Toray Carbon

Toray’s Business Strategy for
Carbon Fiber Composite Materials
September 21, 2012

Toray Industries, Inc.
Senior Vice President
© All Nippon Airways
Moriyuki Onishi
Copyright 2012 Toray Industries, Inc. All Rights Reserved

Business Categories and Strategies
Foundation Businesses
Fibers & Textiles Plastics & Chemicals
◆Expand businesses in growth business fields and regions and steadily increase revenues
and profits
◆Improve products and business models to expand earnings and allocate management
resources to growth business fields
Steadily drive business expansion and profit growth of the Group
Strategically Expanding
Businesses IT-related Products Carbon Fiber
Composite Materials
◆Focus on growth business fields including information-
telecommunication, automobiles and aircraft, and energy saving and new energy
◆Allocate management resources with priority
◆Implement measures including M&A and business alliance
Drive revenue and profit growth over the medium- and long-term
and achieve strategic and aggressive business expansion
Intensively Developing and

Expanding Businesses Environment & Engineering Life Science
◆Allocate management resources with priority
◆Develop and expand businesses by measures including M&A and business alliance
Develop as the next driver for revenue and profit growth to follow
IT-related products and carbon fiber composite materials
Copyright 2012 Toray Industries, Inc. All Rights Reserved 1
Group-wide Projects
under “Project AP-G 2013”
Three themes in AP-G 2013 that would work more effectively when practiced
on a group basis are implemented as a group-wide project.
Green Innovation Business Expansion (GR) Project

Toray Group will use its strength in chemistry to develop “Green Innovation
Businesses” on a global scale to provide solutions to the environmental issues
and energy and resource issues, towards the independence from petroleum
resources and the realization of a low-carbon society.
Asia and Emerging Country Business Expansion (AE) Project

Toray Group will seek to aggressively develop and expand businesses in Asia
and emerging countries in other regions that are expected to realize major
economic growth.
Total Cost Reduction (TC-II) Project

Toray Group will continue cost reduction initiatives to reinforce the robust
business footing required to achieve its objective of becoming a corporate
group that continually increases revenues and profits.

Position of Carbon Fiber Composite
Materials Business under GR Project
Aim for substantial expansion as a core business of Green Innovation
Energy Saving New Energy

Alternative fuel Natural gas tank
Weight saving
© Luxfer
© Hexagon © Lincoln Composites

© Boeing
Tube trailer tank
© Toyota Motor
© Airbus
Fuel cell Hydrogen gas tank
Efficiency enhancement
Battery-charging
© CTC flywheel
© Daimler AG
© Areva Wind/Jan Oelker

© Beacon Power
Electric cable core
Large wind-power blade

Toray’s Contribution to CO2 Abatement
Volume of 2007 2010 Around 2015 Around 2020
50
CO2 Emissions
(million tons)
0
50
CO2 Reduction
by 100
Toray’s Product
(million tons) 150 More contribution
200
to CO2 reduction
by Toray’s Product
250
<Effect of CO2 Reduction by Toray>

Year 2007 16 million tons/year Around Year 2020 200 million tons/year

LCA (JCMA Model)
(Japan Carbon Fiber Manufacturers Association (JCMA) modeling: collaboration with; Tokyo Univ. Prof. Takahashi ,
Prof, Rinoie; Toyota Motor Corp.; All Nippon Airways Co., Ltd.; The Boeing Co. (US))
Carbon
Carbon fiber：Four
fiber：Four times
times lighter
lighter than
than steel,
steel, ten
ten times
times stronger
stronger than
than steel,
steel, rustproof, etc. →
rustproof, etc. → ideal
ideal for
for structural
structural material
material
Automobile Aircraft
CFRP CFRP
CFRP for 17% of auto weight 80 CFRP for 50% of total structural elements Others
70 CFRP
1,500 ＣＦＲＰ
Body weight (Ton)

Vehicle weight(Kg）
CFRP 17% 60 CFRP 50% titanium

Others
50
1,000 Steel
nonferrous 40
metal
CFRP 3% Lightens 20% by weight Aluminium
500 Lightens auto weight by 30% 30
Steel of structural elements
20
0 1,380kg 970kg 10
60 tons 48 tons
0
Conventional model CFRP model
B767 conventional aircraft B767 CFRP Aircraft
< Per ton of carbon fiber> (B787-compliant by weight)
<Per ton of carbon fiber>
Volume of CO2 emissions Life cycle Volume of CO2 emissions Life cycle
from the production of CFRP CO2 reduction＊ from the production of CFRP CO2 reduction＊
＊including carbon fiber manufacturing ＊including carbon fiber manufacturing
Synthesis / Carbonization ▲50 tons Synthesis / Carbonization ▲1,400 tons
Light weight
20 tons ↓ 20 tons
Improvement of
fuel efficiency
Usage
Usage of
of carbon
carbon fiber
fiber will
will contribute
contribute substantially
substantially to
to the
the reduction
reduction of
of CO
CO22 emissions
emissions over
over the
the total
total life
life cycle.
cycle.
Business Forecast of Carbon Fiber
Composite Materials Business in Medium-term
Management Program “Project AP-G 2013”
(Billion yen) Consolidated Net Sales (Billion yen)

