Challenges in 2011 and Our Responses Laying the foundations for next-generation growth Aronkasei sees 2011 as a year of continuation of the reforms launched in 2010. It will create a platform for creating a new generation of products, and use this first year of the mediumterm management plan to lay the groundwork for attainment of plan goals. Specific measures are as follows. (1) Strengthening monozukuri manufacturing Aronkasei is setting up a Monozukuri Center, where it plans to centralize research, development and intellectual property departments currently scattered around Japan. This will enable it to pool the know-how of each department and strengthen best-practice manufacturing capabilities. (2) Streamlining and strengthening business operations Aronkasei is considering establishing an order processing center, to centralize processing currently carried out separately at each branch and sales office, as part of moves to streamline and reinforce business operations. (3) More efficient production and logistics systems Aronkasei is revamping the layout of all facilities at the Nagoya Plant, its main manufacturing base, to eliminate waste at all stages in the manufacturing, storage and shipment processes, to raise efficiency in production and logistics. (4) Early relaunch of Mikuni Plastics as a player In 2010, all business premises of Mikuni Plastics, a member of the Aronkasei group, were integrated into Aronkasei’s bases. In 2011, Aronkasei plans to create joint development, production and logistics systems, enabling Mikuni Plastics to get back into the black and reinvigorate itself as a business. This year will be a milestone. By resolutely implementing the above policies, Aronkasei will lay the groundwork for achieving the goals of the new medium-term management plan and relaunching itself onto a growth trajectory. Main Products and Application Pipes & couplings Rigid PVC pipes Environmental products Trash receptacles Nursing care products Portable toilets, nursing care bath products and others Consolidated Subsidiaries Aronkasei Co., Ltd. Manufacture & sale of synthetic resin molded products Mikuni Plastics Co., Ltd. Manufacture & sale of synthetic resin molded products Aronkasei Co., Ltd. Nagoya plant Aronkasei Co., Ltd. web site PVC small-diameter chambers, manholes, and rigid PVC pipes Recycled plastic car stop barrier Toagosei Co., Ltd. 15