0 0 10,000 20,000 30,000 2,000 4,000 6,000 06 07 08 09 10 11 (est.) Net sales (left scale) Operating income (right scale) 16,970 3,740 17,436 3,748 0 5,000 10,000 20,000 15,000 Net sales (Millions of yen) Operating income (Millions of yen) 09 10 0 2,000 1,000 3,000 4,000 09 10 16,970 3,774 Goals for the New Medium-term Management Plan (2011.2013) In adhesives, focal areas are strengthening the Aron Alpha brand and development of high value-added products for the automotive and electronics materials sectors In household-use instant adhesives, we are stepping up promotional activities to bolster the Aron Alpha brand. We also aim to push out the boundaries of the adhesives market through ongoing launches of products with previously unavailable functionality. We aim to increase our share in overseas markets by making efficient use of production bases in the United States and China, and by strengthening localized product development and promotion. In industrial adhesives, we will continue to develop products for the automobile parts and electronics material sectors, focusing on hot melt and reactive products. A further boost to competitiveness will come from reorganization of production systems at the Takaoka Plant, our principal adhesives plant. At the same time, by leveraging synergies following conversion of Aron Ever-Grip Ltd. into a wholly owned production subsidiary, we are broadening the scope and speeding up the pace of product development. By advancing our adhesive processing operations in this way, we aim to transform this into a high value-added business in the near future. In construction materials, we are helping to lengthen building life through expanded marketing of Aron Wall NEO, Clear Wall and Aron Coat SQ products for the building renovation market. Aron Wall NEO is a new waterproof exterior wall coating, which shortens project durations and lowers costs while ensuring the same level of performance as comparable conventional products. Clear Wall, a method of repairing exterior walls finished with tiles (a feature of very many Japanese buildings), and Aron Coat SQ (rooftop membrane waterproofing method), are offered by Toagosei as an integrated maintenance solution for both roofs and exterior walls. We will expand marketing of these products mainly for large-scale renovation works on condominium buildings. In addition, we plan to strengthen our partnership with Zen-aron Bosui Kumiai (All-Aron waterproofing association), a grouping of specialist contractors. Specialty Chemicals Functional Chemicals Hidemi Nagano Executive Officer General Manager Functional Chemicals Department Hot melt adhesive Aron Melt PPETR Overview by Business Segment 10 Annual Report 2010