Business Strategies Through the Establishment of the a & a Center

October 7, 2008

BusinessBusiness StrategiesStrategies throughthrough TheThe EstablishmentEstablishment ofof thethe AA && AA CenterCenter inin NagoyaNagoya PlantPlant

Chiaki Tanaka Executive Vice President and Representative Director Toray Industries, Inc. Contents

･ Midterm Business Strategies “IT-2010” and the Creation of Advanced Materials

・ The Era of Protecting the Global Environment and Toray’s EcoChallenge

・ The Automobile Industry Entering a Great Revolutionary Era

・ Concept for A & A Center and Restructuring of Nagoya Plant

・ Expansion Plan for Automotive Business

April 2002 April 2006 Long-term vision AP-New TORAY 21 AP-Innovation TORAY 21

Goals in and around 2010 Mid-term Business Strategies Net sales IT-2010 ¥1,800 billion NT- II Operating NT21 income 「Offensive 「Management based on 「Corporate Innovation and Creation」 ¥150 billion Structure management postures Reinforcement・」 -Challenges for Operating defensive further growth - income to net management sales ratio postures」 -Establish 8.3% foundation for -Breakaway from ROA : 8% Crisis - further growth - Toward a Global Top Company of Advanced Materials ROE : 11%

Transform to a highly profitable business group while 1. Transforming continuing business expansion to a highly ① 5% annual growth in net sales “5-10 Growth Plan” profitable ② 10% annual growth in operating income business group Improving capital efficiency ① ROA : over 8% ROE : over 11% around 2010

2. Expanding Increase profit by expanding Strategically Expanding Businesses Strategically Expanding Businesses (IT-related products and Carbon Fiber Composite Materials) (profit growth driver) while securing stable profit by Foundation Businesses

3. Expanding Develop strategically next generation profit growth driver Strategically businesses after 2010 (Life Science, Water Treatment, Developing Businesses Environmental friendly businesses) (next profit growth driver)

Advance business structure reform by expanding Strategically 4. Advancing Expanding Businesses and Strategically Developing Businesses Double net sales in Strategically Expanding Businesses and business ① Strategically Developing Businesses around 2010 structure reform ② Expand their ratio of net sales from the current 25% to 40% around 2010

Expand advanced materials sales in every segment and 5. Expanding increase their ratio of net sales advanced ① Double net sales in advanced materials around 2010 materials ② Expand their ratio of net sales from the current 30% to 50% around 2010 Copyright 2008 Toray Industries, Inc. All Rights Reserved. 4 Basic Strategies (Expansion of advanced materials in 4 major growing business fields)

Aim for business expansion mainly in advanced materials by providing cross- organizational solutions to the 4 major growing business fields.

・・ BusinessBusiness expansionexpansion inin thethe growinggrowing marketmarket ofof digitaldigital network-relatednetwork-related productsproducts Information / includingincluding flatflat panelpanel displaydisplay televisions,televisions, cellularcellular phones,phones, and and personalpersonal computerscomputers Telecommunications ・・ DevelopmentDevelopment andand salessales expansionexpansion ofof innovativeinnovative productsproducts throughthrough verticalvertical businessbusiness / Electronics integrationintegration withwith keykey customerscustomers ・・ StrengthenStrengthen competitivenesscompetitiveness throughthrough integratedintegrated operationsoperations fromfrom plastic/filmsplastic/films materialsmaterials toto componentscomponents

・・ DevelopmentDevelopment ofof productsproducts toto meetmeet expandingexpanding marketsmarkets inin hybridhybrid carscars and and carcar electronicselectronics ・・ Expansion of application parts by widening advanced functional availability Automobiles / Expansion of application parts by widening advanced functional availability ofof carboncarbon fiberfiber compositecomposite materialsmaterials andand engineeringengineering plasticsplastics Aircraft ・・ AggressiveAggressive capacitycapacity expansionexpansion toto meetmeet thethe growinggrowing demanddemand forfor carboncarbon fiberfiber compositecomposite materialsmaterials

・・ ConclusiveConclusive launchlaunch ofof newnew drugsdrugs whichwhich isis underunder developmentdevelopment andand furtherfurther expansionexpansion ofof newnew drugdrug pipelinespipelines Life Science ・・ DevelopmentDevelopment andand commercializationcommercialization ofof highhigh value-addedvalue-added medicalmedical devicesdevices ・・ CreationCreation ofof innovativeinnovative bio-toolsbio-tools throughthrough bio/nano-technologicalbio/nano-technological integrationintegration

・・ DevelopmentDevelopment ofof newnew applicationsapplications forfor fibersfibers && textiles,textiles, plasticsplastics andand filmsfilms usingusing suchsuch non-petrochemicalnon-petrochemical rawraw materialsmaterials asas polylacticpolylactic acids acids Environment / ・ Global expansion of water treatment businesses with a core of high-performance Water-related / ・ Global expansion of water treatment businesses with a core of high-performance separationseparation membranesmembranes Energy ・・ DevelopmentDevelopment ofof newnew materialsmaterials forfor nextnext generationgeneration energyenergy systemssystems includingincluding solarsolar cells,cells, fuelfuel cells,cells, andand windwind powerpower generationgeneration Copyright 2008 Toray Industries, Inc. All Rights Reserved. 5 Toward a Global Top Company of Advanced Materials *products in blue :examples of nano-tech products “ “CreateCreate advancedadvanced materialsmaterials thatthat Innovation of changechange thethe futurefuture”” key materials

ThatThat isisToray Toray’’ss Nano-technologyNano-technology FibersFibers && TextilesTextiles FilmsFilms Toray Core Technologies Nano-fiber Nano-laminated film New Properties ResinsResins ChemicalsChemicals Organic synthetic chemistry Emerge High-toughness (Zeolite) nano-alloy* Polymer chemistry New Value Biotechnology “Nano-effect” Nano-technology Dramatic improvement in properties Expansion of four growing business fields InformationInformation // CNT TelecommunicationsTelecommunications // ElectricsElectrics Nano-material Nano-particles (nano-dispersion) Film for data storage, LCF, PDP Nano-structure Nano-alloy* AutomobilesAutomobiles // AircraftAircraft design control Nano-composite Carbon fiber, impact-absorbing nano-alloy* Chemical modification Nano-surface-treatment Nano-coating LifeLife ScienceScience Nano-process Nano-imprint Artificial kidney, DNA chip (nano-processing) Nano-laminates EnvironmentEnvironment // Water-relatedWater-related // EnergyEnergy Nano-shape observation PLA products, water-treatment membrane, Nano-analysis Nano-structure analysis/ fuel cell composition analysis * nano-alloy* is one of Toray’s trademark Copyright 2008 Toray Industries, Inc. All Rights Reserved. 6 Business Culture of Toray Technology Development

