Management system

Organization (As of July 1, 2020)

Corporate Strategic Planning Division

Representative from Overseas

General Administration & Communications Division President and Representative Board of Member of the Board, Legal & Compliance Division Directors Representative Member of the Board Human Resources Division

Finance & Controller’s Division

Executive Committee Quality Assurance Division

Auditing Dept.

Board of Intellectual Property Division Corporate Corporate Auditors Auditors Information Systems Division

Purchasing & Logistics Division Corporate Auditors Office Corporate Marketing Planning Dept.

Global Environment Business Strategic Planning Dept.

Life Innovation Business Strategic Planning Dept.

Branches

Affiliated Companies Division

Fibers & Division

Resins & Chemicals Division

Films Division

Torayca & Advanced Composites Division

Electronic & Information Materials Division

Pharmaceuticals & Medical Products Division

Water Treatment & Environment Division

Technology Center

Manufacturing Division

Engineering Division

Research & Development Division

Toray Industries, Inc. Integrated Annual Report 2020 51 Members of the Board and Corporate Auditors (As of June 23, 2020)

President and Representative Member of the Board Representative Member of the Board Akihiro Nikkaku Yukichi Deguchi

Representative Member of the Board Mitsuo Ohya

Representative Member of the Board Koichi Abe

Member of the Board Masahiko Okamoto Member of the Board Satoru Hagiwara Member of the Board Minoru Yoshinaga

Member of the Board Kazuyuki Adachi

Toray Industries, Inc. Integrated Annual Report 2020 52 Member of the Board (Outside) Ryoji Noyori

Member of the Board (Outside) Member of the Board (Outside) Member of the Board (Outside) Susumu Kaminaga Kazuo Futagawa Kunio Ito

Corporate Auditor Toru Fukasawa

Corporate Auditor Shogo Masuda

Corporate Auditor (Outside) Hiroyuki Kumasaka

Corporate Auditor (Outside) Toshio Nagai Corporate Auditor (Outside) Kazuya Jono

Toray Industries, Inc. Integrated Annual Report 2020 53 Team (As of June 23, 2020)

Members of the Board President and Representative Member of the Board Representative Member of the Board Representative Member of the Board Representative Member of the Board Akihiro Nikkaku Koichi Abe Yukichi Deguchi Mitsuo Ohya 1973 Joined the Company 1977 Joined the Company 1973 Joined the Company 1980 Joined the Company 2001 , Engineering Division; 2004 General Manager, Aichi Plant 2009 Assistant General Manager, Research & 2009 General Manager, Industrial & General Manager, Second Engineering Dept. 2005 (Member of the Board) Development Division Division 2002 Vice President (Member of the Board) 2009 Senior Vice President (Member of the Board) 2009 Vice President (Member of the Board) 2012 Vice President (Member of the Board) 2004 Senior Vice President (Member of the Board) 2011 Senior Vice President (Member of the Board & 2012 Senior Vice President (Member of the Board) 2014 Retired from Vice President (Member of the 2006 Senior Vice President (Member of the Board & Member of the Executive Committee) 2014 Senior Vice President (Member of the Board and Board) Member of the Executive Committee) 2013 Senior Vice President and Representative Member of the Executive Committee) President and Representative Member of the 2007 Executive Vice President and Representative Member of the Board 2018 Executive Vice President and Representative Board, Toray International, Inc. Member of the Board 2014 Executive Vice President and Representative Member of the Board 2016 Senior Vice President (Member of the Board & 2010 President and Representative Member of the Board Member of the Board 2020 Executive Vice President (Representative Member of the Executive Committee) 2020 President and Representative Member of the 2020 Executive Vice President (Representative Member of the Board) (incumbent) 2020 Executive Vice President (Representative Board, , Chief Operating Member of the Board) (incumbent) Member of the Board) (incumbent) Officer (incumbent)

Member of the Board Member of the Board Member of the Board Member of the Board Satoru Hagiwara Kazuyuki Adachi Minoru Yoshinaga Masahiko Okamoto 1981 Joined the Company 1980 Joined the Company 1979 Joined the Company 1986 Joined the Company 2012 General Manager, Industrial Films Division; 2017 Director, Toray Industries () Co., Ltd.; 2008 General Manager, Manufacturing Division 2009 Vice President (Member of the Board), Toray Chairman, Toray Films Europe S.A.S.; Chairman, President, Luckytex (Thailand) Public Company (Torayca & Prepreg Manufacturing, ACM Industries () Sdn. Berhad; Vice Toray Europe S.A. Limited; Chairman, Thai Toray Textile Mills Technology Dept.) President (Member of the Board), Penfabric 2012 Vice President (Member of the Board) Public Company Limited 2011 Vice President (Member of the Board) Sdn. Berhad; General Manager on Special 2014 Senior Vice President (Member of the Board) 2018 Senior Vice President (Member of the Board) 2015 Chief Executive Representative for the Americas; Assignment, Finance & Controller’s Division 2017 President and Representative Member of the 2020 Senior Vice President (Member of the Board) Chief Representative for the Americas; (Finance & Controller’s Chief for Malaysia) Board, Toray Advanced Film Co., Ltd. (incumbent) Chairman, Toray Holding (U.S.A.), Inc.; President, 2011 General Manager on Special Assignment, 2020 Senior Vice President (Member of the Board) Toray Industries (America), Inc.; General International Division (incumbent) Manager, Torayca & Advanced Technology and 2013 General Manager, Finance Dept. Manufacturing for the Americas 2017 General Manager, Controller’s Dept. 2019 General Manager, Torayca & Advanced Composite 2020 Corporate Vice President (Member of the Board) Division (Carbon Business Strategy) (incumbent) 2020 Senior Vice President (Member of the Board) (incumbent)

