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Toray IR DayMedium-term Management Program “AP-G 2022”Electronic & Information MaterialsBusinessJune 4, 2020Hiroshi ENOMOTOVice President, General Manager,Electronic & Information Materials DivisionToray Industries, Inc.0

ContentsI. Overview of Electronic & Information Materials BusinessII. “AP-G 2022” Business Strategy1. Review of “AP-G 2019”2. Strategy for Continuous Business Expansion3. Semiconductor & Electronic Components Market4. Display Market5. Printing Market6. Business Development in New Growth Markets(Life Innovation Field)III. Target for FY 2022Copyright 2020 Toray Industries, Inc.1

I. Overview ofElectronic & Information Materials Business2

Diverse Product LineupDisplaySemiconductor & Electronic ComponentsTMPhotoneecePhotosensitivePolyimide Coating MaterialTMMain ApplicationsPhotoneecePhotosensitivePolyimide Coating MaterialSemicofineTMLight-Emitting Materialfor OLEDCoating Materialsfor Image cessing MaterialsPhotoblackTMTemporary Bonding Material, Sacrificial Layer, Protective FilmHigh-performance Light-shielding InkFlexible Circuit BoardPhotoclearTMNon-PhotosensitivePolyimide Coating MaterialPhotosensitive Functional PastePhotosensitive/Non-PhotosensitiveAdhesive FilmColor Filters forLiquid Crystal Displays(Single-sided, Double-sided)High-performance Coating MaterialPrintingTORAYCERAMTMFine CeramicsTORELIEFTMMedicalPhotosensitive Relief Printing PlateTORAY WATERLESS PLATETMX-ray Scintillator PanelOffset Printing PlateRequiring No Dampening WaterRAYTELATMLow Environmental ImpactPrinting SystemPlastic Optical FiberCopyright 2020 Toray Industries, Inc.3

Technology System and Product GroupCopper LaminatedFilmCircuit MaterialAdhesion Tech.Flexible Circuit BoardAdhesive FilmSemiconductor&ElectronicComponentsBuffer Coating MaterialResist MaterialCoating Materialsfor Image SensorsRefractive IndexControl Tech.Functional Materials for DisplayDisplayInsulation Material for OLEDFine ParticleDispersionTech.Photosensitive Polymer Design TechnologyThermally Stable Polymer Design TechnologyPolyimide FilmOrganic Semiconductor Design Tech.LCD Color FilterLight-emitting Material for OLEDHigh-performance Light-shielding InkPDP Back PlatePhotosensitive Functional PastePhotosensitive Relief Printing PlatePrintingWaterless Plate for Offset PrintingLow Environmental ImpactPrinting SystemX-ray Scintillator PanelFiber Tech.Copyright 2020 Toray Industries, Inc.Plastic Optical Fiber4Medical

Trends in Sales605040Mobile Phone AdoptionBubble Burst70Financial Crisis80Launch ofOLED SmartphoneLehman Shock90IT RecessioniPhone IntroductionNet Sales(Billion yen)OLED DisplayPDP DisplayLCD3020Printing, etc.[FY]Semiconductor & Electronic 1020112012201320142015201620172018201910Copyright 2020 Toray Industries, Inc.5

II. “AP-G 2022” Business Strategy6

1. Review of “AP-G 2019”7

Review of “AP-G 2019”“AP-G 2019” IssuesExpand business in growth areas of the display marketIdentify next high-value “post-display” markets and accelerate development of technologyand commercialization of productsAchievements and Issues in the Display MarketBusiness growth due to rapid expansion of the OLED smartphone and OLED-TV markets Issue Business growth of OLED-related materialAchievements and Issues in “Post-Display” MarketsSemiconductor & Electronic Components Market: Business expansion in semiconductor memory and electronic components for communicationRevenue growth in flexible circuit board business driven by increased demand for highdefinition and large-screen TVsPrinting Market:Business focus shifted to the growing market for industrial printing (labels, packaging) dueto the contraction of the commercial printing (newspaper, magazine) market Issue Semiconductor Electronic Components Market: Increase market share in semiconductor packagingExpand flexible circuit board technology to other applicationsFY 2019 Sales: 67.7 billion yen ( 8.2 billion yen compared to FY 2016)Copyright 2020 Toray Industries, Inc.8