Consolidated Operating Income
200 30
150
20
100
10
50
69.9
7.7
0 0
FY 2011 FY 2013 Around FY 2011 FY 2013 Around
Actual Target FY2015 Actual Target FY 2015
Image Image
Business Environment and
Market Structure

Carbon Fiber Market Revolution
© CTC
（Ktons/year）
150 © Areva Wind/Jan Oelker
Tennis racket and Carbon Golf Shaft Boom

Artificial Satellite
industrial application
Full-scale expansion in
in automobile application
Full-scale expansion
© JAXA
© Luxfer
© Daimler AG
100
Airbus A320
Selected for primary structure of
Boeing 777
Selected for primary structure of
© Airbus © Boeing
Airbus A380
Boeing 787
Start of Manufacture of Torayca
50
Industrial Application
© Airbus © Boeing
Aerospace Application
Sporting Goods Application
0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
Global Demand Forecast
(Ktons/year)
CAGR
150 (2011-2020) 140
Total Market 16%
Industrial 18%
Sporting Goods 7%
100
Aerospace 12%
70
48
50 41
33 37
32 31
24
0
2007 2008 2009 2010 2011 2012 2013 2015 2020
Carbon Fiber Demand
by Application & Area
Aerospace
Sporting Goods
Windmill
Automobile
Sporting
Goods Pressure Vessel
Aerospace Aero
Civil Engineering space
Compounds
Others
Automobile Pressure
China・Taiwan & Other Asia Vessel
Windmill （9.4Ktons/year）
North
America
Europe （8.1Ktons/year）
（15.5Ktons/year）
Japan
（3.6Ktons/year）
Total Global Demand

37Ktons/year (in 2011：estimated by Toray)
Classification and Application of
Carbon Fiber TORAYCA®
Classification by
Carbon fiber TORAYCA® series Mechanical characteristics of
Regular carbon fiber
T1000
7.0 7.0
High-strength
Tensile strength（Gpa)
T1000G carbon fiber Aircraft

6.0 6.0 Primary structure
T800S/T800H
Space
T700S
5.0 M35J High modulus
T400H M40J carbon fiber 5.0 Aircraft
T300J
M46J M55J Secondary High-
4.0 M30
M50J 4.0 structure performance
M60JM65J Industrial use
T300 Special Space
3.0 3.0 Sporting goods
M40 M46
M50
2.0 Industrial use
2.0
Sporting goods
1.0 1.0
100 200 300 400 500 600 700 100 200 300 400 500 600 700
Tensile modulus（Gpa) Tensile modulus （Gpa)

Examples of Application
-Aerospace-
Boeing 777 Boeing 787 Satellite
©Boeing ©Boeing
Primary / Secondary structure Primary / Secondary structure
CFRP usage : Approx. 10 ton CFRP usage : Approx. 35 ton © JAXA
Airbus A320 Airbus A380 Rocket
©Airbus ©Airbus
Primary / Secondary structure Primary / Secondary structure

CFRP usage : Approx. 2 ton CFRP usage : Approx. 35 ton
© JAXA
-Environment and Energy-related -
Wind power blade Tube trailer tank Battery-charging flywheel
© Beacon Power
© Areva Wind/Jan Oelker
Tidal power blade

Image courtesy of Tidal Generation Ltd
Electric cable core

Fuel cell
© CTC

- Automobile -
© Fuji Heavy Industries
Toray concept EV Roof

© Nissan Motor
Hood TEEWAVE® AR1
© Luxfer
© Hankuk Fiber Propeller shaft
Compressed natural
CFRP body panel for bus
gas tank
- Industrial Use -
© Hankuk Fiber
© Toshiba Medical Systems
Body for high-speed train X-ray top panel
© Yaskawa Electric
Robot hand for

liquid crystal panel
© Sony
PC housing Bridge pier

reinforcement
Example of Application
- Sporting Goods -
© PINARELLO © Warrior
Fishing rod Bicycle Hockey stick
©YONEX ©DUNLOP SPORTS ©MIZUNO
Racket Golf shaft Softball bat

Current Status of Toray

Progress of the Basic Strategies set up at
the Last IR Seminar (April, 2008)
Maintain and strengthen overwhelming competitive advantages
in aircraft application
 Started production lines for Boeing 787
US : precursor / carbon fiber / prepreg one line each
Japan : precursor / carbon fiber one line each
 Signed a long-term basic supply agreement with Airbus (May, 2010)
 Started production of the tail wing parts of MRJ （Mitsubishi Regional Jet）
Develop advanced technologies for automotive market