A business culture that pursues the ultimate, challenge in “Innovation of technologies,” and create innovative technologies

Area Ultimate Themes Objectives Contents Fibers & Nano-fiber Fineness of fiber diameter Textiles 20 μ m Hair Ultrafine-fiber Resins Polymer-alloy Polymer dispersion size 10 5nm PET Co-polymerized PET

Films Multi-layer film Thinness of film layers S Carbon fiber t r e n

Carbon Fiber g 5 t h Composite Carbon fiber Strength and rigidity Aramid fiber Materials IC bonding area GPa Glass Steel wire Electronic & Nylon fiber High-density Processing accuracy of Information 0 0 200 400 600 800 Rigidity (modulus) GPa Materials mounting board wiring pitch Structure design control of Health care DNA chip nano-columnar 20 μ m High boron- Water Pore size control of RO 100 μ m rejection Polymer model Treatment membrane membranes Holes Engineering Realization of innovative technologies through Development creation of new processing and establishment Columnar structure Center of process for mass-production Copyright 2008 Toray Industries, Inc. All Rights Reserved. 7 Contents

･ Midterm Business Strategies “IT-2010” and the Creation of Advanced Materials

・ The Era of Protecting the Global Environment and Toray’s EcoChallenge

・ The Automobile Industry Entering a Great Revolutionary Era

・ Concept for A & A Center and Restructuring of Nagoya Plant

・ Expansion Plan for Automotive Business

Urgent response to various global environment issues is required

Global warming / Extreme weather Acid rain Air pollution

Sea pollution Desertification

Oil exhaustion Ozone layer depletionBiodiversity loss Forest loss

Responses to GHG reduction…. ** (GHG: Green House Gas) COCO22 reductionreduction from from aa Carbon-BalanceCarbon-Balance perspectiveperspective

* quantification value of CO2 balance over total product-life cycle Global warming GHG increase ・use of fossil fuels Mining of natural ・deforestation, etc. resources / Production Extreme weather refinement

Disposal Use EnsuringEnsuring food, food, water, water, energy energy Contribute to GHG reduction during mining / refinement / ProtectionProtection from from natural natural disasters disasters / / production / use/ disposal reconstructionreconstruction plans plans

Globally sustainable recycle-oriented society (combine “environment” and “economy”)

★ Environment-responsive R&D is substantial Chemistry will save the earth ★ Accelerate innovation based on multifaceted integration Chemistry will save the earth

Key points Energy conservation / New energy resources Non-petrochemical raw materials Water-treatment / Air-purification / Environmentally friendly Recycle

Generic name of Toray Group activities (projects) for the initiatives to progressively save resources and protect the global environment, with comprehensive perspectives concerning ecology, toward the development of a sustainable recycle-oriented society.

Carbon Fiber Water Fibers & Resins IT-related Films Composite Treatment / Textiles Chemicals Products Materials Environment

Highly-efficient manufacturing process, energy-saving forming technology/energy-saving process of membranes, modernizing of in-house power generation

Weight-saving of n Energy conservation Membrane a

automobiles/aircraft l Energy-saving building materials treatment (insulation/heat shield/ Advanced composite P Resins for Advanced method materials for l heat exchange material automobiles EL materials automobiles/aircraft Water treatment a t n e

Battery materials Wind-power generation m

New energy n

Materials for lithium-ion battery / fuel cell o resources r i

Materials for solar cell v n E Non-petrochemical Nonfood biomass-origin polymer products Membrane r raw materials Bioreactor a Cellulose fiber Chemical process e

(bio-chemicals) (solvent-free) with membranes Y - e

Water treatment/ Waterless e Heat resistant bag filter CNG/H2 tank Water r

Air-purification/ printing plate treatment/ h T Film for coating Modules/ Environmentally Eco-process of BM resin Systems friendly man-made suede alternatives

Halogen-free flame retardant materials Air filter Recycle PET, N6, PBT, ABS, PPS DMSO CFRP Copyright 2008 Toray Industries, Inc. All Rights Reserved. 11 EcoChallenge [Energy conservation] CO2 Reduction with Carbon Fibers : Aircraft

CFRP Aircraft : Midsize passenger aircraft (Boeing 767) Domestic line specification Flight : Domestic line (Haneda ⇔ Chitose ; 500 miles) Lifetime operational track : 2,000 flights/yr, 10years Tokyo University, Pro. Takahashi / Rinoie (Source : ANA) Kobe Yamate University, Pro. Feuerherd ANA, Boeing CFRP in use : CFRP50% applied (composition of Boeing 787) 20% lighter in weight (over conventional aircraft)

Per one aircraft Per ton of carbon fiber

Reduction effect : ▲27,000 tons (7%) (including during manufacture) 1,400 tons Materials & parts production: 700 t / Assembly : 3,800 t ▲ Total : 395,000 t Conventional 20 tons Aircraft 390,000 t

Materials & Parts production Assembly Flight Disposal

CFRP used Total : 368,000 t Aircraft 364,000 t

Materials & parts production: 900 t / Assembly : 3,000 t (Disposal= 0 t)

CO2 [ton/(unit-10years)]

▲2,700 tons CO2 reduction (unit-year) ▲140 tons CO2 reduction/(CF1ton-year) Copyright 2008 Toray Industries, Inc. All Rights Reserved. 12 EcoChallenge [Energy conservation] CO2 Reduction with Carbon Fibers : Automobiles

Vehicle weight : 1,380kg*1 (gasoline-car, 4 doors, FF) CFRP Actual mileage : 9.8km/l *1 Lifetime mileage : 94,000km*2 (average age 10 years) Tokyo University, Pro. Takahashi (Source : *1 JAMA, *2 MLIT) Kobe Yamate University, Pro. Feuerherd Toyota Motor Corp. CFRP in use : CFRP17% applied, 30% light in weight (over conventional automobile) Per one vehicle Per ton of carbon fiber

Reduction effect : 5 tons (16%) Volume of Total

CO2 emitted during CO2 emission 0.3 t carbon fiber reduction over life manufacture of vehicle (including during manufacture) Conventional 3.9 t 26.0 t Total : 31.5 t cars ▲50 tons 1.2 t Materials & Parts production Assembly Flight Disposal 20 tons CFRP used car 5.1 t 20.2 t Total : 26.5 t

0.8 t 0.3 t

CO2 [tons / (uint-10years) ▲ 5 tons CO2 reduction/(CF 1 ton-year) 0.5 tons CO2 reduction /(unit-year) ▲ Copyright 2008 Toray Industries, Inc. All Rights Reserved. 13 EcoChallenge [Energy conservation] Effects in the Automotive Field with the Increase of Carbon Fibers

