Novaron is a high-performance antimicrobial agent employed in the molding of a wide range of plastic products for everyday use Goals for the New Medium-term Management Plan (2011.2013) Brand penetration for amenity-application materials and development of electronics materials focusing on key customers In the new medium-term management plan, the Amenity Care Materials Group aims to become the leading manufacturer of amenity-application materials in East Asia, with universal brand penetration in the region. It will expand this business under the concept of “providing people with a more comfortable living space.” Regarding IXE ion-trapping agents for adhesives for IC encapsulating material and flexible printed boards, we plan to expand sales in Japan of established products while opening up the East Asian market. The IXE business is earmarked for further major expansion, with development of next-generation products for LED encapsulating material and electronics materials applications. In the antimicrobial field, our goal is to become sector leader in Japan through nationwide development of the Novaron brand of silver-based inorganic antimicrobial agents used in interior goods such as textiles, daily items, home electrical appliances and wallpaper. Sales drives for antimicrobial agents are also planned for China, South Korea and Taiwan. We will develop new applications and expand sales in Japan for the inorganic deodorant Kesmon and Cavinon inorganic hybrid anti-fungal agent, both likewise used in daily items, home electrical appliances and other interior goods. Another focus is expanding sales of the special powdered paint Aron Powder to automakers for use in windscreen wipers. In new business developments, we will position the anti-allergen agent AlleRemove and the low-thermal expansion filler Ultea and other new products firmly in their respective markets and boost sales growth. At the same time, the priority in R&D is identification and development of major new products to serve as our next generation of growth drivers. The electronics materials group is exploring and commercializing new product ideas in close partnership with key customers and equipment manufacturers. Meanwhile, we are strengthening our cost competitiveness in high purity hexachlorodisilane (HCDR) deposition materials for semiconductor insulating films and broadening our lineup of HCDR and derivatives. We have designated this as a priority product group and aim to remain the leading manufacturer of HCDR in the world. In ethylene carbonate (EC), likewise, our goal is to retain top share of the Japanese market, through a close partnership with Mitsui Chemicals, Inc. (as supplier of manufacturing and procurement services). EC is one of the main materials for electrolytes used in lithium-ion secondary batteries for electric cars, personal computers and cell phones. We are also strongly committed to the market for the SQ series of silsesquioxane compounds used in hard coating materials, and plan to move soon to the mass production stage. Specialty Chemicals Advanced Chemicals Kiyoshi Miyazaki Executive Officer General Manager Advanced Chemicals Department Overview by Business Segment 12 Annual Report 2010