expansion
 Expanded the A&A Center in Nagoya
Opened the Automotive Center (AMC) (June, 2008)
Opened the Advanced Composite Center (ACC) (April 2009)
 Acquired 21% shares of ACE Advanced Composite AMC
Engineering (ACE) in Germany (December, 2008)
 Established a joint venture Euro Advanced Carbon Fiber
Composites GmbH (EACC) with Daimler AG in Germany
to produce and sell CFRP automotive parts (June, 2011)
ACC
Progress of the Basic Strategies set up at the
Last IR Seminar (April, 2008)
Improve competitiveness in quality and cost through
enhancement of technical capabilities
 Developed A-VaRTM (Advanced-Vacuum assisted Resin Transfer Molding)
technology and adopted it to mass production Tail wing Parts for MRJ
 Developed High-cycle RTM (Resin Transfer Molding) technology and
adopted it to mass production Established EACC
 Expanded technical centers worldwide
- enhanced technical centers in Europe and the US
- established Advanced Composite Materials Technical Center at
Toray Advanced Materials Korea in the Republic of Korea
- set up development and technical service function related to composites at
Toray Advanced Materials Research Laboratories (China)
Continuously expand production capacity worldwide
Enhance competitiveness and business scale in industrial market
 Commence full-scale production of carbon fibers in the Republic of
Korea (scheduled in January 2013 / 2,200 tons)
 Increase worldwide production capacity at four production bases
(Japan, US, France and the Republic of Korea)
Japan : precursor / carbon fiber one line each
USA & Republic of Korea : carbon fiber one line each
France: precursor one line Copyright 2012 Toray Industries, Inc. All Rights Reserved 19
Worldwide Carbon Fiber Production
Capacity Increase at 4 Production Bases
（tons） Released on Mar.9, 2012
30,000 27,100
26,100
25,000 Republic of
21,100 Korea
20,000 17,900 Europe
15,000
USA
10,000
5,000 Japan
0
Current 2012 End 2014 End Mar. 2015
 At Ehime Plant, build an integrated production facility of precursor and

high-performance fine carbon fiber, mainly used in aircrafts and luxury
automobiles
 At three overseas bases, bolster production facilities for high strength
and standard modulus fiber, which has become the de-facto standard
for industrial and sporting goods applications, to ensure stable supply
to those markets / Establish the first precursor production line in Europe
Toray Global Network
EACC ACE
TAK TCA
CFE
CFA
Toray
Carbon Fiber Production Capacity (Sep. 2012→Mar. 2015) （tons）
Toray
Toray Toray
Advanced
Carbon Carbon
Materials
Fibers Toray Fibers Group
Korea
Europe (Japan) America Total
(TAK)
(CFE) (CFA)
(France) (Republic
(USA)
of Korea)
7,300 0 5,400 17,900
5,200
→ 9,300 → 4,700 → 7,900 → 27,100
Toray Group Production Bases
Precursor Carbon Fiber Intermediate Material Composite
Base Raw material for Prepreg, Fabric, etc. Molded products
carbon fiber
Toray Ehime Plant
Toray Ishikawa Plant Toray Shiga, Nagoya Plant

Japan
Sakai Composite
Sowa Textile
Toray Composites
USA Toray Carbon Fibers America (America)
Toray Carbon Toray Carbon Toray Carbon

France Fibers Europe Fibers Europe Fibers Europe
Euro Advanced
Carbon Fiber
Composites
Germany
ACE Advanced
Composite
Engineering
Republic Toray Advanced

of Korea Materials Korea
Business Strategy

Strength of Toray’s Carbon Fiber Composite
Materials Business
Vertically-integrated business model from precursor to
composites materials
 Maximize product competitiveness by technological capabilities of
precursor and carbonization
 Comprehend market evolution and customer demand
“ Global operation” among 4 production bases to
efficiently enhance business competitiveness
 Tight relationship with customers
 Strong Business structure, less effected by exchange rate fluctuation
Strong capability of market creation supported by
integrated technological advantages
 Technical capability to satisfy advanced technical requirement from
aircraft manufacturers
 Development of high quality and competitive intermediate materials
 Development of competitive molding process technology
Commitment to market with continuous investment to
R&D and production capacity increase
 Investment of capital resource based on long perspective
Basic strategy of Carbon Fiber
Composite Materials Business
Promote business expansion by globally strengthening
production, marketing, technical services and R&D
Maintain and strengthen overwhelming world’s No.1
position in aerospace application and high-performance
industrial and sporting goods applications by high quality
of Torayca carbon fiber.
Expand middle / down stream business by strengthening
R&D forces and establishing supply chain through
proactive alliance in intermediate products such as
prepreg / fabric and in advanced composite processing
field.
Accelerate developing new application / market by
further increasing production capacity of cost competitive
carbon fiber for commodity industrial applications.
Basic strategy of Carbon Fiber
Composite Materials Business
1．Business strategy by application
(1) Maintain and strengthen overwhelming competitive advantages
in aerospace application
(2) Expand business in strategically selected industrial applications
(3) Promote technical development and market exploitation in
automotive industry
(4) Stably expand business in high-performance sporting goods
application
2. Expand advanced composites business
3. Enhance stable supply-ability by continuous
capital investment to increase production
capacity
4. Enhance global R&D forces
5. Develop market in emerging countries
6. Establish carbon fiber recycling system
Strategy of Carbon Fiber Composite Materials Business
Maintain and strengthen overwhelming competitive
advantages in aerospace application
Aggressively sign in to programs of two major aircraft
manufacturers and expand supply to them
Boeing
 Secure stable supply to increasing build rate of Boeing 787
 Secure stable supply to increasing build rate of existing models
such as Boeing 777 and 737
 Develop and supply new materials for next generation model
Airbus
 Realize supply of prepreg based on Long-term Basic Supply
Agreement concluded May 2010
- Develop and get qualified new high performance prepreg
- Establish production base of prepreg in Europe
(integrated supply chain in Europe)
 Secure stable supply to existing models such as A320, A380, A330
Develop new market and new application
Regional & Business Jet
 Supply tail wing parts for MRJ
 Enter the programs of small-mid size
aircraft in emerging countries © Embraer
Engine parts
 Proceed with development of engine made of CFRP with major
engine manufactures (CFRP Carbon Fiber Reinforced Plastics)
© JAXA
Maintain overwhelming top share in

space application
Space industry
 Continuously expand production capacity of
high-performance grades such as high modulus carbon fiber
History of Aircraft Materials
Early 1900s
1930s
Wright Flyer 1
Ornithopter
(Leonardo da Vinci)
Wood/Steel/Canvas
Wood/Canvas 1980 to 1990s Boeing 247
1st aluminum structure
1950s
The present
© Boeing
© Airbus Comet
© Boeing Boeing 777, Airbus A320

