Toagosei Co., Ltd. 9 Acrylic ester is also used as a raw material in the manufacture of paints. Acrylic ester is one of the raw materials used in the manufacture of adhesives. Reorganization On January 1, 2009 the marketing division of our manufacturing affiliate Nihon Junyaku was integrated into Toagosei’s operations, allowing Nihon Junyaku to concentrate its management resources on manufacturing. The integration, aimed at realizing closer collaboration in R&D and marketing, is expected to enhance the efficiency of our entire polymer operations. New product development for expansion of downstream operations Under the current medium-term management plan launched last year, we aim to create a high-earning acrylic value chain by expanding the scale of operations in downstream derivative products. We have developed an action plan for our downstream derivatives, including acrylic polymers, flocculants, construction materials, and other chemical products. We focused on new product development and concerted efforts to increase sales of recently launched products, such as high-performance coating resins, high-performance dispersants, weatherresistant sealants, and UV-curable resins used for cataplasm applications. Sales for several products, however, failed to reach the targeted levels. To achieve the targets of our medium-term management plan, it is crucial to steadily develop new products in line with development schedules. Priority Business Strategy: Expand the Scale of Downstream Operations Fiscal 2009, the second year of the medium-term management plan, has been designated as an important period for returning to a growth track. Despite the current challenging business conditions, we are making steady progress in the development of new downstream products, and intend to make the capital investments required to expand sales. In addition, we will accelerate the restructuring of our monomer operations in Singapore, and we also plan to expand flocculant production at MT AquaPolymer, Inc. In this way, we aim to raise the competitiveness of our acrylics business as a whole. Acrylic esters: Acrylic fibers, fiber processors, paints, pressure sensitive and other adhesives, leather processors, paper processors, and acrylic rubber Acrylic acid: Nonwoven cloth binders, flocculants, dispersants, paper processors, superabsorbent resin, and detergent builders Polymer flocculants: Treatment of various kinds of wastewater and dehydration of sludges Construction materials: One-pack waterproof spray materials, decorative waterproof wall materials, permeable type water-absorption preventive agents, chemical grouts, and earth resistance reducing agents Main Products and Application Polymer flocculants, Aronfloc