Fibers & Textiles Business

Toray IR Day Medium-term Management Program “AP-G 2022” Fibers & Textiles Business

June 5, 2020 Mitsuo Ohya Senior Vice President, General Manager, Fibers & Textiles Division Toray Industries, Inc.

Ⅰ. Outline of Toray Group Fibers & Textiles Business

Ⅱ. Business Environment

Ⅲ. Fibers & Textiles Mid-term Management Program “AP-G 2022”

Ⅳ. Future Direction of Toray Group Fibers & Textiles Business

Fibers & Textiles 883.1 60.7 (40%) (39%)

Performance 770.8 58.7 Chemicals (35%) (37%)

Carbon Fiber 236.9 21.0 Composite Materials (11%) (13%) Environment & 252.3 11.2 Engineering (11%) (7%) 53.3 1.6 Life Science (2%) (1%)

Others 18.2 3.4 Adjustment ▲25.5 TOTAL 2214.6 131.2

Copyright © 2020 Toray Industries, Inc. 2 Long-term Performance of the Fibers & Textiles Segment Net Sales(Billion Yen) Operating Income (Billion Yen) 1,000 80 E D A O ( P c o r s l o e a i i t a G l n c - z c n e o a S l o o s

m h c A m b s u o i c i a o c r c b l c 900 r n

o b e R u k

r u n c e b

d 70 a b c c b

u y e b l

e s s l c e e s

r b i

d i o b s u

n i u b r s s r

800 y s t

t t h e

60 s t r o n

700 g

Y e n

) Rapid growth in China Emergence of Operating Income 50 600 Korea/Taiwan Net Sales: overseas

500 40

400 Strengthening of Advanced Materials Development 30 Strengthening of Industrial Materials Applications Net Sales: Japan 300 Establishment of 20 Shift to “Shingosen” Chinese Bases Domestic Production Expansion outside Japan 200 New Synthetic Demand in JPN Fiber Boom Business Expansion in (business Growth Regions & fields restructuring) Expansion of Global Operations 10 100 Differentiation of product lineup between Japan and overseas TC-II → TC-III Thorough rationalization through APS Strengthening business structure 0 (Action Program for Survival) as a Core Growth Driving Business 0 85 90 95 2000 05 10 15 19 Copyright © 2020 Toray Industries, Inc. 3 Business Results of the Fibers & Textiles Segment under Vision 2020 (Consolidated Net Sales： Billion Yen) (Consolidated Operating Income: Billion Yen) 1,200 140 CAGR 6% CAGR 4%

1,000 974.3 120 892.0 913.6 856.7 856.1 883.1 100 800 755.5

638.4 632.2 80 600 72.4 72.9 68.9 66.8 60 60.7 400 52.9 55.6 40 45.3 43.2 200 20

0 0 (FY) 2011 2012 2013 2014 2015 2016 2017 2018 2019

“AP-G 2013” “AP-G 2016” “AP-G 2019” Long-term Corporate Vision “AP-Growth TORAY 2020” (VISION 2020)

Copyright © 2020 Toray Industries, Inc. 4 Review of the Previous Medium-term Management Program “AP-G 2019” Main Issues Main Activities (Progress) Strengthened business structure : Maintained domestic production base through total cost 1. Structural & reduction and strengthened activities of the “Toray Synthetic Textile Cluster” competitiveness Strengthen competitiveness : Invested strategically in priority development themes, pursued improvement production process innovation, etc.

2. Expansion in GR Business: Expansion in energy conservation, low environmental impact fields growth fields LI Business: Expansion in nonwoven fabric, etc.

Growth regions and markets: Advancement of business in Chinese subsidiaries, 3. Expansion and increased capacity and production sites of airbags, nonwoven fabric, nonwoven material advancement of created using ultra-fine fibers in an “islands in the sea” configuration global business Global brand strategy：pursued 2-brand strategy of the nonwoven material created using ultra-fine fibers in an “islands in the sea” configuration business

