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Medium-Term Management Program
Project AP-G 2025
Innovation and Resilience Management —
Value Creation for New Momentum
The new Medium-Term Management Program, Project AP-G 2025 (AP-G 2025) covers the three-year period from fiscal 2023 to fiscal 2025. It takes the Toray Philosophy as its starting point and is designed to ensure the Toray Group achieves sound, sustainable growth by helping to solve global issues arising from the need to balance development and sustainability, as indicated in the Toray Group Sustainability Vision. Under AP-G 2025, we will focus on creating value to fuel this growth strategy and enhance our human resource base to support it. We will strengthen our management foundation to enable investment in growth driven by efficiently invested capital, financial strength, and human resources.
Under AP-G 2025, our five basic strategies are: sustainable growth; ultimate value creation; product and operational excellence; enhancement of people-centric management; and risk management and governance. We will work to expand our growth fields of Sustainability Innovation (SI) Business and Digital Innovation (DI) Business, while pursuing business advancement and high-added-value creation as well as enhancing quality strength and cost competitiveness. At the same time, in order to maintain financial soundness, we will focus across our business operations on balancing profit, cash flow, and asset efficiency. Furthermore, in order to create a new growth trajectory, we will expand high-growth, high-profitability businesses while implementing structural reforms in low-growth, low-profitability businesses.
KPIs for Fiscal 2025
1. Financial Targets
| FY 2022 Actual | FY 2025 Target | |
|---|---|---|
| Revenue | 2,489.3 billion yen | 2,800.0 billion yen |
| Core operating income | 96.0 billion yen | 180.0 billion yen |
| Core operating margin | 3.9％ | 6％ |
| ROIC*1 | 2.7% | About 5% |
| ROE*2 | 5.0% | About 8% |
| Free cash flow | 237.3 billion yen (3-year cumulative total) |
Positive (3-year cumulative total) |
| D/E ratio | 0.62 | 0.7 or lower (guideline) |
Exchange rate assumption for AP-G 2025: 125 yen per US dollar
*1. ROIC = Core operating income after tax / Invested capital (average of the balances at beginning and end of the period)
*2. ROE = Net profit attributable to owners of parent / Average equity attributable to owners of parent
2. Sustainability Targets
| FY 2013 Actual (Baseline) (J-GAAP) |
FY 2022 Actual (IFRS) |
FY 2025 Target (IFRS) |
|
|---|---|---|---|
| Revenue from Sustainability Innovation (SI) Business | 562.4 billion yen | 1,282.8 billion yen (2.3-fold) |
1,600.0 billion yen (2.8-fold) |
| CO2 emissions avoided in value chain | 38 million tons | 9.5-fold | 15.0-fold |
| Water filtration throughput contribution by Toray’s water treatment membranes | 27.23 million tons/day | 2.5-fold | 2.9-fold |
| Greenhouse gas emissions per unit of revenue in production activities | 337 tons/100 million yen | 35% reduction*1 | 40% reduction |
| Greenhouse gas emissions of Toray Group in Japan | 2.45 million tons | 21% reduction*1 | 20% reduction |
| Water usage per unit of revenue in production activities | 15,200 tons/100 million yen | 32% reduction*1 | 40% reduction |
*1. The calculation of the figure for the baseline of FY 2013 includes data for companies that joined the Toray Group in FY 2014 or later.