Member of the Board (Outside) Member of the Board (Outside) Member of the Board (Outside) Member of the Board (Outside) Kunio Ito Ryoji Noyori Susumu Kaminaga Kazuo Futagawa 2002 Dean, Graduate School of Commerce and 1997 Dean, Graduate School of Science and School 1969 Joined Sumitomo Precision Products CO., LTD. 1980 Joined the Ministry of Health and Welfare Management and Faculty of Commerce and of Science, Nagoya University 1995 Representative Director, Surface Technology 2012 Director-General of Minister’s Secretariat, the Management, 2001 Director, TAKASAGO INTERNATIONAL Systems Ltd. Ministry of Health, Labour and Welfare 2004 Executive Vice President and Board Member, CORPORATION (incumbent) 2000 Director, Sumitomo Precision Products CO., LTD. 2014 Director-General, Health Policy Bureau, the Hitotsubashi University 2003 President, RIKEN 2002 Managing Director, Sumitomo Precision Ministry of Health, Labour and Welfare 2013 Director, Kobayashi Pharmaceutical Co., Ltd. 2004 Special Professor, Nagoya University Products CO., LTD. 2015 Vice-Minister of Health, Labour and Welfare (incumbent) (incumbent) 2004 President, Sumitomo Precision Products CO., LTD. 2017 Retired from Vice-Minister of Health, Labour 2014 Director, Seven & i Holdings Co., Ltd. (incumbent) 2015 Director-General, Center for Research and 2012 Senior Advisor, Sumitomo Precision Products and Welfare Vice President (Member of the Board) of the Development Strategy, Science and CO., LTD.; Representative Director, SK Global 2018 Special Advisor on Policy, Social Security Company Technology Agency (incumbent) Advisers Co., Ltd. (incumbent) Reform Office, Cabinet Secretariat 2018 Research Professor, Department of Business Vice President (Member of the Board) of the 2012 Director, DEFTA Capital (incumbent) 2020 Member of the Board of the Company (incumbent) Administration, Hitotsubashi University Company 2016 Outside Director, (incumbent) Business School (incumbent) 2020 Member of the Board of the Company (incumbent) 2020 Member of the Board of the Company (incumbent) 2020 Member of the Board of the Company (incumbent)

Corporate Auditors

Corporate Auditor Corporate Auditor Outside Corporate Auditor Outside Corporate Auditor Outside Corporate Auditor Shogo Masuda Toru Fukasawa Toshio Nagai Kazuya Jono Hiroyuki Kumasaka 1975 Joined the Company 1978 Joined the Company 2008 Chief Research Officer, Supreme 1977 Joined Bank, Limited 1973 Joined FUSO Audit Corporation 2006 Assistant General Manager, 2003 Executive Officer, Chori Co., Ltd. Court 2005 Executive Officer, Sumitomo Mitsui (later MISUZU Audit Corporation) Affiliated Companies Division; 2005 General Manager on Special 2012 President, Hiroshima High Court Banking Corporation 2007 Chairs of the Board of Council; General Manager, Affiliated Assignment, Corporate Strategic 2013 President, High Court 2007 Managing Executive Officer, Head, Office, the Audit Companies Administration Dept.; Planning Division; General Manager 2014 Mandatorily retired Sumitomo Mitsui Banking Corporation General Manager on Special on Special Assignment, Registered as a lawyer (The Dai-ichi Corporation Representative Liquidator, the Audit Assignment, Corporate Strategic Investor Relations Dept. Tokyo Bar Association) 2010 Senior Managing Director, Corporation Planning Division 2006 General Manager, Controller’s Dept. Takusyou Sogo Law Office Sumitomo Mitsui Banking 2008 Outside Corporate Auditor, 2007 Vice President (Member of the 2010 Chief Executive Representative for (incumbent) Corporation MATSUDA SANGYO CO., LTD. Board) Americas; Chief Representative for 2015 Outside Corporate Auditor of the 2012 Retired 2011 External Corporate Auditor of the 2011 Senior Vice President (Member of America; Chairman, Toray Holding Company (incumbent) Representative Director, President & Board, Co., Ltd. the Board) (U.S.A.), Inc.; President, Toray 2016 Outside Corporate Auditor, CEO, Citibank Japan Ltd. 2015 Outside Audit and Supervisory 2016 Senior Vice President (Member Industries (America), Inc. 2014 Retired Committee Member, MATSUDA of the Board and Member of the 2012 Vice President (Member of the Board) (incumbent) 2015 Outside Corporate Auditor of the SANGYO CO., LTD. Executive Committee) 2015 Senior Vice President (Member of Company (incumbent) 2019 Outside Corporate Auditor of the 2017 Corporate Auditor (incumbent) the Board) 2019 Outside Corporate Auditor, Brother Company (incumbent) 2018 Senior Vice President (Member Industries (incumbent) of the Board and Member of the Executive Committee) 2020 Corporate Auditor (incumbent)

Toray Industries, Inc. Integrated Annual Report 2020 54 President, Vice Presidents, and Executive Fellow

President Executive Vice President Executive Vice President Executive Vice President Akihiro Nikkaku Koichi Abe Yukichi Deguchi Mitsuo Ohya President, Chief Executive Officer, Chief Executive Vice President, Intellectual Executive Vice President, Corporate Strategic Executive Vice President, Vice President, Operating Officer Property Division, Global Environment Planning Division; Quality Assurance Marketing and Sales; Corporate Marketing Business Strategic Planning Dept., and Life Division; Legal & Compliance Division Planning Dept., and branches; Affiliated Innovation Business Strategic Planning (Security Trade Administration Dept.), HS Companies Division Dept.; Technology Center; Toray Human Business Development Dept. Resources Development Center

Senior Vice President Senior Vice President Senior Vice President Senior Vice President Hiroshi Otani Satoru Hagiwara Kazuyuki Adachi Minoru Yoshinaga Senior Vice President, Water Treatment Senior Vice President, Films Division; Senior Vice President, Purchasing & Logistics Senior Vice President, Torayca & Advanced & Environment Division; Chairman, Toray Chairman, Toray Films Europe S.A.S. Division; Manufacturing Division Composites Division; Chairman, Toray Asia Pte. Ltd.; Chairman, Toray Membrane Europe S.A. (Foshan) Co., Ltd.

Senior Vice President Senior Vice President Senior Vice President Senior Vice President Yasuo Suga Hirofumi Kobayashi Kazuhiko Shuto Tetsuya Tsunekawa Senior Vice President, Chief Representative Senior Vice President, Pharmaceuticals & Senior Vice President, Chief Representative Senior Vice President, Research & for Europe; President, Toray Industries Medical Products Division; Pharmaceuticals for China; Beijing Office; Chairman and Development Division; Basic Research Europe GmbH & Medical Products Division (Technology & President, Toray Industries (China) Co., Ltd.; Center Manufacturing) Chairman,Toray Sakai Weaving & Dyeing (Nantong) Co., Ltd.