4. Strategic creation Nonwoven business：Strengthened cooperation with global customers by promoting of new business comprehensive development of materials in the TORAY Group through establishment of the business framework covering spunbond and staple fiber nonwoven fabric Extension and diversification of the global supply chain: Enhanced capability to respond to global customers through cooperation within Toray Group overseas bases, and cultivation of new supply sources including alliances Apparel applications: Strengthened cooperation with end customers, enhanced knit production and 5. Advancement of sales base (by the capital investment in PTHL) business model Non-apparel applications: Strengthened the integrated business structure from fibers to textiles of the airbags/expanded supply chain (by the acquisition of Alva) Reinforced organization in response to the expansion of business domain and enhancement of 6. Organization and global operation (Established Performance Nonwoven Products Dept., strengthened HQ functions Human Resources of the airbag business, strengthened functions of the staff organization, etc.) Optimized headcount, secured headcount, and strengthened development of human resources Copyright © 2020 Toray Industries, Inc. 5 Our Strength： World’s only Three Dimensional Business Model

North Africa South Asia Global Business Network Americas Global Assets Europe & ASEAN Global Operation Korea Technological Development China & Japan Fibers Textiles Garments Variety of Nylon Vertical Products Polyester Wide Range of Acrylic Business Areas Integration & in Supply Chain Industrial FY Human Network Advanced Materials PPS PTFE PLA Material Variety PTT Nano & Nonwoven Innovative Products Microfiber* SB

Plant-based PLA Fibers Fibers PTT(3GT) Fibers Nonwovens

Nonwoven material created using ultra-fine Microfibers fibers in an “islands in the sea” configuration Nanofibers High- PTFE (Flurofiber) PPS functional (Polyphenylene Sulfide) Fibers Aramid Fibers Acrylic Fibers Recycled PET Fibers Recycled Fibers Recycled Nylon Fibers Polyester Fibers Partially plant - PlBainotm-baasssed based PET 100% plant - FFiibbeerrss N66 Fibers based PET Nylon 610 N6 Fibers

1950 60 70 80 90 2000 2010 2020 Copyright © 2020 Toray Industries, Inc. 7 Business Expansion through the Pursuit of High Value-added Fibers Technologies 1958: Start of production of 1960 1970 1980 1990 2000 2010 2015 2020 TETORONTM

Development Imitate the Imitate the feel and Pursuing the unique feel and Superiority of natural concept of structure of fibers, environmental- synthetic fibers natural fibers texture of natural fibers texture of synthetic fibers friendliness The Pursuit of Silk Modified cross-section Conjugated fiber of Specialty modified Polymer-alloy Orientation control Polymer-alloy NANODESIGN® different shrinkage cross-section

® SILLOOK FEMINOS® SILLOOKDUET™ SILLOOK™SOUBI Kinari ™ SILLOOK SILDEW SILLOOK ('63) ('89) ROYAL® S ('89) ('98) ('03) ('13) ('19)

Development of Technology Composite spinning Composite spinning Composite spinning Innovative composite spinning technology NANODESIGN®

Composite spinning Blended spinning OHS®('91) UT-S®('91) OHSⅡ®('99) Primeflex™('02) uts-FIT™ ('16) Composite spinning Cross-section MIX PAREL™ ('77)

SUBIL® ('67) LUANA®('87) CEO αTM ('93) Nanofiber diameter 300nm ('13) Creating new products and technologies by studying polymerization and spinning of polyester fibers Copyright © 2020 Toray Industries, Inc. 8 Continuous Promotion of Marketing Innovation: Supply Chain Innovation Key Industry Trends Toray’s Actions

Dawning of the Fabric Trading Fiber Whole- Market Toray Merchant Firm Distri- saler bution ↓ Spinning / converter Introduction of Synthetic fibers TM TM Materials Material Brand Marketing (Toray Nylon , TETORON )

1960s-70s Toray Establishment of the Integrated Business Ready-made From Yarn to Textile Wholesaler Clothing Market Retail Weaver (establishment of PT Apparel ↓ outsourced processing Response to the Brand Knitter Dyer CHOP system) Apparel Market PT (Production Team) 1990s- Distribution Revolution Toray ↓ Response to the Established an Integrated Appa- Expansion of Fast Weaving Companies Fashion and SPA Overseas Trading Companies/ Business from fibers to rel Dyeing Companies Garment Making Market Knitting Companies textiles to final products SPA Filament Yarns/ Garment Staple Fibers Weaving, Knitting - Dyeing making Around 2015- DX ↓ “AP-G 2019” The Cockpit System Advancement of All production-related Value Chains information listed on time DX: Digital Transformation Copyright © 2020 Toray Industries, Inc. 9 Long-term Overseas Investment and Expansion of Global Business Response to Industrial Development Programs in the Developing Countries: Established local production to maintain the export markets