CO2 reduction by vehicle weight

Weight (Kg) Automobile Rank Number of Cars (Japan) CO2 reduction volume (ton/(unit-yr)

1750~ Luxury sedan, Minivan approx. 4 million units 0.86

1500~1750 Middle class sedan approx. 8 million units 0.69

1000~1500 Popular car approx. 24 million units 0.42

~1000 Compact car approx. 6 million units 0.35

CFRP in use by 17% to cars weighing over 1,500 kg with large CO2 reduction effect (30% light in weight)

9 million tons of CO2 per year can be reduced (equivalent to about 3.5% of total CO2 emissions derived from Japanese transportation sector)

Public ■CFRP blades

Thermal ■Films for back sheet power Facilities Molten-salt Water type Wind power power Nuclear power Storage Housing ■High-performance s

n separator Fixed Solar cell o

i type t

a Nickel Electric ■

c CFRP uranium centrifuge

i Hydrogen l double layer ■PPS fiber bag filter p Battery,

p capacitor Cars etc. A Power Poly- generation electrolyte type Mobile Lithium-ion （PEFC） ■Hydrocarbon electrolyte membrane (PC/phones) battery ■C/C paper electrode substrate Direct Methanol Personal type （DMFC） Fuel cell

Fossil material Nylon Fibers Refining / Synthesis Polymerization Polyester Resins Raw Acrylic Films, materials Polyurethane, etc. etc.

Biotechnology + Nano-technology e.g. thinned wood lactic polymerization acid PolylacticPolylactic acid acid (PLA) (PLA) 1,3-propanediol (+TPA) polymerization Plant-based raw 3GT*3GT* materials Polylactic acid Nonfood melt spinning products Toray’s cellulose CelluloseCellulose fiberfiber Business Domain nano-alloy Flexible heat- plant oil Flexible heat- resistantresistant filmsfilms

Photosynthesis water, carbon dioxide *3GT : polytrimethylenetelephthalate

TorayToray promotes promotes developmentsdevelopments andand commercializationcommercialization ofof nonfood nonfood biomass-originbiomass-origin materialsmaterials throughthrough the the integrationintegration ofof biotechnology biotechnology and and nano-technology.nano-technology. Copyright 2008 Toray Industries, Inc. All Rights Reserved. 16 Contents

･ Midterm Business Strategies “IT-2010” and the Creation of Advanced Materials

・ The Era of Protecting the Global Environment and Toray’s EcoChallenge

・ The Automobile Industry Entering a Great Revolutionary Era

・ Concept for A & A Center and Restructuring of Nagoya Plant

・ Expansion Plan for Automotive Business

Copyright 2008 Toray Industries, Inc. All Rights Reserved. 17 The Automobile Industry in a Great Revolutionary Era 2010 and onward : gasoline internal-combustion engines will shift to electrical systems which will urge “weight-saving” issues 2010 2030 Internal-combustion engines n i a r t

r HEV e w

o Efficiency p improvement n Establish- i Plug-in of motors

s ment of e hybrid vehicles Ｌｉ Upgrading

g B Next- n technology of charging a generation h infra- Upgrading C structrure secondary Innovative Electric vehicles of system battery control secondary battery

Upgrading of Innovative Fuel-cell electric Hydrogen- hydrogen hydrogen vehicles storage infrastructure

s production g

e technology n l i i technology v b a

o High-tensional steel s

m t Carbon fiber composite materials o h Aluminum t g u i (thermosetting) → (thermoplastic) a e

･ Midterm Business Strategies “IT-2010” and the Creation of Advanced Materials

・ The Era of Protecting the Global Environment and Toray’s EcoChallenge

・ The Automobile Industry Entering a Great Revolutionary Era

・ Concept for A & A Center and Restructuring of Nagoya Plant

・ Expansion Plan for Automotive Business

One of Toray’s main plant with many automobile and aircraft manufacturers located within 100km area.

Toray Nagoya Plant

50km 100km

： Automobiles ： Aircraft

Concentrate Toray’s comprehensive ability in the Nagoya area and establish a new development base for technological development through close ties with the automobile and aircraft industries.

A&A Center (Development center for Automobiles & Aircraft)

Plastics Application Automotive Center Advanced Composite Center Technology Development [Opened in 2008] [Scheduled to open in 2009] Center [Opened in 1989] [Automobile and E&E Application] [Automobile Application] [Automobile and Aircraft Application] ・Development of ・Offering solutions, project ・Development of composite materials engineering plastics management (collaboration with ・Development of composite ・Development of molding outside companies and inside molding technology technologies for department, integration engineering plastics of advanced materials technologies of Toray Group) ・Development of automobile-related elemental technologies (evaluation and analysis) The 3 Centers cooperate and supplement each other to conduct technology development Collaboration Research laboratory, Development center, each technical department (resins, chemicals, films, electronic & information materials, affiliated companies, etc.) Copyright 2008 Toray Industries, Inc. All Rights Reserved. 21 Targets for the Establishment of Automotive Center r

Joint development from conceptional stage a c

e r r e u t t u n

Search of specs f

/ e s

p r s Collaborative design/ C e

e u l i e Consideration of materials and parts o m b r v o i o t G t m Evaluation of parts and modules o s o y t u a u m r a C

o t o e v u T Technology integration i t A a v

Advanced materials o n n

technology i

f o

n o i Advanced Product t a z

processing design i l

technology support a e R

Copyright 2008 Toray Industries, Inc. All Rights Reserved. 22 Outline of Transfer of Composite Development Functions Synergy effect and speed-up of development attributable to the consolidation/reinforcement of composite development functions.

Existing composites Consolidate/reinforce composite development Future composites Existing composites functions which are scattered in Shiga and Ehime Future composites developmentdevelopment bases bases developmentdevelopment base base Shiga Plant Shiga Plant NagoyaNagoya Plant Plant CompositesComposites Technical Technical Advanced Composite Center Department Advanced Composite Center Department (ACC)(ACC) Ehime Plant (1)(1) Automobiles Automobiles Ehime Plant ①Thermal cure high-speed RTM Composites Technical ①Thermal cure high-speed RTM Composites Technical technologytechnology DepartmentDepartment ②Filament-winding molding technology Composites Development Head Office : Strategy ②Filament-winding molding technology Composites Development Head Office : Strategy (2)(2) Aircraft Aircraft development, technical support ①Prepreg molding technology CenterCenter development, technical support ①Prepreg molding technology A-VaRTM technology ②②A-VaRTM technology

■Concentrate comprehensive capability of development ■ Strengthen development functions through the improvement of experimental/evaluation facilities ■Integration of Toray Group resins and chemicals technologies ■Strengthen collaboration with vital customers in [Image of ACC] the Chukyo district

In the automobiles and aircraft area, Toray will add advanced design/process technologies of the Advanced Composite Center to the innovative technologies created through co-development with customers or national projects, and apply them to production.