1st aluminum jetliner
Boeing 787 CFRP Primary structure
(CFRP Carbon Fiber Reinforced Plastics)
“CFRP” Aircraft 29
Agreement of long-term Supply of Carbon Fiber
Composite Materials for Boeing 787
Concluded
Concluded aa comprehensive
comprehensive agreement
agreement withwith Boeing
Boeing Co.
Co. toto supply
supply
carbon
carbon fiber
fiber composite
composite materials
materials forfor Boeing
Boeing 787
787 medium-sized
medium-sized
aircraft
aircraft over
over aa long-term
long-term period
period of
of 16
16 years
years (including
(including 55 years
years
available
availableoption).
option).
Toray
Toray supplies
supplies carbon
carbon fiber
fiber Uni-Directional
Uni-Directional Prepreg*
Prepreg* used
used forfor the
the
main
main wing
wing and
and tail
tail wing
wing ofof Boeing
Boeing 787
787 as
as well
well as
as carbon
carbon fiber
fiber cloth
cloth
prepreg
prepregused
usedfor
forthe
thefuselage.
fuselage.
＊１ Uni-Directional Prepreg; Disposition carbon fiber in one direction and combine with epoxy resin to foam sheet
© Boeing
Max.80% of fastener reduction by 20 to 30% of weight reduction

one piece molding of carbon for large sized main wing
fiber cloth prepreg for fuselage Copyright 2012 Toray Industries, Inc. All Rights Reserved 30
Advantages of CFRP applied to Aircrafts
Weight Reduction – Improved Fuel Efficiency
High Durability – Maintenance Cost Reduction
High Strength – Higher Cabin Pressure
High Strength – Larger Window
Corrosion Resistant – More Cabin Humidity

CFRP Applications on Boeing 787
Part Boeing767 Boeing787

Fuselage Aluminum Composite
Main Wing Aluminum Composite
Tail Wing Aluminum Composite
Boeing 787 Flap Composite Composite

© Boeing
Boeing 767 Boeing 787
© Boeing
Other
Composite 3% Steel 5%
Steel 10%
10%
Titanium 6% Composites CFRP
Titanium
15% 50% CFRP (sandwich structure)
GFRP
Aluminum
Aluminum 77% Aluminum
20% Other metals

Development of Empennage Material for MRJ
■ Full-scale vertical stabilizer parts for MRJ
(co-development with Mitsubishi Heavy Industries)
Mitsubishi Regional Jet (MRJ)
Spar
5.5m
© Mitsubishi Aircraft
A-VaRTM molding
vacuum
resin injection Ｖ
Ｖ oven curing
Stringer / co-bond panel

dry fabric
(Advanced-Vacuum assisted Resin Transfer Molding)
・Low-cost, energy-saving molding technology
・Realization of complex-shapes including multilayer
difference 1.5m
・Dimension accuracy equivalent to prepreg Rib
・Stable control of Vf (fiber content) Copyright 2012 Toray Industries, Inc. All Rights Reserved 33
Expand business in strategically selected
industrial applications
Establish overwhelming advantages in environment /
energy-related applications requiring high-performance
Pressure Vessel Maintain world No.1 share
 Respond to the demand associated with the use of shale gas in US
 Enter natural gas programs in emerging countries collaborating with
leading manufacturers of pressure vessels
 Develop high-performance carbon fiber for compressed hydrogen gas
tanks installed in fuel-cell vehicles
Designed pressure: 160MPa
liner CFRP reinforced section Working pressure: 70MPa
(aluminum or plastic)
Weight of Hydrogen
55％
light-
gas tank
weight
２０％
light-
weight
deformation control high modulus Toray newly Regular Glass fiber

developed
burst protection high strength carbon
product fiber
Electrical Cable Core
Make Torayca de facto standard
 Secure power transmission demand from wind-power / photovoltaic
stations located in remote areas
 Approach infrastructure construction projects in China and emerging
countries ・Suspensory control
・Low thermal expansion ・Increase of distance between towers
Cable core (aluminum) coefficients ・Improvement of electric transmission
efficiency
・High strength
・Increase of electric transmission
capacity
Steel core
Steel core CFRP core CFRP core

© CTC
Nuclear Power Generation (Uranium Centrifuge)

Stably supply of high-performance products
 Capture uranium enrichment plant programs in Europe and US
Offshore Oilfield Drilling

Pioneer of the development
 Promote joint development programs with major oil companies
Expand business in strategically selected
industrial application
Strategically expand commodity industrial application
through the establishment of a competitive supply chain
Wind Power Blade
Selectively enter programs, focusing on profitability
 Selectively capture programs under the strategy to maximize added-
value through supply chain
Civil Engineering Expand sales in overseas market