Established Country Company Name Business Established Country Company Name Business P/R, P/C spinning, weaving, 1970 ISTEM, CTX TTTM P/R spinning, weaving, dyeing dyeing (later knits) 1963 Thailand (now TTT) 1971 Indonesia ITS N-FY, P-FY, P-SF TNT (now TTS) N-FY (later P-FY) 1973 ACTEM A spinning

Response to the Strong Yen after the Nixon Shock and Export Regulations of Fibers & Textiles to the US: Established local production bases in ASEAN P/C spinning, weaving, P-FY weaving, dyeing 1972 Thailand LTX (now TTT) 1988 LTX (now TTT) dyeing Thailand *increased capacity PFR P-SF 1991 TFL (now TTS) P-FY Malaysia P/C spinning, weaving, 1973 PAB Response to the Strong Yen after the Plaza Agreement and the Economic Bloc in Europe dyeing and the US: Established local operational bases (Europe and US market) Indonesia ETX P/C spinning, weaving 1989 England TTEL FY weaving, dyeing Nonwoven material created using Response to the Opening of the Chinese Market ultra-fine fibers in an “island in the 1995 Italy Alcantara sea” configuration (acquired TSD FY weaving, dyeing, knitting (later: airbag fabric) management rights) 1994 * from 2017 –capacity increase China FY weaving, dyeing TFNL N-FY, P-FY 1997 Czech TTCE (later: airbag fabric) 1995 2002 USA TFA Flurofiber (PTFE)

Response to the Growth Market & Applications: Capacity increase, 2013 Korea TCK P-SF, P-FY upgrading of overseas bases, etc. *became part of TAK in 2019 Polyester spunbond 2014 India TKAT Fabrics for airbags 1999 Korea TAK (Previously TSI) (increased capacity in ‘16-’18) 2015 Mexico TAMX Yarn and fabrics for airbags 2003 Thailand TTS/TTT Yarn and fabric for airbag 2017 Hong Kong PTHL Knits (capital investment) Spunbond 2006 China TPN *2012-15 capacity increase 2017 China TPF PP Spunbond 2009 Bangladesh TMBD knits, dyeing, garments 2018 India TID PP Spunbond PP Spunbond Portugal, Cushions for airbags 2011 Indonesia TPJ 2020 Alva *2015-16 capacity increase Tunisia (acquired) Copyright © 2020 Toray Industries, Inc. 10N=Nylon, P=Polyester, A= Acrylic, C=Cotton, R=Rayon, FY=Filament Yarn, SF=Staple FIber Expansion of Toray Group’s Fibers & Textiles Global Network China Production capacity of Fibers & Textiles Business UK Sweden TFNL (N-FY, P-FY) (official value): as of March, 2019 Alva TSD (Weaving, Knits, TTEL (Weaving, Republic of Korea Dyeing) (Head office) Dyeing) TAK (P-FY, P-SF, Weaving, Dyeing, Spunbond) TPN (Spunbond) PTHL (Knitting, Dyeing) Japan USA Toray N-FY･SF, P-FY･SF, A-SF, TFA (PTFE) Czech Spunbond, Nonwoven material TTCE (Weaving, Dyeing) created using ultra-fine fibers in Mexico Italy an “islands in the sea” configuration, TAMX（(N-FY, Weaving) Alcantara (nonwoven material PPS fiber, PTFE fiber created using ultra-fine fibers in an “islands in the sea” configuration) Annual Production Capacity of Fibers (K tons/year) Portugal, Tunisia Nylon Polyester Acrylic Spunbond Others Total Alva (Airbag cushions) Japan 82 169 20 8 3 282 India Korea 376 69 445 5 52 73 130 Thailand TKAT China (Weaving) Indonesia 18 82 37 137 TTS (N-FY, P-FY) Thailand 41 24 65 TTT (P/C, P/R Spinning, Malaysia 51 51 USA 0 0 Weaving, Knits, Mexico 10 10 1.1 million Dyeing) Total 155 754 20 187 4 1,120 t/yr. Annual Production Capacity: Textile (million m/year) Indonesia Malaysia * dye base ITS (N-FY, P-FY, P-SF) PFR（P-SF） FY fabric Spun fabric Knitted fabric Total ISTEM (P/R Spinning, Weaving, PAB(P/C spinning, Republic of Korea 1 12 13 Weaving, Dyeing) UK 19 19 Dyeing) Czech 34 34 ACTEM (A spinning) China 121 22 143 ETX (P/C spinning, Weaving) Indonesia 88 88 CTX（P/C spinning, Weaving, Dyeing) Thailand 33 108 4 145 Malaysia 79 79 （） TPJ Spundond Total 207 286 26 519 N: Nylon, P: Polyester, A: Acrylic, C: Cotton, R: Rayon ・Others: nonwoven material created using ultra-fine fibers in Others: PPS (polyphenylene sulfide), PTFE: Fluorofiber PTHL 492 Total 1 billion FY: Filament Yarn, SF: Staple Fiber an “island in the sea” configuration : 16 million square meters/year (Japan, Italy) ・Textile capacity does not include fabrics for airbag, garments m/yr. Copyright © 2020 Toray Industries, Inc. 11 Ⅰ. Outline of Toray Group Fibers & Textiles Business