AutomobilesAutomobiles AircraftAircraft

MRJ image

Technology establishment /

Production Mitsubishi Heavy Industries, Ltd. application

AdvancedAdvanced technologies technologies of of Advanced Advanced Composite Composite Center Center Materials/Evaluation Design/Analysis Molding technology Process technology technology technology

Co-developmentCo-development / /National National project project ((High-speedHigh-speed RTM RTM,, A-VaRTM A-VaRTM materials materials,, etc.) etc.) Copyright 2008 Toray Industries, Inc. All Rights Reserved. 24 Structural Reform of Nagoya Plant

Production/development base of chemicals/resins Production/development base of high-performance products for automobiles/aircraft Production Transfer from Ehime Plant Business Early years Composites expansion

- Started production Engineering plastics of caprolactam as Engineering plastics Japan’s first plant of Compounds Compounds raw materials for the Engineering plastics production of Nylon Consolidate to Nylon Nylon Compounds (1951) Ehime Plant Staple Staple High-value - Started production Fibers Fibers creation of nylon resins Consolidate to Caprolactam (1956) Tokai Plant Shift to high-performance and related High-value products - Started production products creation High-performance Promote development Chemicals of fine chemicals High-performance High-performance (1980) of integrated technologies Chemicals Chemicals R&D Chemicals Research Laboratories

Plastics Application Technology Development Center A&A Center Plastics Application Technology Composites Development Center Transfer from Development Center Shiga/Ehime Composites Technical Department Automotive Center (2008~ ) Plants Advanced Composite Center (2009~ )

･ Midterm Business Strategies “IT-2010” and the Creation of Advanced Materials

・ The Era of Protecting the Global Environment and Toray’s EcoChallenge

・ The Automobile Industry Entering a Great Revolutionary Era

・ Concept for A & A Center and Restructuring of Nagoya Plant

・ Expansion Plan for Automotive Business

Copyright 2008 Toray Industries, Inc. All Rights Reserved. 26 Expansion Plan for Toray Automotive Business 400.0 New Items 350.0 350.0 Electronic & Information Materials, etc. Advanced composite materials 300.0 Resins

N Fibers & Textiles e t

S 250.0

a PlanActual l e 200.0 s

( 200.0 B i l l

i 150.0 o 139.0 n 150.0

y 124.0 e

n 103.0 ) 100.0

50.0

Toray Industries, Inc. GeneralGeneral ManagerManager AutomotiveAutomotive CenterCenter YasuoYasuo SugaSuga Function of Each Organization of A&A Center

A&A Center Development site for automobile and aircraft application Nagoya Plant Plastics Application Automotive Center Technology (Automobile Application) Advanced Composite Center Development Center ・Offering solutions (Automobile and E&E application) (Automobile and ・Project management Aircraft application) Development of engineering (collaboration with outside plastics ・Development of composite materials companies and inside departments, and composite products Development of molding integration of advanced materials technologies for ・Development of composite technologies of Toray Group) processing technologies engineering plastics ・Elemental technologies (evaluation and analysis) Name Plastics Application Automotive Center Advanced Composite Center Technology Development Center Main (Materials) (Parts ～Modules) (Materials ～Parts) equipments Molding equipments and facilities Large molding/processing CF base materials processing equipments Material evaluation equipments Large press/ RTM molding equipments facilities Facilities for dynamic evaluation of parts Open October, 1989 October, 2008 April, 2009 (scheduled)

The 3 Centers cooperate and supplement each other to conduct technology development (Numbers of staff (plan): Total 250 members at 3 centers) Collaboration

■Participation from the customer’s planning and conceptional stages for joint development toward shared targets. ■Offering solutions that fuse together Toray’s materials, technologies and services.

Materials, Technologies and Services of Toray

Advanced Composite Center

Joint development from r Plastics Application Technology e

conceptional stage t Development Center n s e Laboratories (fiber, composite, films, etc.) r C e

Search of specs Development Centers e m v o Consideration of materials and parts i t t Each Technical Dept. s o

u Subsidiaries and Affiliated Companies

Evaluation of parts and modules m C

o (TRC, Toray Techno, TDC, etc.) t

u Universities, Research Institutions A Partner Companies (molding device manufacturers, molding companies, etc.)

■Three major functions of Automotive Center

Joint development Technology Development Information transmission Management of joint Development of automotive polymer Acquisition and transmission of fresh projects with customers. material evaluation, analysis, automotive technology news, molding and processing technologies organization of technical seminars Copyright 2008 Toray Industries, Inc. All Rights Reserved. 30 Characteristics of the Automotive Center

■Conventional development style Materials manufacturers specialize in material developments (spec-in business)

Modules/Compartments Automobile Manufacturers e

g Development Auto Parts Manufacturers a t S

t s n c e e p m s

p f o o l

e n v o i e Parts Development t c d

e r e i l i D b o p u m o

o Laboratories t r

u Development centers G

Technical dept. y

Materials Development a

Subsidiaries and r

affiliated companies o T

■Development style in Automotive Center Coordination and integration of various technology resources of Toray Group Joint developments of parts and units with customers through evaluation and analysis technologies as Parts.

Modules/Compartment Automotive Manufacturers e

g Development Parts Manufacturers a t S

n co- e development m p o l Automotive Center e Parts Development Automotive Center v e

d coordination

l integration i p b u o Laboratories o r m o Development centers G t

u Technical depts. y A Materials Development a Subsidiaries and r o

affiliated companies T

Theme 1. Weight Saving Target parts: Panels, Main structural parts (chassis), etc. Toray’s strength : CFR thermoplastic, Film decorating, CAE technology.

Theme 2. Materials for Next Generation Power Train Target parts: Motor, Secondary battery, etc. Toray’s Strength: High thermal stability films, Functional nano particles.

Theme 3. Non-petrochemical materials Targets parts: Fibers and textiles for interior and exterior parts Toray’s strength : Bio-based plastics, its fibers and films, etc.

Theme 4.Car Electronics Target parts: Display, Sensor parts, etc. Toray’s strength : PDP, Polyimide resins, etc.

