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.

In the fiscal year 2020, the global economy was hit hard by the novel coronavirus (COVID-19) pandemic. The stagnation in production and consumption activities as well as the disruption to supply chains caused by the restrictions on international movement of people and goods resulted in chaos in both Japanese and overseas economies, causing a record-setting drop in the economy. Subsequently, the global economy rebounded around July, as economic activities resumed, initially in China and followed by the U.S. and Europe. There were times when growth rate slowed, depending on the country, due to restrictions on economic activities caused by the resurgence of COVID-19 infections, but the global economy has been maintaining a recovery trend in general.

Under such circumstances, Toray Group in May 2020 launched the new medium-term management program “Project AP-G 2022” aimed at achieving sound, sustainable growth through the implementation of basic strategies such as global expansion in growth business fields, strengthening competitiveness, and strengthening the management foundation.

As a result, consolidated revenue for the fiscal year ended March 31, 2021, declined 9.9% compared with the previous fiscal year to ¥1,883.6 billion, and core operating income fell 28.1% to ¥90.3 billion. Operating income declined 51.3% to ¥55.9 billion and profit attributable to owners of parent declined by 45.6% to ¥45.8 billion as a U.S. subsidiary recorded an impairment loss.

Taking into consideration such earnings performance, the Company declared a year-end dividend of 4.5 yen per share of common stock, for an aggregate annual dividend of 9.0 yen per share of common stock including interim dividend of 4.5 yen.

The global economy, including Japan, is likely to continue its recovery with large-scale additional economic measures implemented by the U.S. and with the rollout of coronavirus vaccines. However, there remains strong uncertainties such as the restrictions on economic activities in response to resurgence in infections (declaration of state of emergency for the third time in Japan and introduction of restriction of economic activities in various countries) and confirmation of variants from various parts of the world, and therefore the economy is expected to go through the normalization process at a slow pace. In that process, there is also the possibility of a further decline in the global economic growth rate due to credit crunch and steeper declines in demand due to bankruptcies and prolonged unemployment. Moreover, the continuation of the conflict between the U.S. and China may weigh heavily on the recovery of the global economy even after the spread of the COVID-19 subsides. The governments and central banks of countries around the world are employing expansionary fiscal policies and monetary easing. At the same time, it is also necessary to pay attention to the impact of fluctuations in the financial and capital markets as well as crude oil price.

Under such circumstances, Toray Group will promote the basic strategies under the medium-term management program “Project AP-G 2022” and carry out its business operation in anticipation of uncertainties.

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

June, 2021