Senior Vice President Senior Vice President Corporate Vice President Corporate Vice President Shigeki Taniguchi Kenichiro Miki Satoru Nishino Hideki Hirabayashi Senior Vice President, Human Resources Senior Vice President, Fibers & Textiles Corporate Vice President, Films Technology Corporate Vice President, CSR & Investor Division Division; Osaka Head Office & Manufacturing Division Relations; Legal & Compliance Division; General Administration & Communications Division; Tokyo Head Office

Corporate Vice President Corporate Vice President Corporate Vice President Corporate Vice President Hiroshi Enomoto Nobuyuki Inohara Hajime Ishii Hiroyuki Matsuda Corporate Vice President, Electronic & Corporate Vice President, Resins & Corporate Vice President, Fibers & Textiles Corporate Vice President, Information Information Materials Division Chemicals Division Division; Global SCM Division Systems Division; Engineering Division

Corporate Vice President Vice President Vice President Vice President Masahiko Okamoto Young Kwan Lee Teh Hock Soon Yoshio Yamamoto Corporate Vice President, Finance & Vice President, Chief Representative Vice President, Chief Representative Vice President, Legal & Compliance Division Controller’s Division for Republic of Korea; President, Toray for Malaysia; President,Toray Industries Industries Korea Inc.; Chairman, Toray (Malaysia) Sdn. Berhad; Chairman, Penfabric Advanced Materials Korea Inc. Sdn. Berhad; Chairman, Toray Malaysia Systems Solution Sdn. Bhd.; Chairman, P.T. Century Tbk

Vice President Vice President Vice President Vice President Kazuaki Takabayashi Kei Shimaji Yuichiro Iguchi Osamu Tsuneki Vice President, Chief Representative Vice President, Chief Representative for Vice President, Electronic & Information Vice President, Purchasing & Logistics for Thailand; President, Toray Industries Americas; President, Toray Industries Materials Division (Technology & Division; Raw Materials Purchasing Dept. (Thailand) Co., Ltd.; Chairman, Toray Textiles (America), Inc. Manufacturing) (Thailand) Public Company Limited

Vice President Vice President Executive Fellow Kazuyuki Yakushiji Yasuo Fukuda Akihiko Kitano Vice President, Composite Materials Vice President, Fibers & Textiles Technology Automotive & Aircraft Center; Technology & Manufacturing Division & Manufacturing Division ACM Technology Division

Toray Industries, Inc. Integrated Annual Report 2020 55

Basic Policy execution and supervises the execution of duties by the From the outset, one of Toray Group’s managerial principles members of the Board. The Board of Corporate Auditors has been that the purpose of a company is to contribute includes outside corporate auditors and independently to society. The Group has developed the Toray Philosophy audits the execution of duties by the members of the Board, that incorporates this principle. The Group systematizes separately from the and the executing to o o t oa a a t ooto the Toray Philosophy as a Corporate Philosophy, Corporate organization. This framework is designed to secure the Missions, Corporate Guiding Principles, etc. Among these, transparency and fairness of decision made by the Board Year the Corporate Missions call for desirable relationships with of Directors. In addition, there is a Governance Committee, Total stakeholders and enunciate the Group’s commitment to which serves as a voluntary advisory body to the Board of number of Board shareholders “To practice sincere and trustworthy man- Directors. The Governance Committee deliberates on all members Outside directors included agement.” In addition, the Corporate Guiding Principles matters relating to corporate governance, enhancing the Percentage of outside directors stipulate the Group’s commitment to ”acting with fairness, effectiveness of governance by the Board of Directors. high ethical standards and a strong sense of responsibility Members of the Board and corporate auditors, as offi- while complying with laws, regulations and social norms to cers directly elected at the general meeting of stockholders, earn trust and meet social expectations.” clearly recognize fiduciary responsibility to stockholders who When establishing the corporate governance structure, the have entrusted the management and appropriately fulfill their Group seeks to realize these philosophies as its basic policy. respective roles while discharging accountability about man- agement status to stockholders and other stakeholders. Outline of Governance System and Reasons for Adopting the System Strengthening the Governance Framework As Toray Group supplies a wide range of industries with basic In fiscal 2020, Toray Group set the number of members materials and globally plays an active part in a broad scope of the Board of Directors to 12 (seven less than the pre- of business fields, it is necessary to evaluate various risks vious ) and the number of outside directors to multilaterally based on expertise relevant to the worksites, four (two more than the previous fiscal year) in order to not only for management judgment and decision-making improve the effectiveness of the Board of Directors and but also for oversight. To that end, the Board of Directors to strengthen the business execution framework. The formulates a structure in which members of the Board famil- Group also introduced an executive officer system for the iar with Toray Group businesses oversee management and purpose of flexibly implementing management execution make decisions from various viewpoints. based on quick decision-making that accurately reflects the Toray operates as a company with a Board of Corporate business environment and changes therein. The Board of Auditors and Board of Directors. The Board of Directors, Directors both establishes the scope of business execu- which includes outside directors, decides on the business tion entrusted to the vice presidents and supervises the

Corporate Governance Structures

General Meeting of Stockholders

Election Election Election Decision-making, Oversight Functions Cooperation Board of Corporate Auditors Audit Board of Directors Report Governance Committee Independent Auditor 5 Corporate Auditors 12 members of the Board 7 members including (3 outside corporate auditors) (4 outside directors) 4 outside directors Audit Cooperation Audit Cooperation Business Execution Functions

Auditing Dept. President Company-wide Committees

Conference Organs Ethics and Compliance Committee Risk Management Committee Executive Committee CSR Committee, etc.

Internal audit Divisions, Departments, Subsidiaries

Departmental Committees and Corferences

Toray Industries, Inc. Integrated Annual Report 2020 56 execution of their duties. Moreover, the Group increased of the Board and four outside directors (the committee the number of Governance Committee members, which continues to be chaired by an outside director). As a result, had consisted of one internal member of the Board and this move ensures that discussions and reports by the two outside directors until now, to three internal members Committee are made from a variety of perspectives.

to o o t oa a a t ooto Year

Total number of Board members Outside directors included Percentage of outside directors Status of Outside Directors/Corporate Auditor Elections auditors. Based on these standards, the Company elects At Toray, we ensure objectivity and transparency of corpo- four outside directors and three outside corporate auditors, rate governance by establishing and disclosing standards and submits notification regarding their status as indepen- for independence of outside directors and outside corporate dent officers to the Tokyo .