CFRP＝Carbon Fiber Reinforced Plastic CFRP Applications and its effect on weight saving Improvements Trunk lid (-5kg) Red: Toray’s achievement using CFRP parts Roof (-10kg) WeightWeight Saving Saving Rear spoiler (-4kg) ImprovementImprovement of of fuel fuel efficiency efficiency Impact beam (-3kg) GlobalGlobal warming warming countermeasure countermeasure

ImprovementImprovement of of crash crash safety safety Defuser (-10kg) (High(High Impact Impact energy energy absorption) absorption) Hood (-12kg) Drive shaft (-5kg)

ImprovementImprovement of of Platform (-150kg) drivingdriving performance performance ImprovementImprovement of of vibration vibration damping damping / / naturalnatural frequency frequency UP UP Possible to reduce 400kg using Others (-200kg) ReductionReduction of of Assembly Assembly Door panel CFRP parts (30% of car body weight Front end module processesprocesses and and cost cost Seat back Fender ,etc. ModularModular Construction Construction when the car weighs 1,380 kg)

Average weight of CFRP (Thermoset resin) (RTM molding) conventional car : 1,380kg Panels, Structural parts (30% the weight of steel) CFRP (Thermoplastic) (Injection / Press molding ) Interiors, 2nd structural parts, Electronic parts (50% the weight of steel)

Hood Roof Seat back Fender support Door flame pillar Headrest support

FR engine cover Mission center tunnel CFRP Radiator core support

Engine parts Door inner Crush box RR luggage Impact beam Weight of car with CFRP : FR floor tunnel Under cover 970kg (▲30%) FR floor panel Under support rod

■New CFRP (thermoplastic) for high performance parts (complicated shapes), common parts (mass productivity) will be performed

1. Improvement of material reliability (Dynamic properties and Durability) ①Impact resistance - scattering stone, car crash, pedestrian protection

Charpy impactor Weight-drop impactor Head impact facilities

②Durability, weather resistance- hygrothermal resistance, long-term outdoor exposure, thermal shock, etc.

Large constant Xenon weather meter Large thermal shock temperature chamber and humidity chamber

Copyright 2008 Toray Industries, Inc. All Rights Reserved. 36 Evaluation of Impact Resistance ①Impact resistance ■Various impact evaluation facilities for testing specimens and automotive parts (To construct databases for impact resistance and failure behavior of plastic materials) ■Estimation of impact strength and failure behavior as car parts with combination of CAE technologies to reduce time and labor. Observation of failure mechanism Nondestructive evaluation Large parts

2,000 × 2,000 mm 10 × 60 mm 80 × 80 mm Test facilities for Charpy impactor Weight-drop impactor pedestrian protection

1200 antiplane 計算加速度

sample ) 1000 実験加速度 deformation a ( ) 2

s 800 n m / o m i transfer function : CAE

CAE m t 600 ( 度 a r a = f(t) 速 400 e 加 hammer l e 200 c

crack tip c To confirm compatibility of

a 0 0 5 10 15 20 25 analysis with時間(ms) examination time (t) Charpy test (shot by high speed camera) Copyright 2008 Toray Industries, Inc. All Rights Reserved. 37 Evaluation of Durability ②Weather resistance / Long-term durability ■Confirms material reliability of new polymer materials for car parts

Evaluation facilities Evaluation facilities for test specimens for large scale parts Long-term weather Long-term resistance hygrothermal (ultraviolet stability degradation) Water absorbed Long-term light properties resistance Large constant temperature Xenon weather meter and humidity chamber Thermal shock properties Long-term heat stability High / low temperature Absolute dry aging properties properties

２．Improvement of surface quality ①Painting performance – coated properties, coating strength, improvement of surface quality

Robotic painting Digital gonio Surface roughness equipment photometer meter

②Film decorating technology – development of new plastics / films materials

Film laminating machine Vacuum molding machine 1000t injection molding machine

Copyright 2008 Toray Industries, Inc. All Rights Reserved. 39 Improvement of Surface Quality (painting) ①Painting performance – coated properties, coating strength, surface quality ■Development of suitable materials for various paints and panting processes and optimization of painting conditions

Entrance Painting durability evaluation

Painting robot

Larger thermal chock Large constant temperature Painting robot chamber and humidity chamber Painting quality evaluation Drying oven Digital Gonio photometer (AMC) Exit Painting robots Paint booth (outline)

・Main specification : maximum painting area：1700×1700 mm Surface roughness meter maximum drying temperature : 140 ℃ (Plastics Application Technology Variable Gloss Meter Development Center.) (Plastics Application Technology Development Center) Copyright 2008 Toray Industries, Inc. All Rights Reserved. 40 Improvement of Surface Quality (film decorating) ②Film decorating technology (high quality / designing surface) , paint-less) ■Offering new surface appearance and design which is suitable for polymer materials Film processing Film insert molding Trimmer Vacuum molding machine Trimming Preforming Maximum process width : 600 mm

Semiautomated serigraph 1000 ton injection molding machine Printing Insert molding

Maximum printing area : 600×600 mm Film laminating machine

Evaluation ・Film adhesive strength Laminating Maximum process ・Surface roughness, brilliance width : 600 mm ・Heat stability, durability (long-term /short-term) Copyright 2008 Toray Industries, Inc. All Rights Reserved. 41 Evaluation and Analysis System of Automotive Center and Toray Group

Customers Evaluation Request Analysis

A&A Center Automotive Center (Automobile Application) ・Evaluation and analysis of

T automotive parts T o o Plastics Application r r Advanced Composite Center a a Technology (Automobile and Aircraft Application) y y Development Center Evaluation and Analysis of CFRP composites ・ G G (Automobile and E&E Application) ・Aircraft inspection technology r r o o ・Evaluation and analysis of plastics u u p p

Laboratories and Toray Techno Toray Research Environmental evaluation Technical depts. analysis Toray Engineering Evaluation and analysis Center CAE analysis, of particular fields Advanced evaluation, analysis evaluation, etc.

■Realization of various supports through utilization of technological resources in Toray Group

■Application of inspection technologies for aircraft materials ■Estimation of strength and lifetime of parts by Nondestructive.

Ultrasonic C-scan 3D X-ray scanner Observation of defects within the material and Observation and measurement of orientation angle measurement of damage level and distribution of fibers

Ex. Relation between CFRP internal defect and strength ◆The other inspection and analysis facilities Edge delamination in Toray group◆ Matrix crack Hydraulic fatigue machine (AMC) Creep machine (AMC) Delamination High speed impact machine (Plastics Application Technology Development Center) Specific fracture pattern DSC/DMA (Plastics Application Technology Development Center) Large defects on 3D shape measurement equipment (ACC) of composite material invisible defect

Application of aircraft development technologies in automobile fields Copyright 2008 Toray Industries, Inc. All Rights Reserved. 43 Battery and Electrode Evaluation and Analysis Technology (Toray Research Center) ■Estimation and Improvement of performance of battery and electrode by shape observation, composition and structural analysis Lithium-ion battery Fuel cell

Morphological analysis, composition and structural Structural analysis and property analysis of positive/negative-electrode materials evaluation of electrolyte membranes Thickness and composition analysis of Structural and composition analysis of electrode membranes (SEI membranes) Composition analysis and additives and trace catalyst particles impurities analysis of battery electrolytes , etc. Composition analysis and trace impurities analysis of battery electrolyte, etc.