2. Strategy for Continuous Business Expansion9

“The One” Strategy for Continuous Business ExpansionBasic PolicyUse advanced core technologies to create high value-added electronic materials thatmeet customer needs in a timely mannerEarn customers’ trust and continuously expand business by providing promptsolutions through advanced materials and processes“The One” StrategyEarly acquisition of future needsthrough strong, trusting relationshipswith customersDe facto standardizationby global expansion of proven materialsand technical know-howEarly adoption of our products throughrapid development using advanced andextensive fundamental technologies,process technologies, and evaluationcapabilitiesHigh barrier-to-entry(IP network, high quality, stable supply, competitive cost, customer support)Copyright 2020 Toray Industries, Inc.10

3. Semiconductor & Electronic Components Market11

3. Semiconductor & Electronic Components MarketPolyimide Products forthe Semiconductor & Electronic Component MarketsDevelop products to enable a wide variety of high-end applicationsusing our accumulated knowledge and experience in polyimide technology1975 -High breakdownvoltageThermal shockresistance2000 -2015 -High resolutionLow dielectricconstantHigh sensitivityLow temp. cureHigh TgThick-film capabilityHigh elongationHigh strengthLow out-gassingHigh adhesionHigh chemicalresistanceSlit-coating capabilityLow stressProduct Line y rollout of new products to meet changing demands in high-growth marketsCopyright 2020 Toray Industries, Inc.12

3. Semiconductor & Electronic Components MarketStrengthen the Competitiveness of Polyimide ProductsExpansion of Development and Quality Management SystemsProvide solutions through customer collaboration in our Open LabAdvanced quality control system – equipment equivalent to our customers’allows very accurate evaluation of their processes12-inch Wafer Exposure, Developing EquipmentAchieved rapid development & certification, and advanced quality controlCopyright 2020 Toray Industries, Inc.13

3. Semiconductor & Electronic Components MarketExpansion into Growth Markets for Polyimide Products(5G, IoT Fields)Development of Products for High Frequency DevicesTransition to high frequency band with evolution of wirelesscommunication systemIncreasing need for low-Df/low-Dk materialsDf: dielectric loss tangent, Dk: dielectric constant680HighLow4G5G5GSub-6Super high frequency(Millimeter wave)Dielectric loss3Frequency onventionalMaterialsNew Low-Df/DkPolyimideFrequencyPolyimide Molecular Structure Design StrategyPolarization (Dk)vibrationPolarization movement(Df)rotationSuppression of molecular movementLow DfReduction of polar groupsLow DkAchieved world's lowest Df 0.001 (@ 20 GHz)Copyright 2020 Toray Industries, Inc.14

3. Semiconductor & Electronic Components MarketGlobal Customer Development NetworkJapanToray-G Control Center(R&D, Manufacturing, Marketing, Sales)United States(Marketing, Sales)Korea(R&D, Marketing, Sales)United StatesChina(R&D, Marketing, Sales)Center for SemiconductorDesign and SalesTaiwan(Marketing, Sales)Singapore(Marketing, Sales)Asia and ASEANSemiconductor Production andAssembly BaseJapan, US, Asia and ASEAN: Three regions form an effective business development systemCopyright 2020 Toray Industries, Inc.15

3. Semiconductor & Electronic Components MarketFlexible Circuit Board and COFEstablished in 1995 as a joint venture betweenToray and Samsung GroupSingle-sided COFSince 2007IC ChipDouble-sided COFIC ChipPattern Pitch200730μm2013Pattern Pitch 12μmSince 20132019 20μm2019 9μmAbout COFA flexible circuit board connectsthe driver IC to the display(COF: Chip on Film)DisplayDriver ICCOFProvide innovative materials for TV and mobile device displays, including advancedfine-pattern technology and the world's first commercialization of double-sided COFCopyright 2020 Toray Industries, Inc.16

3. Semiconductor & Electronic Components MarketStrengthen the Competitiveness ofToray Group Flexible Circuit BoardProductionTechnologyFine patterning technologyReel-to-Reel processingAutomated inspection usingmachine learning ayAdvancedMaterialsKoreaMountDriver ICICManufacturerPanelPanelManufacturerExpand market share of COF businessbased on Toray Group’s advanced technology and supply chainCopyright 2020 Toray Industries, Inc.17FinalProductOEM

