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10 Annual Report 2008 Net sales/Operating income Toagosei’s Functional Materials Group, formed in fiscal 2007 through an amalgamation of the former Adhesives Group and UV-Curable Resins Group, has successfully leveraged the technological expertise of those two groups to achieve faster product development, enabling the Company to meet customer needs without delay. Overview of Fiscal 2008, and Topics Adhesives . TV commercial emphasizes advantages of instantbonding, wide-application consumer-use adhesives . Sales of industrial adhesives decline slightly year-onyear due to economic downturn in second half To realize steady growth in adhesives, which is a priority business, we concentrated our marketing efforts on promising application fields. We also strengthened our product development capabilities with the aim of realizing improved business results at an early date. On the Japanese market, we registered a slight increase in sales thanks to sales promotion efforts including a TV commercial for our consumer-use adhesives. In industrial applications, sales of hot-melt adhesives for the manufacture of smart cards were in line with our forecasts, while sales of reactive adhesives to makers of printed circuit boards were also favorable. Sales of industrial adhesives as a whole, however, achieved only Specialty Chemicals EFunctional Materials ENew Materials Development Functional Materials ■ Net sales ■ Operating income 0 0 10,000 20,000 30,000 40,000 2,500 5,000 7,500 10,000 (Millions of yen) 04 05 06 07 08 15.0% Net sales \24,380 million Operating income \3,906 million Sales by segment