TEM observation of LiCoO2 positive electrode Observation of supported condition after repeated charge and discharge cycles of a catalyst particle by 3D TEM

Cracks occurred on the positive electrode materials by deterioration of long-term usage. On the surface of positive Particle size and supported condition of nm size catalyst electrode particles, Co changed to the conditions like metal particles can be observed in three dimensions. Solution of deterioration mechanism Realization of high capacity, Improvement of (Improvement of durability) cycle properties, and Improvement of safety ReductionCopyright of2008 Pt Toray usage Industries, (Cost Inc. All Rights reduction) Reserved. 44 CAE Technology for Automobile Application

■ Toray has started R&D of CAE technology since 1970s and has developed several fields of CAE technologies for polymer materials ■ Toray has started design support for customers using CAE analysis since 1980s. (total 4,000 cases) ■ Based on combination of CAE analysis and various test evaluation technologies and databases, performance and quality of end products can be estimated. 1980 1990 2000 Structural CF Composite field Layer stack Nonlinear Contact Creep Adhesion Design support for customers’ end products Analysis Anisotropy Impact Pedestrian 50 cases / year, total sum over 500 cases (1990～) protection Vibration Analysis Plastic field eigenvalue frequency response Assembly Design support for customers end products Analysis ’ Acoustic 250 cases / year, total sum over 3,600 cases (1980～) Penetrating radiated Software Businesses (TEK) Fluid Analysis sound sound Visco Injection Molding CAE “3D TIMON” Viscosity Fluid/Structural Multilayer Analysis elasticity Total sum of sales 250 companies, 450 sets (1980 ) couple ～ Materials Item Plastics Composites Films Injection Molding Analysis RTM Molding Analysis Vacuum Molding Analysis (flow, warpage) (Resin flow) (film setup) Injection field “VAR-TIMON” “3D TIMON” Structural AnalysisImpact Analysis Vibration AnalysisAcoustic Analysis Fluid Analysis Analysis field

■Support of design for customers’ product from an early development stage, cooperation of each dept., utilization of CAE technology → Design and Development time / Experimental evaluation cost can be reduced ■ Many achievements of co-development and design support for automobile manufactures and auto parts manufactures

CAE development and support system Advanced Composite Center molding / design / evaluation analysis of composite materials s

r Engineering e Development Center Plastics Application Technology m Automotive Development Center o ・CAE elemental t Center s technology development molding / design / evaluation analysis of plastics u

C ・ Customer design Toray Engineering Co., Ltd. support Development and sales of injection molding CAE software “3D TIMON” Roof Rear spoiler Trunk lid Hydrogen tank Main CAE Hood application parts Fender Pillar reinforcement Fuel tank body Front end module Instrument panel Shift lever base Engine cover Intake manifold Power module ECU case Connector Cylinder head cover Copyright 2008 Toray Industries, Inc. All Rights Reserved. 46 Automotive Center’s Function of Collection and Transmission of Information ■Introduction of timely Toray Group’s advanced materials and technologies (molding, processing, evaluation, analysis, etc. ) ■Collection of new information from customers, universities, companies.

Toray Group’s Advanced Customers Materials and Technologies Information New materialNano-alloy ３次元モデル図透過電顕写真 Transmission Process Technology seminar Partner Companies 400nm New technology Nano controlled display new materials Library display Analysis New materials by nano processing technology

Molding Property evaluation and Universities, analysis technology National laboratories Information Simulation Collection New molding technologies Academic information of new materials Market information Innovative technology Proposal of analysis method of new materials Copyright 2008 Toray Industries, Inc. All Rights Reserved. 47 Automotive Center’s Function of Collection and Transmission of Information ～DB Library, IT～ ■Collection of measurements of evaluation / molding machines online and Construction of databases ■Establishment of the library which selected / combined / integrated multiple data → Promptly search and offer materials data which meet customers’ and internal relevant departments.

Evaluation facilities Intranet System

Measurement / Analysis Data Customer Web Server Common Server Co-developer S

Injection Machine e c u r

Molding i t y

Condition Data Various G a

Data t e

Involved Draft, Document, CAE departments Intranet Subsidiaries and affiliated companies Draft, CAE data Database Library

Themes Display Area Materials Display Area TV Conference Room (30 people capacity)

Others

2 small conference rooms Seminar Room with 15 people capacity (80 people capacity) 1 medium conference room with 30 people capacity 1 reception and conference room with 10 people capacity

Entrance New Technology Display Area CAE room

Advanced Composite Center Major Growing Business Fields 1. Development of new applications 2. Creation of high value-added products Design / Analysis Material - Early involvement with customer Development r - CAE (Vibration / damping etc.)

e - New CFRTP t

n Automotives e IT-2010 C Collaboration Basic strategies e v i t

o Machining / Inspection Molding technology Aircrafts

m - Automated process technology - Ultimate pursuit of molding tech. o

t - Continuous trial process of - Creation of innovative

u Molding / Machining molding tech. Information

A - Industrial clusters Technology devices

Equipment of Water jet, Equipment of RTM, A-VaRTM, and Fatigue test, etc. Hot press and Pultrusion, etc. Industrial ・・・・ Mechanical parts ・・ Industrial Technological cluster collaboration manufactures Toray Group

■Acceleration of innovative technologies creation and mass-production technologies establishment by reinforcing molding / evaluation equipments.

