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TRIES is a raw material used in forming silicon oxide films in semiconductor / LCD production Challenges in 2011 and Our Responses Increasing production capacity and improving quality to meet rising demand Issues facing the Company in 2011 and our responses are as follows: 2011 has been designated as the year in which the groundwork is laid for improving earnings at Toagosei, through upgrades to production facilities. First, we plan to increase production capacity for EC to meet a dramatic increase in demand. Better quality will translate into stronger earnings capability in this business. Through our joint venture with Mitsui Chemicals, we plan to build new production facilities in Osaka, and will additionally launch high-purity EC products using new refining facilities at our Nagoya Plant. We are likewise steadily upgrading production facilities for IXE, Novaron, Cavinon and HCDR products, to ensure adequate capacity to meet growth in volume demand for each of these product groups. Currently under discussion are ways of increasing efficiency across-the-board, including ironing out problems at established but underperforming facilities (rather than simply building new lines), and stepping up our ability to produce multiple new products through sharing of resources. All of these projects are earmarked for early completion and commercialization. Main Products and Application Silver-based antimicrobial agents For kitchen and bathroom equipment, building materials, and textiles Hexachlorodisilane (HCDR) For silicon nitride films used in semiconductors Organic and inorganic hybrid agents Antiallergic agents and insect processing repellents SEM Cross-Sectional View 1μm High purity TRIES Silver-based inorganic antimicrobial agent Novaron is used in masks Ethylene carbonate (EC) is a key raw material for electrolytes used in lithium-ion secondary batteries Consolidated Subsidiary MT Ethylene Carbonate Co., Ltd. Manufacture of ethylene carbonate Antiallergic agents AlleRemoveR Toagosei Co., Ltd. 13