The following table outlines the basis for election of our outside directors/corporate auditors and details of their independence

Mr. Ito was elected as an outside director and assigned independent officer status due to his highly Kunio Ito specialized expertise in accounting and business administration as a university professor, and his Member of the Board extensive experience as a corporate outside director. Mr. Noyori was elected as an outside director and assigned independent officer status due to his Ryoji Noyori extensive experience as a university professor, his highly specialized expertise in organic synthetic Member of the Board chemistry, which is a core Toray technology, and his experience as a corporate outside director. Mr. Kaminaga was elected as an outside director and assigned independent officer status due to Susumu Kaminaga his extensive experience as a member of top management, his international perspective, and his Member of the Board experience as a corporate outside director. Kazuo Futagawa Mr. Futagawa was elected as an outside director and assigned independent officer status due to his Member of the Board extensive experience, knowledge, and deep expertize as an administrative officer. Mr. Nagai was elected as an outside corporate auditor and assigned independent officer status due Toshio Nagai to his excellent track record of high standing in the legal profession, his solid character and judg- Corporate Auditor ment, and his ability to appropriately audit the Group from an objective standpoint. Mr. Jono was elected as an outside corporate auditor and assigned independent officer status due Kazuya Jono to his having held key positions in the business world, his solid character and judgment, and his Corporate Auditor ability to appropriately audit the Group from an objective standpoint. Mr. Kumasaka was elected as an outside corporate auditor and assigned independent officer status Hiroyuki Kumasaka due to his advanced knowledge in accounting, his wealth of experience and established track record Corporate Auditor as a certified public accountant, his impeccable character and deep insight, and his ability to appro- priately audit the Group from an objective standpoint.

Basic Policy on Internal Control System as one of the company-wide committees to promote obser- To realize the Management Philosophy, the Company shall vance of corporate ethics and legal compliance, and shall take establish a structure to execute its business legally and effec- other measures to improve the required internal systems, tively by improving its internal control system according to the including the establishment of dedicated organizations. following basic policy as a structure to enable it to appropri- •Toray shall establish the Ethics & Compliance Code of ately establish organization, formulate regulations, commu- Conduct as specific provisions to be observed by members nicate information, and monitor the execution of operations. of the Board and employees, and shall take other mea- sures to improve the required guidelines, etc. Especially 1. System to ensure that the execution of duties by the with regard to eliminating relations with antisocial forces, members of the Board and employees complies with laws the Company shall act as one to stand firmly against them. and regulations and the Company’s Articles of Incorporation • Toray shall establish an internal reporting system (whis- • Toray shall establish the Ethics and Compliance Committee, tle-blowing system) for the reporting of the discovery of

Toray Industries, Inc. Integrated Annual Report 2020 57 Corporate Governance

violation of laws, regulations, or the Company’s Articles the Company shall provide regulations on the scope under of Incorporation. which the Company can reserve its authority over the exe- • Toray shall establish Security Trade Control Program, one of cution of business operations. In addition, the Company the most important legal compliance issues, and establish shall endeavor to grasp management information in a an organization dedicated to security export control. unified manner and provide assistance and guidance - 2. System to ensure the efficient execution of duties by essary for subsidiaries by determining divisions, etc. with the members of the Board and employees control over its respective subsidiaries. • Toray shall establish the Authority of Top Management to • To establish a system for ensuring that the execution of stipulate matters with respect to which decision-making duties by members of the Board, etc. and employees of authority is reserved by the Board of Directors and matters subsidiaries complies with laws and regulations and the with respect to which decision-making is delegated to the Articles of Incorporation, the Company shall thoroughly President, general managers, etc., from among matters familiarize its subsidiaries with the Company’s Ethics & necessary for decision-making. Compliance Code of Conduct as a code of conduct in • Toray shall establish the Executive Committee as deliber- common for Toray Group. At the same time, the Company ative organs for important matters decided by the Board shall request the subsidiaries to establish their own codes of Directors or the President. The Executive Committee of conduct, guidelines, etc. in consideration of the laws shall be responsible for the general direction of policy, and and regulations, business practices, business forms, and shall be in charge of issues related to implementation. other factors in their respective countries. In addition, the 3. System for preserving and managing information Company shall direct its subsidiaries to establish sys- pertaining to the execution of duties by the members of tems under which the status of internal whistle-blowing the Board and employees by members of the Board, etc. and employees of the • Toray shall establish regulations for important documents subsidiaries is appropriately reported to the Company. and important information related to management, confiden- 6. System for reporting to corporate auditors and systems for tial information and personal information, and appropriately ensuring that persons who report to corporate auditors are preserve and manage them in accordance with the rules. not treated disadvantageously because of their reporting 4. Regulations and other systems pertaining to controls • Members of the Board, etc. and employees of Toray Group over risks of loss and corporate auditors of subsidiaries shall report matters • Toray shall identify potential risks in business activities, regarding the execution of duties to corporate auditors in promote company-wide risk management to strive to response to requests from the corporate auditors. reduce the level of risk under normal business conditions, • Department in charge of the internal reporting system (whis- and prevent future crises, as well as improve regulations tle-blowing system) shall regularly report the status of inter- and establish an internal committee to enable immediate nal whistle-blowing in Toray Group to the corporate auditors. implementation in the event of a major crisis. • Toray shall stipulate regulations to the effect that members of • Toray shall establish an internal control system for financial the Board and employees who report to corporate auditors reporting that ensures the reliability of financial reporting. shall not be subjected to any disadvantageous treatment 5. System for ensuring appropriate business operations because of the said reporting, and shall provide subsidiaries within subsidiaries with guidance to help them stipulate the same regulations. • To establish a system under which subsidiaries report to 7. Items pertaining to the handling of expenses and the Company on matters regarding the execution of duties liabilities arising from the execution of duties by by members of the Board, etc. of the subsidiaries, the corporate auditors Company shall provide regulations on the regular reporting • Toray shall pay expenses, etc. incurred from the execution of important management information to the Company of duties by corporate auditors. and regularly hold conferences at which the Company’s 8. Items pertaining to employees assisting with corporate management receives direct reports on the status of the auditors’ duties, items pertaining to the independence of said management of the subsidiaries. employees from members of the Board, and items pertaining • To establish regulations and other systems pertaining to to the assurance of effectiveness of instructions from the controls over risks of loss for subsidiaries, the Company corporate auditors to said employees shall provide subsidiaries with guidance to help them to • Toray shall assign a full-time employee to provide assistance establish risk management systems appropriate for their if and when corporate auditors request assistance. The said respective business forms and business environments, and employee shall exclusively follow the corporate auditors’ shall receive regular reports on the status of their activities. commands and instructions, and the Company shall con- • To establish a system for ensuring that members of the sult with corporate auditors in advance with respect to the Board, etc. of subsidiaries effectively execute their duties, personnel arrangements for the said employee.