Ⅱ. Business Environment

Ⅲ. Fibers & Textiles Mid-term Management Program “AP-G 2022”

Ⅳ. Future Direction of Toray Group Fibers & Textiles Business

Copyright © 2020 Toray Industries, Inc. 12 Business Environment - Fibers & Textiles is still a growth industry in the 21st Century - World's production volume of major fibers 103 million tons Million tons / year in 2019 (estimation*) P億op人ulation(Billion) 120 Production volume of major fibers increased by more than 25 times from 4 million 12 tons in 1900 to 103 million tons in 2019 Synthetic fibers have accounted for over 50% of total fibers since the late 1990s Total synthetic 100 and totaled at 69 million tons in 2019 (67% of total fibers) 10 fibers in 2019 Expect further growth mainly in polyesters (3% per year) which may outpace the 69 million tons world population growth (1% per year) (67% of total fibers) 80 8

Polyester 60 6 Acrylic Nylon World Population Polyester Polyplopylene 40 4 Cellulose 4 million tons Wool Cotton 20 2 Population Cotton (source) *- Estimation from 2018 and beyond: 0 0 Wood Mackenzie - 1900-2017: Japan Chemical Fibers 1900 10 20 30 40 50 60 70 80 90 2000 10 20 Association, Fiber Organon - Population: Bureau of the Census

Demand for fibers and textiles is expected to continue to grow, as long as there are needs for improving life, culture, and the prosperity of humankind

Copyright © 2020 Toray Industries, Inc. 13 Business Environment - Fiber is the key material that supports food, clothing, and housing - artificial grass, asbestos substitute fiber, concrete ●Automobile: reinforcement fiber (FRC), civil Materials for civil engineering, tire cords, engineering fiber, water car seats, treatment membrane, etc. Environment airbags, seatbelts Industrial ● Materials Aerospace: fishing nets, Materials for structural materials agricultural agriculture, (carbon fiber) materials forestry (e.g., nets), ●Information and embankment Life telecommunications: protection nets, Science optical fiber, electromagnetic greening sheet Interior wave shielding fiber

carpets, Garments curtains, etc. and Home interior hollow fiber (artificial kidney), women's clothing, men's clothing, children's antimicrobial fibers, clothing, Kimono, compression tights (to sportswear, uniforms, raincoats, promote blood flow), fiber fill for comforter, etc. nonwoven fabrics for hygiene and nursing care (diapers, etc.), etc.

Pollution Issue Acid Rain Desertification

Decline in Biodiversity (decrease in types of wild animals) Marine Pollution Hazardous Waste

Other environmental issues: Water pollution, lack of water, depletion of natural resources, etc… Copyright © 2020 Toray Industries, Inc. 15 Business Environment - Response to Environmental Issues - International framework for global environmental issues are established (2015 Paris Agreement, SDGs, 2019 G20 Osaka Blue Ocean Vision)

Regulations on the use of non-reusable plastics have been institutionalized around the world, and the “Resource Circulation Strategy for Plastics” has also been formulated in Japan

Companies are required to take actions not only economically, but also environmentally and socially

Fibers & textiles products are expected to shift to environmentally- friendly materials. In particular, demands for plant-based materials to reduce greenhouse gas emissions, materials to counter water and air pollution, and fibers made of recycled plastic bottles to prevent marine debris are increasing

