Toray Industries, Inc. TSE:3402
Toray Industries : Group’s Initiatives for Digital Innovation (DI) Business
Source: MarketScreener
TORAY IR Seminar
Toray Group’s Initiatives for
Digital Innovation (DI) Business
September 13, 2024
Kei Shimaji
Corporate Vice President
General Manager, Electronic & Information Materials Division
Toray Industries, Inc.
Contents
- Outline of DI Business
II. Basic Strategy of DI Business
III. Main Products and Future Prospects
Copyright © 2024 Toray Industries, Inc. | 1 |
I
Outline of DI Business
Toray Group’s Growth Business Fields
Expanding revenues from businesses related to Sustainability Innovation Business(*1) and Digital Innovation Business to about 60% of total
Prioritized business fields aimed at
mid-term management program “Project AP-G 2025”
1 | Products that accelerate measures | |||
to counter climate change | ||||
SI Business | ||||
Sustainability | Products that facilitate sustainable, | |||
Innovation | 2 | recycling-based use of resources | ||
Business | and production | |||
(*1) | ||||
Products that help provide clean | ||||
3 | water and air and reduce | |||
*1: Group of businesses or | environmental impact | |||
products that can help realize | ||||
the Toray Group Sustainability | Products that help deliver better | |||
Vision | ||||
4 | medical care and hygiene for people | |||
worldwide | ||||
DI Business | Materials, equipment, technologies, and | |||
Digital | services that help improve convenience | |||
Innovation | and productivity by supporting the | |||
Business | widespread adoption of digital technology | |||
Copyright © 2024 Toray Industries, Inc.
Revenue of Growth Business Fields | ||||
(Trillion yen) | Gross profit | |||
5 | 20% | 21% | 23% | margin of all |
growth business | ||||
fields | ||||
4 | 14% | 15% | Gross profit | |
13% | ||||
margin of other | ||||
growth business | ||||
3 | fields | |||
2 | ||||
1 | Growth | Growth | Growth | |
business | business | business | ||
fields | fields | fields | ||
54% | 55% | 59% | ||
0 | 2022 | 2023 | 2025 | |
(FY) | ||||
Actual | Actual | Target | ||
(AP-G 2025) | ||||
3 |
Positioning of DI (Digital Innovation) Business
Toray’s High-Growth,High-Profitability Businesses (image*)
Growth | Hydrogen | |
commercialization | ||
potential | ||
Carbon Fiber Composite Materials | ||
Expand facilities | ||
Optimize production facilities operation plans by application | ||
Implement differentiation strategy | ||
Water | ||
DI （such as Semi- | Treatment | |
conductor-related) | Regional strategies | |
Cross-sectional collaboration | Added-value creation | |
Barriers to entry for competitors | ||
Automotive- | ||
Related |
◼ Optimal strategies for businesses with |
high competitiveness (quality, share, |
technology, supply chain, etc.) in |
market |
◼ Promote Toray-style ROIC |
improvements that increase profits and |
expand business while maintaining |
financial soundness |
◼ Improve profitability by differentiation |
for businesses that are high growth, but |
require large initial investments (carbon |
fiber, etc.) |
◼ Expand high-profitability businesses (ex. |
Toray’s unique integrated business from |
Cross-sectional collaboration Barriers to entry for competitors Reduce costs
Toray’s Unique Integrated
Business from Fiber and Textiles to Garments
Utilize existing allocations
Expand sales regions
fiber and textiles to garments) through |
asset-light strategy |
◼ Expand semiconductor and display- |
related businesses through cross- |
sectional cooperation within Toray |
Pricing strategies and steady cost reductions | ||
(promote across all businesses) | ||
(*) The size of the circles are images of the size of the current sales. | Profitability （ROIC) | |
Copyright © 2024 Toray Industries, Inc. | 4 | |
Group and establishment of entry |
barriers |
Growth of Semiconductor and Display Markets
Semiconductor Market
($1 billion) | Expand at an | ||
annual rate of | |||
1,000 | 10% | ||
800 | |||
600 | |||
400 | |||
200 | |||
0 | |||
(CY) 2023 | 2024 2025 | 2030 |
Estimated by Toray
- Semiconductor market is expanding as ICT-related products grow.