Toray Industries, Inc. Integrated Annual Report 2020 58 9. Other systems for ensuring effective implementation of through conference among , including audits by corporate auditors the President, in consideration of the consolidated operating • Corporate auditors shall attend Board of Directors meet- income for each fiscal year that best represents the results ings and other important meetings so that they may of the Company’s global business operations, plus the his- ascertain important decision-making processes and the torical record, etc. A bonus to each member of the Board is execution of operations. determined by the President according to each member’s • Corporate auditors shall hold regular meetings with mem- performance based on the Company’s internal regulations bers of the Board and management and conduct regular with a resolution at a Board of Directors meeting. visiting audits of Toray offices, plants, and subsidiaries. The maximum limit of total number of Stock Acquisition Rights as well as the limit of remuneration relating to the Remuneration for Members of the Board granting of the Stock Acquisition Rights as stock options to Given their roles, remuneration for internal members of the members of the Board is resolved at the general meeting Board consists of basic remuneration (monthly remunera- of stockholders, and within that limit, the total number of tion,) as well as a performance-based remuneration, a bonus Stock Acquisition Rights to be allocated to the members of and stock acquisition rights as stock options. Remuneration the Board shall be decided at the Board of Directors meeting for outside directors consists of monthly remuneration only. based on the Company’s internal regulations. Remuneration is set at a level that enables the Company Given their roles, remuneration for corporate auditors con- to secure superior human resources and further motivate sists of monthly remuneration only. Remuneration is set at them to improve performance, referring to the results of a level that enables the Company to secure superior human a survey of other companies’ remuneration by an external resources, referring to the results of a survey of other com- third-party organization. panies’ remuneration by an external third-party organization. With respect to monthly remuneration, the maximum With respect to monthly remuneration, the maximum limit of total remuneration is determined at general meetings limit of total remuneration is determined at general meetings of stockholders. Within the scope of the maximum limit, of stockholders. Within the scope of the maximum limit, monthly remuneration of each member of the Board is deter- monthly remuneration to each corporate auditor is deter- mined by the President based on the Company’s internal mined through consultation by corporate auditors based on regulations resolved at the Board of Directors meeting. the Company’s internal regulations. The provision and the total amount of bonuses are The Governance Committee continuously reviews the determined each time at a general meeting of stock- remuneration system for members of the Board and cor- holders. Particulars of the agenda at the general meeting porate auditors. of stockholders are resolved by the Board of Directors

Details of Remuneration in Fiscal 2019

Total Total remuneration by type (millions of yen) Position remuneration Stock options as Recipients Basic Bonuses (millions of yen) remunerations Members of the Board (excluding outside directors) 1,130 787 154 188 18 Corporate auditors (excluding outside corporate auditors) 79 79 — — 2 Outside directors 24 24 — — 2 Outside corporate auditors 32 32 — — 3

Notes: 1. Recipients included one member of the Board (excluding outside directors) who retired during fiscal 2019. 2. Total amounts of remuneration do not include the ¥29 million paid in salaries to two employee-directors.

Total Remuneration Received by Members of the Board and Corporate Auditors

Total consolidated Total consolidated remuneration by type (millions of yen) Status of Name remuneration Position Stock options as company Basic Bonuses (millions of yen) remuneration Member of the Akihiro Nikkaku 153 Filing company 104 25 23 Board Note: Total remuneration only includes persons receiving more than ¥100 million.

Toray Industries, Inc. Integrated Annual Report 2020 59 Analyzing and Evaluating the Effectiveness of the Board of Directors

Process of Analysis and Evaluation Philosophy and Corporate Missions. As a result, we Over the period from late-March 2020 to mid-April 2020, believe that the Board of Directors generally fulfilled Toray’s Board of Directors conducted a “Questionnaire its roles and responsibilities in indicating the direc- Survey to Evaluate the Effectiveness of the Board of tion of corporate strategies and other major courses Directors in fiscal 2019.” The 24 survey respondents, of action in an appropriate manner. who comprised all of the Board members and corporate (2) In fiscal 2019, the Board of Directors held 14 meet- auditors, answered questions on the following survey ings in total to perform oversight and decision-mak- items and gave their names. ing in a timely and appropriate manner. Furthermore, it promoted reviews on the scope of delegating deci- (1) Management Philosophy and Corporate Missions sion-making authority. Through these initiatives, we (2) Size and structure of the Board of Directors believe that the Board of Directors generally fulfilled (3) Segregation of oversight and business operations its roles and responsibilities in establishing an envi- (4) Provision of information prior to Board of ronment conducive to appropriate risk-taking by the Directors meetings senior management in an appropriate manner. (5) Number of agenda at Board of Directors meetings (3) With respect to the 14 Board of Directors meet- (6) Proceedings at Board of Directors meetings ings held in fiscal 2019, the attendance rate of the (7) Management response to opinions, etc. at members of the Board was 100%. Outside directors Board of Directors meetings made remarks mainly from their respective profes- (8) Authority of the Board of Directors sional viewpoints. The opinions, etc. at the Board of (9) Appropriate response to conflicts of interest Directors meetings, including the above mentioned (10) Communication with stakeholders remarks, were appropriately reflected in measures (11) Communication among members of the Board taken by the management. With respect to transac- (12) Opportunities to acquire knowledge tions causing possible conflicts of interest, internal (13) Compliance promotion procedures to handle them were appropriately car- (14) Group governance ried out. In light of the above, we believe that the (15) Overall evaluation Board of Directors generally fulfilled its roles and responsibilities in carrying out the effective oversight In addition to the questionnaire, Secretariat of of members of the Board and the management from the Board of Directors individually interviewed out- an independent and objective standpoint in an appro- side directors and outside corporate auditors (total of priate manner. five persons) to hear their opinions in relation to their (4) Based on the above, we believe that the Board of responses to the questionnaire. Directors generally fulfilled its roles and responsibili- The survey results were analyzed and evaluated at ties in an effective manner in fiscal 2019. With regard the Governance Committee held on June 11, 2020 and to the matter, “further activating discussions at the the results of the analysis and evaluation were deliber- Board of Directors meetings,” however, continuing の品質データ基盤が目指すイメージ 図 ated at the Board of Directors meeting held on June 17, 委託 from fiscal 2019, specific measures for improvement 加工先 お客様 2020. The overview of the results of the analysis must品質分析 be taken in fiscal 2020 and検査結果公開 thereafter to further and evaluation shown below describes the contents improve the effectiveness品質データ基盤 of the Board of Directors. サプライヤー resolved at the Board of Directors meeting. (5) With respect to the opinions, etc. received from 検査成績書 品質情報のthe集約① members of the Board and corporate auditors Overview of the Results of the Analysis 委託加工先・in the course of evaluating検査 the effectiveness of the サプライヤーBoard情報も 連携of Directors, the Governance Committee shall and Evaluation deepen discussions based on those品質情報 opinionsの集約② with a (1) In fiscal 2019, the Board of Directors performed クレームview 管理to further improving情報連携 the effectivenessグループ会社のデータ of the も一元的に管理 oversight and decision-making based on a deep Board of Directors, as necessary. understanding and sympathy with the Management 自社 グループ 会社 検査