 Expand sales corresponding to the demand increase in infrastructure
construction projects in China and emerging countries
 Further strengthen cost competitiveness through local production of
fabric
Plastics Compounds
Expand sales utilizing Group collective strength
 Expand sales of compound products by Plastics Division / reserve
added value within Toray Group
Automotive Application
Proceed technical development and market
exploitation in automotive industry
Realize further adoption in automotive parts
Automotive Outer Panel / Structural parts
 Reinforce High-cycle RTM technology (further cycle time reduction)
 Develop and promote thermoplastic intermediate materials having
better recycling property
 Develop competitive CFRP automotive parts through industry-
government-academia collaboration
Fuel-Cell Vehicles
 Co-develop fuel-cell electrode substrate (carbon paper / GDL)
 Develop and promote Toray carbon fiber as de facto standard for
compressed hydrogen gas tanks (GDL Gas Diffusion Layer)
Proactively promote business alliances

 Enhance R&D capabilities, especially automotive parts designing
 Secure sales channel and establish robust supply chain
 Proactively promote “Molding technology license / Material supply”
business model
Increase in Adoption of
Carbon Fiber for Automobiles
CFRP Effectiveness
Weight reduction (fuel efficiency improvement)
1980’s Crash safety improvement
Assembly man-hours reduction through
F1 machine parts modularization
© Mitsubishi Motors
Mitsubishi PAJERO:
Propeller shaft
1990’s
Nissan SKYLINE GT-
GT-R:
Increase of carbon fiber
Engine hood
automotive parts
© Nissan Motor
2000’s © Nissan Motor

Nissan SKYLINE:
Radiator core support
©Daimler AG
LEXUS Subaru WRX STI tS:
tS:
Roof
2010’s
LEXUS LFA: Mercedes-
Mercedes- Benz
Chassis, roof, other parts SL AMG:
AMG: Trunk lid
©Fuji Heavy Industries

Establishment of a Join Venture with
Daimler AG in Germany
Realized mass production of CFRP automotive parts
utilizing High-cycle RTM technology
1. Company Name : Euro Advanced Carbon Fiber Composites GmbH
2. Location : Esslingen, Germany
3. Investment ratio : Toray 50.1%
Daimler 44.9%
ACE Advanced Composite Engineering 5.0%
4. Establishment : June, 2011
5. Start operation : October, 2012 (scheduled)
© Daimler AG
Mercedes-Benz SL AMG
CFRP Trunk lid

Esslingen
Esslingen
TEEWAVE® AR1
Next-Generation Concept EV
TEEWAVE ® AR1 is the flagship vehicle that embodies Toray Group’s green
innovation strategy in the automotive field, offering concepts tailored for the
automotive industry, the users and the environment.
Monocoque (CFRP) Roof and hatch (thermoplastic CFRP)

PP resin: stamping molding (1 minute)
High-cycle RTM (10 minutes)
Integral molding (number of parts: three)
Seat (CFRP, ULTRASUEDE ® )

Ultralight, highly designable
(artificial suede)
Steering wheel (decorative film)

Easy molding, highly designable,
no painting required
TEEWAVE ® AR1
Item
(two-seater open car) Optional Mats (PLA)
Bio
Body size (mm) 3,977 x 1,766 x 1,154
Energy absorber (CFRP) Dashboard (TORAY PEF ®, CFRP)
Weight (kg) 846 Absorbability: three times that of steel Light weight, highly designable, bio
Instrument cluster ( Picasus ® )

(of which the weight of battery) (220) Metallic luster
Number of passengers 2
Maximum power (kW/rpm) 47/3,000 to 6,000
Maximum torque (Nm/rpm) 180/0 to 2,000
Electricity consumption rate
11.6
(km/kWh) Toray used Gordon Murray Design Ltd. of the
Range (Japan 10-15 mode
185
U.K. (CEO: Gordon Murray, former F1
cycle, km)
designer) for the vehicle’s body and
Maximum speed (km/h) 147 structural design as well as manufacture
Acceleration 0-100km /h (sec) 11.0
Forecast of World’s Automobile Production
and Carbon Fiber Market
Supercar 5,000 units
Super-luxury
model 500,000 units
Thermosetting
Luxury model 5 million units plastics CFRP
Thermoplastics
CFRP
Carbon Fiber Demand

Thermoplastics
CFRP
UD tape
Mass production car
Approx. 95 million units
Stampable Sheet
Thermosetting
plastics CFRP
World’s production around 2020: 2010 2015 2020