As the quality of life improves and the population ages, there is a growing need to extend healthy life expectancy, improve quality of life, and increased demand for safe water and air

Promoting E-commerce will give more importance to the "social value of and empathy for goods" and change the way we sell

In order to realize practical application of MaaS and CASE, development and demonstration tests of mobile services and communication technologies are carried out in cooperation with different industries as well as among industry, government, and academia MaaS

Commitment to sustainability and response to the digital revolution will grow in importance throughout the supply chain → It is essential to strengthen the value chain with customers and create values as a lifestyle

Ⅱ. Business Environment

Ⅲ. Fibers & Textiles Mid-term Management Program “AP-G 2022”

Ⅳ. Future Direction of Toray Group Fibers & Textiles Business

Continuously strengthen business structure and expand business in growth fields and regions Enhance profitability by promoting a differentiation strategy and addressing sustainability

1. Global Business Expansion in Growth Fields and Regions

Nonwoven fabric, 2. Business Expansion by Nonwoven material created using ultra-fine fibers in an “islands in the sea” configuration businesses 3. Advancement of Addressing Sustainability Business Model (expansion of Fibers & Textiles Airbag business GR and LI materials) Strengthening the integrated business from fiber and textiles to garments in the apparel-use

Promote global textile brand strategies Expand value-added products

Strengthening business Promoting business structural 4. Strengthen Business Structure competitiveness reform and business advancement 5. Development of Infrastructure Securing and Strengthening the training human to Support Business Expansion and resources Business Advancement business organization

Global business expansion of nonwoven fabrics : Promote development of differentiated products for key applications (hygiene products, filters, automobiles, etc.) and enhance business bases in areas where demand is growing, aiming to build the “Unique business framework of nonwoven fabric covering spunbond fabric and staple nonwoven fabric" that expands globally

Japan China Republic Italy of Korea TPN Toray (Ehime) USA ALCANTARA Furniture, Flooring TPF TAK Toray (Shiga) TFA

Building, Toray (Gifu) Civil engineering, and Agriculture India Malaysia TID PFR Indonesia TPJ ITS

Nonwoven Material Created using Ultra-fine ◆ ◆ Fibers in an “Island in the Spunbond fabric composed of FY yarn Staple nonwoven fabric PPS flame-resistant PET Sea” Configuration ◆ PP spunbond ◆ PET spunbond ◆ Sound-absorbing material composite material (fiber fill) (PET, nanofiber) hood insulator rear fender liner for under cover fender cover

dash insulator under covefrloor silencer Propose unique premiums based on our high-functional materials to the growing nonwoven market, and help to increase the value of our customers

Continue to enhance the brand value with“Ultrasuede ” and “Alcantara ” brands as the core of two- brand strategies, and expand business globally mainly in the high-end market

Made in Japan Made in Italy Japan's leading-edge materials brand with a wide Luxury brand that focus on sustainability, combining range of products using Toray's advanced sensibility and function through Italian management technologies Beautiful Possibilities Carbon Neutrality Status Expand customers' "potential" and provide more value than expected Alcantara became the first Italian company Under the brand concept of “the Ultrasuede brand continues to to achieve carbon neutrality in 2009 evolve towards the beautiful possibilities of the future,” will work Held international symposiums and other events playing a with customers to enhance the brand value leading role in the promotion of sustainability management

Selected as an advanced material of Japan quality for the global market for 50 years Looking to the future, Toray will contribute to the realization of a sustainable society through responsible product manufacturing, by actively working to reduce the environmental impact, with the development of materials including plant-derived nonwoven material created using ultra-fine fibers in an “Island in the Sea” configuration

Copyright © 2020 Toray Industries, Inc. 21 1. Expand Business in Growth Fields and Regions Global business expansion of airbag business : Deepen the integrated business model, by extending the supply chain and accelerating the development of next- generation fabrics, while maintaining the integrated business from fibers to textiles, to expand the business globally

Spinning Weaving Cut & Sew Assembly Assembly fiber fabric cushion module automobiles

Toray Group integrated supply chain Global strategy vehicles Japan Okazaki Marui Orimono plant Co., Ltd. Japan Europe TTS TTCE Alva Europe TSD China TTT ASEAN China TKAT India North North TAMX America America