Toray Industries, Inc. Integrated Annual Report 2020 60 compliance

Basic Approach and codes of conduct, which serve as a series of core In order to contribute to society by leveraging innova- rules that must be observed in different areas of busi- tive technologies and advanced materials in line with its ness by Toray group companies and all executives and corporate philosophy, as well as by working to resolve employees, including contracted, part-time and tempo- major global issues, Toray Group must build and main- rary workers, as a means of fully informing employees tain relationships of trust with our various stakeholders. of these obligations and tools. And in order to gain this trust, it is essential to com- ply with the laws and regulations related to our busi- 1. Compliance for safety and the environment ness activities in each country in which we operate and (1) Building a safe working environment maintain the highest level of integrity in all our actions. (2) Caring for the environment Therefore, top management focuses on its leadership 2. Compliance for quality role in making compliance a priority, while both the (1) Providing safe and satisfactory products to Group and its suppliers are required to promote ethics customers and compliance. (2) Proper quality data management 3. Compliance for human rights Ethics and Compliance Structure (1) Respect for the character and individuality of Toray has established an Ethics and Compliance employees Committee chaired by the President and consisting of (2) Preventing harassment and discrimination vice presidents. At this committee, management and (3) Respect for the human rights of all stakeholders workers come together to consider and discuss poli- 4. Compliance for fair business activities cies related to ethics and compliance. Moreover, this (1) Competing fairly Committee reports on the operational status of the (2) Fair transaction and asset management whistle-blowing system established by Toray Group, (3) International trade control and security trade including the number of reports (consultations) and administration other details, to members of the Board. During fiscal (4) Compliance with applicable laws in general 2019, this Committee met twice to deliberate and 5. Compliance for intellectual property discuss Toray Group’s ethics and compliance activity (1) Respect for intellectual property rights of others results for fiscal 2018 and the activity plans and prog- 6. Compliance for information management ress updates for fiscal 2019. This Committee also dis- (1) Information management cussed individual measures, including a review of the (2) Proper reporting and public disclosures Ethics & Compliance Code of Conduct. Acting as leaders, divisional and departmental gen- Corporate Ethics and Legal Compliance eral managers at each workplace adopt a top-down approach toward promoting initiatives. Education In initiatives for group companies around the world, Toray posts information on CSR and legal compliance on の品質データ基盤が目指すイメージ図 委託 Toray Group has established the Affiliate Companies’ its corporate intranet. Toray Group circulates important 加工先 お客様 品質分析 検査結果公開 Compliance Meeting and the Overseas Affiliate information about legal and compliance matters that are 品質データ基盤 Companies’ Compliance Meetings under the Ethics and highly relevant to its business in Japan and overseas. サプライヤー Compliance Committee. Through these committees, Group companies implement workshops to examine 検査成績書 品質情報の集約① Toray Group is promoting compliance activities in each these matters and study cases of corporate misconduct 委託加工先・ 検査 company, country and region. in an effort to foster discussion in the workplace. サプライヤー情報も連携 Since fiscal 2012, Toray has provided online train- 品質情報の集約② Ethics & Compliance Code of Conduct ing courses on corporate ethics and legal compliance クレーム管理 情報連携 グループ会社のデータ Toray reviewed the content of the Corporate Ethics and for all executives and employees, including contracted, も一元的に管理 Legal Compliance Code of Conduct, and revised it as part-time and temporary workers. In fiscal 2019, the the Ethics & Compliance Code of Conduct in May 2020. Company worked to raise awareness of human rights 自社 グループ 会社 検査 The revised code summarizes the compliance helpline, issues using case studies based on actual reports the promotion framework for ethics and compliance, and consultations within Toray Group, reminding all

Toray Industries, Inc. Integrated Annual Report 2020 61 Compliance

participants that issues can occur in any department. employees have access to alternative means of report- Group companies in Japan are using these materials to ing and consulting such as via contact points at its implement their own training. offices, plants and labor unions or directly to the sec- retariat of the Ethics and Compliance Committee via Suido Kiko Qualification Misconduct Issue phone or email. Toray discovered in March 2020 that Suido Kiko, In addition, each group company in Japan has estab- a subsidiary engaged in water and sewage facility lished a Helpline contact point. Moreover, Toray has also engineering, had potentially allowed an employee created an external Helpline contact point shared by all to take the First Class Civil Engineering Works group companies in Japan to make it easier for employ- Execution Managing Engineer test despite not hav- ees to report and consult. ing satisfied the practical experience requirements Each group company outside Japan has also estab- for this test. Thereafter, a third-party committee was lished a Helpline contact point (internal, outside, or established and commissioned to investigate the regional contact points). These Helpline contact points facts and make recommendations on how to pre- have been in operation at all companies since fiscal vent a recurrence. On September 24, we received 2017. There were reports in several countries and the report of the investigation by the third-party regions, and Toray Group is working to resolve the committee, and on September 25, we reported to issues, while carefully confirming circumstances in the Ministry of Land, Infrastructure, Transport and interviews and investigations. Tourism on the content of the report and measures Since fiscal 2016, Toray has also maintained an addi- to prevent a reoccurrence. tional whistle-blowing system for group companies to directly report serious misconduct such as violations of antitrust laws and bribery, and it is working to inform all Expanding the Whistle-Blowing System Toray Group companies about the system. Toray established the Corporate Ethics and Legal The number of inquiries (consultations) received Compliance Helpline as a whistle-blowing system in fis- through the hotline and the details of the cases are cal 2003 and expanded the system to include all group reported to the Board of Directors by the Ethics and companies in Japan in fiscal 2010. By introducing this Compliance Committee, which convenes twice a year. system, the Company expects employees first to take the initiative in managing conduct with regard to corpo- Reinforcing Compliance in Product rate ethics and legal compliance, and to consult with a supervisor as soon as an issue arises. Quality Assurance Recognizing that reporting or consulting with super- Toray Group is pursuing five major issues to reinforce prod- visors may be difficult, the Company ensures that uct quality assurance compliance throughout the Group.

