We would like to take this opportunity to thank you for the invaluable understanding and support you have extended to Toray Industries, Inc. and the Toray Group.

During the fiscal year ended March 31, 2025, the global economy continued to recover, despite stagnation in some parts of Europe, on the back of strong U.S. economy. The recovery in the Chinese economy remained at a standstill, though the effects of economic stimulus measures were also visible. The Japanese economy continued to recover gradually.

Under such circumstances, Toray Group starting from FY 2023 has been promoting its Medium-Term Management Program “Project AP-G 2025,” aiming to achieve sound, sustainable growth through the implementation of five basic strategies of “Sustainable Growth,” “Ultimate Value Creation,” “Product and Operational Excellence,” “Enhancement of People-Centric Management,” and “Risk Management and Governance.”

As a result, consolidated revenue for the fiscal year ended March 31, 2025, compared with the previous fiscal year, increased 4.0% to 2,563.3 billion yen, and core operating income rose 39.1% to 142.8 billion yen. Operating income increased 121.1% to 127.5 billion yen and profit attributable to owners of parent rose 255.8% to 77.9 billion yen.

Taking into consideration such earnings performance in FY 2024, the Company declared a year-end dividend of 9.0 yen per share of common stock, for an aggregate annual dividend of 18.0 yen per share of common stock including interim dividend of 9.0 yen. For fiscal year ended March 31, 2026, the Company plans continuous increases in core operating income for three consecutive years, and given the progress in enhancing the earning foundations, in terms of annual dividend for FY 2025, the Company anticipates paying 20.0 yen per share of common stock, an increase of 2.0 yen compared with the previous fiscal year.

Furthermore, Toray is proceeding with the reduction of cross-shareholdings to accelerate the capital efficiency improvement. In FY 2024, the Company has sold cross-shareholdings worth 109.8 billion yen, and the ratio of the cross-shareholdings to the total equity came to 5.4%. All the proceeds from the sales of cross-shareholdings are intended to be used for share buybacks, and the Company is proceeding with share buybacks in line with the resolution of 100 billion yen of share buybacks at the Board of Directors meeting in November 2024. We plan additional sales of cross-shareholdings in FY 2025, and the proceeds from these sales will also be used for share buybacks.

The global economy is expected to remain highly uncertain, partly due to the imposition of reciprocal tariffs by the U.S. With the global production bases, Toray is highly resilient to the protectionist tendencies in individual countries. However, the Company will pay close attention to the changes in each policy and supply chain, and will operate the business in preparation for uncertainties.

The Company has already initiated active internal discussions regarding the next medium-term management program. Beyond FY 2026, while achieving sustainable growth, the Company will make a tireless effort toward a “truly sustainable company,” which will embody our corporate philosophy “Contributing to society through the creation of new value with innovative ideas, technologies and products.”

We would like to ask our shareholders for their continued understanding and support.

July 2025