Development needs Toray Group Development concept Module Automobile integrated development manufacturers manufacturer

Strengthen solution offering to customers by providing more comfortable and high-quality materials with the combination of base fabrics and cushions, in the need for new interior space with the advancement of mobility Copyright © 2020 Toray Industries, Inc. 22 2２. B．uサsinスesテs Eナxpビanリsiテonィ bへy のAd対dre応ssにingよ Sるus事tai業na拡bil大ity 環Ex境pa配ns慮ion型 o素f e材nv(iＧroＲnm事en業ta)lのly 拡fri大endly materials (GR Business) ⑤空気浄化環En境viro問nm題en・tal En環viro境集nm項塵ent目a機l ite向msけ産業基用Ba本プsic 概cリonー念cepツt フィルター主Ma要jorＧ GRＲ p製rod品ucts proble課ms題and issues Pleated Filter for Air Pollution Control ①(1)省 Enエergネy Sルaviギng ー GGHHGG削 red減uctにion貢 ef献fect 暖Waかrm素 inn材erw、e清ar,涼Coo素l in材nerwear C気lim候a変te c動hange ②新エネルギー新エ⑥ネ環ル境ギー低に負使荷用 HMVo、toEr bVin用dinモg yーarnタ foーr H結V a束nd糸 EV, Technologies and materials (2) New energy される撥材水料性・技能術の進化 Materials for the solar power generation for new energy 太陽光発電工程部材持続Util可iza能tionな of ①省エネル全ギ般ー暖か素材の進p化rocess 循環re型cyc資lab源le ③バイオマス非P化rod石uct原s de料riv由ed 来from non- PPTTTT, P、LAP,L PAlan、t-バBasイedオPEPT,E T 活用resources (3) Plant-Based 由来製fo品ssil raw materials バPlaイntオ-Baナsedイ nロyloンn ④水処理水浄化の部材・ RO膜基材安Sa全fe wなa水ter・ a空nd気 air MaNteArNiaOl aDnEdS eIqGuNip®mにeよntる原糸構造 (4) Water treatment Base cloths for RO 装fo置rと w、atそerれ puにrifよicaるtioテn キスタイル表面 ⑤空気浄化空気の浄凸化凹の構造部に材よ・る環境フ低ィ負ル荷タなー用PPS、PET-SB Marine debris Ma撥te水rial剤 anでd eもq高uipいme撥nt水性能と耐久海洋ごみ (5) Air purification 装置 PPS and PET-SB for filters マ(イMクicロroプplラasスticチs)ック for性 airを p発uri現fication ⑥環境 GHG以外の非ハロゲン難燃加工 Flame retardant processing with Non- (6)低 Lo負w e荷nvironmental 低Lo負w 荷environmental impact 非フッ素/C8フリー撥水加工 Water halogen, 水不足 impact other than GHGs 環境低負荷な撥水加工 shortage Water repellent finishing with PFOA free ⑦リサイクルリサイクル材・再生型・循環型リサイクル Depletion of Recycled materials and Regeneration-type, circulation-type 資源枯渇 (7) Recycling リサイクルシステム resources recycling system recycling

医Exp療an･d ヘmaルterスialsケ andア pr分od野uct関s us連ed 素for 材me(dＬicaＩl an事d h業eal)tのhca拡re a大pplications (LI Business)