3. Semiconductor & Electronic Components MarketToray COF Technology Driving Innovative ApplicationsDevelopment of New Products such as High-functionality COF and CoilMultilayer Flexible SubstrateMultilayer Micro CoilThin film, ultra-fine wiring, micro connection viaDouble-sided COFSingle-sided COFCopper wiringPolyimideMounting TechnologyPolyimideInsulationlayerThickness72 CopperPlating100μmCross section Insulation layerICs and passive components mounted on COF in one processDisplayPanelCOFFPCAchieved miniaturization and cost reduction with fine-pattern technology!Copyright 2020 Toray Industries, Inc.18

4. Display Market19

4. Display MarketAdvanced Materials for Improved OLED DisplaysInsulation Layer and PlanarizationLayer MaterialsOrganic Light-Emitting MaterialPhotosensitive polyimideHigh reliabilityPattern shape controlHigh sensitivityHigh electron mobilityHigh efficiencyDe facto standardTouch sensor panelTFT boardFlexible Board MaterialConductive Paste“RAYBRIDTM”Non-photosensitive PolyimideFine-pattern wiringLow resistanceUltra-high heat resistanceTransparencyTrace (circuit wiring)Metal-meshExpand a wide range of advanced materials in the OLED display marketCopyright 2020 Toray Industries, Inc.20

4. Display MarketMaterials for Touch Sensor PanelsEnlarged ViewTrace(circuit wiring)Formed inSame ProcessEnlarged ViewMetal-meshL/S 8/83.5 4umFine patterning enables wiring closer to edge of touch panelLarge display size enabled by low sheet resistanceSignificant cost reduction due to simultaneous patterning of traceand metal-meshMass production for larger displays driven by demand in automotive and tablet PC marketsCopyright 2020 Toray Industries, Inc.21

4. Display MarketGlobal Customer Development NetworkKoreaAMRC: Advanced Materials Research CenterTIK: Toray International (Korea), Inc.R&D：AMRCSales：TIKJapanSmartphone ManufacturersDisplay ManufacturersToray-G Control Center(R&D, Manufacturing, Sales)ChinaR&D：TARCSales：TICH, TIGTTARC: Toray Advanced Materials Research Laboratories (China) Co., Ltd.TICH: Toray International (China) Co., Ltd.TIGT: Toray International Guangzhou Trading Co. Ltd.Build strong relationships with customers in important markets (China, Korea, etc.)Copyright 2020 Toray Industries, Inc.22

5. Printing Market23

5. Printing MarketA Serious Environmental Issue in the Printing Industry!Many chemicals in the printing process (i.e. inks, cleaning liquids) contain VOCs(VOC: Volatile Organic Compounds)Printing MethodGravure printingWaterless PlatePrintingNew Waterless PlatePrintingInkSolvent InkUV InkWater-soluble InkCuring MethodHot Air DryingUVUV/EBOrganic Solvent in Ink50 – 80 %0%0%Cleaning LiquidOrganic solventOrganic solventAqueous solventVOCs fromPrinting and CleaningProcessLotsFewNoneWaterless PlateNew DevelopmentWater-soluble InkNew DevelopmentVOC-free Cleaning LiquidConversion to a low environmental impact printing systemCopyright 2020 Toray Industries, Inc.24

5. Printing MarketDevelopment of Printing SystemAimed at “Zero Environmental Impact”Promote the “Zero Environmental Impact Printing System" as a Global StandardCopyright 2020 Toray Industries, Inc.25

5. Printing MarketGlobal Customer Development NetworkCzech RepublicToray Textiles Central Europe (TTCE)(R&D, Manufacturing, Marketing, Sales)JapanToray-G Control Center(R&D, Manufacturing, Marketing, Sales)Germany, France, Italy(Marketing, Sales)China(R&D, Marketing, Sales)United States(Marketing, Sales)Brazil(Marketing, Sales)Expand business in Europe and China with support from Japan and TTCECopyright 2020 Toray Industries, Inc.26

6. Business Expansion into New Growth Markets(Life Innovation Field)27