% reduction | 20% reduction |
| Water usage per unit of sales in production activities | 15,200 tons /100 million yen |
24% reduction | 25% reduction |