LIＬcaＩ区teg分ory Clas分sific類ation Ma主in なapp用lica途tio・nLs,IL製I p品roducts ③見守り用 hitoe® ④スポーツ衣料 ⑤衛材・部材 Improving the quality of (1)① Tre治atm療ent 貼Ad付hes剤ive patch 医me療dicのal-c質areを an向d r上edu･cing (2)② Ex検am査inat･io診n a断nd diagnosis 血Sp圧hyg計mo腕ma帯nometer arm band burdens on medical 医療現場の負担軽減 (3) Materials and products for Hospital gowns, patient gowns, curtain, professionals ③医療現場用病院用白衣、患者衣、カーテン medical applications half-top for breast cancer patients, etc. 資材・製品乳がん患者向けハーフトップ等 (1) Improving the quality of life for Wheelchair reinforcement materials, etc. th①e el高der齢ly, 者disa･b障led害 an者d p･atients 化学防護服車椅子補強材® 等患者の生活の質向上 LIVMOA (2) Caregiving Caring clothing, slide sheet, etc. ①貼付剤②介護 ③病院用白介衣護用衣料、③ス乳ラがイドんシ患ー者ト向等け Contribute “hitoeTM” (a performance fabric for collecting biosignals for Healthcare (3) Protecting health: Preventing ヘルス ® 健to 康hea･lthy ③健康を守る：見eff守icieりnt用 spo「rｈtsｉハtｔrｏaiｅnーi®ngフ」, 、 wトコoッrkンeプrプs, Hレetcuッ.)g, シcFomョitpンreウssioェnア wear, and long- ケア disease and disability massage chair cover, supporters, etc. 長live寿d s社oci会ety 病気・障害を予防するマッサージチェアカバー、サポーター等に貢献 (4) Sports Sportswear ④スポーツスポーツ衣料 (5) Hygiene and materials Diapers, wipes, face masks, etc. ⑤衛材･部材紙おむつ、お尻ふき、フェイスマスク等 Extreme weather and natural disasters Embankment protection nets, Land nets 異常気象･自然災害護岸ネット、陸上用亀甲網 “LIVMOATM”(protective clothing), fire-resistant clothing, 防護服｢LIVMOTMA®｣､防火服､遮熱･遮光･UVカッ人Suのppo安rtin全g hのumサanポ safーetyト “SUMMER SHIELD ”(heat-shielding, light-shielding, UV トp｢roｻteﾏctｰioｼn)ｰ, aﾙirﾄbaﾞ®g, ｣s､eaエt bアeltバ, etッc.グ､シートベルト等

Strengthening the Integrated Business from Fiber and Textiles to Garments in the Apparel-use

filament dyeing, yarns / woven/ spinning knitted processing, garments staple fabrics fibers finishing Sewing Product planning specifications Diverse product using functional making full use of line up, Outerwear, materials Toray's unique Lifewear materials Specialty FY and SF s

High value- One-stop sales & r r e

Conjugated fiber Garments marketing e

added m m o t textiles u s s u n c

Expansion of sewing and other o d C

production bases n Specialty FY and SF High value- E SPA Conjugated fiber added textiles Brand strategies GMS Sports apparel Uniform Specialty FY and SF apparel

Strengthen a differentiated model to build global value chains for global customers (also enhance the fibers and textiles businesses)

Europe Korea China Americas Japan

Strengthening the supply chain for integrated business from fibers and textiles to garments in China Central Africa and South South Asia ASEAN America

Extending the supply chain for integrated business from fibers and Establishing the supply chain textiles to garments in ASEAN, for integrated business from especially in Vietnam and fibers and textiles to Indonesia garments in South Asia

Strengthening the value chain with customers in response to local production for local consumption through integrated business from fibers and textiles to garments

Creative Fashion Textile Brand Propose highly innovative materials with sophisticated textures and comfortable functionality, along with the latest fashion information, in order to enrich people's lives with fashion Support customers in creating their own value chains, “from product conception to materialization,” by utilizing digital media as well, with the aim of "creating products that move people and society”

Stretch fabric that inspire freedom Moisture-permeable waterproof fabric that in both body and mind leads you a step further Comfort that makes each person want to wear "anywhere" and "anytime," High functionality in the harsh natural environment is not only and the versatility to respond flexibly to diverse lifestyles and wearing supported by top athletes, but also protects the wearer from extreme situations, while constantly advancing to meet the needs of the times weather conditions and sudden changes in weather in urban areas. Stretch and stretch back created by bi-component fibers, and fabrication This functional fabric offers a high level of water resistance, breath- using such fibers provide both functionality and beauty ability and resistance to condensation, as well as excellent elasticity

Protecting people from natural disasters with clothes

Plant-based fibers Recycled fibers Regeneration-type Comprehensive brand of Toray’s plant- Products made from plastic bottles, derived materials manufacturing process wastes, etc. PTT PrimeflexTM

PLA Nylon610 The theme: “Together, we are the new green.” Together, we can create a future where we can be ourselves Plant-based PET Aim for the realization of a recycling society through the interconnection of all those involved in recycled plastic bottle products petroleum-based ethylene 30% petroleum- Promote upcycling with highly reliable, glycol polymerization derived high value-added recycled fiber using terephthalic polyester 70% acid (mass production) traceability technologies, etc. partial plant-based 70% & (everyone's wishes are tied together) partial plant-based ＋ plant-based polymerization polyester (new value is created) ethylene 30% (mass production) glycol Circulation type 30% Plant-based polymerization 100% plant-based Products that are designed to be terephthalic acid 70% polyester prototype stage (developed product) collected and recycled after use 100% plant-based (a system for collecting and recycling)