Iage diagra aied at Sharing Quality Inspection Information Outsourced委託 の品質sデータ ualit基盤 dataが目指 netrすイメージ図 processing Throughout the Supply Chain 加工先 Customerお客様 Inspection検査結果公開 result Quality品質分析 analysis disclosure Toray and NEC Corporation established a ualit品質データ data netr基盤 サプライヤーSupplier quality data network that collects and stores Inspection検査成績書 report product quality inspection information sam- 品質情報Aggregationの集約① of quality information (1) pled from inspection equipment as digital 委託加工先・ Inspection ooinion o on 検査 data, and shares this information throughout サプライヤーoein einion情報も連携 lie inoion Aggregation of quality 品質情報の集約② the supply chain. This sharing process does information (2) not require any human intervention, which Claimクレーム management管理 Information情報連携 linkage enlieグループ neen会社のデータ o oも一元的 onyに管理 helps to enhance the reliability of quality inspection information and to raise the effi- In-house自社 グループGroup ciency of quality assurance operations. company会社 Inspection検査

Toray Industries, Inc. Integrated Annual Report 2020 62 1. Reinforcement of structures related to quality items as part of the first stage, and then expanded assurance systems of the entire Toray Group the scope of the investigation to cover inspection The Group provides guidance to each division and group items that were not related to safety. Finally, the companies regarding their quality assurance system, investigation queried all of the remaining measure- and audits the effectiveness of these systems and the ment data (112,000 entries). As a result, 149 entries work done under them. Based on the formulated prod- were found to have been overwritten. Therefore, in uct quality assurance vision, the organizations design October 2017, the Group reported the facts of the initiatives to close the gap between the vision and actual case to all 13 companies covered by the investi- performance. gation and requested each company to check for 2. Development of human resources and creation of issues with safety upon verifying the impact on workplace culture not allowing any misconduct customer products. The Group also established The Group continues to provide education for all employ- an expert committee and held a press conference ees involved in product quality at Toray Group in order to to make an announcement on the contents of the maintain and improve the awareness of product quality Expert Committee Report. assurance compliance. At the same time, the Group advanced measures 3. Understanding of actual state of agreements with aimed at preventing a recurrence, including strength- customers and establishment of guidelines related ening the compliance systems related to product to product quality (assurance) quality assurance, further improving data manage- The Group is preparing guidelines for product quality ment systems, reviewing product quality standards, assurance agreements and will use them to assess and improving the maintenance of measurement agreements and review their provisions as necessary. equipment. Moreover, the Group appointed a repre- 4. Appropriate maintenance or control and sentative member of the Board (General Manager, modernization or fulfillment of measuring equipment Product Quality Assurance Division) to take respon- Toray prepared a risk assessment table for judging the sibility for product quality assurance operations necessity of upgrading or conducting maintenance throughout the Toray Group, and established the on measuring equipment, and used them to identify Product Quality Assurance Division as a new division devices in need of an upgrade. to oversee improvements to and the effectiveness 5. Improvement of quality data management system to of the quality assurance system in February 2018. not allow any misconduct The Group also promotes automation of data mea- The Group is developing data management systems surements as an additional effort to better ensure that minimize human involvement, such as by automat- the effectiveness of product quality assurance oper- ing measurement, transfer of measurement data, and ations throughout Toray Group. issuance of inspection reports. Improving Security Trade Controls Iage diagra aied at Inappropriate overwriting of product inspection の品質データ基盤が目指すイメージ図 Outsourced委託 s ualit data netr report data by Toray Hybrid Cord Sharing the Latest Trends and Management Strategies processing 加工先 Customerお客様 Inspection検査結果公開 result As a result of a compliance survey conducted for Security Trade Controls Quality品質分析 analysis disclosure ualit品質データ data netr基盤 during July 2016 at Toray Hybrid Cord (THC), a Concerns about the spread of conventional mass weap- サプライヤーSupplier subsidiary engaged in processing tire cords, indus- ons of destruction and changes in the international Inspection検査成績書 report 品質情報Aggregationの集約① of quality trial-use cords, carpet pile threads and other fiber security balance necessitate risk management address- information (1) 委託加工先・ Inspection products for industrial materials, THC was found to ing security trade controls. ooinion o on 検査 サプライヤーoein einion情報も連携 have overwritten data during the period from April Toray convenes a Security Trade Administration lie inoion Aggregation of quality 品質情報の集約② information (2) 2008 to July 2016. In this case, data that varied Committee comprising officers of divisions that are Claimクレーム management管理 Information情報連携 linkage enlieグループ neen会社のデータ o slightly above or below the values for quality stan- involved in exports and technology transfer. In fiscal oも一元的 onyに管理 dards settled upon with customers were overwrit- 2019, the committee decided on measures to imple- ten in order to fit within these standards. ment for the fiscal year after considering pressing risks In-house自社 グループGroup company会社 Inspection検査 In response, the Group launched an investi- based on recent international circumstances and regu- gation that focused on safety-related inspection latory trends. The committee members also convene a