- Increasing demand due to wide adaptation of various smart devices
Copyright © 2024 Toray Industries, Inc.
OLED Display Market
Expand at an | Estimated OLED Display Ratio by Devices | ||||
2023 | 2030 | ||||
($1 billion) | annual rate of | ||||
7% | |||||
60 | 50% | 70% | |||
40 | 3% | 30% | |||
20 | 3% | 5% | |||
0 | 1% | 5% | |||
(CY) 2023 | 2024 2025 | 2030 |
Estimated by Toray
- While growth in LCDs is slowing, OLED displays are expanding due to the accelerated adoption in tablets and notebook PC, in addition to smartphones.
5
Expansion of DI (Digital Innovation) Business
Target | Achieve 250 billion yen revenue in FY 2025 mainly for semiconductor and display applications |
Digital Innovation (DI) Business
Electronic coating and | Semiconductor manufacturing | Cleaning and |
and inspection equipment | ||
mounting materials | stripping solvents | |
RO membranes for | Release film for | Flexible Printed |
Circuit Boards | ||
ultrapure water production | semiconductor molds | |
Display materials | PPS resin for power | Courtesy of Mitsubishi Electric Corporation |
modules | ||
Revenue from DI Business (Billion Yen)
250.0 | |||
166.4 | 181.3 | ||
(FY) | 2022 Actual | 2023 Actual | 2025 Target |
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II
Basic Strategy of DI Business
Technological Background for DI business
Utilizing our core-technologies such as material design (for materials), engineering capabilities (for equipment and processing technologies), and advanced analytical capabilities, we contribute to evolution of semiconductor, electronic parts and displays.
Core-
Technology
Material Design
Organic Synthetic Chemistry,
Polymer Chemistry,
Nanotechnology
Engineering Capabilities
Film Formation Technology,
Mechanical Technology,
Digital Technology
Advanced Analytical
Capabilities
Most-advanced Analytical
Technology,
Pretreatment Technology
Pursuit of Ultimate
Characteristics
Micropatterning Technology
Coating Technology
Distributed Substance Control
Technology
Surface Smoothing
Technology for Films
Fine Synthesis Chemistry
Molding Process Technology
Highly Functional
Separation Membrane Technology
Precision Machine Control
Technology
Defect Inspection Technology
Advanced Analytical Technology
- Electro-coatingmaterial for semiconductors
- Electro-coatingmaterial for OLED
- Flexible printed circuit board
- Packaging materials
• Polyester Film Lumirror for MLCC*
* Multilayer Ceramic Capacitors
• Polyester Film Lumirror | for dry film resist |
- Release film for semiconductor molding
- PPS for power modules
- PC chassis
- RO membranes for ultrapure water for semiconductor plants
- Light-emittingmaterials for OLED
- Cleaning, release solvent
- Semiconductor manufacturing and inspection equipment
- Precision parts processing
- Compositional analysis, structural analysis, defect analysis
Realized Value
Evolution of Semiconductors and Electronic Components
・High performance (miniaturization, 3D) ・Reducing power consumption
・Environmental compliance
Evolution of Displays
・Higher image quality and durability ・Reducing power consumption
・XR compatible (AR/VR/MR)
・Commercialization of micro-LED display
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Group-wide Policies Leveraging Toray Group’s Combined Strength
- Materials: Propose high-performance materials with added value that suit customer needs
- Equipment: Provide all-around packaging, inspection and measurement equipment that offers precision, speed and performance
◼ Analysis: | Provide various analysis using optimum analytical technologies, developed | ||
based on identified needs | |||
Toray Group Total Solutions | |||
Materials
Primary | Secondary | Infrastructure |
Material | Material | Materials |
⚫ Film products | ⚫ Water | |
⚫ | Polyimide material | |
treatment | ||
⚫ | Coating material | |
membranes | ||
⚫ | High-functional resins | |
Equipment
- Mounting equipment
- Inspection equipment
- Coating equipment
- Measuring instruments
- Metal precision parts
Analysis
- Compositional analysis
- Structural analysis
- Failure analysis
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