Approx. 100 million units Copyright 2012 Toray Industries, Inc. All Rights Reserved 41
Market Forecast of Fuel-Cell Vehicles
 Toward “first year on the market of fuel-cell vehicles” in 2015, automobile manufacturers worldwide
are accelerating their development of Fuel-Cell Vehicles.
 National governments have announced support for infrastructure construction toward the spread of
Fuel-Cell Vehicles. For example, the Japanese government has decided to support the private
sector with such plans as to install 100 hydrogen gas stations mainly in the 4 metropolitan areas by
2015 in association with the revision in the High Pressure Gas Control Act and the Fire Service Act.
cell
Forecast of Fuel-Cell Vehicle Production
air
400 (thousand units)
hydrogen
300
separator
GDL
anode (catalyst)
Gas Diffusion Layer
electrolyte membrane
cathodes (catalyst) separator 200
Fuel-cell 100
stack
High-
pressure (Source : Pike Research)
0
hydrogen © Toyota Motor
gas tank 2015 2016 2017 2018 2019 2020
Sporting Goods Application
Maintain overwhelming competitive advantages in the

market required high-performance through continuous
development of new products
Further expand sales to bicycle application which has
become the mainstay of sporting goods application
Proceed the co-design and co-development with
leading brand name manufacturers of golf shaft and
fishing rods
Expand sales to new applications such as hockey sticks
and softball bats
Strengthen cost competitiveness of commodity products

Establish competitive supply chain through collaboration
with leading intermediate material manufacturers

Sales Expansion in Sporting Goods
Application with Branding Strategy
Appeal “high-performance and high-value added” advantage to
end-consumers through combination of product brand and
technology brand
Product brand Technology brand
×
A specific technology that realizes alloy
structure of a number of polymers on a
nanometer order. Toray holds the basic
patent as well as major patent for
production and application.
This is a technology that offers high-
performance and high-functional
properties to polymer materials which
could not have been realized with general
micron order alloy.
Balance between
© PINARELLO Rigidity and Flexibility
Target and Role of
Advanced Composites Business
Market Creation
Development of Development of carbon fiber
composite products / intermediate material
business market
IT-related devices Automobile / Aircraft parts
- PC housing
- Smartphone housing Toray composite products
business
Medical devices Capital participation
- CT cradle, etc. Technology Licensing
- X-ray cassette
Development of innovative materials and molding

technologies complying with market requirements

Expansion of
Develop and market composite products through the
combination between quality competitiveness of carbon
fibers / intermediate materials and outstanding molding
technology
Hybrid molding IT device housing
High-cycle RTM Automotive outer panel / structural parts
A-VaRTM Complex-shaped aircraft structural parts
Lightweight
Hybrid molding 100
High rigidity
Hybrid CFRP
CFRP molded panel 80
Modulus（GPa）
Al alloy
60
Mg alloy
40
Conventional
20 CFRTP injection
CFRTP(*1) or GFRTP（*2） Conventional
outsert injection molding GFRTP injection
0
0 1 2 3 4
*1 CFRTP Carbon Fiber Reinforced Thermoplastics Specific gravity
*2 GFRTP Glass Fiber Reinforced Thermoplastics Copyright 2012 Toray Industries, Inc. All Rights Reserved 46
Expansion of
Establish competitive production supply chain in low cost
countries
Respond to the relocation of IT / medical devices
production base to China and Southeast Asia
TAK
TARC TORAY
© SONY
Expand
production bases
(subcontractors)
ACE
EACC
TORAY
A&A Center
Collaborate with
end-customers
© Toshiba Medical Systems
Establish integrated supply chain just in front of

the market
Collaborate with end-customers including parts designing
Toray’s Global Management Principle
• Conduct cutting-edge research and development and develop advanced
materials and innovative processes at mother factories in Japan
• Leverage global production sites (in and outside Japan) to maximize business
expansion and manufacture in optimal locations
• Reinvest profits in further research and development (in Japan: advanced
materials / outside Japan: development of product applications)
⇒ Sustainable growth
Further bolster business expansion Base sites outside Japan
and cost competitiveness
Development of product applications to meet
local needs
Mother factories in Japan
Localize production to
Development of advanced materials manufacture products close to
source of demand and enhance
cost competitiveness
Creation of high value-added products
Reinvestment in
research and
Development of innovative processes
development
Thorough cost reductions

Expand Supply Capacity
by Continuing Capital Investment
Increase capacity at world four production
bases toward 2015
Expand capacity of high-performance carbon fiber
(Production start-up in 2015)
Expand production of high value added products as the global
mother factory
Expand capacity of standard grade carbon fiber for industrial
applications （Production start-up in 2014)
Respond to expanding demand of environment and energy-
related applications in USA
Install first precursor production line in France
(Production start-up in 2014)
Establish integrated structure of production from precursor to
carbon fiber
Install production facility of standard grade carbon fiber for
industrial applications (2 lines) (Production start-up in 2013 and 2015)
Establish production site having cost competitiveness

Grade Line-up by Production Base
TORAY CFA CFE TAK

Line-up Major Application
High modulus Satellite, Rocket

High-end sporting goods ◎ ○
fiber
Intermediate Aircraft primary structure
High-end sporting goods ◎ ◎ ○
modulus fiber
Standard Aircraft secondary structure
modulus fiber Luxury car ◎ ○
(fine fiber) Fuel cell parts
Standard General industry
◎ ◎ ○→◎ ○
modulus fiber Sporting goods
◎ Integrated production of precursor line and carbonization line

○ Carbonization line only

Future Expansion Plan
For Boeing’s
Ishikawa Plant new program
Prepreg
Prepreg Standard
for Ehime Plant grade
Airbus Standard High-performance carbon fiber
grade fine fiber for industrial
carbon fiber
application
for industrial
applications
Carbon Fiber Production Capacity Prepreg Production Capacity