1) Open the “&+” website (URL below)and scroll to the middle section of the page

2) Watch the video shown here (duration: 2 min 57 sec)

Comfortable and functional clothing

TM d NANODESIGN arrangement softer n

stretch a A B C r B realized to combine

multiple polymers Low environmental impact, sustainability e l i

shape PFOA free t x

water e repellency T Toray’s unique spinning technology Fashion clothing l a

that allows the cross-sectional shape beyond b of the fiber to be designed on a arrangement silk o l

nano-order basis G

・Able to add "fineness," "shape," “arrangement," and "function" that Advancements of high performance materials (filters) cannot be achieved with ability to conventional technologies fineness capture ・NANODESIGNTM has the potential to realize advancements in wipability materials Copyright © 2020 Toray Industries, Inc. 3219 5. Strengthening the Business Structure

1. Strengthen business competitiveness ・Continued efforts to strengthen our business structure and competitiveness ・Thorough management with an awareness of cash flow and investment capital efficiency

2. Promote structural reform and business advancement (1) Promoting global reengineering (business structural reform at plants in and outside of Japan engaged in N-FY, P-FY, P-SF, and T/C textiles) Thoroughly enhance competitiveness Promote the upgrading of product types (expand value-added products) and enhancing supply chains (2) Strengthening the business of Japanese subsidiaries and affiliates Restructure unprofitable and low-profitability businesses in existing businesses Strengthen the management base by strengthening competitiveness and upgrading of product types Promote overseas business development

Strengthen • HQ functions to further promote global operations the business (centralize operations including sales & marketing, organization production, and technological development)

Enhance staff • Enhancing staff functions, such as building a functions management system to support the strengthening of business activities

Securing and training • Continue to improve operational efficiency and personnel and strengthen strategic rotations of human resources human • Continue to raise the competitiveness of young and resources mid-level employees and raise their awareness

Ⅱ. Business Environment

Ⅲ. Fibers & Textiles Mid-term Management Program “AP-G 2022”

Ⅳ. Future Direction of Toray Group Fibers & Textiles Business

Copyright © 2020 Toray Industries, Inc. 34 Future Direction of Toray Group Fibers & Textiles Business Business development and expansion by combining the three axes of "Global Business Expansion," "Materials Development," and "Value Chain"

The world‘s only Global Business Expansion three dimensional Africa for Growth Markets business model South Asia AdvGalnocbeaml Aesnste ts Global busAinmeesrsic as & of Business expansionE iunrope Global Operation growth fielAdSsE AN Models 韓国 and regions Business China expansion by Strengthening of research and Japan Customers technological development FaibdedrsressTienxgt iles Garments Consumers capabilities Nylon sustainability (Material Development Polyester Vertical Integration Enhancing and diversifying Capabilities) Acrylic & Industrial FY Supply Chain Management global value chains Advanced Materials nonSwuosvetaninabMlea gterroiawl Vtahri etthy rough & co-creation oIfn vnaovluateiv ein P rtohdeuc vtsalue chain Aim for co-creation of value with our customers by creating new value through fibers and textiles products Copyright © 2020 Toray Industries, Inc. 3353 Medium and Long-term Expansion of the Fibers & Textiles Business (Consolidated Net Sales, Revenue： Billion Yen) (Consolidated Operating Income, Core Operating Income: Billion Yen) 140 1,500 Long-term Corporate Vision “AP-Growth TORAY 2020” “TORAY VISION 2030”

“AP-G 2013” “AP-G 2016” “AP-G 2019” “AP-G 2022” 120

1,200 100 1,030.0 974.3 892.0 913.6 883.1 900 856.7 856.1 836.0 80 755.5 76.0 72.4 72.9 638.4 632.2 68.9 66.8 60 600 60.7 59.0 52.9 55.6 40 45.3 43.2 300 20

Copyright © 2020 Toray Industries, Inc.. 37 Descriptions of predicted business results, projections, and business plans contained in this material are based on predictive forecasts of 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.