Major equipmentsTechnologies 1. Material development Mechanical property test, Fatigue test / Evaluation DMA

2. Design technology CAD CAE 3. Molding technology RTM, Autoclave Injection molding 4. Machining / Inspection Water jet technology 3-dimension measurement

Automotives : Establishment of continuous development / trial-production system for materials, design, molding and machining 1. Creation of design/molding/machining technologies : To develop new applications and expand composite materials business 2. Creation of new materials and deepen molding technologies : To expand materials business and enhance technical support functions Copyright 2008 Toray Industries, Inc. All Rights Reserved. 52 Strategies for Composites Business

Area applications (Now going) Expansion and New PlansMajor Energy-related ・Fuel cell (electrode gas diffusion ・Fuel cell layer) (electrode gas diffusion layer) ・ Wind turbine ・High-pressure vessel (small wind-turbine blades) Fuel cell stack Transport machinery ・Automotive propeller shaft ・Automobile propeller shaft/ ・Exterior panels Exterior panels (sports car) ・Automotive structures ・Aircraft structures

Civil engineering ・Bridge railings ・Bridge railings and Construction ・Seismic retrofitting (bridge pier, deck slabs, buildings (beams, columns)) ・lightweight building structures (truss, roof structures) Industrial ・Medical equipments ・Information technology device equipments (X-ray equipment) (Laptop PC case) ・ Information technology devices ・industrial robot (Laptop PC case, etc.) ・Mechanical parts (Robot arms for LCD panel, etc.) Copyright 2008 Toray Industries, Inc. All Rights Reserved. 53 ExpansionExpansion StrategyStrategy ofof AutomotiveAutomotive MaterialsMaterials BusinessBusiness

Toray Industries, Inc. Senior Director Automotive Material Strategic Planning Dept. Kazumichi Ebisutani Contents

• Toray Group’s Involvement in the Automobile Industry • Environment and Issues surrounding the Automobile Industry • Expansion Strategy of Automotive Business

【Fibers and Textiles】 Fiber and fabric for airbags, tire cord, fabric and man-made suede for car seats, cabin filter, etc.

【Resins & Chemicals】【Carbon Fiber Resins for automotive parts Composite Materials】（ABS, Nylon, PBT, PPS, LCP） Hood, Roof, Propeller shaft, Spoiler, Polyolefin foam for interior and exterior Impact beam, etc.

【Films】【Electronic & Information】 Films for capacitor, motor insulation and LCD color filter, Optical fiber, decorating and process films Polyimide film for FPC

【Technical Support for Customers’ Design , Processing Technologies/Facilities】 Toray Research Center Inc. (analytical evaluation technologies) , Toray Engineering Co., Ltd. (process technology and CAE analysis) , etc.

Mechanical and Exterior and Interior Under Food Parts Functional Parts Decorating Parts

Seat Injector Air bag Tire cord Seat Roof surface Radiator grill Intake manifold belt Engine cover

Instrument Wheel cover Spoiler Accelerator Lamp Door rock Shift lever panel pedal Oil filter CHC Oil reserve tank reflector base

Cooling and Fuel System Electric component

Ignition Lamp Socket Connector Power window Rotation Radiator tank Cooling fan Barrier layer for ABS-ECU fuel tank switch sensor

Lever Relay box Power seat Electronic Alternator parts Neutral combination Water inlet ORVR valve gasoline sub motor throttle sensor starter switch tank housing Copyright 2008 Toray Industries, Inc. All Rights Reserved. 58 ～Toray Group’s Involvement in the Automobile Industry ～ Toray Group’s Sales for Automobiles

（Billion Yen） 139 150 Others (Films, 140 124 Electronic 130 materials, 120 Chemicals) 110 103 Carbon Fiber 100 Composite 90 Materials 80 70 Plastics 60 50 40 30 20 Fibers & Textiles 10 0 FY2005 FY2006 FY2007

• Toray Group’s Involvement in the Automobile Industry • Environment and Issues surrounding the Automobile Industry • Expansion Strategy of Automotive Business

Semiconductor High definition Display Japan & Large-volume information Europe system North America Electronic control , etc. Aging of the Slump of Big3 population Creation of new added value Quality improvement Workforce decreasing Rise of small cars Low birthrate Safety / Comfort Pursuit of safety Advanced Advanced information information Information / Electronics Advanced road information system Advancement of Advancement of IT technologies IT technologies Sensor / ECU Biofuel Hybrid car Environmental Energy issue Electrical energy EV Resource depletion Hydrogen energy fuel-cell issue etc. vehicle Global warming Alternative energy etc. CO2 reduction Skyrocketing Economic Oil price Population expansion in development of BRICs developing countries Mass consumption Emerging Low cost workforce Mass production Country Improvement of quality of life Copyright 2008 Toray Industries, Inc. All Rights Reserved. 61 ～Environment and Issues surrounding the Automobile Industry ～ Market Changes in the Automobile Industry

Semiconductor High definition Display Japan & Large-volume information Europe system North America Electronic control , etc. Aging of the Slump of Big3 population Creation of new added value Quality improvement Workforce decreasing Rise of small cars Low birthrate Safety / Comfort Pursuit of safety Advanced Advanced information information Information / Electronics Advanced road information system Advancement of Advancement of IT technologies IT technologies Sensor / ECU Universal Issues Biofuel Hybrid car Electrical energy EV Environmental Energy issue Hydrogen energy fuel-cell etc. vehicle issue Resource depletion etc. Global warming Alternative energy CO2 reduction Skyrocketing Economic Oil price Population expansion in development of BRICs developing countries Mass consumption Emerging Low cost workforce Mass production Country Improvement of quality of life Copyright 2008 Toray Industries, Inc. All Rights Reserved. 62 ～Environment and Issues surrounding the Automobile Industry ～ Number of Automobile Production

(thousands of NumberNumber ofof GlobalGlobal AutomobileAutomobile ProductionProduction cars / year) 120,000 Regardless of downturn in world economy, the number of global 100,000 automobile productions tend to increase due to the rise of BRICs and the economic growth of developing China Asia 80,000 countries Number of 60,000 Japanese automobile manufactures’ 40,000 production 20,000

0 1995 2000 2005 2010 2015 2020 Japan North America Europe Asia( China ) Others Japanese manufacturers' production (Estimated by Toray based on the data of Japan Automobile Manufacturers Association, Inc. and FOURIN, Inc. ) Copyright 2008 Toray Industries, Inc. All Rights Reserved. 63 ～Environment and Issues surrounding the Automobile Industry ～ Revolutionary Era of the Automobile Industry

Environment / Energy Safety / Comfort Information / Electronics CO2 reduction Pre-crash safety system Advanced road information system Alternative energy , etc. relax / comfort, etc. Electronic control / sensor, etc.

Non- Next petrochemical- Car Weight generation saving based electronics power train materials

Revolutionary era for systems Revolutionary era HEV/PHV/EV/FCV , etc. Increase of for materials electronic devices Carbon fiber / Plastics , etc. Semiconductor / ECU , etc.

Toray contributes to the automobile industry by advanced materials and technologies

• Toray Group’s Involvement in the Automobile Industry • Environment and Issues surrounding the Automobile Industry • Expansion Strategy of Automotive Business

Toray’sToray’s InnovationInnovation Weight saving :Roof, Hood, Quasi-structure material, etc. Issues of the automobile industry Integration of materials Integration of materials such as fibers, plastics, films, carbon fiber composite materials, etc. Next generation power train : Safety / Comfort Motor, Secondary battery, etc.