50 60
(Ktons) (million ㎡)
50
40
40
30
TAK 30
20 TCA
CFA
20
10 CFE
10
Toray
Toray
0 0
2011 2015 2017 2020 2011 2015 2017 2020
R&D Strategy
Feedback to
Product
Strength of Toray advanced materials
Design
and processes
composite materials technology
Toray’s
・Overwhelming development
capabilities of carbon fibers and resins Strength
Process Strong
・Integrated process engineering Material
capability from polymers to composite Design unique
Design
products technology
・Global integration of R&D forces
(close collaboration with Boeing, Airbus,
Daimler, etc.) Carbon fiber Carbon fiber/resin
surface design matrix control
Molecular Carbon fiber Most suitable multi-
R&D basic strategies design tow design layer structure
A nm mm mm m
・Pursuit of ultimate performance of
carbon fiber Resin
・Improvement of performance of CF Surface

composite resins
・Development of innovative molding
technology and proposal of solution
・Further reinforcement of Global R&D
Development of High Performance
Carbon Fibers
 Achievement of compatibility Hail resistance
Lightning (Impact resistance)
between high strength and high resistance
modulus through innovative (conductivity)
technology, which was not able to
Silence
be realized with conventional Tension
technologies, by i) defect control,
ii) improvement of fracture Compression
toughness, and iii) optimization of
interface
Fiber defect control in nano-scale
10
Tensile strength (GPa)

Nano size surface image （ＡＦＭ）
Strength improvement of Defect size
carbon fibers 8
Nano
6
Target Area
4
Submicron
2
Strength
micron
T800 0
1970 1980 1990 2000 2010
T700
MJ
series
T300 Existing products
Modulus Copyright 2012 Toray Industries, Inc. All Rights Reserved 53

Technology Development for
improvement of composite performance
Respond to market needs for high performance
Matrix resin
NANOALLOY® resin Target Area
Resin tenacity
（toughness）
・Compatibility between
toughness and rigidity
・Extension of applications
Sporting
Functional material Goods
Nano-scale Aircraft
separation structure
Resin modulus (rigidity) © DUNLOP SPORTS
Functional particles Dumping control
Vibration control
 Improvement of particle Target Area
damping characteristics
・Vibration absorption for bike
・Improvement on impact
feeling of golf shaft Absorption of © PINARELLO
vibration energy Modulus
 Improvement of conductivity Toughening
Electric conductivity
Target Area
particle
・Improvement of lightning
resistance
Conductive
particle © Airbus
High conductivity and Conventional resins
impact resistance
Impact resistance
Deepening of composite molding
technology
50 ※1 ＲＴＭ：Resin Transfer Molding
Realize compatibility ※2 ＳＭＣ：Sheet Molding Compound
between high productivity Autoclave
and high performance [Prepreg]
Prepreg]
Elastic modulus （GPa）

 High cycle molding technology with Area to
40 Higher
thermoset plastics aim at Speed RTM ※1
 Realization of high modulus with [Fabric]
Fabric]
thermoplastics
 Technology verification by concept Continuous fiber
30 (CFRP)
car TEEWAVE®AR1
Key performances of TEEWAVE®AR1 Higher
modulus
(comparison with the steel body)
Press molding
Vehicle weight: 846kg (about 40% decrease) 20 Thermoset
Injection ［SMC, etc]
etc] ※2
Plastics
Mileage (1 charge): 185km (about 30% improvement)
molding Thermoplastics
Number of structural parts: 231 (about 40% decrease)
[pellet]
pellet]
<CFRP (thermoset)> Discontinuous
fiber
Monocoque frame, 10
Crash box, etc. 2 4 6 8 180
High cycle RTM (10 minutes) Molding cycle (minute)
<CFRTP (thermoplastics)>
Roof, Hatch, etc.
PP resin, Stamping molding (1 minute)

Global R&D Enhancement
Enhance world five R&D bases
Mother R&D base of Toray group
(Technical Dept., Research Lab., A&A Center and E&E Center)
Product development and technical service base for North

American market
(TCA Technical Center & Research Lab. / CFA Technical Center)
Product development and technical service base for European
market
(Pan European Technical Center / ACE Advanced Composite Engineering)
Technical service base for Korean industrial markets
(TAK Advanced Composite Materials Technical Center)
Composite product development and technical service base for

Chinese market
(TARC ： Toray Advanced Materials Research Laboratories (China) Co., Ltd.)
Strengthen R&D forces for automotive

application
Enhance parts designing technology through alliance
including M&A
Accelerate development by further enhancement of pilot
plants Copyright 2012 Toray Industries, Inc. All Rights Reserved 56
Global R&D Network
Design and R&D of prepreg and

development of Development of resin system for
CFRP automotive parts industrial applications for aircraft application
Korean domestic market
ACE
TCA
CFE TAK
CFA
TARC TORAY
Development of Cultivation of US industrial
industrial applications market and development
in Europe carbon fibers suitable for
industrial applications
Mother R&D base of Toray group

Development of - Development of basic technologies
composite products for - Development of advanced materials
Chinese domestic market and value-added products
- Development of advanced composite
technologies
R&D bases in Japan
(A&A Center & E&E Center)
A&A Center E&E Center
(Automotive & Aircraft Center) (Environment & Energy Center)
Plastics Application
Technology
Engineering Center
(1989)
Environment
Environment &
& Energy
Energy Development
Development Center
Center
Two Wings Driving Green Innovation
Automotive Center A&A E&E