Toray Industries, Inc. Integrated Annual Report 2020 63 Compliance

Divisional Security Trade Administration Committee that suspicious trade information at various company meet- communicates corporate measures and implements sup- ings, and took steps to improve its risk management. plementary programs, such as precautions to be taken by 4. Improved inspection systems departments and group companies under its supervision. Toray established a link between the security trade Practically Addressing Risks administration system and the sales backbone system Toray Group performs risk management of security as part of regular operations in order to improve the trade controls with regard to the export of all products, infrastructure for preventing mistaken shipments due to devices, materials, and samples, as well as the transfer human error. Moreover, the Company supported inno- of technologies outside Japan. Particularly strict man- vative initiatives designed to improve the efficiency of agement is necessary for TORAYCA® carbon fiber and administration through the use of these systems, and its composite materials, semiconductor coating agents, widely deployed cases that have produced results. and water treatment membranes, which are listed as restricted items requiring export permission from the Competition Law Compliance, Anticorruption, and Japanese Minister of Economy, Trade and Industry. Antibribery The following measures to enhance risk manage- 1. Competition Law Compliance ment associated with security trade controls have The Ethics & Compliance Code of Conduct, revised been implemented based on conditions in and outside in May 2020, defines the code of conduct related to of Japan. competition laws that must be observed by all Toray 1. Enhanced employees’ capacity for accurate Group executives and employees. Educational materi- judgment within Toray’s divisions and group als related to competition laws have been prepared in companies Japanese and English for all Toray Group employees. Toray conducted training to provide the necessary prac- Within Japan, the Group prepares and utilizes compli- tical knowledge to the mid-level employees that play a ance training materials and gathers examples of compli- central role in implementing security trade controls, as ance violations related to competition laws. well as training to newly appointed managers to encour- 2. Anti-corruption and Anti-bribery age appropriate on-site management. In January 2020, Toray Group formulated a new set of The Company also conducted a series of advanced Anti-bribery Rules that explicitly prohibit offering and courses for employees with specialized expertise. accepting bribes to or from public officials and business These hands-on courses were designed to better equip partners, and established the rules for approval and them with the skills necessary to conduct classifica- reporting when offering or receiving money or other tions, export transactions and technology transfers. A benefits to or from public officials and business part- total of 127 employees participated in 2 courses. ners. Similar rules have also been introduced at both In addition, the Company systematically encourages domestic and overseas group companies. employees to take the exam authorized by the Center for The Ethics & Compliance Code of Conduct defines Information on Security Trade Controls in Japan. A total the code of conduct related to anti-corruption and の品質データ基盤が目指すイメージ図 of 221 Toray Group employees passed the exam in fis- 委託anti-bribery that must be observed by all Toray Group 加工先 お客様 cal 2019, bringing the cumulative number of Toray Group executives品質分析 and employees. Educational検査結果公開 materials employees who have passed the exam to 3,996 persons. related to anticorruption品質データ and基盤 anti-bribery have been サプライヤー 2. Conduct regular audits prepared in Japanese and English for all Toray Group 検査成績書 Toray carried out paper audits and onsite audits of 品質情報employees.の集約① group companies, and provided individualized guidance 委託加工先3. Protection・ of Personal検査 Information based on the results to help group companies make サプライヤーIn order情報 もto連携 comply with Japan’s Act on the Protection of improvements. Personal Information, Toray has established品質情報 Regulationsの集約② 3. Enhanced information sharing and reporting forクレーム the Management管理 情報連携of Personal Information,グループ会社 togetherのデータ も一元的に管理 Toray integrated and centralized information on concerns with a management framework and practices to ensure such as suspicious trade inquiries, reported or consulted each department manages personal information appro- 自社 グループ 会社 with the appropriate authorities as required, and took priately. Audits are regularly検査 conducted into the manage- the appropriate measures. The Company also shared ment conditions in each department.

Toray Industries, Inc. Integrated Annual Report 2020 64 In fiscal 2019, the Company received no complaints internal legal and compliance audit every other year. concerning personal information and there were no In fiscal 2018, internal legal compliance audits were data breaches. Major Toray Group companies in and implemented for the designated divisions of Toray outside Japan appropriately conduct management in and its group companies in Japan. In fiscal 2019, the accordance with the management systems and meth- Company confirmed the improvement status of prob- ods specified by the internal rules of each company. lems found in the audit, verifying that 100% of the com- panies had made improvements (including companies Promotion of Mission B.E.A.R. Activities under improvement). In fiscal 2018, Toray Group launched a new initiative Moreover, in order to increase the effectiveness of with the slogan “Have the integrity to do the right thing audits related to high-priority items, including competi- in the right way.” The initiative includes the following tion laws, bribery and corruption regulations, the whis- four principles for taking more effective action to ensure tle-blowing system and entry into agreements, in fiscal compliance. 2019 the Group reviewed the audit methods related to legal affairs and compliance, and plans to implement the Compliance Action Principles results of this review in fiscal 2020 and beyond. B: Be fair, be honest and have integrity E: Encourage respect and communication Tax Compliance A: Adopt a genba approach – Look to the facts! Toray Group is committed to meeting its tax responsi- R: Responsibility as a member of our excellent company bilities in accordance with local and national tax laws and related rules, as well as to meeting international standards such as OECD guidelines. With the growth of international transactions, transfer pricing is increasing in importance. The Group endeavors to suitably allocate its income by calculating transfer pricing based on the arm’s length principle. Under the awareness that it is important to fulfill its social responsibilities as a cor- Under the name “Mission B.E.A.R.,” taking its acronym poration by administering taxes in a highly transparent from the first word of each principle, Toray Group com- manner, the Group redefined its basic approach to tax panies formulate declarations and action plans related to policies with which each employee must comply, and compliance, and implement initiatives that correspond established the Toray Group Tax Policy in order to reli- to their individual situations. Toray Group implements ably implement tax compliance related initiatives to a periodic follow-ups for the initiatives of each company, greater extent. This policy has been applied globally shares the effective initiatives of each company within starting in May 2020. the Group, and encourages each company to take the Basic Policy initiative in evolving their compliance activities. の品質データ基盤が目指すイメージ図 1. Toray makes efforts to pay taxes appropriately by 委託 In fiscal 2020, Toray will continue to assist and 加工先 complying with the tax laws of each country and お客様 monitor compliance initiatives at group companies. 品質分析 検査結果公開 international taxation rules. 品質データ基盤 Moreover, actively sharing compliance initiatives and サプライヤー 2. Toray makes efforts to enhance corporate value educational materials will strengthen risk response that and maximize shareholder value while minimizing 検査成績書 emphasizes factors unique to each region and type of 品質情報の集約① tax risks and optimizing tax expenses. 委託加工先・ business while reinforcing Toray Group’s integrity-driven 検査 3. Toray will not conduct arbitrary tax avoidance サプライヤー情報も連携 corporate culture. using tax havens or other methods. 品質情報の集約② 4. Toray establishes good relationships with the tax クレーム管理 情報連携 グループ会社のデータ Implementing Internal Legal Audits も一元的に管理 authorities of each country. In fiscal 2016, Toray Group adopted a group-wide sys- tem for self-inspections and mutual internal control 自社 グループ 会社 検査 audits. Designated divisions of Toray and designated group companies in and outside Japan must receive an

Toray Industries, Inc. Integrated Annual Report 2020 65