Organic Polymer Synthetic Chemistry Chemistry Environment / Nanotechnology Non-petrochemical-based materials : Energy Interior

Biochemistry Advanced Materials / technologies Information / Nanotechnology-based Electronics innovative materials, Low Car electronics : Display , Electronic environmental load materials, component, Sensor, Semiconductor, etc. Innovation materials of semiconductor / circuit, Next generation display, Nano control structure, Nano fabrication, New polymer materials, Green chemistry , etc. Copyright 2008 Toray Industries, Inc. All Rights Reserved. 66 ～Expansion Strategy of Automotive Business～ Revolution of the Automobile Industry and Toray’s Response

◆Advancement of ◆Diversification of ◆Expansion of application of ◆Advancement of ◆Diversification of ◆Expansion of application of ◆Car electronics Weight Saving ◆Car electronics Weight Saving powerpower trains trains Nonpetroleum-basedNonpetroleum-based materials materials Trend of the automobile industry Toray’s strategy and corresponding materials and technologies Automobile manufactures established weight saving projects and consider ○Advances development of high expansion of application of light weight performance plastics with nano-alloy materials such as high-tension steel, ○Expands application of carbon fiber aluminum, plastics, carbon fiber composite composite materials materials, etc. ○Integrates plastics and carbon fiber composite materialas Weight Saving Project of ■Exteriors such as fender ■ CFRP exterior body Automobile Manufacturers (new nano-alloy plastics) panel / structure Project Goal (RTM/FW molding technology) Toyota Mass Weight▲10% by 2011 Innovation (Midsize sedan) Honda Set by Weight saving goals are each car type not explicitly shown (CO2▲10% by 2010) ■Quasi-structure Weight 15% by 2015 Nissan Vision 2015 ▲ ■Impact-energy absorbing materials (thermoplastic (Average weight) plastic parts (Impact-energy CFRP / New high rigidity absorbing nano-alloy) Mitsubishi CLW30 Weight▲30% by 2010 Plastics) Copyright 2008 Toray Industries, Inc. All Rights Reserved. 67 ～Expansion Strategy of Automotive Business～ Revolution of the Automotive Industry and Toray’s Response

Ultimate eco-car ■Fuel cell Hydrogen tank, Plug-in HV Alternative FCHV Electrode base material energy HV Diesel HV HV (Carbon fiber EV composite materials) Biofuel ■Secondary battery Separator (heat resistance film) Lean burn Case, Plate (PPS resin) Synfuel DPNR ■Common issues for cars ■Motor insulator Variable Weight saving (carbon (PPS resin, CNG Common-rail induction fiber composite DI PET/PPS film) materials/plastics) Alternativ Diesel Gasoline Electricity e energy Copyright 2008 Toray Industries, Inc. All Rights Reserved. 68 ～Expansion Strategy of Automotive Business～ Revolution of the Automotive Industry and Toray’s Response

Seat cushion material (SF lamination) option mat Spare tire cover /trim option mat (BCF+PLA (kenaf/PLA-SF board) nonwoven fabric) Copyright 2008 Toray Industries, Inc. All Rights Reserved. 69 ～Expansion Strategy of Automotive Business～ Revolution of the Automotive Industry and Toray’s Response

Expand applications of advanced materials and technologies such as display, Trend of the automobile industry semiconductor materials, electronic circuit materials, high performance films, which ○Car electronics become diversified to have been cultivated in IT fields, into advance comfort with car navigation, automobiles. large-volume information system, etc. ■LCD meter, In-car display such as car and to improve safety with ABS, brake navigation, etc. (Color filter, Organic EL-related assist, millimeter-wave radar, etc. materials, etc.) ○Car electronics corresponding to throttle control, engine control, HEV, ■Large-volume information EV, FCV advance. system (Plastic optical fiber)

■Sensors, Semiconductors (High performance resin, Next generation resist, Semiconductor packaging circuit board, etc.)

Corporate Marketing Automotive Material Subsidiaries and Planning Dept. Affiliated Companies Corporate Strategic Strategic Planning Dept. Planning Dept. of Toray Group Strategic Promotion Conference Technology Fibers & Textiles of Automotive Material Center Division * Decision of sales expansion, planning and investment between Electronics & Resins & Chemicals divisions Information Related Division * Total optimization and information Products Division unification Films * Backup of each development Torayca & Advanced Division theme Composites Division ■Representative window of Toray Group routine work ■Information gathering through direct routine work contact with customers ＋＋ ■Search of new development themes and needs Obtainment ■Proposal of solutions by Toray Group’s Obtainment of customers’ comprehensive ability of customers’ customer customer information Automobile manufacturers / Auto parts information manufacturers and and peripheral peripheral information information

Copyright 2008 Toray Industries, Inc. All Rights Reserved. 71 ～Expansion Strategy of Automotive Business～ Automotive Material Strategic Planning Dept. and Automotive Center Each dept. (Fibers & Textiles, Plastics, Films, Torayca & Automotive Material Advanced Composites, Electronics & Information Strategic Planning Dept. Related Products, etc.) Each related technical dept. Companies in Toray Group (Fibers & Textiles, Plastics, Films, Carbon fiber (TI, TRC, TEK, TDC, DCT, etc.) related, Electronics & Information related, etc.) AutomotiveAutomotive CenterCenter

Utilization of comprehensive ability Integrated development with customers

Advanced Material y t i

Technology l i

Polymer Chemistry b

Nanotechnologies and alloy y Sharing of target b e

Fine Chemical v n i s o Cooperative design and

Advanced Processing Technical Support for i n t e

Technology Customer’s Design a material selection e High level processing CAE analysis technology h r e

technology Analytical evaluation r

C Cooperative evaluation

of fibers and textiles, films technologies p

Plastic molding technology Reliability and Durability m

Innovative composite molding assessment o Bonding technology c

Response to Revolution of the Automobile Industry

Copyright 2008 Toray Industries, Inc. All Rights Reserved. 72 ～Expansion Strategy of Automotive Business～ Expansion Target of Automotive Materials Business ◆Expand sales of materials which Toray currently holds by making them high performance and high added-value. ◆Create new items which response to environment / energy, safety, comfort, car electronics with materials used in other applications, material integrations, advanced materials and technologies. ◆Help the automobile industry contribute to global environment with advanced materials and technologies (Billion Yen) 400 350 350

300

250 200 200 124 139 150 150 103 100

0 FY2005 FY2006 FY2007 FY2008 FY2010 FY2015

Fibers & Textiles Resins Advanced Composite Materials Electronic & Information Materials, etc. New items Copyright 2008 Toray Industries, Inc. All Rights Reserved. 73 Descriptions of predicted business results, projections and business plans contained in this material are based on assumptions and forecasts regarding the future business environment, made at the present time. The material in this presentation is not a guarantee of the Company’s future business performance.