(June, 2008) Center Center
Automotive Common Environment

& Aircraft fields & Energy
- structural Li battery
materials Photovoltaic
- Panel / Interior Fuel Cell
- Car electronics
Advanced Composite Center Wind power
Biomass
(April, 2009) materials
Approach to Carbon Fiber Recycling
Establish carbon fiber recycling system
Develop basic recycling technologies
Subsidiary project of Ministry of Economy, Trade and Industry
（2006∼2008）
“Verification research of carbon fiber recycling technology”
 Establish basic technology to produce recycled fiber
(chopped fiber and milled fiber)
Issues to establish recycling system
Develop mass production technology
(scrap materials separation and cost reduction)
Cultivate recycled product markets /
applications
Recycling pilot plant

(Omuta City, Fukuoka)
Chopped fiber Milled fiber
Business Plan

Business strategies (summary)
Europe Japan/Asia Americas
Establish integrated supply Strengthen R&D forces of Strengthen integrated
structure from precursor, fundamental technologies supply structure for Boeing
carbon fiber to prepreg and advanced materials, programs
-Establish in-house supply and expand production
chain to Airbus programs capacities of value-added
products as the mother Enhance supply structure
-Strengthen business factory of Group for environment and
competitiveness in Europe energy-related
applications
Create domestic market of
Expand Pan European automotive application by
Technical Center industry, government, and Develop supply chain of
academia collaboration intermediate materials and
composite products for
Reinforce R&D facility for Expand as core production automotive application
automotive application base of standard grade
(ACE and Branch Lab. of carbon fiber for industrial
Pan Europe Technical and sporting goods
Center ) applications
Establish supply chain of

intermediate materials and
composite products
Central & Eastern Europe, India and ASEAN market Latin American market
Russia and MENA market development development
development
Future Business Scale (Vision)
Net sales by product type Net Sales by application
Unit: Billion ¥ Unit: Billion ¥
350 350
Composites Industrial
Intermediate Materials Sporting Goods

300 300
Carbon Fiber Aerospace
250 250
200 200
150 150
100 100
50 50
0 0
2011 2013 2015 2020 2011 2013 2015 2020
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.

End of presentation
Unapproved diversion of any picture and

photograph in this material should withhold.

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Toray’s Business Strategy for

Carbon Fiber Composite Materials

September 21, 2012

Copyright 2012 Toray Industries, Inc. All Rights Reserved

Intensively Developing and

Green Innovation Business Expansion (GR) Project

Asia and Emerging Country Business Expansion (AE) Project

Total Cost Reduction (TC-II) Project

Copyright 2012 Toray Industries, Inc. All Rights Reserved 2

Energy Saving New Energy

© Hexagon © Lincoln Composites

© Areva Wind/Jan Oelker

Copyright 2012 Toray Industries, Inc. All Rights Reserved

<Effect of CO2 Reduction by Toray>

Copyright 2012 Toray Industries, Inc. All Rights Reserved 4

Body weight (Ton)

CFRP 17% 60 CFRP 50% titanium

(Billion yen) Consolidated Net Sales (Billion yen)

Copyright 2012 Toray Industries, Inc. All Rights Reserved 7

150 © Areva Wind/Jan Oelker

Tennis racket and Carbon Golf Shaft Boom

Total Global Demand

T1000G carbon fiber Aircraft

Copyright 2012 Toray Industries, Inc. All Rights Reserved 11

Airbus A320 Airbus A380 Rocket

Primary / Secondary structure Primary / Secondary structure

Wind power blade Tube trailer tank Battery-charging flywheel

© Areva Wind/Jan Oelker

Tidal power blade

Electric cable core

Copyright 2012 Toray Industries, Inc. All Rights Reserved 13

© Fuji Heavy Industries

Toray concept EV Roof

Hood TEEWAVE® AR1

© Toshiba Medical Systems

Body for high-speed train X-ray top panel

Robot hand for

PC housing Bridge pier

©YONEX ©DUNLOP SPORTS ©MIZUNO

Racket Golf shaft Softball bat

Copyright 2012 Toray Industries, Inc. All Rights Reserved 16

Copyright 2012 Toray Industries, Inc. All Rights Reserved 17

Develop advanced technologies for automotive market

20,000 17,900 Europe

 At Ehime Plant, build an integrated production facility of precursor and

Toray Ehime Plant

Toray Ishikawa Plant Toray Shiga, Nagoya Plant

Toray Carbon Toray Carbon Toray Carbon

Republic Toray Advanced

Copyright 2012 Toray Industries, Inc. All Rights Reserved 23

Maintain overwhelming top share in

© Boeing Boeing 777, Airbus A320

Max.80% of fastener reduction by 20 to 30% of weight reduction

Weight Reduction – Improved Fuel Efficiency

High Durability – Maintenance Cost Reduction

High Strength – Higher Cabin Pressure

High Strength – Larger Window

Corrosion Resistant – More Cabin Humidity

Copyright 2012 Toray Industries, Inc. All Rights Reserved 31

Part Boeing767 Boeing787

Main Wing Aluminum Composite

Tail Wing Aluminum Composite

Boeing 787 Flap Composite Composite

Boeing 767 Boeing 787